EXHIBIT 10-A-23
SERVICE AGREEMENT
between
TRANSCONTINENTAL GAS PIPE LINE CORPORATION
and
PUBLIC SERVICE COMPANY OF NORTH CAROLINA, INC.
SERVICE AGREEMENT
THIS AGREEMENT entered into this 30 day of April 1995, by and between
TRANSCONTINENTAL GAS PIPE LINE CORPORATION, a Delaware corporation,
hereinafter referred to as "Seller," first party, and PUBLIC SERVICE COMPANY
OF NORTH CAROLINA, INC.. hereinafter referred to as "Buyer," second party,
WITNESSETH
WHEREAS, by order issued December 21, 1994, in Docket No. CP94-109, the
Federal Energy Regulatory Commission has authorized Seller's 1995/1996
Southeast Expansion Project (referred to as "SE95/96"); and
WHEREAS, SE95/96 will be constructed in two phases -- Phase I will add
the dekatherm equivalent of 115,000 Mcf of gas per day of incremental firm
transportation capacity by a proposed in-service date of November 1, 1995,
and Phase II will add the dekatherm equivalent of 50,000 Mcf of gas per day
of incremental firm transportation capacity by a proposed in-service
date of November 1, 1996; and
WHEREAS, Buyer has requested firm transportation service under SE95/96
and has executed with Seller a Precedent Agreement, dated October 26, 1993,
for such service; and
WHEREAS, Seller is willing to provide the requested firm transportation
for Buyer under SE95/96 pursuant to the terms of this Service Agreement and
the Precedent Agreement.
NOW, THEREFORE, Seller and Buyer agree as follows:
ARTICLE I
GAS TRANSPORTATION SERVICE
1. Subject to the terms and provisions of this agreement and of
Seller's Rate Schedule FT, Buyer agrees to deliver or cause to be delivered
to Seller gas for transportation and Seller agrees to receive, transport
and redeliver natural gas to Buyer or for the account of Buyer, on a
firm basis, up to the dekatherm equivalent of a Transportation Contract
Quantity ("TCQ") of 20,057 Mcf per day from November 1, 1995 to October 31,
1996, and up to the dekatherm equivalent of 37,259 Mcf per day from November
1, 1996 through the remaining term of this agreement.(1)
2. Transportation service rendered hereunder shall not be subject to
curtailment or interruption except as provided in Section 11 of the General
Terms and Conditions of Seller's Volume No. 1 FERC Gas Tariff.
(1) Buyer and Seller agree that the commencement of service hereunder up to
the stated TCQ amounts shall be subject to the completion of construction
and placement into service of Seller's facilities necessary to provide firm
transportation service to Buyer pursuant to the authorization
by the FERC in Docket No. CP94-109. Seller shall notify Buyer as soon as
reasonably practicable as the additional authorized facilities are
constructed and ready for placement into service.
SERVICE AGREEMENT
(Continued)
ARTICLE II
POINT(S) OF RECEIPT
Buyer shall deliver or cause to be delivered gas at the point(s) of
receipt hereunder at a pressure sufficient to allow the gas to enter
Seller's pipeline system at the varying pressures that may exist in such
system from time to time; provided, however, the pressure of the gas
delivered or caused to be delivered by Buyer shall not exceed the maximum
operating pressure(s) of Seller's pipeline system at such point(s) of
receipt. In the event the maximum operating pressure(s) of
Seller's pipeline system, at the point(s) of receipt hereunder, is from
time to time increased or decreased, then the maximum allowable pressure(s)
of the gas delivered or caused to be delivered by Buyer to Seller at the
point(s) of receipt shall be correspondingly increased or decreased upon
written notification of Seller to Buyer. The point(s) of receipt for natural
gas received for transportation pursuant to this agreement shall be:
See Exhibit A, attached hereto, for points of receipt.
ARTICLE III
POINT(S) OF DELIVERY
Seller shall redeliver to Buyer or for the account of Buyer the gas
transported hereunder at the following point(s) of delivery and at a
pressure(s) of:
See Exhibit B, attached hereto, for points of delivery and pressures.
ARTICLE IV
TERM OF AGREEMENT
1. This agreement shall be effective as of the later of November 1,
1995 or the date Seller's facilities necessary to provide service to Buyer
under Phase 1 of SE95/96 have been constructed and are ready for service,
and shall remain in force and effect for a primary term of twenty (20) years
from and after such effective date and year to year thereafter until
terminated after such primary term by Seller or Buyer upon at least
two (2) years written prior notice to the other party; provided, however,
this agreement shall terminate immediately and, subject to the receipt of
necessary authorizations, if any, Seller may discontinue service hereunder
if (a) Buyer, in Seller's reasonable judgment fails to demonstrate credit
worthiness, and (b) Buyer fails to provide adequate security in accordance
with Seller's Rate Schedule FT.
ARTICLE V
RATE SCHEDULE AND PRICE
1. Buyer shall pay Seller for natural gas delivered to Buyer
hereunder in accordance with Seller's Rate Schedule FT and the applicable
provisions of the General Terms and Conditions of Seller's FERC Gas Tariff
as filed with the Federal Energy Regulatory Commission, and as the
same may be legally amended or superseded from time to time. Such Rate
Schedule and General Terms and Conditions are by this reference made a part
hereof.
SERVICE AGREEMENT
(Continued)
2. Seller and Buyer agree that the quantity of gas that Buyer
delivers or causes to be delivered to Seller shall include the quantity
of gas retained by Seller for applicable compressor fuel, line loss make-up
(and injection fuel under Seller's Rate Schedule GSS, if applicable) in
providing the transportation service hereunder, which quantity may be changed
from time to time and which will be specified in the currently effective
Sheet No. 44 of Volume No. 1 of this Tariff which relates to service under
this agreement and which is incorporated herein.
3. In addition to the applicable charges for firm transportation
service pursuant to Section 3 of Seller's Rate Schedule FT, Buyer shall
reimburse Seller for any and all filing fees incurred as a result of
Buyer's request for service under Seller's Rate Schedule FT, to the extent
such fees are imposed upon Seller by the Federal Energy Regulatory
Commission or any successor governmental authority having jurisdiction.
ARTICLE VI
MISCELLANEOUS
1. This Agreement supersedes and cancels as of the effective date
hereof the following contract(s) between the parties hereto: None
2. No waiver by either party of any one or more defaults by the other
in the performance of any provisions of this agreement shall operate or be
construed as a waiver of any future default or defaults, whether of a like
or different character.
3. The interpretation and performance of this agreement shall be in
accordance with the laws of the State of Texas, without recourse to the law
governing conflict of laws, and to all present and future valid laws with
respect to the subject matter, including present and future orders, rules and
regulations of duly constituted authorities.
4. This agreement shall be binding upon, and inure to the benefit of
the parties hereto and their respective successors and assigns.
5. Notices to either party shall be in writing and shall be considered
as duly delivered when mailed to the other party at the following address:
(a) If to Seller:
Transcontinental Gas Pipe Line Corporation
P. O. Xxx 0000
Xxxxxxx, Xxxxx 00000
Attention: Vice President
Transportation and Customer Services
SERVICE AGREEMENT
(Continued)
(b) If to Buyer:
Public Service Company of North Carolina, Inc.
000 Xxx Xxxx
Xxxxxxxx, Xxxxx Xxxxxxxx 00000
Such addresses may be changed from time to time by mailing appropriate
notice thereof to the other party by certified or registered mail.
SERVICE AGREEMENT
(Continued)
IN WITNESS WHEREOF, the parties hereto have caused this agreement to
be signed by their respective officers or representatives thereunto duly
authorized.
TRANSCONTINENTAL GAS PIPE LINE
CORPORATION
(Seller)
By /s/ Xxxxx X. Xxxxxx
---------------------------
Xxxxx X. Xxxxxx
PUBLIC SERVICE COMPANY OF NORTH
CAROLINA, INC.
(Buyer)
By /s/ Xxxxxxxx X. Xxxx
---------------------------
Xxxxxxxx X. Xxxx
SERVICE AGREEMENT
(Continued)
Exhibit A
Point(s) of Receipt Maximum Daily Quantity at each
Receipt Point ( Mcf/d)(2):
Phase I Phase II(3)
The interconnection between the
facilities of Seller and Seller's 20,057 37,259
Mobile Bay Lateral near Xxxxxx in
Choctaw County, Alabama.
(2) These quantities do not include the additional quantities of gas to be
retained by Seller for compressor fuel and line loss make-up. Therefore,
Buyer shall also deliver or cause to be delivered at the receipt points
such additional quantities of gas to be retained by Seller for compressor
fuel and line loss make-up.
(3) The stated quantity represents the combined quantities for Phase I and
Phase II.
SERVICE AGREEMENT
(Continued)
Exhibit B
Point(s) of Delivery(4) Maximum daily Quantity at each
Delivery Point (Mcf/d):
Phase I Phase II(5)
Xxxxxxx Meter Station, located at
milepost 1269.23 on Seller's main 7,317 7,317
transmission line near Stanley,
North Carolina.
Davidson Meter Station, located
at milepost 1287.10 on Seller's 5,684 10,381
main transmission line, Iredell
County, North Carolina.
Cardinal Meter Station, located at
milepost 1369.50 on Seller's main 7,056 19,561
transmission line, Rockingham
County, North Carolina.
(4) Seller shall redeliver gas at Seller's available pipeline pressure.
(5) The stated volume represents the combined quantities for Phase I
and Phase II.
