FIRM STORAGE SERVICE AGREEMENT
Questar Pipeline Company
00 Xxxxx Xxxxx Xxxxxx
Xxxx Xxxx Xxxx, Xxxx 00000 Contract No. STO46
THIS AGREEMENT is entered into this 12th day of April, 1993, by and
between QUESTAR PIPELINE COMPANY, CLAY BASIN STORAGE DIVISION, a Utah
corporation, "Seller," and MOUNTAIN FUEL SUPPLY COMPANY, "Buyer."
Buyer represents that it desires Seller to store natural gas in Seller's
Clay Basin Storage Field; and Seller represents that it is seeking FERC
authorization to expand the storage capacity available in order to provide the
storage service for Buyer on the terms specified in this agreement.
Seller and Buyer agree as follows:
AGREEMENT TERMS
The terms selected below, together with the terms and conditions of this
agreement, including the attached Appendices A and B, constitute the storage
service to be provided and the rights and obligations of the parties. Buyer
shall designate receipt and delivery points on Appendix A that are acceptable
to Seller.
1. BUYER'S STATUS (Please Check One Only):
XX Local Distribution Company
Intrastate Pipeline Company
Interstate Pipeline Company
Marketer/Broker
Producer
End-User
Other (Specify) _______________
2. VOLUMES TO BE INJECTED AND WITHDRAWN (Subject to the provisions of Section
8, below):
Firm Service (Please see note below for MRD calculation):
5,500 Annual Working Gas Volume (MMcf)
45.83 Minimum Required Deliverability Volume MMcf/day (MRD)
Note: MRD must be calculated using the formula shown below:
MRD = Annual Working Gas Volume (MMcf/year)
150 days x .80
3. RATES (Subject to the provisions of paragraph 2 of Appendix B):
Firm Storage Service - Rate Schedule FSS
DEMAND CHARGES:
Deliverability (Please Check One Only):
XX the maximum rate set forth in Seller's Statement of Rates
a discounted rate of $___________/Mcf
Inventory Capacity (Please Check One Only):
XX the maximum rate set forth in Seller's Statement of Rates
a discounted rate of $___________/Mcf
Prior to the time the terms and conditions set forth in Appendix B are
met to the sole satisfaction of Seller, demand charges under this
agreement shall be applied to the levels of Annual Working Gas Volume
and MRD that Seller, in Seller's sole judgement, can actually provide in
the event the Annual Working Gas Volume and MRD requested by Buyer and
set forth in Section 2 above cannot reasonably be commenced. Unless Seller
notifies Buyer in writing that Seller is unable to provide the service
at the requested levels, Buyer shall be responsible for all demand
charges, as set forth above in this Section 3.
COMMODITY CHARGES:
Injection: $0.00851/Mcf
Withdrawal: $0.01631/Mcf
Overrun: $0.29124/Mcf
4. ACA CHARGE:
XX yes
no
5. ADDITIONAL FACILITIES CHARGES:
Additional facilities:
XX are required
are not required
Charge:
N/A lump-sum payment of $ ____________
N/A monthly fee of $ ____________
6. TERM OF THE AGREEMENT (Subject to the provisions of Section 8, below):
(a) Initial term
May 15, 1994 to May 14, 2019
(b) Renewal term
XX none
other: __________________________
(c) Termination. This agreement shall be renewed as stated in Section
6(b) above. This agreement may be terminated during any renewal period
by either party upon 30 days' written notice to the other party
prior to each injection period.
7. NOTICE: Unless otherwise provided in Seller's FERC Gas Tariff, Volume
No. 2-A, all notices shall be given by telephone or other electronic means and
confirmed in writing at the following addresses:
Buyer:
Mountain Fuel Supply Company
000 Xxxx Xxxxx Xxxxx Xxxxxx
Xxxx Xxxx Xxxx, Xxxx 00000
Attention: Vice President - Gas Supply
Telephone: (000) 000-0000
Fax: (000) 000-0000
QUESTAR PIPELINE COMPANY
00 Xxxxx Xxxxx Xxxxxx
Xxxx Xxxx Xxxx, Xxxx 00000
Attn: Director, Gas Supply Planning
Telephone: (000) 000-0000
Fax: (000) 000-0000
8. COMMENCEMENT OF SERVICE: Seller shall not be obligated to commence the
requested Clay Basin expansion service under this agreement until all terms
and conditions of Appendix B are met to the sole satisfaction of Seller.
However, at any time prior to such fulfillment of the Appendix B terms and
conditions, service may, if deemed feasible solely by Seller, be made
available to Buyer using the priority determined by applying the present value
ranking procedures set forth in Section 4.2 of Seller's FERC Gas Tariff,
Original Volume No. 2-A to the effective service requests underlying the
executed expansion service agreements. Service to remaining Buyers will
commence as soon as deemed operationally practicable by Seller.
If the FERC authorizes only a portion of the total expansion capacity
requested by Seller and the authorized capacity is oversubscribed by Buyers
who have executed a tendered firm storage service agreement, then the capacity
so approved will be made available to such Buyers using the priority
determined by applying the present value ranking procedure set forth in Section
4.2 of Seller's FERC Gas Tariff, Original Volume No. 2-A to the respective
executed service agreements. Service agreements receiving no allocation of
capacity under this methodology, and the respective underlying requests for
service, shall be considered void for all purposes.
9. TARIFF: This agreement shall be subject to the terms and conditions
attached to and made part of this agreement as Appendix B and all the
applicable rate schedules and the General Terms and Conditions of Seller's
FERC Gas Tariff, Original Volume No. 2-A, as it may be amended or superseded
from time to time.
10. RESTRUCTURING TARIFF: Upon implementation by Seller of tariff changes
required by the FERC to comply with restructuring under Order No. 636 in
Docket No. RS92-9, this agreement will be reformed to conform to Seller's
tariff. The reformed agreement will be issued to Buyer according to the
procedures set forth in Seller's tariff, as it may be amended or superseded
from time to time.
The parties have executed this agreement to be effective the first day of its
term.
BUYER: Mountain Fuel Supply Co. QUESTAR PIPELINE COMPANY
By: /s/ M. E. Xxxxxxxxx By: /s/ X. X. Xxxxxxxxxxx
Title: Vice President Gas Supply Title: V. P., Gas Supply & Marketing
Date: March 25, 1993 Date: April 12, 0000
XXXXXXXX A
1. Receipt Points
Description Quantity/Mcf
2. Delivery Points
Description Quantity/Mcf
APPENDIX B
CONDITIONS PRECEDENT TO SERVICE
1. Seller shall not be obligated to provide expanded firm storage service
at Clay Basin under this agreement until the following conditions are met to
the sole satisfaction of Seller:
a. Receipt by Seller of signed firm storage service agreements from
one or more Buyers for sufficient capacity and upon terms and conditions
acceptable to Seller that justify construction of the Clay Basin
expansion;
b. Receipt and acceptance by Seller of all approvals required to
expand the capacity at Clay Basin as requested by Seller and to
construct the facilities necessary to provide all expanded firm storage
service requested by all expansion Buyers and to commence the service,
including all necessary authorizations from federal, state and local
municipal agencies and other government authorities, in final form and
substance satisfactory to Seller, permitting or authorizing the service;
c. Receipt and acceptance by Seller of all necessary rights of way,
easements and permits, if any, required to construct, operate and
maintain the Clay Basin expansion facilities;
d. Completion of construction and commencement of actual operation of
all facilities, including injection of all required cushion gas,
necessary to provide firm storage service to all expansion buyers.
2. Should the FERC approve Clay Basin storage rates for firm service above
the rates in effect on February 12, 1993, and such increase is due solely to
costs associated directly with the expansion of Clay Basin, Buyer may
terminate this agreement.
3. Buyer's creditworthiness shall remain a continuing condition precedent
to Seller's obligation to perform. Seller may require Buyer to reverify its
creditworthiness as Seller deems necessary.
