August 19, 1997
Xxxx Xxxxxxxx
Connecticut Natural Gas Corp.
000 Xxxxxxxx Xxxxxxxxx
Xxxxxxxx, XX 00000
Amendment to ANE Gas Sales Agreement No. 1
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Dear Xx. Xxxxxxxx:
The Gas Purchase Contract No. 1 between Alberta Northeast
Limited ("ANE") and TransCanada Gas Services, a division of
TransCanada Energy Ltd. ("TCGS") (formerly TransCanada Gas
Marketing Limited and Western Gas Marketing Limited), as agent
for TransCanada PipeLines Limited ("TransCanada"), dated
February 7, 1991, as amended ("Purchase Contract No. 1"), has
been amended, in pertinent part, to reflect changes agreed upon
in the recently-concluded negotiations to settle the pending
arbitration between TCGS and ANE pursuant to Article VII,
Section 7 of Purchase Contract No. 1. A copy of the Amending
Agreement is appended hereto. The amendments include: certain
adjustments to the price of the gas purchased by ANE from TCGS
pursuant to Purchase Contract No. 1; an increase in the Annual
Triggering Quantity; and, a time limitation for adjusting
overcharges and undercharges.
These amendments require corresponding amendments to the Gas
Sales Agreement between ANE and Connecticut Natural Gas Corp.
("Connecticut Natural Gas") respecting the Purchase Contract No.
1, dated February 7, 1991, as amended ("Gas Sales Agreement No.
1").
Effective upon the effectiveness of the Amending Agreement and
as provided therein, Gas Sales Agreement No. 1 is amended as
follows:
1. Article VII, Section 4 is amended by deleting the reference to
Article III, Section 5. in the second line thereof and
substituting "Article III, Section 3." therefor.
2. Article VIII, Section 2 is amended by deleting "70%" at both
places that it appears therein and substituting "75%" therefor.
3. Article IX, Section 1 is amended by:
(a) deleting the entire first sentence and substituting the
following therefor: "It is understood that, pursuant to Article
VII of Purchase Contract No. 1, the price to be paid by ANE to
TransCanada for each 1,000,000 Btu's contained in the gas
delivered to ANE by TransCanada under Purchase Contract No. 1
shall consist of a monthly Canadian transportation charge and a
commodity charge."; and,
(b) deleting the reference to Article VII, Section 1. in the
thirteenth line thereof and substituting "Article VII, Section
2." therefor; and
(c) deleting the reference to Article VII, Section 2. in the
fifteenth and sixteenth lines thereof and substituting "Article
VII, Section 3." therefor.
4. Article X, Section 1 is amended by deleting "70%" in the last
sentence thereof and substituting "75%" therefor.
5. Article X, Section 3 is amended by inserting after the words "by
ANE" in the last sentence thereof the words "and claimed within
twelve (12) months of the due date for such invoice".
6. Article XI, Section 1 is amended by deleting "70%" in the last
sentence thereof and substituting "75%" therefor.
Please acknowledge these amendments by signing in the space
provided below and returning an executed copy to me.
Sincerely,
Alberta Northeast Gas Limited
Xxxxxxx X. Xxxx
President
ACKNOWLEDGED AND ACCEPTED THIS
26TH DAY OF AUGUST, 1997
CONNECTICUT NATURAL GAS CORP.
By: Xxxx X. Xxxxxxxx
Title: Vice President
