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EXHIBIT 10-15B
SERVICE AGREEMENT
APPLICABLE TO TRANSPORTATION OF NATURAL GAS
UNDER RATE SCHEDULE FTNN
AGREEMENT made as of this 1st day of December, 1993, by and between CNG
TRANSMISSION CORPORATION, a Delaware corporation, hereinafter called "Pipeline,"
and NEW JERSEY NATURAL GAS COMPANY, a New Jersey corporation, hereinafter called
"Customer."
WITNESSETH: That, in consideration of the mutual covenants herein
contained, the parties hereto agree as follows:
ARTICLE I
QUANTITIES
A. During the term of this Agreement, Pipeline will transport for
Customer, on a firm basis, and Customer may furnish, or cause to be furnished,
to Pipeline natural gas for such transportation, and Customer will accept, or
cause to be accepted, delivery from Pipeline of the quantities Customer has
tendered for transportation.
B. The maximum quantities of gas which Pipeline shall deliver and which
Customer may tender shall be as set forth on Exhibit A, attached hereto.
ARTICLE II
RATE
A. Unless otherwise mutually agreed in a written amendment to this
Agreement, beginning on October 1, 1993, Customer shall pay Pipeline for
transportation services rendered pursuant to this Agreement, the maximum rates
and charges provided under Rate Schedule FTNN set forth in Pipeline's effective
FERC Gas Tariff, including applicable surcharges and the Fuel Retention
Percentage.
B. Pipeline shall have the right to propose, file and make effective
with the Federal Energy Regulatory Commission or any other body having
jurisdiction, revisions to any applicable rate schedule, or to propose, file,
and make effective superseding rate schedules for the purpose of changing the
rate, charges, and other provisions thereof effective as to Customer; provided,
however, that (i) Section 2 of Rate Schedule FTNN "Applicability and Character
of Service," (ii) term, (iii) quantities, and (iv) points of receipt and points
of delivery shall not be subject to unilateral change under this Article. Said
rate schedule or superseding rate schedule and any revisions thereof which shall
be filed and made effective shall apply to and become a part of this Service
Agreement. The filing of such
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changes and revisions to any applicable rate schedule shall be without prejudice
to the right of Customer to contest or oppose such filing and its effectiveness.
ARTICLE III
TERM OF AGREEMENT
Subject to all the terms and conditions herein, this Agreement shall be
effective as of October 1, 1993, and shall continue in effect for a primary term
through and including March 31, 2005, and from year to year thereafter, until
either party terminates this Agreement by giving written notice to the other at
least twelve months prior to the start of the next contract year.
ARTICLE IV
POINTS OF RECEIPT AND DELIVERY
The Points of Receipt and Delivery and the maximum quantities for each
point for all gas that may be received for Customer's account for transportation
by Pipeline shall be as set forth on Exhibit A.
ARTICLE V
REGULATORY APPROVAL
Performance under this Agreement by Pipeline and Customer shall be
contingent upon Pipeline and Customer receiving all necessary regulatory or
other governmental approvals upon terms satisfactory to each. Should Pipeline or
Customer be denied such approvals to provide or continue the service
contemplated herein or to construct and operate any necessary facilities
therefor upon the terms and conditions requested in the application therefor,
then Pipeline's and Customer's obligations hereunder shall terminate.
ARTICLE VI
INCORPORATION BY REFERENCE OF TARIFF PROVISIONS
To the extent not inconsistent with the terms and conditions of this
Agreement, the following provisions of Pipeline's effective FERC Gas Tariff, and
any revisions thereof that may be made effective hereafter are hereby made
applicable to and a part hereof by reference:
1. All of the provisions of Rate Schedule FTNN, or any
effective superseding rate schedule or otherwise applicable rate schedule; and
2. All of the provisions of the General Terms and Conditions,
as they may be revised or superseded from time to time.
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ARTICLE VII
MISCELLANEOUS
A. No change, modification or alteration of this Agreement
shall be or become effective until executed in writing by the parties hereto;
provided, however, that the parties do not intend that this Article VII.A.
requires a further written agreement either prior to the making of any request
or filing permitted under Article II hereof or prior to the effectiveness of
such request or filing after Commission approval, provided further, however,
that nothing in this Agreement shall be deemed to prejudice any position the
parties may take as to whether the request, filing or revision permitted under
Article II must be made under Section 7 or Section 4 of the Natural Gas Act.
B. Any notice, request or demand provided for in this
Agreement, or any notice which either party may desire to give the other, shall
be in writing and sent to the following addresses:
Pipeline: CNG Transmission Corporation
000 Xxxx Xxxx Xxxxxx
Xxxxxxxxxx, Xxxx Xxxxxxxx 00000
Attention: Vice President, Marketing
and Customer Services
Customer: New Jersey Natural Gas Company
0000 Xxxxxxx Xxxx
X.X. Xxx 0000
Xxxx, XX 00000
Attention: Xxxx Xxxxxxx
or at such other address as either party shall designate by formal written
notice.
C. No presumption shall operate in favor of or against either
party hereto as a result of any responsibility either party may have had for
drafting this Agreement.
D. The subject headings of the provisions of this Agreement
are inserted for the purpose of convenient reference and are not intended to
become a part of or to be considered in any interpretation of such provisions.
ARTICLE VIII
PRIOR CONTRACTS
If this Service Agreement becomes effective as an executed
Service Agreement, it shall supersede and cancel, as of its effective date, the
Service Agreements between Customer and Pipeline Applicable to Transportation of
Natural Gas under Rate Schedule TF dated January 18, 1988,
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and November 1, 1992, the Service Agreement between Customer and Pipeline
Applicable to the Sales of Natural Gas Under Rate Schedule CD dated November 1,
1992, the Service Agreement between Customer and Pipeline Applicable to the
Storage of Natural Gas under Rate Schedule GSS dated November 1, 1992, and the
Service Agreements between Customer and Pipeline Applicable to the Sales of
Natural Gas dated September 16, 1988, (Seasonal Sales Service) and February 1,
1989 (APEC), and the Precedent Agreement between Customer and Pipeline dated
April 16, 1991. Otherwise, each of these instruments shall remain in full force
and effect unless it shall have expired by its own terms.
IN WITNESS WHEREOF, the parties hereto intending to be legally
bound, have caused this Agreement to be signed by their duly authorized
officials as of the day and year first written above.
CNG TRANSMISSION CORPORATION
(PIPELINE)
BY: /s/ XXXXXX X. XXXXX
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ITS: VICE PRESIDENT
NEW JERSEY NATURAL GAS COMPANY
(CUSTOMER)
BY: /s/ XXXX X. XXXXXXX
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ITS: Vice President - Gas Supply
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(TITLE)
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REVISED EXHIBIT A
DATED DECEMBER 21, 1995
TO THE FTNN SERVICE AGREEMENT
DATED DECEMBER 1, 1993
BETWEEN CNG TRANSMISSION CORPORATION
AND NEW JERSEY NATURAL GAS COMPANY
AGREEMENT made as of this 21st day of December, 1995, by and
between CNG TRANSMISSION CORPORATION, a Delaware corporation, hereinafter called
"Pipeline," and NEW JERSEY NATURAL GAS COMPANY, a New Jersey corporation,
hereinafter called "Customer."
Pipeline and Customer agree to revise the provisions of
Exhibit A of the "Service Agreement Applicable To Transportation Of Natural Gas
Under Rate Schedule FTNN" between Pipeline and Customer dated December 1, 1993,
as reflected below, effective January 1, 1996.
A. QUANTITIES
The maximum quantities of gas which Pipeline shall deliver and which
Customer may tender shall be as follows:
1. A Maximum Daily Transportation Quantity (MDTQ) of 53,065 dekatherms
("Dt").
2. A Maximum Annual Transportation Quantity (MATQ) of 19,368,725 Dt.
B. POINTS OF RECEIPT
1. TOTAL ENTITLEMENTS
The Points of Receipt and the maximum quantities for each point shall
be as set forth below. Pipeline will use due care and diligence to
assure, and Customer will use due care and diligence to cause its
transporter to assure, that uniform pressures will be maintained at the
Receipt Points as reasonably may be required to render service
hereunder, but Pipeline will not be required to accept gas at less than
the minimum pressures specified herein. In addition to the quantities
specified below, Customer may increase the quantities furnished to
Pipeline at each receipt point so long as such quantities, when reduced
by the fuel retention percentage specified in Pipeline's
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REVISED EXHIBIT A DATED DECEMBER 21, 1995
TO THE FTNN SERVICE AGREEMENT DATED DECEMBER 1, 1993
BETWEEN CNG TRANSMISSION CORPORATION
AND NEW JERSEY NATURAL GAS COMPANY
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currently effective FERC Gas Tariff, do not exceed the quantity limitation
specified below for each receipt point.
a. Up to 30,942 Dt per Day at the interconnection of the facilities of
Pipeline and Texas Gas Transmission Corporation, Texas Eastern
Transmission Corporation ("Texas Eastern"), ANR Pipeline Company,
Trunkline Gas Company, or other pipeline(s) in Xxxxxx County, Ohio,
known as the Lebanon Interconnection, at a pressure of not less than
five hundred thirty-one (531) pounds per square inch gauge ("psig").
b. Up to 18,048 Dt per Day at the interconnection of the facilities of
Pipeline and Texas Eastern or other pipeline(s) in Xxxxxxxxxxxx County,
Pennsylvania, known as the Oakford Interconnection, at a pressure of not
less than five hundred seventy-five (575) psig.
c. Up to 721 Dt per day at Pipeline's Appalachian Aggregation Point known
as Xxxxxxxxxx Station, located on Line 280 in Clinton County,
Pennsylvania.
d. Up to a combined maximum daily quantity of 1,779 Dt at the following
Appalachian Aggregation Points:
(1) Xxxxxxxx Xxxxxxx, Xxxxxxx xx Xxxxxxx Xxxxxx, Xxxx Xxxxxxxx;
(2) Bridgeport Station, located on Line TL-373 in Xxxxxxxx County,
West Virginia; and
(3) Hastings Station (wet gas), located in Xxxxxx County, West
Virginia,
with the specific allocation of quantities among these points to be
determined by mutual agreement.
e. Up to a combined maximum daily quantity of 1,575 Dt per Day at
the following Tennessee Gas Pipeline Company ("Tennessee")
points:
(1) a point located on the facilities of Tennessee known as South
Xxxxxxx; and
(2) an existing point of interconnection between the facilities of
Pipeline and Tennessee in Kanawha County, West Virginia, known
as the Xxxxxxxx Interconnection, at a pressure of not less
than four hundred seventy-five (475) psig.
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REVISED EXHIBIT A DATED DECEMBER 21, 1995
TO THE FTNN SERVICE AGREEMENT DATED DECEMBER 1, 1993
BETWEEN CNG TRANSMISSION CORPORATION
AND NEW JERSEY NATURAL GAS COMPANY
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with the specific allocation of quantities among these points
to be determined by mutual agreement.
f. Any secondary receipt point on Pipeline's current Master
Receipt and Delivery Point List.
2. MARQ RENEGOTIATION PROVISION
Customer shall have the right to reduce its Maximum Appalachian Receipt
Quantity ("MARQ') (as such term is defined in Section 5.1.C of CNG's
Rate Schedule FTNN), in whole or in part, as of January 1, 2001, in
accordance with the terms of the Letter Agreement among Pipeline,
Customer, Long Island Lighting Company, and Pubic Service Electric and
Gas Company dated July 7, 1995. Pipeline and Customer shall enter into
negotiations sufficiently in advance of January 1, 2001, to implement
any resulting change in Primary Receipt Points. This renegotiation
provision shall in no way affect the quantities stated in Paragraph A,
above, except by mutual agreement of the Parties.
C. POINTS OF DELIVERY
The Points of Delivery and the maximum quantities for such points shall
be as set forth below. Pipeline will use due care and diligence to
assure, and Customer will use due care and diligence to cause its
transporter to assure, that uniform pressures will be maintained at the
Delivery Points as reasonably may be required to render service
hereunder, and Pipeline will use due care and diligence to deliver gas
(or to cause gas to be delivered) within the pressure limitations
specified herein.
1. Up to 35,000 Dt per Day at an existing point of
interconnection between the facilities of Pipeline and Texas
Eastern, in Franklin County, Pennsylvania, known as the
Chambersburg Interconnection, at a pressure of not more than
seven hundred (700) psig; provided, however, that the
nomination of this point as a Delivery Point under the Rate
Schedule GSS (Part 284) Service Agreement between Customer and
Pipeline dated December 1, 1993, whether made by Customer or
by Customer's agent, assignee, or Replacement Customer, shall
reduce Customer's entitlement to delivery of Transportation
Quantities at this point by an equivalent quantity; and
provided further, however, that the nomination of this point
as a Delivery Point under this transportation Service
Agreement, whether made by Customer or by Customer's agent,
assignee, or Replacement Customer, shall reduce Customer's
entitlement to receive deliveries of gas withdrawn from
storage at this point under the above-referenced Rate Schedule
GSS (Part 284) Service Agreement
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REVISED EXHIBIT A DATED DECEMBER 21, 1995
TO THE FTNN SERVICE AGREEMENT DATED DECEMBER 1, 1993
BETWEEN CNG TRANSMISSION CORPORATION
AND NEW JERSEY NATURAL GAS COMPANY
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by an equivalent quantity. The foregoing limitations on
deliveries at the Chambersburg Interconnection shall not be
affected by any capacity release or assignment of this Service
Agreement or the above-referenced Rate Schedule GSS (Part 284)
Service Agreement.
2. Up to 18,065 Dt per Day at the interconnection of the
facilities of Pipeline and Texas Eastern, Transcontinental Gas
Pipe Line Corporation or other pipeline(s) in Clinton County,
Pennsylvania, known as the Xxxxx Interconnection, at a
pressure of not less than one-thousand, two-hundred (1,200)
psig.
3. Up to 53,065 Dt per Day at points of injection into Pipeline's
storage pools; provided, however, that all nominations under
this Agreement for injection into storage shall be subject to
Pipeline's confirmation of a corresponding nomination for
injection of such gas into Pipeline's storage pool(s), under a
valid Service Agreement for storage service by Pipeline;
provided further, however, that this requirement shall not
affect Customer's ability to inject gas into storage in
accordance with Section 9 of Rate Schedule FTNN.
4. Any secondary delivery point on Pipeline's current Master
Secondary Receipt and Delivery Point List.
D. SUPERSEDED AGREEMENT
This Revised Exhibit A shall supersede and cancel, as of its effective
date, the original Exhibit A to the "Service Agreement Applicable To
Transportation Of Natural Gas Under Rate Schedule FTNN" between
Pipeline and Customer, dated December 1, 1993.
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REVISED EXHIBIT A DATED DECEMBER 21, 1995
TO THE FTNN SERVICE AGREEMENT DATED DECEMBER 1, 1993
BETWEEN CNG TRANSMISSION CORPORATION
AND NEW JERSEY NATURAL GAS COMPANY
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IN WITNESS WHEREOF, the parties hereto intending to be legally bound,
have caused this Revised Exhibit A to be signed by their duly authorized
officials, as of the day and year first written above.
CNG TRANSMISSION CORPORATION
(PIPELINE)
BY: /s/ Xxxxxx X. Xxxxx
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ITS: VICE PRESIDENT
NEW JERSEY NATURAL GAS COMPANY
(CUSTOMER)
BY: /s/ Xxxx X. Xxxxxxx
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ITS: Senior Vice President - Energy Services
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(TITLE)
