12801 Fair Lakes Parkway Fairfax VA 22033 PO Box 10146 Fairfax VA 22030-0146 May 5, 2004 Mr. Robert J. Chaney, President UGI Utilities, Inc. 100 Kachel Boulevard, Suite 400 PO Box 12677 Reading, PA 19612-2677 RE: FTS Service Agreement No. 46284 and...

Exhibit 10.3

00000 Xxxx Xxxxx Xxxxxxx
Xxxxxxx XX 00000

XX Xxx 00000
Xxxxxxx XX 00000-0000

May 5, 2004

Xx. Xxxxxx X. Xxxxxx, President
UGI Utilities, Inc.
000 Xxxxxx Xxxxxxxxx, Xxxxx 000
XX Xxx 00000
Xxxxxxx, XX 00000-0000

RE: FTS Service Agreement No. 46284 and FTS-1 Service Agreement No. 46283

UGI Utilities, Inc. (“UGI”), and Columbia Gas Transmission Corporation (“Columbia”) and Columbia Gulf Transmission Company (“Columbia Gulf”), respectively, are parties to the Firm Transportation Service Agreements referenced above. Section 2 of each of these Service Agreements provides for a primary contract term that expires on October 31, 2004, and further provides that service shall continue “from year-to-year thereafter unless terminated by either party upon six (6) month’s written notice.” In consideration of the covenants contained herein and other good and valuable consideration, and intending to be legally bound hereby, the parties hereby agree as follows:

1. UGI and Columbia shall refrain from exercising their respective contractual rights to terminate FTS Service Agreement No. 46284 to be effective on any date prior to October 31, 2013.

2. UGI and Columbia Gulf shall refrain from exercising their respective contractual rights to terminate FTS-1 Service Agreement No. 46283 to be effective on any date prior to October 31, 2013.

Sincerely,

Columbia Gas Transmission, Inc.
Columbia Gulf Transmission Company
By:		Xxxx X. Xxxxxxxxx
		Title:		President

The foregoing provisions are agreed to and accepted by UGI Utilities, Inc. this                      day of May 2004.

UGI Utilities, Inc.
By:		/s/ Xxxxxx X. Xxxxxx
		Title:		President, UGI Utilities, Inc.