Common use of COMPETITIVE FUEL RATE Clause in Contracts

COMPETITIVE FUEL RATE. It is the intent of the Agreement that Buyer's cost of natural gas used in Priority- of-Service Category 3D shall be competitive with the as-fired cost of alternate fuel that Buyer could actually utilize in lieu of natural gas. For the purpose of the computation to obtain the as-fired cost of the altemate fuel, it is understood and agreed that: ' 4 (1) The Alternate Fuel is Propane utilized after being mixed with air. (2) The cost of the alternate fuel (identified as "K") shall include: (a) The average posted price per gallon posted for Cheraw, South Carolina, as published in the BUTANE-PROPANE NEWSLETTER on the third Monday of the current month, plus (b) Three cents (3.0¢) per gallon for freight to Buyer's facility, plus (c) Vaporization fuel cost of one cent (1.0¢) per gallon, plus (d) Compressed air and plant operation of one-half cent (0.5¢) per gallon. (3) Propane shall be considered as having 91,600 BTU's per gallon or 0.0916 dekatherms per gallon, which is identified as "dt". (4) The equipment using propane-air shall be considered equally efficient using propane-air as it is using natural gas. (5) The following formula utilizes the above values and shall be used to calculate the as-fired cost of the alternate fuel (identified as "C"): Seller will monitor the changes in the average price of propane by reference to the BUTANE-PROPANE NEWSLETTER. Based on the average price of propane, Seller will calculate the as-fired cost using the procedure outlined above. Seller will advise Buyer, verbally or in writing, prior to the beginning of each billing period that Seller will: (1) Lower the price of natural gas to the as-fired cost of the alternate fuel and deliver gas, or (2) Notify Buyer of the price at which Seller will deliver gas in the event Seller elects not to lower the price to the as-fired cost of the alternate fuel. In the event Seller elects to lower the price of gas to the as-fired cost of the alternate fuel, Buyer may not discontinue the purchase of natural gas hereunder. In the event Seller offers to deliver gas to Buyer at a price greater than of the as- fired cost of the alternate fuel, then Buyer may either accept delivery of natural gas at the price offered by Seller through a prompt verbal notice confirmed in writing or discontinue receiving gas for the next billing period. In no event will the cost of natural gas as determined by this paragraph, exceed the cost as determined under the Base Rate of this Service Agreement. (C) COMPETITIVE FUEL RATE (GAS-TO-GAS) (1) Seller acknowledges that Buyer also has the capability to use transported gas to satisfy Buyer's requirements in Priority-of-Service Category 3D. Buyer and Seller hereby agree that Seller has the opportunity to bid a price to Buyer to displace Buyer's transported gas in accordance with the procedures of this Paragraph 7(C). (2) Seller agrees to provide Buyer with notice, verbally, or in writing, before the end of each calendar month of the price at which Seller is able to sell Interruptible gas to Buyer for the next ensuing calendar month to displace transportation gas. (3) Buyer agrees to respond to Seller, verbally by telephone, or in writing, prior to the beginning of the next ensuing calendar month, that Buyer accepts or rejects Seller's offer. (4) In the event Buyer accepts Seller's offer, Buyer may not discontinue the purchase of natural gas for Buyer's fuel requirements hereunder. (5) In the event Buyer rejects Seller's offer, and elects to transport Buyer's own gas, then Buyer shall have no obligation to purchase any gas from Seller's system supply. (6) In no event will the cost of natural gas as determined by this paragraph, exceed the cost as determined under the Base Rate of this Service

COMPETITIVE FUEL RATE. (1) It is the intent of the Agreement that BuyerXxxxx's cost of natural gas used in Priority- Priority-of-Service Category 3D shall be competitive with the as-fired cost of alternate fuel that Buyer could actually utilize in lieu of natural gas. For the purpose of the computation to obtain the as-fired cost of the altemate alternate fuel, it is understood and agreed that: ' 4: (1) The Alternate Fuel is Propane utilized after being mixed with air. (2) The cost of the alternate fuel (identified as "K") shall include: (a) The average posted price per gallon posted for CherawLexington, South Carolina, as published in the BUTANE-PROPANE NEWSLETTER on the third Monday of the current month, plus five cents (5.0¢), plus (b) Three One and five-tenths cents (3.0¢1.5¢) per gallon for freight to Buyer's facility, plus (c) Vaporization fuel cost of one cent (1.0¢) per gallon, plus (d) Compressed air and plant operation of one-half cent (0.5¢0.5 ¢) per gallon. (3) Propane shall be considered as having 91,600 91600 BTU's per gallon or 0.0916 dekatherms per gallon, which is identified as "dt". (4) The equipment using propane-air shall be considered equally efficient using propane-air as it is using natural gas. (5) The following formula utilizes the above values and shall be used to calculate the as-fired cost of the alternate fuel (identified as "C"): Seller will monitor the changes in the average price of propane by reference to the BUTANE-PROPANE NEWSLETTER. Based on the average price of propane, Seller will calculate the as-fired cost using the procedure outlined above. Seller will advise Buyer, verbally or in writing, prior to the beginning of each billing period that Seller will: (1) Lower the price of natural gas to the as-fired cost of the alternate altemate fuel and deliver gas, or (2) Notify Buyer of the price at which Seller will deliver gas in the event Seller elects not to lower the price to the as-fired cost of the alternate fuel. In the event Seller elects to lower the price of gas to the as-fired cost of the alternate fuel, Buyer may not discontinue the purchase of natural gas hereunder. In the event Seller offers to deliver gas to Buyer at a price greater than of the as- as-fired cost of the alternate fuel, then Buyer may either accept delivery of natural gas at the price offered by Seller through a prompt verbal notice confirmed in writing or discontinue receiving gas for the next billing period. In no event will the cost of natural gas as determined by this paragraph, exceed the cost as determined under the Base Rate of this Service Agreement. (C) COMPETITIVE FUEL RATE (GAS-TO-GAS). (12) Seller acknowledges It is the intent of the Agreement that Buyer also has the capability to use transported Xxxxx's cost of natural gas to satisfy Buyer's requirements used in Priority-of-Service Category 3D. Buyer and Seller hereby agree that Seller has the opportunity to bid a price to Buyer to displace Buyer's transported gas in accordance 3F shall be competitive with the procedures as-fired cost of this Paragraph 7(C)alternate fuel that Buyer could actually utilize in lieu of natural gas. For the purpose of the computation to obtain the as-fired cost of the alternate fuel, it is understood and agreed that: (1) The Alternate Fuel is Number 6 Fuel Oil. (2) Seller agrees to provide Buyer with notice, verbally, or in writing, before the end of each calendar month The cost of the alternate fuel (identified as "K") shall include: (a) The cost per gallon based on the average price at which Seller is able for No. _6 fuel oil, 2.1% sulfur, in effect on the third Monday of the current month, F.O.B., Charleston, South Carolina, plus (b) Five and five-tenths cents (5.5¢) per gallon for freight to sell Interruptible gas to Buyer Buyer's facility, plus (c) One cent (1.0¢) per gallon for the next ensuing calendar month to displace transportation gashandling charges. (3) Buyer agrees Number 6_ fuel oil shall be considered as having 150,000 BTU's per gallon or 0.1500 dekatherms per gallon, which is identified as "dt". (4) The following formula utilizes the above values and shall be used to respond calculate the as-fired cost of the alternate fuel (identified as "C"): Seller will monitor the changes in the price of No. 6 fuel oil by reference to Sellerthe OIL BUYERS' GUIDE. Based on the posted price of No. 6_fuel oil, Seller will calculate the as-fired cost using the procedure outlined above. Seller will advise Buyer, verbally by telephone, or in writing, prior to the beginning of the next ensuing calendar month, each billing period that Buyer accepts or rejects Seller's offer.Seller will: (41) Lower the price of natural gas to the as-fired cost of the alternate fuel and deliver gas, or (2) Notify Buyer of the price at which Seller will deliver gas in the event Seller elects not to lower the price to the as-fired cost of the alternate fuel. In the event Buyer accepts Seller's offerSeller elects to lower the price of gas to the as-fired cost of the alternate fuel, Buyer may not discontinue the purchase of natural gas for Buyer's fuel requirements hereunder. (5) . In the event Seller offers to deliver gas to Buyer rejects Seller's offer, and elects to transport Buyer's own gasat a price greater than the as-fired cost of the alternate fuel, then Buyer shall have no obligation to purchase any may either accept delivery of natural gas from Seller's system supply. (6) at the price offered by Seller through a prompt verbal notice confirmed in writing or discontinue receiving gas for the next billing period. In no event will the cost of natural gas as determined by this paragraph, exceed the cost as determined under the Base Rate of this ServiceService Agreement.

COMPETITIVE FUEL RATE. It is the intent of the Agreement that BuyerXxxxx's cost of natural gas used in Priority- of-Service Category 3D 3I) shall be competitive with the as-fired cost of alternate fuel that Buyer could actually utilize in lieu of natural gas. For the purpose of the computation to obtain the as-fired cost of the altemate alternate fuel, it is understood and agreed that: ' 4: (1) The Alternate Fuel is AlternateFuelis Propane utilized after being mixed with air. (2) The cost of the alternate fuel (identified as "K") shall include: (a) The average posted price per gallon posted for Cheraw, South Carolina, as published in the BUTANE-PROPANE NEWSLETTER on the third Monday of the current month, plus (b) Three One and three-tenths cents (3.0¢1.3¢) per gallon for freight to Buyer's facility, plus (c) Vaporization fuel cost of one cent (1.0¢) per gallon, plus (d) Compressed air and plant operation of one-half cent (0.5¢) per gallon. (3) Propane shall be considered as having 91,600 91 600 BTU's per gallon or 0.0916 dekatherms per gallon, which is identified as "dt". (4) The equipment using propane-air shall be considered equally efficient using propane-air as it is using natural gas. (5) The following formula utilizes the above values and shall be used to calculate the as-fired cost of the alternate fuel (identified as "C"): Seller will monitor the changes in the average price of propane by reference to the BUTANE-PROPANE NEWSLETTER. Based on the average price of propane, Seller will calculate the as-fired cost using the procedure outlined above. Seller will advise Buyer, verbally or in writing, prior to the beginning of each billing period that Seller will: (1) Lower the price of natural gas to the as-fired cost of the alternate fuel and deliver gas, or (2) Notify Buyer of the price at which Seller will deliver gas in the event Seller elects not to lower the price to the as-fired cost of the alternate fuel. In the event Seller elects to lower the price of gas to the as-fired cost of the alternate fuel, Buyer may not discontinue the purchase of natural gas hereunder. In the event Seller offers to deliver gas to Buyer at a price greater than of the as- fired cost of the alternate fuel, then Buyer may either accept delivery of natural gas at the price offered by Seller through a prompt verbal notice confirmed in writing or discontinue receiving gas for the next billing period. In no event will the cost of natural gas as determined by this paragraph, exceed the cost as determined under the Base Rate of this Service Agreement. (C) COMPETITIVE FUEL RATE (GAS-TO-GAS) (1) Seller acknowledges that Buyer also has the capability to use transported gas to satisfy Buyer's requirements in Priority-of-Service Category 3D. Buyer and Seller hereby agree that Seller has the opportunity to bid a price to Buyer to displace Buyer's transported gas in accordance with the procedures of this Paragraph 7(C). (2) Seller agrees to provide Buyer with notice, verbally, or in writing, before the end of each calendar month of the price at which Seller is able to sell Interruptible gas to Buyer for the next ensuing calendar month to displace transportation gas. (3) Buyer agrees to respond to Seller, verbally by telephone, or in writing, prior to the beginning of the next ensuing calendar month, that Buyer accepts or rejects Seller's offer. (4) In the event Buyer accepts Seller's offer, Buyer may not discontinue the purchase of natural gas for Buyer's fuel requirements hereunder. (5) In the event Buyer rejects Seller's offer, and elects to transport Buyer's own gas, then Buyer shall have no obligation to purchase any gas from Seller's system supply. (6) In no event will the cost of natural gas as determined by this paragraph, exceed the cost as determined under the Base Rate of this Service

COMPETITIVE FUEL RATE. It is the intent of the Agreement that BuyerXxxxx's cost of natural gas used in Priority- of-Service Category 3D shall be competitive with the as-fired cost of alternate fuel that Buyer could actually utilize in lieu of natural gas. For the purpose of the computation to obtain the as-fired cost of the altemate alternate fuel, it is understood and agreed that: ' 4: (1) The Alternate Altemate Fuel is Propane utilized after being mixed with air. (2) The cost of the alternate altemate fuel (identified as "K") shall include: (a) The average posted price per gallon posted for CherawLexington, South Carolina, as published in the BUTANE-PROPANE NEWSLETTER on the third Monday of the current month, plus (b) Three One and three-tenths cents (3.0¢1.3¢) per gallon for freight to Buyer's facility, plus (c) Vaporization fuel cost of one cent (1.0¢) per gallon, plus (d) Compressed air and plant operation of one-half cent (0.5¢) per gallon. (3) Propane shall be considered as having 91,600 BTU's per gallon or 0.0916 dekatherms per gallon, which is identified as "dt". (4) The equipment using propane-air shall be considered equally efficient using propane-air as it is using natural gas. (5) The following formula utilizes the above values and shall be used to calculate the as-fired cost of the alternate fuel (identified as "C"): Seller will monitor the changes in the average price of propane by reference to the BUTANE-PROPANE NEWSLETTER. Based on the average price of propane, Seller will calculate the as-fired cost using the procedure outlined above. Seller will advise Buyer, verbally or in writing, prior to the beginning of each billing period that Seller will: (1) Lower the price of natural gas to the as-fired cost of the alternate fuel and deliver gas, or (2) Notify Buyer of the price at which Seller will deliver gas in the event Seller elects not to lower the price to the as-fired cost of the alternate altemate fuel. In the event Seller elects to lower the price of gas to the as-fired cost of the alternate fuel, Buyer may not discontinue the purchase of natural gas hereunder. In the event Seller offers to deliver gas to Buyer at a price greater than of the as- fired cost of the alternate fuel, then Buyer may either accept delivery of natural gas at the price offered by Seller through a prompt verbal notice confirmed in writing or discontinue receiving gas for the next billing period. In no event will the cost of natural gas as determined by this paragraph, exceed the cost as determined under the Base Rate of this Service Agreement. (C) COMPETITIVE FUEL RATE (GAS-TO-GAS) (1) Seller acknowledges that Buyer also has the capability to use transported gas to satisfy Buyer's requirements in Priority-of-Service Category 3D. Buyer and Seller hereby agree that Seller has the opportunity to bid a price to Buyer to displace Buyer's transported gas in accordance with the procedures of this Paragraph 7(C). (2) Seller agrees to provide Buyer with notice, verbally, or in writing, before the end of each calendar month of the price at which Seller is able to sell Interruptible gas to Buyer for the next ensuing calendar month to displace transportation gas. (3) Buyer agrees to respond to Seller, verbally by telephone, or in writing, prior to the beginning of the next ensuing calendar month, that Buyer accepts or rejects Seller's offer. (4) In the event Buyer accepts Seller's offer, Buyer may not discontinue the purchase of natural gas for Buyer's fuel requirements hereunder. (5) In the event Buyer rejects Seller's offer, and elects to transport Buyer's own gas, then Buyer shall have no obligation to purchase any gas from Seller's system supply. (6) In no event will the cost of natural gas as determined by this paragraph, exceed the cost as determined under the Base Rate of this Service

COMPETITIVE FUEL RATE. It is the intent of the Agreement that BuyerXxxxx's cost of natural gas used in Priority- of-Service Category 3D shall be competitive with the as-fired cost of alternate fuel that Buyer could actually utilize in lieu of natural gas. For the purpose of the computation to obtain the as-fired cost of the altemate alternate fuel, it is understood and agreed that: ' 4: (1) The Alternate Fuel is Propane utilized after being mixed with air. (2) The cost of the alternate fuel (identified as "K") shall include: (a) The average posted price per gallon posted for CherawLexington, South Carolina, as published in the BUTANE-PROPANE NEWSLETTER on the third Monday of the current month, plus (b) Three One and three tenths cents (3.0¢1.3¢) per gallon for freight to Buyer's facility, plus (c) Vaporization fuel cost of one cent (1.0¢) per gallon, plus (d) Compressed air and plant operation of one-half cent (0.5¢) per gallon. (3) Propane shall be considered as having 91,600 BTU's per gallon or 0.0916 dekatherms per gallon, which is identified as "dt". (4) The equipment using propane-air shall be considered equally efficient using propane-air as it is using natural gas. (5) The following formula utilizes the above values and shall be used to calculate the as-fired cost of the alternate fuel (identified as "C"): Seller will monitor the changes in the average price of propane by reference to the BUTANE-PROPANE NEWSLETTER. Based on the average price of propane, Seller will calculate the as-fired cost using the procedure outlined above. Seller will advise Buyer, verbally or in writing, prior to the beginning of each billing period that Seller will: (1) Lower the price of natural gas to the as-fired cost of the alternate fuel and deliver gas, or (2) Notify Buyer of the price at which Seller will deliver gas in the event Seller elects not to lower the price to the as-fired cost of the alternate fuel. In the event Seller elects to lower the price of gas to the as-fired cost of the alternate fuel, Buyer may not discontinue the purchase of natural gas hereunder. In the event Seller offers to deliver gas to Buyer at a price greater than of the as- fired cost of the alternate fuel, then Buyer may either accept delivery of natural gas at the price offered by Seller through a prompt verbal notice confirmed in writing or discontinue receiving gas for the next billing period. In no event will the cost of natural gas as determined by this paragraph, exceed the cost as determined under the Base Rate of this Service Agreement. (C) COMPETITIVE FUEL RATE (GAS-TO-GAS) (1) Seller acknowledges that Buyer also has the capability to use transported gas to satisfy Buyer's requirements in Priority-of-Service Category 3D. Buyer and Seller hereby agree that Seller has the opportunity to bid a price to Buyer to displace Buyer's transported gas in accordance with the procedures of this Paragraph 7(C). (2) Seller agrees to provide Buyer with notice, verbally, or in writing, before the end of each calendar month of the price at which Seller is able to sell Interruptible gas to Buyer for the next ensuing calendar month to displace transportation gas. (3) Buyer agrees to respond to Seller, verbally by telephone, or in writing, prior to the beginning of the next ensuing calendar month, that Buyer accepts or rejects Seller's offer. (4) In the event Buyer accepts Seller's offer, Buyer may not discontinue the purchase of natural gas for Buyer's fuel requirements hereunder. (5) In the event Buyer rejects Seller's offer, and elects to transport Buyer's own gas, then Buyer shall have no obligation to purchase any gas from Seller's system supply. (6) In no event will the cost of natural gas as determined by this paragraph, exceed the cost as determined under the Base Rate of this Service

COMPETITIVE FUEL RATE. (1) It is the intent of Of the Agreement that BuyerXxxxx's cost of natural gas used in Priority- Priority-of-Service Category 3D shall be competitive with the as-fired cost of alternate fuel that Buyer could actually utilize in lieu of natural gas. For the purpose of the computation to obtain the as-fired cost of the altemate alternate fuel, it is understood and agreed that: ' 4: (1a) The Alternate Fuel is Propane utilized after being mixed with air. (2b) The cost of the alternate altemate fuel (identified as "K") shall include: (ai) The average posted price per gallon posted for Cheraw, South Carolina, as published in the BUTANE-PROPANE NEWSLETTER on the third Monday of the current month, plus (bii) Three One and nine-tenths cents (3.0¢1.9¢) per gallon for freight to Buyer's facility, plus (ciii) Vaporization fuel cost of one cent (1.0¢) per gallon, plus (div) Compressed air and plant operation of one-half cent (0.5¢0.5 ¢) per gallon. (3c) Propane shall be considered as having 91,600 BTU91_k6_9_B60T0U's per gallon or 0.0916 dekatherms per gallon, which is identified as "dt". (4d) The equipment using propane-air shall be considered equally efficient using propane-air as it is using natural gas. (5e) The following formula utilizes the above values and shall be used to calculate the as-fired cost of the alternate fuel (identified as "C"): Seller will monitor the changes in the average price of propane by reference to the BUTANE-PROPANE NEWSLETTER. Based on the average price of propane, Seller will calculate the as-fired cost using the procedure outlined above. Seller will advise Buyer, verbally or in writing, prior to the beginning of each billing period that Seller will: (1) Lower the price of natural gas to the as-fired cost of the alternate fuel and deliver gas, or (2) Notify Buyer of the price at which Seller will deliver gas in the event Seller elects not to lower the price to the as-fired cost of the alternate fuel. In the event Seller elects to lower the price of gas to the as-fired cost of the alternate fuel, Buyer may not discontinue the purchase of natural gas hereunder. In the event Seller offers to deliver gas to Buyer at a price greater than of the as- as-fired cost of the alternate fuel, then Buyer may either accept delivery of natural gas at the price offered by Seller through a prompt verbal notice confirmed in writing or discontinue receiving gas for the next billing period. In no event will the cost of natural gas as determined by this paragraph, exceed the cost as determined under the Base Rate of this Service Agreement. (C) COMPETITIVE FUEL RATE (GAS-TO-GAS). (12) Seller acknowledges It is the intent of the Agreement that Buyer also has the capability to use transported Xxxxx's cost of natural gas to satisfy Buyer's requirements used in Priority-of-Service Category 3D. Buyer and Seller hereby agree that Seller has the opportunity to bid a price to Buyer to displace Buyer's transported gas in accordance 3F shall be competitive with the procedures as-fired cost of this Paragraph 7(C)alternate fuel that the Buyer could actually utilize in lieu of natural gas. For the purpose of the computation to obtain the as-fired cost of the alternate fuel, it is understood and agreed that: (a) The Alternate Fuel is No. 2 Fuel Oil. (2b) Seller agrees to provide Buyer with notice, verbally, or in writing, before the end of each calendar month The cost of the alternate fuel (identified as "K") shall include: (iii) The net average price at which Seller is able for No. 2 fuel oil in effect on the third Monday of the current month, F.O.B., Charleston, South Carolina plus two cents (2.0¢). The price per gallon shall be determined by taking the average tankcar posting (stated in dollars per barrel) in the OIL BUYER'S GUIDE, and dividing by 42 gallons per barrel, plus, Three and three-tenths cents (3.3¢) per gallon for freight to sell Interruptible gas to Buyer the Buyer's facility, plus One cent (1.0¢) per gallon for the next ensuing calendar month to displace transportation gashandling charges. (3c) Number 2 fuel oil shall be considered as having 135,800 BTU's per gallon or 0.1358 dekatherms per gallon, which is identified as "dt". (d) The following formula utilizes the above values and shall be used to calculate the as-fired cost of the alternate fuel (identified as "C"): Seller will monitor the changes in the price of No. 2 fuel oil by reference to the OIL BUYERS' GUIDE. Based on the posted price of No. 2 fuel oil, Seller will calculate the as-fired cost using the procedure outlined above. Seller will advise the Buyer agrees to respond to Seller, verbally by telephone, or in writing, prior to the beginning of the next ensuing calendar month, each billing period that Buyer accepts or rejects Seller's offer.Seller will: (41) Lower the price of natural gas to the as-fired cost of the alternate fuel and deliver gas, or (2) Notify the Buyer of the price at which Seller will deliver gas in the event Seller elects not to lower the price to the as-fired cost of the alternate fuel. In the event Buyer accepts Seller's offerSeller elects to lower the price of gas to the as-fired cost of the alternate fuel, Buyer may not discontinue the purchase of natural gas for Buyer's fuel requirements hereunder. (5) . In the event Seller offers to deliver gas to Buyer rejects Seller's offer, and elects to transport Buyer's own gasat a price greater than the as-fired cost of the altemate fuel, then Buyer shall have no obligation to purchase any may either accept delivery of natural gas from Seller's system supply. (6) at the price offered by Seller through a prompt .verbal notice confirmed in writing or discontinue receiving gas for the next billing period. In no event will the cost of natural gas as #47582 Rev 7/04 determined by this paragraph, exceed the cost as determined under the Base Rate of specified in this ServiceService Agreement.