[letterhead]
16 January 1996
Xx. Xxxxx X. Xxxxx
Xxxxxx-Xxxxxx Utility District
P.O. Box 428
Lake City, TN 37769
RE: Additional Volumes -- Storage Service Agreement dated 7 July 1995
Dear Xxx:
Virginia Gas Storage Company ("VGSC") is willing to increase Xxxxxx-Xxxxxx
Utility District's ("P - C's") Maximum Storage Quantities (MSQ's) by 300,000
MMBtu per year beginning in the 1996 Contract Year under the same rates
described in Article 2.1 of the 7 July 1995 Firm Storage Service Agreement
(the "Agreement") as you requested. You have indicated that Xxxxxx-Xxxxxx
desires in addition to exercise the Options for 75,000 MMBtu per year from
the 1998 through the 2002 Contract Years as described in Article 6.1 of the
Agreement. This will result in the following:
Maximum Monthly
Daily Storage
Contract MSQ Withdrawals Charge
Year (MMBtu) (MMBtu/Day) Payment
-------- ------- ----------- -----------
1996.................525,000 4,375 $ 37,187.50
1997.................600,000 5,000 42,500.00
1998.................675,000 5,625 47,812.50
1999.................750,000 6,250 53,125.00
2000.................825,000 6,875 58,437.50
2001.................900,000 7,500 63,750.00
2002 through
2009.................975,000 8,125 69,062.50
The Delivery Point for injections is ETNG Meter Number 759147. For
withdrawals, VGSC can redeliver stored volumes to P - C at ETNG Meter Number
759009, Xxxxxxxxx #2, or the Saltville/ETNG interconnect.
Xx. Xxxxx X. Xxxxx
16 January 1996
Page Two
Maximum Daily Injection Quantities will be proportionately increased to
reflect the abovementioned additional volumes using the methodology outlined
in Article 1.5 of the Agreement.
If the foregoing accurately reflects your understanding of the revisions to
the Agreement that our two companies wish to make at this time, please so
indicate by signing below and returning one copy for our records.
If I can be of any further assistance to you in this matter, please do not
hesitate to call me.
Sincerely,
VIRGINIA GAS STORAGE COMPANY
/s/ X.X. Xxxxxxx
---------------------
Xxxxxxx X. Xxxxxxx
President
AGREED TO and ACCEPTED
This 25th day of January, 1996.
XXXXXX-XXXXXX UTILITY DISTRICT
By: /s/ Xxxxx X. Xxxxx
------------------------
Xxxxx X. Xxxxx
Its: General Manager
