EXHIBIT 10.60
AMENDMENT TO SERVICE AGREEMENTS
THIS AMENDMENT ("Amendment") entered into this 31st day of August, 2004 by
and between TRANSCONTINENTAL GAS PIPE LINE CORPORATION, a Delaware corporation,
hereinafter referred to as Seller, first party, and PIEDMONT NATURAL GAS
COMPANY, INC., hereinafter referred to as Buyer, second party.
W I T N E S S E T H:
WHEREAS, Seller and Buyer entered into that certain Service Agreement
dated November 1, 1995 under Seller's Rate Schedule FT pursuant to which Seller
provides firm transportation service for Buyer of a Transportation Contract
Quantity of 54,855 dt for the months of December, January and February and
49,369 dt for the months of November and March (Seller's Contract No. 1004189),
and Seller and Buyer entered into that certain Service Agreement dated November
1, 1998 under Seller's Rate Schedule FT pursuant to which Seller provides firm
transportation service for Buyer of a Transportation Contract Quantity of 16,871
dt for the months of December, January and February and 15,183 dt for the months
of November and March (Seller's Contract No. 1004188) (such Service Agreements
hereinafter referred to individually as "Service Agreement #1004189" and
"Service Agreement #1004188", respectively, and collectively as the "Service
Agreements"); and
WHEREAS, Section 22 of the General Terms and Conditions of Seller's FERC
Gas Tariff ("Section 22") permits Seller and Buyer to mutually agree to
consolidate (and terminate, as necessary) multiple service agreements into a
single service agreement provided certain conditions are satisfied; and
WHEREAS, Buyer has requested consolidation of the Service Agreements and
Seller has determined that such consolidation is permitted under Section 22; and
WHEREAS, Seller and Buyer have agreed to accomplish that consolidation by
amending Service Agreement #1004189 to include Buyer's Transportation Contract
Quantity from Service Agreement #1004188, and terminating Service Agreement
#1004188, all to be effective on September 1, 2004.
NOW, THEREFORE, Seller and Buyer agree as follows:
1. Effective 9:00 a.m. Central Clock Time on September 1, 2004, Article I of
Service Agreement #1004189 is hereby deleted in its entirety and replaced by the
following:
"ARTICLE I
GAS TRANSPORTATION SERVICE
1. Subject to the terms and provisions of this agreement and of
Seller's Rate Schedule FT, Buyer agrees to deliver or cause to be
delivered
to Seller gas for transportation and Seller agrees to receive, transport
and redeliver natural gas to Buyer or for the account of Buyer, on a firm
basis, up to a Transportation Contract Quantity ("TCQ") of
a. 71,726 dt per day for the peak months of December, January and
February and
b. 64,552 dt per day for the shoulder months of November and
March
2. Transportation service rendered hereunder shall not be subject to
curtailment or interruption except as provided in Section 11 and, if
applicable, Section 42 of the General Terms and Conditions of Seller's
FERC Gas Tariff."
2. Effective 9:00 a.m. Central Clock Time on September 1, 2004, Exhibits A and B
of Service Agreement #1004189 are hereby deleted in their entirety and replaced
by the Exhibits A and B attached hereto.
3. Except as specifically amended hereby, all of the terms and conditions of
Service Agreement #1004189 shall remain in full force and effect.
4. Effective 9:00 a.m. Central Clock Time on September 1, 2004, Service
Agreement #1004188 is hereby terminated and shall be of no further force or
effect from and after that date. Termination of Service Agreement #1004188 as
set forth herein shall not relieve either party of rights, duties or obligations
under Service Agreement #1004188 that accrue during or relate to the period
prior to the termination date.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
signed by their respective officers or representatives thereunto duly
authorized.
TRANSCONTINENTAL GAS PIPE PIEDMONT NATURAL GAS
LINE CORPORATION ("Seller") COMPANY, INC. ("Buyer")
By /s/ Xxxxx X. Xxxxxxx By /s/ Xxxxxxxx X. Xxxx
---------------------------- --------------------
Xxxxx X. Xxxxxxx Xxxxxxxx X. Xxxx
Vice President Sr.Vice President - Commercial Operations
Exhibit A
Buyer's Buyer's
Mainline Capacity Mainline Capacity
Entitlement Entitlement
Peak Months Shoulder Months
Receipt Point(2) (DT per Day)(3) (Dt per Day)(3)
------------------------------ ----------------- -----------------
TIER I(1) Holmesville 35,042 31,538
TIER II(1) Xxxxxxxxx Xxxxx County 53,811 48,430
Miss Fuels
Hattiesburg - Endevco
Bass Exch-FGT
Bassfield-ANR
Holiday Creek
Xxxxxx Xxxxxxx
West Oakvale
Oakvale-Amoco
Oakvale-Amoco Sabine
Hattiesburg-First Reserve
Xxxxxxxx-United
Greens Creek
Xxxxx County-Gitano
Xxxx Xxxxx Creek
Holiday Creek-ANR
TIER III(1) Xxxxxx County - Miss Fuels 71,726 64,552
Magnolia Pipeline Interconnect
Jonesboro - SNG
Heidelberg
Station 85 Main Line Pool
---------------
1 Tier I - Transco's mainline between Holmesville and Station 70
Tier II - Transco's mainline between Station 70 and Station 80
Tier III - Transco's mainline downstream of Station 80
2 Seller's ability to receive gas under this Rate Schedule at specific point(s)
of receipt is subject to the operating limitations of Transco and the upstream
party at such point(s) and the availability of capacity at such point(s) of
receipt, but in no event will Seller require a pressure at the Points of Receipt
greater than 800 psig.
3 These quantities do not include the additional quantities of gas retained by
Seller for applicable compressor fuel and line loss make-up provided for in
Article V, 2 of this Service Agreement, which are subject to change as provided
for in Article V, 2 hereof. The volume provided for each tier represents the
maximum allowable firm capacity entitlement to be transported through the
associated tier from all receipt points within that tier. However, the total
cumulative capacity entitlement for all receipt points provided herein shall not
exceed the specified capacity entitlement provided for Tier III, which amount
shall equal Shipper's transportation contract demand quantity. To the extent
that on any day other participants in Transco's Southern Expansion Project are
not utilizing their total daily TCQ within a Tier, Transco is willing to receive
additional quantities of gas from Shipper at such points within such Tier, on an
interruptible basis, not to exceed Shipper's total daily TCQ.
Exhibit B
Transportation Transportation
Delivery Point Contract Quantity Contract Quantity
Delivery Point(s) of Increment Peak Months Shoulder Months
Delivery and Pressure(1) (Dt per Day) (Dt per Day) (Dt per Day)
------------------------ -------------- ----------------- -----------------
Group 8
Xxxxxxxx 2,907
Greenville 4,334
Xxxxxxxx 4,334
Startex 2,907
Total 10,971 9,464
Group 9 3,291
Total 3,291 2,962
Group 10
Charlotte 4,169
Salisbury 4,169
Xxxxxxx Xxxx 4,169
Winston-Salem 12,617
Kernersville 12,617
Greensboro 13,714
Tidewater 10,350
Total 50,943 45,839
Group 00-X
Xxxxxxxx Xxxx 6,521
Total 6,521 5,868
Total Transportation
Contract Quantity: 71,726 64,552
Subject to the conditions contained in the Agreement, Seller shall make
deliveries of gas for the account of Buyer at the Point(s) of Delivery specified
above at such pressures as may be available from time to time in Seller's line
serving such Point(s) of Delivery not to exceed maximum allowable operating
pressure, but not less than fifty (50) psig or at such other pressures as may be
agreed upon in the day-to-day operations of Buyer and Seller.
Deliveries of gas to the Point(s) of Delivery shall be subject to the
limitations of Shipper's Delivery Point Entitlements (DPE) at such points as set
forth in Transco's FERC Gas Tariff.
