Exhibit 10(b)
Contract #: T1105F
NORTHERN BORDER PIPELINE COMPANY
U.S. SHIPPERS SERVICE AGREEMENT
This Agreement (the "Service Agreement") is made and entered into
at Omaha, Nebraska as of October 27, 1997 , by and between
NORTHERN BORDER PIPELINE COMPANY, hereinafter referred to as
"Company" and THE PEOPLES GAS LIGHT AND COKE COMPANY, an
Illinois corporation, hereinafter referred to as "Shipper".
WHEREAS, Company's investors and lenders rely on Certificates of
Public Convenience and Necessity granted by the Federal Energy
Regulatory Commission and on the Tariff for the return of and the
return on all funds invested in or loaned to the Company; and
WHEREAS, the transportation of natural gas shall be effectuated
pursuant to Part 157 or Part 284 of the Federal Energy Regulatory
Commission's Regulations; and
WHEREAS, Enron Capital & Trade Resources Corp. has elected to
permanently release to its Designated Replacement Shipper, The
Peoples Gas Light and Coke Company, a portion of its capacity
under its U.S. Shippers Service Agreement #T1061F dated August
15, 1997, as amended; and
WHEREAS, Shipper and Company intend that the Amendment of U.S.
Shippers Service Agreement T1061F will become effective on
November 1, 1998.
WHEREAS, Company recognizes that it will be a condition to the
initial effectiveness of this Service Agreement that,
notwithstanding any other provision of the Tariff or this Service
Agreement, the FERC and all other appropriate federal
governmental authorities and/or agencies in the United States
shall have issued, under terms and conditions acceptable to
Shipper, all final nonappealable authorizations and certificates;
NOW THEREFORE, in consideration of their respective covenants and
agreements hereinafter set out, the parties hereto covenant and
agree as follows:
Article 1 - Basic Receipts
Shipper shall on each day beginning with Shipper's Billing
Commencement Date, as defined in Section 1 of the General Terms
and Conditions of Company's FERC Gas Tariff, be entitled to
tender and, following tender, deliver to Company, at each of
Shipper's Points of Receipt, a quantity of gas not in excess of
the Daily Receipt Quantity for such Point of Receipt for such
day, as defined in such Section 1, and Company shall, on such
day, take receipt of the quantity of gas so tendered and
delivered by Shipper at such Point of Receipt.
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Contract #: T1105F
NORTHERN BORDER PIPELINE COMPANY
U.S. SHIPPERS SERVICE AGREEMENT
Article 2 - Excess Receipts
If Shipper shall desire to tender to Company on any day beginning
with Shipper's Billing Commencement Date, at any of Shipper's
Points of Receipt, a quantity of gas in excess of Shipper's Daily
Receipt Quantity for such Point of Receipt for such day, it shall
notify Company of such desire. If Company in its sole judgment,
determines that it has available the necessary capacity to
receive and transport all or any part of such excess quantity and
make deliveries in respect thereof, and that the performance of
Company's obligations to other Shippers under their Agreements
will not be adversely affected thereby, Company may elect to
receive from Shipper said excess quantity or part thereof, and
shall so notify Shipper. Scheduling of Excess Receipts will be in
accordance with Section 10 of the General Terms and Conditions.
Article 3 - Deliveries
Company shall deliver gas to Shipper at the Point(s) of Delivery
and under the conditions specified in Exhibit A hereto and in
accordance with Section 13 of the General Terms and Conditions.
Article 4 - Payments
Shipper shall make payments to Company in accordance with Rate
Schedules T-1 and OT-1 and the other applicable terms and
provisions of this Service Agreement.
Article 5 - Change in Tariff Provisions
Upon notice to Shipper, Company shall have the right to file with
the Federal Energy Regulatory Commission any changes in the terms
of any of its Rate Schedules, General Terms and Conditions or
Form of Service Agreement as Company may deem necessary, and to
make such changes effective at such times as Company desires and
is possible under applicable law. Shipper may protest any filed
changes before the Federal Energy Regulatory Commission and
exercise any other rights it may have with respect thereto.
Article 6 - Cancellation of Prior Agreements
When this Service Agreement becomes effective, it shall
supersede, cancel and terminate the following Agreements:
- none -
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Contract #: T1105F
NORTHERN BORDER PIPELINE COMPANY
U.S. SHIPPERS SERVICE AGREEMENT
Article 7 - Term
This Service Agreement shall become effective upon its execution
and shall under all circumstances continue in effect in
accordance with the Tariff for ten (10) years, five (5) months,
and one (1) day after the Billing Commencement Date, defined
herein as the later of November 1, 1998, or the in-service date
of the facilities certificated for the construction and operation
in a Federal Energy Regulatory Commission proceeding prosecuted
by Company in reliance upon this Agreement, and shall continue in
effect thereafter until extended or terminated in accordance with
Section 5 of the Rate Schedule T-1. Shipper shall give Company
not less than six (6) months prior written notice of Shipper's
intent to terminate this Service Agreement. Service rendered
pursuant to this Service Agreement shall be abandoned upon
termination of this Service Agreement.
This Service Agreement shall automatically terminate and be of no
further force and effect unless Shipper shall furnish a proper
security arrangement, in accordance with Subsection 9.1 of Rate
Schedule T-1, to the Company within thirty (30) days after notice
from the Company subsequent to the occurrence of any of the
following events:
The filing by Shipper or its parent of a voluntary petition
in bankruptcy or the entry of a decree or order by a court
having jurisdiction in the premises adjudging the Shipper as
bankrupt or insolvent, or approving as properly filed a
petition seeking reorganization, arrangement, adjustment or
composition of or in respect of the Shipper under the
Federal Bankruptcy Act or any other applicable federal or
state law, or appointing a receiver, liquidator, assignee,
trustee, sequestrator (or other similar official) of the
Shipper or any substantial part of its property, or the
ordering of the winding-up or liquidation of its affairs,
with said order or decree continuing unstayed and in effect
for a period of sixty (60) consecutive days.
A failure by Shipper to pay in full the undisputed amount of
any invoice rendered by Company shall continue for ten (10)
days from the date payment is due.
Termination of this Service Agreement shall not relieve Company
and Shipper of the obligation to correct any Receipt or Delivery
Imbalances hereunder, or Shipper to pay money due hereunder to
Company and shall be in addition to any other remedies that
Company may have.
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Contract #: T1105F
NORTHERN BORDER PIPELINE COMPANY
U.S. SHIPPERS SERVICE AGREEMENT
Article 8 - Applicable Law and Submission to Jurisdiction
This Service Agreement and Company's Tariff, and the rights and
obligations of Company and Shipper thereunder are subject to all
relevant United States lawful statutes, rules, regulations and
orders of duly constituted authorities having jurisdiction.
Subject to the foregoing, this Service Agreement shall be
governed by and interpreted in accordance with the laws of the
State of Nebraska. For purposes of legal proceedings, this
Service Agreement shall be deemed to have been made in the State
of Nebraska and to be performed there, and the Courts of that
State shall have jurisdiction over all disputes which may arise
under this Service Agreement, provided always that nothing herein
contained shall prevent the Company from proceeding at its
election against the Shipper in the Courts of any other state,
Province or country.
At the Company's request, the Shipper shall irrevocably appoint
an agent in Nebraska to receive, for it and on its behalf,
service of process in connection with any judicial proceeding in
Nebraska relating to this Service Agreement. Such service shall
be deemed completed on delivery to such process agent (even if
not forwarded to and received by the Shipper). If said agent
ceases to act as a process agent within Nebraska on behalf of
Shipper, the Shipper shall appoint a substitute process agent
within Nebraska and deliver to the Company a copy of the new
agent's acceptance of that appointment within 30 days.
Article 9 - Successors and Assigns
Any person which shall succeed by purchase, amalgamation, merger
or consolidation to the properties, substantially as an entirety,
of Shipper or of Company, as the case may be, and which shall
assume all obligations under Shipper's Service Agreement of
Shipper or Company, as the case may be, shall be entitled to the
rights, and shall be subject to the obligations, of its
predecessor under Shipper's Service Agreement. Either party to a
Shipper's Service Agreement may pledge or charge the same under
the provisions of any mortgage, deed of trust, indenture,
security agreement or similar instrument which it has executed,
or assign such Service Agreement to any affiliated Person (which
for such purpose shall mean any person which controls, is under
common control with or is controlled by such party). Nothing
contained in this Article 9 shall, however, operate to release
predecessor Shipper from its obligation under its Service
Agreement unless Company shall, in its sole discretion, consent
in writing to such release, which it shall not do unless it
concludes that, on the basis of the facts available to it, such
release is not likely to have a substantial adverse effect upon
other Shippers or other Persons who may become liable to provide
funds to Company to enable it to meet any of its obligations.
Company shall not release any Shipper from its obligations under
its Service Agreement without the written consent of the other
Shippers unless: (a) such release
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Contract #: T1105F
NORTHERN BORDER PIPELINE COMPANY
U.S. SHIPPERS SERVICE AGREEMENT
is effected pursuant to an assignment of obligations by such
Shipper, and the assumption thereof by the assignee, and the
terms of such assignment and assumption render the obligations
being assigned and assumed no more conditional and no less
absolute than those at the time provided therein; and (b) such
release is not likely to have a substantial adverse effect upon
Company or the other Shippers. For the purposes hereof, and
without limiting the generality of the foregoing, any release of
any Shipper from its obligations under its Service Agreement
shall be deemed likely to have a substantial adverse effect upon
Company or the other Shippers if the assignee of such obligations
has a credit standing which is not at least equal to the credit
standing of the assignor of such obligations (credit standings in
each case as reflected by the ratings on outstanding debt
securities by ▇▇▇▇▇'▇ Investors Service, Standard and Poor's
Corporation or another rating service acceptable to all Shippers
to the extent available or by other appropriate objective
measures). Shipper shall, at Company's request, execute such
instruments and take such other action as may be desirable to
give effect to any such assignment of Company's rights under such
Shipper's Service Agreement or to give effect to the right of a
Person whom the Company has specified pursuant to Section 6 of
the General Terms and Conditions of Company's FERC Gas Tariff as
the Person to whom payment of amounts invoiced by Company shall
be made; provided, however, that: (a) Shipper shall not be
required to execute any such instruments or take any such other
action the effect of which is to modify the respective rights and
obligations of either Shipper or Company under this Service
Agreement; and (b) Shipper shall be under no obligation at any
time to determine the status or amount of any payments which may
be due from Company to any Person whom the Company has specified
pursuant to said Section 6 as the Person to whom payment of
amounts invoiced by Company shall be made.
Article 10 - Loss of Governmental Authority, Gas Supply,
Transportation or Market
Without limiting its other responsibilities and obligations under
this Service Agreement, the Shipper acknowledges that it is
responsible for obtaining and assumes the risk of loss of the
following: (1) gas removal permits, (2) export and import
licenses, (3) gas supply, (4) markets and (5) transportation
upstream and downstream of the Company's pipeline system.
Notwithstanding the loss of one of the items enumerated above,
Shipper shall continue to be liable for payment to the Company of
the transportation charges as provided for in this Service
Agreement.
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Contract #: T1105F
NORTHERN BORDER PIPELINE COMPANY
U.S. SHIPPERS SERVICE AGREEMENT
Article 11 -Other Operating Provisions
(This Article to be utilized when necessary to specify other
operating provisions.)
Article 12 - Exhibit A of Service Agreement, Rate Schedules and
General Terms and Conditions
Company's Rate Schedules and General Terms and Conditions, which
are on file with the Federal Energy Regulatory Commission and in
effect, and Exhibit A hereto are all applicable to this Service
Agreement and are hereby incorporated in, and made a part of,
this Service Agreement. In the event that the terms and
conditions herein are in conflict with the General Terms and
Conditions in Company's FERC Gas Tariff, the terms and conditions
of this Service Agreement are controlling.
IN WITNESS WHEREOF, The parties hereto have caused this Service
Agreement to be duly executed as of the day and year first set
forth above.
ATTEST: NORTHERN BORDER PIPELINE COMPANY
By: Northern Plains Natural Gas Company,
Operator
/s/ ▇▇▇ ▇▇▇▇▇▇▇ By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇
Assistant Secretary
Title: Vice President
ATTEST: THE PEOPLES GAS LIGHT AND COKE COMPANY
/s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Assistant Secretary
Title: Vice President
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Contract #: T1105F
NORTHERN BORDER PIPELINE COMPANY
U.S. SHIPPERS SERVICE AGREEMENT
EXHIBIT A TO U.S. SHIPPERS SERVICE AGREEMENT
Company: NORTHERN BORDER PIPELINE COMPANY
Company's Address: ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Shipper: THE PEOPLES GAS LIGHT AND COKE COMPANY
Attn: Mr. Raulando ▇. ▇▇ ▇▇▇▇
Shipper's Address: ▇▇▇ ▇. ▇▇▇▇▇▇▇▇ ▇▇.
Gas Supply Administration
▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Maximum Minimum Maximum
Role Maximum Receipt Delivery Receipt Minimu
(Notes Quantity Pressure Pressure Temperature m
Points 1 and 3) (MCF/Day) (PSIG) (PSIG) (F) Temper
ature
(F)
Ventura, IA RD 15,000 -- -- -- --
TP 15,000 -- -- -- --
DD 15,000 -- -- -- --
Grundy Center, IA RD 15,000 -- -- -- --
(Secondary-Note 2) TP 15,000 -- -- -- --
PD 15,000 -- 800 -- 32
DD 15,000 -- -- -- --
Beaman, IA RD 5,100 -- -- -- --
(Secondary-Note 2) TP 15,000 -- -- -- --
PD 5,100 -- 839 -- 32
DD 5,100 -- -- -- --
Tama, IA RD 880 -- -- -- --
(Secondary-Note 2) TP 15,000 -- -- -- --
PD 880 -- 816 -- 32
DD 880 -- -- -- --
Amana, IA RD 15,000 -- -- -- --
(Secondary-Note 2) TP 15,000 -- -- -- --
PD 15,000 -- 783 -- --
DD 15,000 -- -- -- --
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Contract #: T1105F
NORTHERN BORDER PIPELINE COMPANY
U.S. SHIPPERS SERVICE AGREEMENT
EXHIBIT A TO U.S. SHIPPERS SERVICE AGREEMENT (continued)
Maximum Minimum Maximum
Role Maximum Receipt Delivery Receipt Minimu
(Notes Quantity Pressure Pressure Temperature m
Points 1 and 3) (MCF/Day) (PSIG) (PSIG) (F) Temper
ature
(F)
Harper, IA RD 15,000 -- -- -- --
(Secondary-Note 2) TP 15,000 -- -- -- --
PD 15,000 -- 712 -- 32
DD 15,000 -- -- -- --
Iowa City, IA RD 15,000 -- -- -- --
(Secondary-Note 2) TP 15,000 -- -- -- --
PD 15,000 -- 600 -- 32
DD 15,000 -- -- -- --
Davenport, IA RD 15,000 -- -- -- --
(Secondary-Note 2) TP 15,000 -- -- -- --
PD 15,000 -- 650 -- 32
DD 15,000 -- -- -- --
Prophetstown, IL RD 15,000 -- -- -- --
(Secondary-Note 2) TP 15,000 -- -- -- --
PD 15,000 -- 600 -- 32
DD 15,000 -- -- -- --
▇▇▇▇ Grove, IL RD 15,000 -- -- -- --
(Secondary-Note 2) TP 15,000 -- -- -- --
PD 15,000 -- 750 -- 32
DD 15,000 -- -- -- --
Minooka, IL RD 15,000 -- -- -- --
(Secondary-Note 2) TP 15,000 -- -- -- --
PD 15,000 -- 550 -- 32
DD 15,000 -- -- -- --
Channahon, IL RD 15,000 -- -- -- --
(Secondary-Note 2) TP 15,000 -- -- -- --
PD 15,000 -- 850 -- 32
DD 15,000 -- -- -- --
Joliet, IL RD 15,000 -- -- -- --
(Secondary-Note 2) TP 15,000 -- -- -- --
PD 15,000 -- 850 -- 32
DD 15,000 -- -- -- --
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Contract #: T1105F
NORTHERN BORDER PIPELINE COMPANY
U.S. SHIPPERS SERVICE AGREEMENT
EXHIBIT A TO U.S. SHIPPERS SERVICE AGREEMENT (continued)
Maximum Minimum Maximum
Role Maximum Receipt Delivery Receipt Mini
(Notes Quantity Pressure Pressure Temperature mum
Points 1 and 3) (MCF/Day) (PSIG) (PSIG) (F) Temp
erat
ure
(F)
Manhattan, IL RD 15,000 -- -- -- --
TP 15,000 -- -- -- --
PD 15,000 -- 858 -- 32
DD 15,000 -- -- -- --
Total Maximum
Receipt Quantity 15,000
MCF
Note 1:The point role will be either PR for physical receipts,
RD for receipt by displacement, TP for transfer points,
PD for physical deliveries, and DD for delivery by
displacement.
Note 2:Should nominations at secondary receipt and delivery'
points be received which exceed available capacity,
volumes will be scheduled in accordance with Northern
Border's nomination and scheduling procedures.
Note 3:For receipt or delivery of gas by displacement, Company
cannot and does not have an obligation to physically
deliver or receive gas at these points. Volumes will be
delivered or received at these point(s) only to the
extent that corresponding equal or greater volumes are
received or delivered by other parties at these points on
the same day. These corresponding volumes will be used to
displace volumes nominated for delivery or receipt by
Shipper.
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Contract # T1105F
NORTHERN BORDER PIPELINE COMPANY
U.S. SHIPPERS SERVICE AGREEMENT
EXHIBIT A TO U.S. SHIPPERS SERVICE AGREEMENT (continued)
Note 3:For receipt or delivery of gas by displacement. Company
cannot and does not have an obligation to physically
deliver or receive gas at these points. Volumes will be
delivered or received at these point(s) only to the
extent that corresponding equal or greater volumes are
received or delivered by other parties at these points on
the same day. These corresponding volumes will be used to
displace volumes nominated for delivery or receipt by
Shipper.
Note 4:Gas volumes which are nominated/scheduled at a sub
primary receipt or delivery point(s) have priority over
gas volumes of shipper utilizing such point on a
corresponding basis as a secondary receipt or delivery
point. Shipper's rights and obligations regarding the use
of sub primary points are governed by Subsection 17.1 of
the General Terms and Conditions of the Tariff.
This Exhibit A is made and entered into as of October 27,1997. On
the effective date designated by the Federal Energy Regulatory
Commission, it shall supersede the Exhibit A dated as of - .
The effective date of this Exhibit A is October 27, 1997 .
ATTEST: NORTHERN BORDER PIPELINE COMPANY
By: Northern Plains Natural Gas Company,
Operator
/s/ ▇▇▇ ▇▇▇▇▇▇▇ By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇
Assistant Secretary
Title: Vice President
ATTEST: THE PEOPLES GAS LIGHT AND COKE COMPANY
/s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Assistant Secretary
Title: Vice President
