1
EXHIBIT 10.24
ENRON
NORTHERN NATURAL GAS COMPANY
P. O. Xxx 0000 Xxxxxxx, Xxxxx 00000-0000 (000) 000-0000
February 16, 1996
Xx. Xxxxx Xxxxxxxx
Continental Natural Gas, Inc.
0000 Xxxxxx Xxxxxxxx, Xxxxx 000
0000 X. Xxxxxx
Xxxxx, Xxxxxxxx 00000
Re: Amendment to CR#101125
Northern Natural Gas Company (Northern) and Continental Natural Gas, Inc.
(Continental) are Parties to a Firm Throughput Service Agreement (CR#101125)
executed simultaneously herewith. Northern and Continental hereby agree to
amend CR#101125 as stated herein:
1. Rate. The commodity and demand rates stated in CR#101125 shall be
superseded by the following combined discounted commodity and demand
rate, which rate shall be applicable to transportation from the
Primary Receipt Points to the Primary Delivery Points designated in
CR#101125: $0.11 per MMBtu ("combined discount rate"). This combined
discount rate is based on 100% load factor and includes all applicable
surcharges, if any. Northern reserves the right to allocate the
combined discount rate between commodity and demand components
exclusive of surcharges, such that the combined discount rate shall
always equal $0.11 per MMBTU based on 100% load factor utilization.
Continental agrees to pay Northern the rate stated herein on the
contractual MDQ, irrespective of the amount of gas actually flowed by
Continental on a daily basis.
2. Term. The term of the above stated combined discount rate shall be
three hundred sixty-four (364) days from the date initial deliveries
are made under CR#101125. At the expiration of such period the rates
applicable to service provided under CR#101125 shall become Northern's
applicable tariff rates, as amended from time to time.
3. Fuel. In addition to the above stated combined discount rate,
Continental shall pay Northern the applicable fuel rate set forth in
Northern's FERC Gas Tariff, as amended from time to time.
4. FERC. If it is determined, as a result of any decision or regulation
issued by the FERC or other administrative agency or court of
competent jurisdiction: (i) that any discount provided to Continental
by Northern would, in effect, require Northern to provide similar
discounts to other shippers or that the providing of such discounted
rates to Continental provides Continental an undue preference or would
subject other shippers to undue discrimination; or (ii) that Northern
is required to allocate costs to the service provided hereunder or
recognize revenue as if it were charging rates in excess of the
combined discount rate provided for herein; Northern and Continental
agree to renegotiate the rate stated herein such that both parties
achieve the same economic value as contemplated in this
transportation.
Part of the Enron Group of Energy Companies
2
EXHIBIT 3
Firm Throughput Service Agreement
Rate Schedule TFX
Shipper's Name and Address for Notices and Invoices: Date: January 26, 1996
Continental Natural Gas Incorporated
Boston Bldg.
0000 X. Xxxxxx
Xxxxx, XX 00000
Attn: Gas Control
Address for Invoice
Continental Natural Gas Incorporated
Boston Bldg.
0000 X. Xxxxxx
Xxxxx, XX 00000
Attn: Accounts Payable
Contract No: 101125
Term: This Agreement shall become effective on March 1, 1996, or upon
completion of construction of facilities at CNG A-line (S18, T13S,
R26E, Beaver County, OK), whichever is later, for a term of 364 days.
Rates shall be Northern's maximum rates and charges plus all applicable
surcharges in effect from time to time under the applicable Rate Schedule on
file with the Commission unless otherwise agreed to by the parties in writing.
This transportation shall be provided pursuant to Subpart G of Part 284 of the
Federal Energy Regulatory Commission's ("Commission") regulations.
The contract maximum daily quantities and primary receipt and delivery points
are set forth on Appendix A, and if necessary, Appendix B.
If made available by Shipper, Northern agrees to receive and deliver thermally
equivalent volumes of natural gas as set forth in this Agreement.
Other:
-----------------------------------------------------
Any notice, statement, or xxxx provided for in this Agreement shall be in
writing and shall be considered as having been given if delivered personally,
or if mailed by United States mail, postage prepaid, or if sent by express
mail, overnight delivery, telex, telecopy or other mutually agreeable means of
electronic transmission, to Shipper when sent to the address set forth on this
Agreement and to Northern when sent to the following:
3
All Notices/Accounting Matters: Payments: Northern Natural Gas Company
Northern Natural Gas Company Citibank N.A.
X.X. Xxx 0000 000 Xxxx Xxxxxx
Xxxxxxx, Xxxxx 00000-0000 Account No. 4049-8026
Attn: Market Services Xxx Xxxx, Xxx Xxxx 00000
This Agreement shall incorporate and in all respects shall be subject to the
"General Terms and Conditions" and the applicable Rate Schedule(s) set forth in
Northern's FERC Gas Tariff, and may be revised from time to time. Northern may
file and seek Commission approval under Section 4 of the Natural Gas Act (NGA)
at any time and from time to time change any rates, charges or other provisions
set forth in the applicable Rate Schedule(s) and the "GENERAL TERMS AND
CONDITIONS" in Northern's FERC Gas Tariff, and Northern shall have the right to
place such changes in effect in accordance with the NGA, and this Throughput
Service Agreement shall be deemed to include such changes and any changes which
become effective by operation of law and Commission Order, without prejudice to
Shipper's right to protest the same.
Northern Natural Gas Company Continental Natural Gas Incorporated
By: /s/ By: /s/
--------------------------- --------------------------------
Title: /s/ Title: /s/
------------------------ -----------------------------
Date: /s/ Date: /s/
------------------------- ------------------------------
2
