EXHIBIT 10.11
Contract #: 800350
SERVICE AGREEMENT
FOR RATE SCHEDULE FT-1
This Service Agreement, made and entered into this 1st day of October,
1993, by and between TEXAS EASTERN TRANSMISSION CORPORATION, a Delaware
Corporation (herein called "Pipeline") and COLONIAL GAS COMPANY (herein called
"Customer", whether one or more),
WITNESSETH:
WHEREAS, the Federal Energy Regulatory Commission required pipeline to
restructure Pipeline's services to reflect compliance with Order Nos. 636,
636-A, and 636-B (collectively hereinafter referred to as "Order No. 636"); and
WHEREAS, by order issued January 13, 1993 (62 FERC P61,015) and order
issued April 22, 1993 (63 FERC P61,100), the Federal Energy Regulatory
Commission accepted Pipeline's revised tariff sheets filed in compliance with
Order No. 636 to become effective June 1, 1993, subject to certain conditions
set forth in the April 22, 1993 order; and
WHEREAS, CNG Transmission Corporation ("CNG") made its final Order No. 636
service elections on May 3, 1993 pursuant to the April 22, 1993 order and
Pipeline filed revised tariff sheets to become effective June 1, 1993 in
compliance with the April 22, 1993 order; and
WHEREAS, Customer is also a customer of CNG; and
WHEREAS, CNG, in compliance with Order No. 636 and Federal Energy
Regulatory Commission orders issued in Docket No. RS92-21, is assigning its firm
service rights on Pipeline directly to its customers; and
WHEREAS, Customer's service rights hereunder are part of CNG's service
rights being assigned to its customers; and
WHEREAS, Pipeline and Customer now desire to enter into this Service
Agreement to reflect the assignment of CNG's service rights to Customer;
NOW, THEREFORE, in consideration of the premises and of the mutual
covenants and agreements herein contained, the parties do covenant and agree as
follows:
ARTICLE I
SCOPE OF AGREEMENT
Subject to the terms, conditions and limitations hereof, of Pipeline's
Rate Schedule FT-1, and of the General Terms and Conditions, transportation
service hereunder will be firm. Subject to the terms, conditions and limitations
hereof and of Pipeline's Rate Schedule FT-1, Pipeline agrees to deliver for
SERVICE AGREEMENT
FOR RATE SCHEDULE FT-1
(Continued)
Customer's account quantities of natural gas up to the following quantity:
Maximum Daily Quantity (MDQ) 1,996 dth
Pipeline shall receive for Customer's account, at those points on
Pipeline's system as specified in Article IV herein or available to Customer
pursuant to Section 14 of the General Terms and Conditions (hereinafter referred
to as Point(s) of Receipt) for transportation hereunder daily quantities of gas
up to Customer's MDQ, plus Applicable Shrinkage. Pipeline shall transport and
deliver for Customer's account, at those points on Pipeline's system as
specified in Article IV herein or available to Customer pursuant to Section 14
of the General Terms and Conditions (hereinafter referred to as Point(s) of
Delivery), such daily quantities tendered up to such Customer's MDQ.
Pipeline shall not be obligated to, but may at its discretion, receive at
any Point of Receipt on any day a quantity of gas in excess of the applicable
Maximum Daily Receipt Obligation (MDRO), plus Applicable Shrinkage, but shall
not receive in the aggregate at all Points of Receipt on any day a quantity of
gas in excess of the applicable MDQ, plus Applicable Shrinkage. Pipeline shall
not be obligated to, but may at its discretion, deliver at any Point of Delivery
on any day a quantity of gas in excess of the applicable Maximum Daily Delivery
Obligation (MDDO), but shall not deliver in the aggregate at all Points of
Delivery on any day a quantity of gas in excess of the applicable MDQ.
In addition to the MDQ and subject to the terms, conditions and
limitations hereof, Rate Schedule FT-1 and the General Terms and Conditions,
Pipeline shall deliver within the Access Area under this and all other service
agreements under Rate Schedules CDS, FT-1, and/or SCT, quantities up to
Customer's Operational Segment Capacity Entitlements, excluding those
Operational Segment Capacity Entitlements scheduled to meet Customer's MDQ, for
Customer's account, as requested on any day.
ARTICLE II
TERM OF AGREEMENT
The term of this Service Agreement shall commence on October 1, 1993 and
shall continue in force and effect until 10/31/1999 and year to year thereafter
unless this Service Agreement is terminated as hereinafter provided. This
Service Agreement may be terminated by either Pipeline or Customer upon five (5)
years prior written notice to the other specifying a termination date of any
year occurring on or after the expiration of the primary term. In addition to
Pipeline rights under Section 22 of Pipeline's General Terms and Conditions and
without
2
SERVICE AGREEMENT
FOR RATE SCHEDULE FT-1
(Continued)
prejudice to such rights, this Service Agreement may be terminated at any time
by Pipeline in the event Customer fails to pay part or all of the amount of any
xxxx for service hereunder and such failure continues for thirty (30) days after
payment is due; provided, Pipeline gives thirty (30) days prior written notice
to Customer of such termination and provided further such termination shall not
be effective if, prior to the date of termination, Customer either pays such
outstanding xxxx or furnishes a good and sufficient surety bond guaranteeing
payment to Pipeline of such outstanding xxxx.
THE TERMINATION OF THIS SERVICE AGREEMENT WITH A FIXED CONTRACT TERM OR
THE PROVISION OF A TERMINATION NOTICE BY CUSTOMER TRIGGERS PREGRANTED
ABANDONMENT UNDER SECTION 7 OF THE NATURAL GAS ACT AS OF THE EFFECTIVE DATE OF
THE TERMINATION. PROVISION OF A TERMINATION NOTICE BY PIPELINE ALSO TRIGGERS
CUSTOMER'S RIGHT OF FIRST REFUSAL UNDER SECTION 3.13 OF THE GENERAL TERMS AND
CONDITIONS ON THE EFFECTIVE DATE OF THE TERMINATION.
Any portions of this Service Agreement necessary to correct or cash-out
imbalances under this Service Agreement as required by the General Terms and
Conditions of Pipeline's FERC Gas Tariff, Volume No. 1, shall survive the other
parts of this Service Agreement until such time as such balancing has been
accomplished.
ARTICLE III
RATE SCHEDULE
This Service Agreement in all respects shall be and remain subject to the
applicable provisions of Rate Schedule FT-1 and of the General Terms and
Conditions of Pipeline's FERC Gas Tariff on file with the Federal Energy
Regulatory Commission, all of which are by this reference made a part hereof.
Customer shall pay Pipeline, for all services rendered hereunder and for
the availability of such service in the period stated, the applicable prices
established under Pipeline's Rate Schedule FT-1 as filed with the Federal Energy
Regulatory Commission, and as same may hereafter be legally amended or
superseded.
Customer agrees that Pipeline shall have the unilateral right to file with
the appropriate regulatory authority and make changes effective in (a) the rates
and charges applicable to service pursuant to Pipeline's Rate Schedule FT-1, (b)
Pipeline's Rate Schedule FT-1 pursuant to which service hereunder is rendered or
(c) any provision of the General Terms and Conditions applicable to Rate
Schedule FT-1. Notwithstanding the foregoing, Customer does not agree that
Pipeline shall have the unilateral right without the consent of Customer
subsequent to the execution
3
SERVICE AGREEMENT
FOR RATE SCHEDULE FT-1
(Continued)
of this Service Agreement and Pipeline shall not have the right during the
effectiveness of this Service Agreement to make any filings pursuant to Section
4 of the Natural Gas Act to change the MDQ specified in Article I, to change the
term of the service agreement as specified in Article II, to change Point(s) of
Receipt specified in Article IV, to change the Point(s) of Delivery specified in
Article IV, or to change the firm character of the service hereunder. Pipeline
agrees that Customer may protest or contest the aforementioned filings, and
Customer does not waive any rights it may have with respect to such filings.
ARTICLE IV
POINT(S) OF RECEIPT AND POINT(S) OF DELIVERY
The Point(s) of Receipt and Point(s) of Delivery at which Pipeline shall
receive and deliver gas, respectively, shall be specified in Exhibit(s) A and B
of the executed service agreement. Customer's Zone Boundary Entry Quantity and
Zone Boundary Exit Quantity for each of Pipeline's zones shall be specified in
Exhibit C of the executed service agreement.
Exhibit(s) A, B and C are hereby incorporated as part of this Service
Agreement for all intents and purposes as if fully copied and set forth herein
at length.
ARTICLE V
QUALITY
All natural gas tendered to Pipeline for Customer's account shall conform
to the quality specifications set forth in Section 5 of Pipeline's General Terms
and Conditions. Customer agrees that in the event Customer tenders for service
hereunder and Pipeline agrees to accept natural gas which does not comply with
Pipeline's quality specifications, as expressly provided for in Section 5 of
Pipeline's General Terms and Conditions, Customer shall pay all costs associated
with processing of such gas as necessary to comply with such quality
specifications. Customer shall execute or cause its supplier to execute, if such
supplier has retained processing rights to the gas delivered to Customer, the
appropriate agreements prior to the commencement of service for the
transportation and processing of any liquefiable hydrocarbons and any PVR
quantities associated with the processing of gas received by Pipeline at the
Point(s) of Receipt under such Customer's service agreement. In addition,
subject to the execution of appropriate agreements, Pipeline is willing to
transport liquids associated with the gas produced and tendered for
transportation hereunder.
4
SERVICE AGREEMENT
FOR RATE SCHEDULE FT-1
(Continued)
ARTICLE VI
ADDRESSES
Except as herein otherwise provided or as provided in the General Terms
and Conditions of Pipeline's FERC Gas Tariff, any notice, request, demand,
statement, xxxx or payment provided for in this Service Agreement, or any notice
which any party may desire to give to the other, shall be in writing and shall
be considered as duly delivered when mailed by registered, certified, or regular
mail to the post office address of the parties hereto, as the case may be, as
follows:
(a) Pipeline: Texas Eastern Transmission Corporation
0000 Xxxxxxxxxx Xxxxx
Xxxxxxx, Xxxxx 00000-0000
(b) Customer: COLONIAL GAS COMPANY
00 XXXXXX XXXXXX
XXXXXX, XX 00000
or such other address as either party shall designate by formal written notice.
ARTICLE VII
ASSIGNMENTS
Any Company which shall succeed by purchase, merger, or consolidation to
the properties, substantially as an entirety, of Customer, or of Pipeline, as
the case may be, shall be entitled to the rights and shall be subject to the
obligations of its predecessor in title under this Service Agreement; and either
Customer or Pipeline may assign or pledge this Service Agreement under the
provisions of any mortgage, deed of trust, indenture, bank credit agreement,
assignment, receivable sale, or similar instrument which it has executed or may
execute hereafter; otherwise, neither Customer nor Pipeline shall assign this
Service Agreement or any of its rights hereunder unless it first shall have
obtained the consent thereto in writing of the other; provided further, however,
that neither Customer nor Pipeline shall be released from its obligations
hereunder without the consent of the other. In addition, Customer may assign its
rights to capacity pursuant to Section 3.14 of the General Terms and Conditions.
To the extent Customer so desires, when it releases capacity pursuant to Section
3.14 of the General Terms and Conditions, Customer may require privity between
Customer and the Replacement Customer, as further provided in the applicable
Capacity Release Umbrella Agreement.
5
SERVICE AGREEMENT
FOR RATE SCHEDULE FT-1
(Continued)
ARTICLE VIII
INTERPRETATION
The interpretation and performance of this Service Agreement shall be in
accordance with the laws of the State of Texas without recourse to the law
governing conflict of laws.
This Service Agreement and the obligations of the parties are subject to
all present and future valid laws with respect to the subject matter, State and
Federal, and to all valid present and future orders, rules, and regulations of
duly constituted authorities having jurisdiction.
ARTICLE IX
CANCELLATION OF PRIOR CONTRACT(S)
This Service Agreement supersedes and cancels, as of the effective date of
this Service Agreement, the contract(s) between the parties hereto as described
below:
NONE
6
SERVICE AGREEMENT
FOR RATE SCHEDULE FT-1
(Continued)
IN WITNESS WHEREOF, the parties hereto have caused this Service Agreement
to be signed by their respective Presidents, Vice Presidents or other duly
authorized agents and their respective corporate seals to be hereto affixed and
attested by their respective Secretaries or Assistant Secretaries, the day and
year first above written.
TEXAS EASTERN TRANSMISSION CORPORATION
By
-------------------------------
Vice President
ATTEST:
-------------------------
COLONIAL GAS COMPANY
By /s/ Xxxx X. Xxxxxxxxxx
----------------------------------
Vice President, Gas Supply
ATTEST:
-------------------------
7
Contract #: 800350
EXHIBIT A, TRANSPORTATION PATH FOR BILLING PURPOSES DATED ___________
TO THE SERVICE AGREEMENT UNDER RATE SCHEDULE FT-1
BETWEEN TEXAS EASTERN TRANSMISSION CORPORATION ("Pipeline"), AND
COLONIAL GAS COMPANY ("Customer"),
DATED _______________________:
(1) Customer's firm Point(s) of Receipt:
Maximum Daily
Point Receipt Obligation
of (plus Applicable Measurement
Receipt Description Shrinkage) (dth) Responsibilities Owner Operator
------- ----------- ------------------ ---------------- ----- --------
70028 SOUTHERN NATURAL (FROM T.E.) - 6 * TX EAST XXXX TX EAST SOTHN NAT GS
KOSCIUSKO, MS (TO T ATTALA CO., TRN
MS
70217 UNITED GAS XXXXXXXXX, XX XXXXXX 000 * XXXX XXX XX XXXX XXX XXXX XXX XX
XX., XX PL
* Included in Firm Receipt Point Entitlements as set forth in section 14 of
Pipeline's General Terms and Conditions at the Kosciusko, Mississippi
Point of Receipt.
(2) Customer shall have Pipeline's Master Receipt Point List ("MRPL").
Customer hereby agrees that Pipeline's MRPL as revised and published by
Pipeline from time to time is incorporated herein by reference.
Customer hereby agrees to comply with the Receipt Pressure obligation as set
forth in Section 6 of Pipeline's General Terms and Conditions at such Point(s)
of Receipt.
Transportation
Transportation Path Path Quantity (Dth/D)
------------------- ---------------------
M1 to M2 1,996
SIGNED FOR IDENTIFICATION
PIPELINE:
----------------------------
CUSTOMER: /s/ Xxxx X. Xxxxxxxxxx
----------------------------
SUPERSEDES EXHIBIT A DATED:
---------
A-1
Contract #: 800350
EXHIBIT B, POINT(S) OF DELIVERY, DATED __________,
TO THE SERVICE AGREEMENT UNDER RATE SCHEDULE FT-1
BETWEEN TEXAS EASTERN TRANSMISSION CORPORATION ("Pipeline"), AND
COLONIAL GAS COMPANY ("Customer"),
DATED __________________:
Maximum
Daily
Point of Delivery Delivery Pressure Measurement
Delivery Description Obligation Obligation Responsibilities Owner Operator
-------- ----------- ---------- ---------------------- ---------------- ----- --------
(dth)
1. 70004 CNG TRANSMISSION - As provided in Section 6 TX EAST XXXX TX EAST TX EAST
CLARINGTON, OH MONROE of the General Terms and XXXX XXXX
CO., OH Conditions of Pipeline's
FERC Gas Tariff
2. 70051 CNG TRANSMISSION - As provided in Section 6 TX EAST XXXX TX EAST CNG TRANS
SOMERSET, PA SOMERSET of the General Terms and XXXX
CO., PA Conditions of Pipeline's
FERC Gas Tariff
3. 70372 CNG TRANSMISSION - At the operating pressure TX EAST XXXX TX EAST CNG TRANS
MOUNDSVILLE, WV XXXXXXXX existing at the point of XXXX
CO., WV delivery
4. 70450 CNG TRANSMISSION - At the operating pressure TX EAST XXXX TX EAST CNG TRANS
SUMMERFIELD, OH NOBLE existing at the point of XXXX
CO., OH delivery
5. 70471 CNG TRANSMISSION - 200 pounds per square TX EAST XXXX TX EAST CNG TRANS
WOODSFIELD, OH MONROE inch gauge XXXX
CO., OH
6. 70983 CNG TRANSMISSION - 300 pounds per square CNG TRANS CNG CNG TRANS
POWHATAN POINT, OH inch gauge TRANS
MONROE CO., OH
7. 72533 DAMSON (PEOPLES) MM - At the operating pressure PEOPLES PEOPLES DAMSON
SOMERSET, PA SOMERSET existing at the point of NG(PA) NG(PA) OIL
CO., PA delivery
8. 75037 CNG As provided in Section 6 TX EAST XXXX TX EAST CNG TRANS
TRANSMISSION-WAYNESBURG, of the General Terms and XXXX
PA (D70037) XXXXXX CO., PA Conditions of Pipeline's
FERC Gas Tariff
9. 75082 TETCO - OAKFORD STORAGE, 575 pounds per square CNG TRANS TX EAST CNG TRANS
PA-(D70082/R76082) inch gauge TRANS
XXXXXXXXXXXX CO., PA
10. 79921 COMPRESSOR STATION 21A At any pressure provided TX EAST XXXX TX EAST CNG TRANS
(UNIONTOWN) FAYETTE CO., by Texas Eastern not to XXXX
PA exceed 1,000 pounds per
square inch gauge
B-1
Contract #: 800350
EXHIBIT B, POINT(S) OF DELIVERY (Continued)
COLONIAL GAS COMPANY
Maximum
Daily Delivery
Point of Delivery Pressure Measurement
Delivery Description Obligation Obligation Responsibilities Owner Operator
-------- ----------- ---------- ---------- ---------------- ----- --------
(dth)
11. 79849 CNG - COLONIAL GAS 1,996 N/A N/A N/A N/A
COMPANY FOR NOMINATION
PURPOSES
provided, however, that all service under this Service Agreement shall be within
the limitations set forth in the Dispatching Agreement dated _________________
between Pipeline, Customer and CNG Transmission Corporation.
SIGNED FOR IDENTIFICATION:
PIPELINE:
----------------------------
CUSTOMER: /s/ Xxxx X. Xxxxxxxxxx
----------------------------
SUPERSEDES EXHIBIT B DATED:
---------
B-2
Contract #: 800350
EXHIBIT C, ZONE BOUNDARY ENTRY QUANTITY AND ZONE BOUNDARY EXIT QUANTITY,
DATED ___________________, TO THE SERVICE AGREEMENT UNDER RATE SCHEDULE FT-l
BETWEEN TEXAS EASTERN TRANSMISSION CORPORATION ("PIPELINE") AND
COLONIAL GAS COMPANY ("CUSTOMER"), DATED_______________:
ZONE BOUNDARY ENTRY QUANTITY
Dth/D
To
====================================================================================================================
FROM STX ETX WLA ELA Xx-00 Xx-00 Xx-XXX Xx-XXX X0-00 X0-00 X0-XXX M2-TGC M2 M3
--------------------------------------------------------------------------------------------------------------------
STX 53
--------------------------------------------------------------------------------------------------------------------
ETX 225 80
--------------------------------------------------------------------------------------------------------------------
WLA 24 53
--------------------------------------------------------------------------------------------------------------------
ELA 1590
--------------------------------------------------------------------------------------------------------------------
M1-24 225
--------------------------------------------------------------------------------------------------------------------
M1-30 1590
--------------------------------------------------------------------------------------------------------------------
M1-TXG 105
--------------------------------------------------------------------------------------------------------------------
M1-TGC 106
--------------------------------------------------------------------------------------------------------------------
M2-24
--------------------------------------------------------------------------------------------------------------------
M2-30
--------------------------------------------------------------------------------------------------------------------
M2-TXG
--------------------------------------------------------------------------------------------------------------------
M2-TGC
--------------------------------------------------------------------------------------------------------------------
M2
--------------------------------------------------------------------------------------------------------------------
M3
====================================================================================================================
C-1
Contract #: 800350
EXHIBIT C (Continued)
COLONIAL GAS COMPANY
ZONE BOUNDARY EXIT QUANTITY
Dth/D
To
====================================================================================================================
FROM STX ETX WLA ELA Xx-00 Xx-00 Xx-XXX Xx-XXX X0-00 X0-00 X0-XXX M2-TGC M2 M3
--------------------------------------------------------------------------------------------------------------------
STX
--------------------------------------------------------------------------------------------------------------------
ETX
--------------------------------------------------------------------------------------------------------------------
WLA
--------------------------------------------------------------------------------------------------------------------
ELA
--------------------------------------------------------------------------------------------------------------------
M1-24 225
--------------------------------------------------------------------------------------------------------------------
M1-30 1590
--------------------------------------------------------------------------------------------------------------------
M1-TXG 105
--------------------------------------------------------------------------------------------------------------------
M1-TGC 106
--------------------------------------------------------------------------------------------------------------------
M2-24
--------------------------------------------------------------------------------------------------------------------
M2-30
--------------------------------------------------------------------------------------------------------------------
M2-TXG
--------------------------------------------------------------------------------------------------------------------
M2-TGC
--------------------------------------------------------------------------------------------------------------------
M2
--------------------------------------------------------------------------------------------------------------------
M3
====================================================================================================================
SIGNED FOR IDENTIFICATION:
PIPELINE:
----------------------------
CUSTOMER: /s/ Xxxx X. Xxxxxxxxxx
----------------------------
SUPERSEDES EXHIBIT C DATED:
---------
C-2
