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EXHIBIT 10-15A
SERVICE AGREEMENT
APPLICABLE TO THE STORAGE OF NATURAL GAS
UNDER RATE SCHEDULE GSS
(SECTION 7(c))
AGREEMENT made as of this 1st day of December, 1993, by and
between CNG TRANSMISSION CORPORATION, a Delaware corporation, hereinafter called
"Pipeline," and NEW JERSEY NATURAL GAS COMPANY, a New Jersey corporation,
hereinafter called "Customer."
WITNESSETH: That in consideration of the mutual covenants
herein contained, the parties hereto agree that Pipeline will store natural gas
for Customer during the term, at the rates and on the terms and conditions
hereinafter provided and, with respect to gas delivered by each of the parties
to the other, under and subject to Pipeline's Rate Schedule GSS and all of the
General Terms and Conditions contained in Pipeline's FERC Gas Tariff and any
revisions thereof that may be made effective hereafter:
ARTICLE I
QUANTITIES
Beginning as of October 1, 1993 and thereafter for the
remaining term of this agreement, Customer agrees to deliver to Pipeline and
Pipeline agrees to receive for storage in Pipeline's underground storage
properties, and Pipeline agrees to inject or cause to be injected into storage
for Customer's account, store, withdraw from storage, and deliver to Customer
and Customer agrees to receive, quantities of natural gas as set forth on
Exhibit A, attached hereto.
ARTICLE II
RATE
A. For storage service rendered by Pipeline to Customer
hereunder, Customer shall pay Pipeline in accordance with Rate Schedule GSS
contained in Pipeline's effective FERC Gas Tariff or any effective superseding
rate schedule. Said rate schedule or superseding rate schedule and any revisions
thereof which shall be filed and made effective shall apply to and be a part of
this Agreement. Pipeline shall have the right to propose to and file with the
Federal Energy Regulatory Commission or other body having jurisdiction, changes
and revisions of any effective rate schedule, or to propose and file superseding
rate schedules, for the purpose of changing the rate, charges, and other
provisions thereof effective as to Customer; provided, however, that any request
by Pipeline to amend the
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terms and conditions of Rate Schedule GSS must be consistent with the terms and
conditions of Article VII, Part 2, Paragraph (F) of the Stipulation filed on
March 31, 1993 by Pipeline in Docket No. RS92-14 and conform to the requirements
of Section 7 (b) of the Natural Gas Act, if applicable, and provided further
that Pipeline and Customer agree that they will not seek to place in effect a
change in any aspect of the terms and conditions under Section 8 of Rate
Schedule GSS for a period of two years from the date of such request. The filing
of requests, changes and revisions of Rate Schedule GSS shall be without
prejudice to the right of Customer to contest or oppose such requests, filings
or revisions and their effectiveness.
B. The Storage Demand Charge and the Storage Capacity Charge
provided in the aforesaid rate schedule shall commence on October 1, 1993.
ARTICLE III
TERM OF AGREEMENT
Subject to all the terms and conditions herein, this Agreement
shall be effective as of October 1, 1993, and shall continue in effect for a
primary term through and including March 31, 2006, and for subsequent annual
terms of April 1 through March 31 thereafter, until either party terminates this
Agreement by giving written notice to the other at least twenty-four months
prior to the start of an annual term.
ARTICLE IV
POINTS OF RECEIPT AND DELIVERY
The Points of Receipt for Customer's tender of storage
injection quantities, and the Point(s) of Delivery for withdrawals from storage
shall be specified on Exhibit A, attached hereto.
ARTICLE V
SPECIAL OPERATING CONDITIONS
For the sole purpose of calculating Customer's Storage Gas
Balance to determine the initial decline in Customer's Daily Entitlement,
Pipeline shall multiply Customer's actual Storage Gas Balance by a factor of
1.176. For purposes other than calculating the initial decline in Customer's
Daily Entitlement, Customer's Storage Gas Balance shall remain equal to
Customer's actual inventory in storage.
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ARTICLE VI
MISCELLANEOUS
A. No change, modification or alteration of this Agreement
shall be or become effective until executed in writing by the parties hereto;
provided, however, that the parties do not intend that this Article VI.A.
requires a further written agreement either prior to the making of any request
or filing permitted under Article II hereof or prior to the effectiveness of
such request or filing after Commission approval, provided further, however,
that nothing in this Agreement shall be deemed to prejudice any position the
parties may take as to whether the request, filing or revision permitted under
Article II must be made under Section 7 or Section 4 of the Natural Gas Act.
B. Any notice, request or demand provided for in this
Agreement, or any notice which either party may desire to give the other, shall
be in writing and sent to the following addresses:
Pipeline: CNG Transmission Corporation
▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: Vice President, Marketing
and Customer Services
Customer: New Jersey Natural Gas Company
▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇
▇.▇. ▇▇▇ ▇▇▇▇
▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇ ▇▇▇▇▇▇▇
or at such other address as either party shall designate by formal written
notice.
C. No presumption shall operate in favor of or against either
party hereto as a result of any responsibility either party may have had for
drafting this Agreement.
D. The subject headings of the provisions of this Agreement
are inserted for the purpose of convenient reference, and are not intended to
become a part of or to be considered in any interpretations of such provisions.
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ARTICLE VII
PRIOR CONTRACTS
This Service Agreement shall supersede and cancel, as of the
effective date, the Service Agreements for storage service between Customer and
Pipeline dated June 1, 1993.
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be signed by their duly authorized officials as of the day and year
first above written.
CNG TRANSMISSION CORPORATION
(PIPELINE)
BY: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇
-----------------------------
ITS: VICE PRESIDENT
NEW JERSEY NATURAL GAS COMPANY
(CUSTOMER)
BY: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇
ITS: Vice President-Gas Supply
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(TITLE)
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EXHIBIT A
TO THE GSS (SECTION 7(c))
STORAGE SERVICE AGREEMENT
DATED DECEMBER ___ , 1993
BETWEEN CNG TRANSMISSION CORPORATION AND
NEW JERSEY NATURAL GAS COMPANY
A. QUANTITIES
The quantities of natural gas storage service which Customer may
utilize under this service Agreement, as well as Customer's applicable
Billing Determinants, are as follows:
1. Storage Capacity of 4,353,382 Dekatherms (Dt), and
2. Storage Demand of 45,911 Dt per day.
B. POINTS OF RECEIPT AND DELIVERY
1. The Points of Receipt for Customer's tender of storage injection
quantities, and the maximum quantities and character of service for
each point shall be as set forth below. Pipeline will use due care and
diligence to assure, and Customer will use due care and diligence to
cause its transporter to assure, that uniform pressures will be
maintained at the Receipt Points as reasonably may be required to
render service hereunder, but Pipeline will not be required to accept
gas at less than the minimum pressures specified herein. Pipeline will
not be required to accept gas for injection into storage at the points
specified in B.1.b., below, unless either (i) Customer tenders at the
same time no less than 4,599 Dt per day at the ▇▇▇▇▇ Interconnection or
(ii) Customer, during that Summer Period, has already tendered 694,449
Dt or more at the ▇▇▇▇▇ Interconnection.
a. Up to 24,185 Dt per Day at the interconnection of the facilities of
Pipeline and Texas Eastern Transmission Corporation ("Texas
Eastern") or Transcontinental Gas Pipe Line Corporation ("Transco")
or other pipeline(s) in Clinton County, Pennsylvania, known as the
▇▇▇▇▇ Interconnection, at a pressure of not less than one thousand
(1,000) pounds per square inch gauge ( "psig").
b. Up to 24,185 Dt per Day at the "Texas Eastern Market Zone 2 Point"
which shall consist of any combination of the following points:
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EXHIBIT A
DECEMBER __, 1993 (GSS SECTION 7(c)) AGREEMENT
BETWEEN CNG TRANSMISSION CORPORATION
AND NEW JERSEY NATURAL GAS COMPANY
PAGE 2 OF 4
1. The interconnection of the facilities of Pipeline and Texas Eastern or
other pipeline(s) in ▇▇▇▇▇▇▇▇▇▇▇▇ County, Pennsylvania, known as the
Oakford Interconnection, at a pressure of not less than five hundred
seventy-five (575) psig.
2. An existing point of interconnection between Pipeline and Texas Eastern
Transmission Corporation ("Texas Eastern") located in Noble County,
Ohio, at Texas Eastern Measuring Station 450, at the operating pressure
existing at the point of delivery.
3. An existing point of interconnection between Pipeline and Texas Eastern
located in Monroe County, Ohio, at Texas Eastern Measuring Station 471,
at a pressure of not less than two hundred (200) psig.
4. An existing point of interconnection between Pipeline and Texas Eastern
located in Monroe County, Ohio, at Texas Eastern Measuring Station 983,
at a pressure of not less than three hundred (300) psig.
5. An existing point of interconnection between Pipeline and Texas Eastern
located in Monroe County, Ohio, at Texas Eastern Measuring Station 004,
at the pressure provided for in the General Terms and Conditions of
Texas Eastern's FERC Gas Tariff.
6. An existing point of interconnection between Pipeline and Texas Eastern
located in ▇▇▇▇▇▇▇▇ County, West Virginia at Texas Eastern Measuring
Station 372, at the operating pressure existing at the point of
delivery.
7. An existing point of interconnection between Pipeline and Texas Eastern
located in Green County, Pennsylvania at Texas Eastern Measuring
Station 037, at the pressure provided for in the General Terms and
Conditions of Texas Eastern's FERC Gas Tariff.
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EXHIBIT A
DECEMBER __, 1993 (GSS SECTION 7(c)) AGREEMENT
BETWEEN CNG TRANSMISSION CORPORATION
AND NEW JERSEY NATURAL GAS COMPANY
PAGE 3 OF 4
8. An existing point of interconnection between Pipeline
and Texas Eastern located in Somerset County,
Pennsylvania at Texas Eastern Measuring Station 051,
at the pressure provided for in the General Terms and
Conditions of Texas Eastern's FERC Gas Tariff.
2. The quantity of gas which Customer shall be entitled to tender to
Pipeline for injection into storage at the ▇▇▇▇▇ Interconnection on a
firm basis on any Day during the Storage Year shall be one-one hundred
eightieth (1/180th) of Customer's Storage Capacity whenever Customer's
Storage Gas Balance is less than or equal to one half of Customer's
Storage Capacity, and one-two hundred fourteenth (1/214th) of
Customer's Storage Capacity whenever Customer's Storage Gas Balance is
greater than one half of Customer's Storage Capacity.
3. The Points of Delivery for withdrawals from storage, and the maximum
quantities and character of service for each point, shall be as set
forth below. Pipeline will use due care and diligence to assure, and
Customer will use due care and diligence to cause its transporter to
assure, that uniform pressures will be maintained at the Delivery
Points as reasonably may be required to render service hereunder, and
Pipeline will use due care and diligence to deliver gas (or cause gas
to be delivered) within the pressure limitations specified herein.
a. Up to 4,599 Dt per Day on a firm basis (and up to 41,312 Dt
per Day on an interruptible basis, if, in Pipeline's sole
opinion, its operating or other circumstances permit) at the
interconnection of the facilities of Pipeline and Texas
Eastern Transmission Corporation ("Texas Eastern") or
Transcontinental Gas Pipe Line Corporation ("Transco") or
other pipeline(s) in Clinton County, Pennsylvania, known as
the ▇▇▇▇▇ Interconnection, at a pressure of not less than
one-thousand, two-hundred (1,200) psig.
b. Up to 45,911 Dt per Day at the interconnection of the
facilities of Pipeline and Texas Eastern or other pipeline(s)
in ▇▇▇▇▇▇▇▇▇▇▇▇ County, Pennsylvania, known as the Oakford
Interconnection, at a pressure of not less than eight hundred
fifty (850) psig.
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EXHIBIT A
DECEMBER ___, 1993 (GSS SECTION 7(c)) AGREEMENT
BETWEEN CNG TRANSMISSION CORPORATION
AND NEW JERSEY NATURAL GAS COMPANY
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c. Up to 45,911 Dt per Day at an existing point of
interconnection between the facilities of Pipeline and Texas
Eastern, in Franklin County, Pennsylvania, known as the
Chambersburg Interconnection, on an interruptible basis if
operating conditions permit, at a pressure of not more than
seven hundred (700) psig.
d. Up to 45,911 Dt per Day at an existing point of
interconnection between the facilities of Pipeline and Texas
Eastern, in ▇▇▇▇▇▇ County, Pennsylvania, known as the Crayne
Interconnection, on an interruptible basis if operating
conditions permit, at a pressure of not more than eight
hundred sixty-five (865) psig.
