EXHIBIT 10.7
October 29, 1996
Cascade Natural Gas Corporation
000 Xxxxxxxx Xxxxxx Xxxxx
Xxxxxxx, Xxxxxxxxxx X.X.X.
00000
Attention: Xx. Xxxxxxx Xxxxxxx
Dear Madam:
Re: Canadian Hydrocarbons Marketing Inc./Cascade Natural Gas Corporation
Natural gas Sales Agreement Dated November 1, 1990 As Amended
Pursuant to Section 7.09 of the captioned agreement, Westcoast Gas Services,
Inc. ("WGSI") and Cascade Natural Gas Corporation ("CASCADE") agree that the
following Gas Commodity Price and Reserves Standby Fee shall apply for the
contract year November 1, 1996 to October 31, 1997.
(A) GAS COMMODITY PRICE
The Gas Commodity Price payable by Cascade per MMBtu of gas delivered shall
be calculated monthly based upon the following:
Sumas Index Plus US$[*]MMBtu.
Minus those related Westcoast Energy Inc. Demand Charges paid by
Cascade for the applicable contract month converted to US$/MMBtu unit
rate assuming a 100% load factor.
MINUS a Reserves Standby Charge credit of US$[*]MMBtu.
(B) RESERVES STANDBY FEE
The Reserves Standby Fee shall be rolled over at the existing fee of
US$[*]MMBtu.
Please indicate your acceptance of the foregoing by signing both copies of this
letter and return one copy to WGSI for our files.
Yours truly,
WESTCOAST GAS SERVICES, INC.
Xxxx X. Xxxxxxxx
Director, Supply and Marketing
ACCEPTED AND AGREED TO this 31st day of October 1996
CASCADE NATURAL GAS CORPORATION
Per: /s/ King Xxxxx
----------------
King Xxxxx
Title: Vice President, Gas Supply
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[*]=CONFIDENTIAL Information omitted and filed separately with the commission
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