Contract # 2.1106
FTPO
SERVICE AGREEMENT
between
TRANSCONTINENTAL GAS PIPE LINE CORPORATION
and
PG ENERGY INC.
Dated July 10, 1997
SERVICE AGREEMENT
THIS AGREEMENT entered into this 10th day of July, 1997, by and between
TRANSCONTINENTAL GAS PIPE LINE CORPORATION, a Delaware corporation, hereinafter
referred to as "Seller," first party, and PG ENERGY INC., hereinafter referred
to as "Buyer," second party,
WITNESSETH
WHEREAS, Seller owns and operates an interstate gas pipeline system; and
WHEREAS, Buyer submitted a request for firm transportation service to be
made available through an expansion of its transmission facilities, referred to
as the "1997 Pocono Expansion Project";
WHEREAS, Seller and PG Energy Inc. ("PG Energy") are parties to a Precedent
Agreement, dated March 31, 1997 providing for firm transportation service of up
to a Transportation Contract Quantity of 33,500 dt per day through Seller's
pipeline system under Rate Schedule FT; and
WHEREAS, Seller will provide firm transportation service hereunder to
Buyer pursuant to Seller's blanket certificate authorization and Rate Schedule
FT for the 33,500 dt per day Transportation Contract Quantity pursuant to the
terms and conditions of this agreement.
NOW, THEREFORE, Seller and Buyer agree as follows:
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 33,500 dt per day.
2. Transportation service rendered hereunder shall not be subject to
curtailment or interruption except as provided in Section 11 of the General
Terms and Conditions of Seller's FERC Gas Tariff.
ARTICLE II
POINT OF RECEIPT
Buyer shall deliver or cause to be delivered gas at the point of receipt
hereunder at a pressure sufficient to allow the gas to enter Seller's pipeline
system at the varying pressures that may exist in such system from time to time;
provided, however, the pressure of the gas delivered or caused to be delivered
by Buyer shall not exceed the maximum operating pressure of Seller's pipeline
system at such point of receipt. In the event the maximum operating pressure of
Seller's pipeline system, at the point of receipt hereunder, is from time to
time increased or decreased, then the maximum allowable pressure of the gas
delivered or caused to be delivered by Buyer to Seller at the point of receipt
shall be correspondingly increased or decreased upon written notification of
Seller to Buyer. The point of receipt for natural gas received for
transportation pursuant to this agreement shall be:
2
SERVICE AGREEMENT (CONTINUED)
See Exhibit A, attached hereto, for point of receipt.
ARTICLE III
POINT OF DELIVERY
Seller shall redeliver to Buyer or for the account of Buyer the gas
transported hereunder at the following point of delivery and at a pressure of:
See Exhibit B, attached hereto, for point of delivery and pressure.
ARTICLE IV
TERM OF AGREEMENT
This agreement shall be effective as of the later of November 1, 1997 or
the date that the facilities of Seller necessary to commence service of all or
part of Buyer's TCQ hereunder are ready for service and shall remain in force
and effect until 10:00 a.m. Eastern Standard Time November 1, 2017 and
thereafter until terminated by Seller or Buyer upon at least one hundred eighty
days (180) written notice; provided, however, this agreement shall terminate
immediately and, subject to the receipt of necessary authorizations, if any,
Seller may discontinue service hereunder if (a) Buyer, in Seller's reasonable
judgement fails to demonstrate credit worthiness, and (b) Buyer fails to provide
adequate security in accordance with Section 32 of the General Terms and
Conditions of Seller's Volume No. 1 Tariff.
ARTICLE V
RATE SCHEDULE AND PRICE
1. Buyer shall pay Seller for natural gas delivered to Buyer hereunder in
accordance with Seller's Rate Schedule FT and the applicable provisions of the
General Terms and Conditions of Seller's FERC Gas Tariff as filed with the
Federal Energy Regulatory Commission, and as the same may be legally amended or
superseded from time to time. Such Rate Schedule and General Terms and
Conditions are by this reference made a part hereof. In the event Buyer and
Seller mutually agree to a negotiated rate and specified term for service
hereunder, provisions governing such negotiated rate (including surcharges) and
term shall be set forth on Exhibit C to the service agreement.
2. Seller and Buyer agree that the quantity of gas that Buyer delivers or
causes to be delivered to Seller shall include the quantity of gas retained by
Seller for applicable compressor fuel, line loss make-up (and injection fuel
under Seller's Rate Schedule GSS, if applicable) in providing the transportation
service hereunder, which quantity may be changed from time to time and which
will be specified in the currently effective Sheet No. 44 of Volume No. 1 of
this Tariff which relates to service under this agreement and which is
incorporated herein.
3
SERVICE AGREEMENT (CONTINUED)
3. In addition to the applicable charges for firm transportation service
pursuant to Section 3 of Seller's Rate Schedule FT, Buyer shall reimburse Seller
for any and all filing fees incurred as a result of Buyer's request for service
under Seller's Rate Schedule FT, to the extent such fees are imposed upon Seller
by the Federal Energy Regulatory Commission or any successor governmental
authority having jurisdiction.
ARTICLE VI
MISCELLANEOUS
1. This Agreement supersedes and cancels as of the effective date hereof
the following cantract(s) between the parties hereto: None.
2. No waiver by either party of any one or more defaults by the other in
the performance of any provisions of this agreement shall operate or be
construed as a waiver of any future default or defaults, whether of a like or
different character.
3. The interpretation and performance of this agreement shall be in
accordance with the laws of the State of Texas, without recourse to the law
governing conflict of laws, and to all present and future valid laws with
respect to the subject matter, including present and future orders, rules and
regulations of duly constituted authorities.
4. This agreement shall be binding upon, and inure to the benefit of the
parties hereto and their respective successors and assigns.
5. Notices to either party shall be in writing and shall be considered as
duly delivered when mailed to the other party at the following address:
(a) If to Seller:
Transcontinental Gas Pipe Line Corporation
X.X. Xxx 0000
Xxxxxxx, Xxxxx, 00000
Attention: Director, Customer Services
(b) If to Buyer:
PG Energy Inc.
Xxx XXX Xxxxxx
Xxxxxx-Xxxxx, XX 00000-0000
Attention: Director, Gas Supply
Such addresses may be changed from time to time by mailing appropriate notice
thereof to the other party by certified or registered mail.
4
SERVICE AGREEMENT (CONTINUED)
IN WITNESS WHEREOF, the parties hereto have caused this agreement to be signed
by their respective officers or representatives thereunto duly authorized.
TRANSCONTINENTAL GAS PIPE LINE
CORPORATION
(Seller)
BY: /s/ Xxxxx X. Xxxxxxx
------------------------------------
Xxxxx X. Xxxxxxx
Vice President
Customer Service
PG ENERGY INC.
(Buyer)
By: /s/ Xxxx X. Xxxx, Xx.
------------------------------------
Xxxx X. Xxxx, Xx.
Vice President, Financial Services
5
Exhibit A
ATTACHED AND MADE PART OF THAT SERVICE AGREEMENT BY AND BETWEEN
TRANSCONTINENTAL GAS PIPE LINE CORPORATION, AS SELLER, AND PG ENERGY INC., AS
BUYER, DATED July 10, 1997
Point of Receipt
The point of interconnection between Seller and CNG Transmission Corporation
near the Xxxxx Storage Field, Clinton County, Pennsylvania.
Exhibit B
ATTACHED AND MADE PART OF THAT SERVICE AGREEMENT BY AND BETWEEN
TRANSCONTINENTAL GAS PIPE LINE CORPORATION, AS SELLER, AND PG ENERGY INC., AS
BUYER, DATED July 10, 1997
Point of Delivery Pressure
----------------- --------
The point of interconnection between Pressures existing from time to time in
Seller's Xxxxx Line and Buyer's Seller's system at the point of
facilities at the Shickshinny Meter delivery.
Station near Salem Township, Luzerne
County, Pennsylvania.
Exhibit C
ATTACHED AND MADE PART OF THAT SERVICE AGREEMENT BY AND BETWEEN
TRANSCONTINENTAL GAS PIPE LINE CORPORATION, AS SELLER, AND PG ENERGY INC., AS
BUYER, DATED July 10, 1997
Specification of Negotiated Rate and Term
None.
