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EXHIBIT 10.27
SERVICE AGREEMENT
APPLICABLE TO TRANSPORTATION OF NATURAL GAS
UNDER RATE SCHEDULE FT
(X-74 ASSIGNMENT)
AGREEMENT made as of this 18th of October, 1995, by and
between CNG TRANSMISSION CORPORATION, a Delaware corporation, hereinafter called
"Pipeline," and PIEDMONT NATURAL GAS COMPANY, INC., a North Carolina
corporation, hereinafter called "Customer."
WHEREAS, Customer has elected to take assignment of a portion
of the firm transportation service entitlements provided by Pipeline to
Transcontinental Gas Pipeline Corporation ("Transco"), under Pipeline's Rate
Schedule X-74 (Lebanon-to-Xxxxx Service); and
WHEREAS, Pipeline has agreed to assign such entitlements to
Customer for service under part 284 of the Commission's regulations, subject to
Pipeline's ability to obtain relief from its contractual obligation to serve
Transco for a like quantity of firm transportation service, under Pipeline's
Rate Schedule X-74.
WITNESSETH: That, in consideration of the mutual covenants
herein contained, the parties hereto agree as follows:
ARTICLE I
Quantities
A. During the term of this Agreement, Pipeline will
transport for Customer, on a firm basis, and Customer
may furnish, or cause to be furnished, to Pipeline
natural gas for such transportation, and Customer
will accept, or cause to be accepted, delivery from
Pipeline of the quantities Customer has tendered for
transportation.
B. The maximum quantities of gas which Pipeline shall
deliver and which Customer may tender shall be as set
forth on Exhibit A, attached hereto.
ARTICLE II
Rate
A. Unless otherwise mutually agreed in a written
amendment to this Agreement, beginning on November
1,1995, Customer shall pay Pipeline for
transportation services rendered pursuant to this
Agreement:
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1. The maximum rates and charges provided under Rate Schedule
FT set forth in Pipeline's effective FERC Gas Tariff, including applicable
surcharges and the Fuel Retention Percentage; and
2. All additional charges applicable to Rate Schedule X-74
Capacity and set forth on Sheet No.37 of Pipeline's effective FERC Gas Tariff.
B. Pipeline shall have the right to propose, file and make
effective with the Federal Energy Regulatory Commission or any other body having
jurisdiction, revisions to any applicable rate schedule, or to propose, file,
and make effective superseding rate schedules for the purpose of changing the
rate, charges, and other provisions thereof effective as to Customer; provided,
however, that (i) Section 2 of Rate Schedule FT "Applicability and Character of
Service," (ii) term, (iii) quantities, and (iv) points of receipt and points of
delivery shall not be subject to unilateral change under this Article. Said rate
schedule or superseding rate schedule and any revisions thereof which shall be
filed and made effective shall apply to and become a part of this Service
Agreement. The filing of such changes and revisions to any applicable rate
schedule shall be without prejudice to the right of Customer to contest or
oppose such filing and its effectiveness.
ARTICLE III
Term of Agreement
Subject to all the terms and conditions herein, this Agreement shall
be effective as of the later of November 1,1995 or the date on which any and all
authorizations are received by Pipeline, Transco, and Texas Gas Transmission
Corporation, as may be required to effectuate the transportation contemplated
hereby including the transportation services immediately upstream and downstream
of Pipeline. This Agreement shall continue in effect for a primary term through
and including October 31, 2006, and from year to year thereafter, until either
party terminates this Agreement by giving written notice to the other at least
twelve months prior to the start of the next contract year.
ARTICLE IV
Points of Receipt and Deliverv
The Points of Receipt and Delivery and the maximum quantities
for each point for all gas that may be received for Customer's account for
Transportation by Pipeline shall be as set forth on Exhibit A.
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ARTICLE V
INCORPORATION BY REFERENCE OF TARIFF PROVISIONS
To the extent not inconsistent with the terms and conditions
of this Agreement, the following provisions of Pipeline's effective FERC Gas
Tariff, and any revisions thereof that may be made effective hereafter are
hereby made applicable to and a part hereof by reference:
1. All of the provisions of Rate Schedule FT, or any effective superseding
rate schedule or otherwise applicable rate schedule; and
2. All of the provisions of the General Terms and Conditions, as they may
be revised or superseded from time to time.
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
000 Xxxx Xxxx Xxxxxx
Xxxxxxxxxx, Xxxx Xxxxxxxx 00000
Attention: Vice President, Marketing
and Customer Services
Customer: Piedmont Natural Gas Company, Inc.
P. O. Xxx 00000
Xxxxxxxxx, Xxxxx Xxxxxxxx 00000
for Notices, Attention: Xxxxx Xxxxx, Director, Gas Supply
for Invoices, Attention: Xxx Xxxxx, Director, Rates
or at such other address as either party shall designate by formal written
notice.
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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 interpretation of such provisions.
IN WITNESS WHEREOF, the parties hereto intending to be legally
bound, have caused this Agreement to be signed by their duly authorized
officials as of the day and year first written above.
CNG TRANSMISSION CORPORATION (Pipeline)
By: /s/ Xxxxxx X. Xxxxx
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Its: Vice President
PIEDMONT NATURAL GAS COMPANY, INC.
(Customer)
By: /s/ Xxxxxx X. Xxxxxx
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Its: Senior Vice President, Gas Supply
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(Title)
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EXHIBIT A
OCTOBER _, 1995 FT SERVICE AGREEMENT (X-74 ASSIGNMENT)
BETWEEN CNG TRANSMISSION CORPORATION
AND PIEDMONT NATURAL GAS COMPANY, INC.
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EXHIBIT A
TO THE FT SERVICE AGREEMENT
DATED OCTOBER ___, 1995
BETWEEN CNG TRANSMISSION CORPORATION AND
PIEDMONT NATURAL GAS COMPANY, INC.
(X-74 ASSIGNMENT)
A. QUANTITIES
The maximum quantities of gas which Pipeline shall deliver and which
Customer may tender shall be as follows:
1. A Maximum Daily Transportation Quantity (MDTQ) of 12,875 Dt.
2. A Maximum Annual Transportation Quantity (MATQ) of 4,699,375
Dt.
B. POINT OF RECEIPT
The Point of Receipt and the maximum quantities for such point shall be
as set forth below. Each of the parties will use due care and diligence to
assure that uniform pressures will be maintained at the Receipt Point as
reasonably may be required to render service hereunder, but Pipeline shall not
be required to accept gas at less than the minimum pressure specified herein. In
addition to the quantities specified below, Customer may increase the quantities
furnished to Pipeline at the Receipt Point, so long as such quantities, when
reduced by the fuel retention percentage specified in Pipeline's
currently-effective FERC Gas Tariff, do not exceed the quantity limitation
specified below for the Receipt Point.
1. Up to 12,875 Dt per Day at the interconnection of the
facilities of Pipeline and Texas Gas Transmission Corporation
in Xxxxxx County, Ohio, known as the Lebanon Interconnection,
at a pressure of not less than five hundred thirty-one (531)
pounds per square inch gauge ("psig").
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EXHIBIT A
OCTOBER _, 1995 FT SERVICE AGREEMENT (X-74 ASSIGNMENT)
BETWEEN CNG TRANSMISSION CORPORATION
AND PIEDMONT NATURAL GAS COMPANY, INC.
PAGE 2 OF 2
C POINT OF DELIVERY
The Maximum Daily Delivery Obligation ("MDDO") stated below reflects
Pipeline's total obligation to deliver quantities to the Point of Delivery under
all firm service agreements between Pipeline and Customer, Customer's assignee,
any applicable Replacement Customer, or any other Customer. Each of the parties
will use due care and diligence to assure that uniform pressures will be
maintained at the Delivery Point as reasonably may be required to render service
hereunder, but Pipeline shall not be required to deliver gas (or to cause gas to
be delivered) at greater than the maximum pressure specified herein. The Point
of Delivery and the MDDO shall be as follows:
1. Up to 12,875 Dt per Day at the interconnection of the
facilities of Pipeline and Transcontinental Gas Pipe Line
Corporation, or other pipeline(s) in Clinton County,
Pennsylvania, known as the Xxxxx Interconnection, at a
pressure of not greater than one thousand, two hundred (1,200)
psig.
