Gas Management Agreement for Purchase and Delivery of Natural Gas
1. This Agreement is made and entered this ____ day of August, 2000, to be
effective on the Wentworth ethanol plant site start-up assumed to be mid-year
2001, by and between NorthWestem Energy, a division of NorthWestem Services
Group ("Northwestern") and Dakota Ethanol - LLC ("Customer") for the purchase
and delivery of natural gas at the existing interconnection between the
facilities of NorthWestem Public Service, a division of Northwestern Corporation
("NPS") and Northern Natural Gas Company ("NNG"), located near Madison, South
Dakota, or a future alternate delivery point.
2. Maximum Daily Quantity (estimated) (1) 45,000 therms per day
3. Average Daily Quantity (estimated) (1) 42,000 therms per day
4. Twelve Month Quantity (estimated) (1) 11,150,000 therms
(1) ______ Northwestern and Customer agree that the above stated
volumes are estimates. Plant volumes may change from time to time and
future expansion may occur prior to the end of this contract term.
Nonetheless, Northwestern agrees to offer the same prices as stated in
Section 6. below.
5. Service: Firm TBS Gas Supply and Management.
6. Price: (Indexed Pace Option)
COMMODITY CHARGES:
Gas supply charge (2) Per therm equivalent price as reported
in the first of the month issue of
INSIDE F.E.R.C. GAS MARKET REPORT for
NNG - Ventura published for the month
of use, plus the following related
services:
(a) Pipeline firm capacity Per therm equivalent charge at 30% of
NNG's maximum TFX reservation rate
applicable for the month, inclusive of
all reservation charge surcharges
imposed by NNG. The above rate will be
converted to a 100% load factor
commodity charge.
(b) Pipeline firm commodity Per therm equivalent charge in NNG's
tariff.
(c) Carlton surcharge Per therm equivalent charge in NNG's
tariff.
(d) Pipeline fuel retention
Gross-up for pipeline fuel based on the
percentage for mainline fuel in NNG's
tariff.
Distribution delivery service Service is provided directly to
Customer by NPS.
Balancing service Customer will provide nominations to
Northwestern and obtain own balancing
service.
PLUS APPLICABLE SALES TAXES
(2) ______ Gas supply charge can be converted to a fixed price for any
month, at desired quantity of therms, at any time during the contract
term.
7. ___Term: ______ Date of initial plant start-up through October 31, 2003.
8. ___Billing and Payment: _______ NorthWestern shall use reasonable
efforts to render invoices on or before the tenth (10th) day of each month for
all gas commodity and monthly customer charges applicable to gas deliveries to
the Customer in the preceding month. Customer shall pay NorthWestern on or
before the twenty-fifth (25th) day of each month for all charges reflected on
the invoice rendered by NorthWestern in the current month.
DAKOTA ETHANOL - LLC NORTHWESTERN ENERGY, A DIVISION OF
NORTHWESTERN SERVICES GROUP
By /s/ Xxxx Xxxxx By /s/ Xxxxxx X. Xxxxxxxxx
------------------------- ------------------------------------
Title Vice Chairman Title Vice President
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GAS MANAGEMENT: Initial Plant Start-up through October 31, 2003
SUPPLY ID # S.D. 2000-08
