[*]=CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE
COMMISSION
EXHIBIT 10.7
October 9, 1997
CASCADE NATURAL GAS CORPORATION
000 Xxxxxxxx Xxxxxx Xxxxx
Xxxxxxx, Xxxxxxxxxx
00000
ATTENTION: XX. XXXXXXX XXXXXXX
----------------------------------
Dear Xxxxxxx:
RE: NATURAL GAS SALES AGREEMENT DATED NOVEMBER 1, 1990 AS AMENDED BETWEEN
BETWEEN ENGAGE ENERGY CANADA, L.P. (SUCCESSOR TO CANADIAN HYDROCARBONS
MARKETING INC./WESTCOAST GAS SERVICES INC.) ("ENGAGE")
AND CASCADE NATURAL GAS CORPORATION ("CASCADE")
--------------------------------------------------------------------------------
Pursuant to Section 7.09 of the above noted agreement, this letter shall confirm
that the Gas Commodity Price and Reserves Standby Fee for the contract year
November 1, 1997 through October 31, 1998 be established as follows:
(a) GAS COMMODITY PRICE
(i) FOR THE PERIOD NOVEMBER 1, 1997 - DECEMBER 31, 1997
The Gas Commodity Price payable by Cascade per MMBtu of gas delivered
shall be U.S$[*]/MMBtu.
MINUS those related Westcoast Energy Inc. Demand Charges paid by
Cascade for the applicable contract month converted to U.S$/MMBtu
unit rate assuming a 100% load factor.
MINUS a Reserves Standby Charge credit of U.S$[*]/MMBtu.
(ii) FOR THE PERIOD JANUARY 1, 1998 - OCTOBER 31, 1998
The Gas Commodity Price payable by Cascade per MMBtu of gas delivered
shall be calculated monthly based upon the following:
The first of the month index as quoted in the publication "Inside
F.E.R.C.'s Gas Market Report, Price of Spot Gas Delivered in
Pipelines (MMBtu/day)" under the heading "Northwest Pipeline
Corporation-Canadian Border" Plus $[*] U.S/ MMBtu.
MINUS those related Westcoast Energy Inc. Demand Charges paid by
Cascade for the applicable contract month converted to U.S$/MMBtu
unit rate assuming a 100% load factor.
MINUS a Reserves Standby Charge credit of U.S$[*]/MMBtu.
(b) RESERVES STANDBY FEE
The Reserves Standby Fee shall be rolled over at the existing fee
of U.S$[*]/MMBtu.
Please indicate your acceptance of the foregoing by signing both
copies of this letter and return one copy to us for our files.
If you require any further information please give me a call at
(000) 000-0000.
Yours truly,
ENGAGE ENERGY CANADA, L.P..
Xxxx X. Xxxxxxxx,
Vice President Supply and Marketing
British Columbia and Pacific Northwest Region
JAT/tw
c.c. Xxxxx Xxxxx
ACCEPTED AND AGREED TO this ______ day of ___________________,1997
CASCADE NATURAL GAS CORPORATION
Per:
------------------------
Title:
----------------------
October 9, 1997
CASCADE NATURAL GAS CORPORATION
000 Xxxxxxxx Xxxxxx Xxxxx
Xxxxxxx, Xxxxxxxxxx
00000
ATTENTION: XX. XXXXXXX XXXXXXX
----------------------------------
Dear Xxxxxxx:
RE: (WGSI 5K AGREEMENT)
NATURAL GAS SALES AGREEMENT DATED NOVEMBER 1, 1990 AS AMENDED BETWEEN
BETWEEN ENGAGE ENERGY CANADA, L.P. (SUCCESSOR TO CANADIAN HYDROCARBONS
MARKETING INC./WESTCOAST GAS SERVICES INC.) ("ENGAGE")
AND CASCADE NATURAL GAS CORPORATION ("CASCADE")
--------------------------------------------------------------------------------
Enclosed for signature are duplicate originals of the above noted agreement
amending Section 7.09 of the Gas Commodity Price for the period November 1, 1997
to October 31, 1998.
Please sign both copies and return one copy for our files.
If you require any further information please give me a call at (000) 000-0000.
Yours truly,
ENGAGE ENERGY CANADA, L.P..
Xxxx X. Xxxxxxxx,
Vice President Supply and Marketing
British Columbia and Pacific Northwest Region
Att.
JAT/tw
c.c. Xxxxx Xxxxx
