GREY:WSCEE - Post by User
Comment by
pioneer69on Jun 24, 2009 11:28am
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Post# 16094744
RE: RE: Another order...
RE: RE: Another order..."Each water remediation unit will be leased to the customer for an initial one year term on a daily rental fee. The customer has agreed to pay the entire first year's rental amount for the first unit upon commencement of construction of that unit. If the customer terminates the lease for the first or any subsequent unit in the first year of that lease, it will pay a lease termination fee equal to the rental fees for the remainder of the first year. The lease rates for this contract will provide Wescorp with a full return of capital expenses and each unit will provide positive cash flow in less than 12 months. Under the terms of this contract, there are 5 standard through-put or volume capacity designs for the water remediation units being 200, 500, 1,000, 2,000 and 5,000 barrels per day (BBLS/day). The daily lease rate is determined by the through-put capacity of each particular unit, with rates ranging from $900 to $2500 per day"