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Exhibit 10.50
Contract # 3.6724
SERVICE AGREEMENT
between
PINE NEEDLE LNG COMPANY, LLC
and
PIEDMONT NATURAL GAS COMPANY, INC.
September 13, 2000
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SERVICE AGREEMENT
THIS AGREEMENT is entered into as of the 13th day of September, 2000,
by and between Pine Needle LNG Company, LLC, a North Carolina limited liability
company, hereinafter referred to as Pine Needle, and Piedmont Natural Gas
Company, Inc., hereinafter referred to as Customer,
W I T N E S S E T H:
WHEREAS, Customer has requested firm storage service under Pine
Needle's Rate Schedule LNG-1; and
WHEREAS, Pine Needle is willing to provide the requested firm storage
service for Customer pursuant to the terms and provisions of this Service
Agreement and Rate Schedule LNG-1.
NOW, THEREFORE, Pine Needle and Customer agree as follows:
ARTICLE I
SERVICE TO BE RENDERED
Subject to the terms and provisions of this agreement and of Pine
Needle's Rate Schedule LNG-1, as amended from time to time, Pine Needle agrees
to receive and liquefy natural gas; store such gas in liquefied form; and
vaporize and deliver such gas to Customer or for Customer's account, as follows:
To withdraw from storage, vaporize and deliver the gas stored in
liquefied form by Pine Needle for Customer's account up to a maximum quantity on
any day of 15,000 dt, which quantity shall be Customer's Vaporization Quantity.*
To receive and liquefy natural gas for Customer up to a maximum
quantity on any day of 750 dt, which shall be Customer's Liquefaction
Quantity.*
To store in liquefied form for Customer's account up to a total
quantity of 150,000 dt, which quantity shall be Customer's Storage Capacity.
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* In addition to these quantities, Pine Needle shall retain quantities of gas
for fuel and gas otherwise used or lost and unaccounted for pursuant to Rate
Schedule LNG-1.
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SERVICE AGREEMENT (CONTINUED)
ARTICLE II
POINT OF RECEIPT AND DELIVERY
1. The Point of Receipt for all gas tendered to Pine Needle for
liquefaction hereunder shall be at the following point:
The interconnection between Pine Needle's 10-inch inlet
pipeline and Transcontinental Gas Pipe Line Corporation's
(Transco) mainline system at mile post 1356.95 on Transco's
mainline in Guilford County, North Xxxxxxxx.
2. The Point of Delivery for all gas delivered by Pine Needle to
Customer or for the account of Customer shall be at the following
point:
The interconnection between Pine Needle's 24-inch outlet
pipeline and Transco's mainline system at milepost 1356.95 in
Guilford County, North Xxxxxxxx.
ARTICLE III
TERM OF AGREEMENT
This agreement shall be effective as of October 1, 2000 and shall
remain in force and effect until March 31, 2005, and year to year thereafter,
subject to termination by either party upon two (2) years prior written notice
to the other.
ARTICLE IV
RATE SCHEDULE AND PRICE
1. Customer shall pay Pine Needle for service rendered hereunder in
accordance with Pine Needle's Rate Schedule LNG-1 and the applicable provisions
of the General Terms and Conditions of Pine Needle's Original Volume No. 1 FERC
Gas Tariff as filed with the Federal Energy Regulatory Commission, and as the
same may be amended or superseded from time to time. Such rate schedule and
General Terms and Conditions are by this reference made a part hereof.
2. Pine Needle shall have the unilateral right to propose, file and
make effective with the Federal Energy Regulatory Commission, or other
regulatory authority having jurisdiction, changes and revisions to the rates and
rate design proposed pursuant to Section 4 of the Natural Gas Act, or to
propose, file and make effective superseding rates or rate schedules, for the
purposes of changing the rates, charges, rate design, terms and conditions of
service and other provisions thereof effective as to Customer; provided however
that the (i) firm character of service, (ii) term of agreement (as set forth in
Article III above), (iii) quantities, and (iv) points of receipt and delivery
shall not be subject to unilateral change under this paragraph. Customer shall
have the right to file with the Commission or other regulatory authority in
opposition to any such filings or proposals by Pine Needle.
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SERVICE AGREEMENT (CONTINUED)
ARTICLE V
MISCELLANEOUS
1. The subject headings of the Articles of this agreement are inserted
for the purpose of convenient reference and are not intended to be a part of
this agreement nor to be considered in the interpretation of the same.
2. This agreement supersedes and cancels as of the effective date
hereof the following contracts between the parties hereto: (None)
3. 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.
4. This agreement shall be interpreted, performed and enforced in
accordance with the laws of the State of North Carolina.
5. This agreement shall be binding upon, and inure to the benefit of
the parties hereto and their respective successors and assigns.
6. 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 Pine Needle:
Pine Needle LNG Company, LLC
c/o Pine Needle Operating Company
P.O. Box 1396
2800 Post Oak Boulevard 77056
Xxxxxxx, Xxxxx 00000-0000
Attention: Director - Customer Service and Scheduling
(b) If to Customer:
Piedmont Natural Gas Company, Inc.
P. O. Box 33068
(1915 Xxxxxxx Road 28211)
Xxxxxxxxx, Xxxxx Xxxxxxxx 00000
Attention: Director - Federal Regulatory and Supply Planning
Such addresses may be changed from time to time by mailing appropriate notice
thereof to the other party.
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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
on the day and year above written.
PINE NEEDLE LNG COMPANY, LLC
by its agent
PINE NEEDLE OPERATING COMPANY
By /s/ Xxxxx X. Xxxxxxx
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Xxxxx X. Xxxxxxx
Vice President
PIEDMONT NATURAL GAS COMPANY,INC.
By /s/ Xxxxxx X. Xxxxxx
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Xxxxxx X. Xxxxxx
Senior Vice President
Gas Supply and Services
