AMENDED AND RESTATED FIRM (RATE SCHEDULE FT) TRANSPORTATION SERVICE AGREEMENT TSA NO. 1006667
Exhibit
10.2
AMENDED
AND RESTATED
FIRM
(RATE SCHEDULE FT)
TSA
NO. 1006667
THIS TRANSPORTATION SERVICE
AGREEMENT (“Agreement”), between CenterPoint Energy Gas Transmission
Company (“CEGT”), a Delaware corporation (“Transporter”), and Shipper (defined
below), covering the transportation of natural gas by Transporter on behalf of
Shipper as more particularly described herein, is entered into in accordance
with the following terms and conditions:
1)
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SHIPPER
INFORMATION:
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Laclede
Energy Resources, Inc.
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000
Xxxxx Xxxxxx
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Xx.
Xxxxx, XX 00000
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Attn: Xxxxx
Xxxxxxxxx
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Phone: (000)
000-0000
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Fax: (000)
000-0000
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Email: xxxxxxxxxx@xxxxxxxxxxxxx.xxx
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Type
of Entity: Missouri corporation
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Transporter’s
wire transfer information and addresses for notices and payments shall be
located on Transporter’s Internet Web Site.
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2)
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REGULATORY
AUTHORITY:
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Subpart
G
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3)
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TERM,
CONTRACT DEMAND AND POINTS:
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The
term, Contract Demand, Receipt Entitlements, if applicable, and Receipt
and Delivery Points for this Agreement shall be as shown
below. Absent designation of MRO’s for any specific physical
Point of Receipt, Transporter shall have no obligation to permit Shipper
to utilize any such Point of Receipt or to receive any specific quantities
on Shipper’s behalf at such point.
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Term:
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Effective
Date:
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Originally November 5, 2008, as amended and restated April 1, 2009, subject to FERC approval | |||||||
Primary
Term End Date:
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The
end of the Day of October 31, 2013
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Evergreen?
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No
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Contract
Demand:
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75,000
Dth/D
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Receipt
Entitlement(s):
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Neutral
Pooling Area: 75,000 Dth/D
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Primary
Receipt Point(s):
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Maximum
Receipt Obligation (Dth/D)
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O-West
Summary (Meter No. 805298)
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64,000
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Scissortail
Energy, LLC (Meter No. 012355)
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11,000
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Primary Delivery Point(s):
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Maximum Delivery Obligation
(Dth/D)
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Columbia
Gulf CP (Meter No. 13548)
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60,000
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Trunkline
CP (Meter No. 13546)
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15,000
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4)
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RATE: Unless
provided otherwise in an Attachment A to this Agreement in effect during
the term of this Agreement, in a capacity release award, or below, Shipper
shall pay, or cause to be paid, to Transporter each month for all services
provided hereunder the maximum applicable rate, and any other charges,
fees, direct xxxx amounts, taxes, assessments, or surcharges provided for
in Transporter’s Tariff, as on file and in effect from time to time, for
each service rendered hereunder. If Attachment A or this
Agreement provides for a rate other than the maximum applicable rate, the
following shall
apply:
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Page
1 of 6
AMENDED
AND RESTATED
FIRM
(RATE SCHEDULE FT)
TSA
NO. 1006667
Shipper
agrees to pay the rates specified below or on Attachment A for performance
of certain gas transportation service under the
Agreement. These rates are applicable only in accordance with
the following:
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(a)
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Term, Points and/or
Rates: The term of the rates, and the Receipt Point(s) and the
Delivery Point(s) eligible for such rates, shall be specified
below.
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(i)
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Negotiated
Rate.
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(ii)
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Description of
Points:
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The
Receipt Points eligible for the rates specified below shall be the points
listed in Section 3 of the Agreement (as such agreement provided on the
effective date hereof), and all generally available AIRPs and Pools in the
Neutral Pooling Area, including Shipper’s East of Xxxxxxxx Neutral Pool
(when established).
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The
Delivery Point eligible for the rates specified below shall be the Primary
Delivery Points listed in Section 3 of the Agreement (as such Agreement
provides on the effective date hereof) and the following Secondary
Delivery Points: all generally available Perryville Hub
Delivery Points.
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(iii)
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Description of
Rates:
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The
rate which Transporter shall xxxx and Shipper shall pay under the
Agreement for services up to Contact Demand (as provided for on the
effective date hereof) shall be achieved by adjusting, if required
Transporter’s then effective applicable maximum Tariff rates to a level
which yields a unit rate (“Transmission Allowance”) of $0.2528 per Dth,
when calculated on an assumed 100% load factor basis, based on Shipper’s
Contract Demand; the rate applicable to transportation between any points
other than those set forth in (ii) above shall be the higher of the
Transmission Allowance or the then applicable maximum Tariff
rate. The Transmission Allowance shall not be subject to refund
or reduction if it exceeds the maximum Tariff rate. Shipper
hereby elects to be billed on a levelized basis to the extent Transporter
so determined and such option is available under the
tariff.
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Shipper
shall pay a Reservation Charge each Month based on the Dth of Contract
Demand, regardless of the quantity of gas transported during the Service
Month. The Reservation Charge (expressed as a unit rate on an
assumed 100% load factor basis) will be calculated by subtracting the
minimum applicable Base Commodity Rate from the Transmission
Allowance.
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(iv)
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Term of
Rate:
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Begin
Date(s):
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April
1, 2009
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End
Date(s):
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October
31, 2013
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(b)
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Authorized
Overrun: Unless Transporter agrees otherwise, the rate
for any authorized overrun quantities shall be the greater of the maximum
Tariff rate or the rate described above.
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(c)
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General: In
consideration for Shipper’s continuing compliance with the provisions of
the Agreement, the transportation rates and charges as defined above or on
Attachment A for the specified services provided under the Agreement only
apply to receipts from, and subsequent deliveries to, the Points of
Receipt and Delivery, quantities and/or time periods described above or on
Attachment A and to reserved capacity necessary to effect such service. In
addition to any rate or amount referred to herein (including discounted
rates, Negotiated Rates, overrun rates and maximum Tariff rates), Shipper
shall provide or pay and Transporter shall retain or charge Fuel Use and
LUFG allowances or charges (including the EPC surcharge) in such
quantities or amounts as authorized from time to time by the Tariff and,
except as specifically provided otherwise herein or on Attachment A, shall
pay any applicable charges, penalties, surcharges, fees, taxes,
assessments and/or direct billed amounts provided for in the
Tariff. In any event, the rate in any Month shall never be
below Transporter’s applicable minimum Tariff rate for a discount rate
transaction. For a
Negotiated
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Page
2 of 6
AMENDED
AND RESTATED
FIRM
(RATE SCHEDULE FT)
TSA
NO. 1006667
Rate
transaction, the rate in any month shall never be below Transporter’s
applicable minimum Tariff rate, unless Transporter otherwise
agrees. Transporter shall not be responsible for the payment
and satisfaction of any taxes assessed or levied on the receipt,
transmission (and any activities in connection therewith), delivery, use
and/or consumption with respect to Gas delivered or received by Shipper,
unless Transporter agrees otherwise.
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(d)
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Rate-Related
Provisions:
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(i)
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Consideration for Rate
Granted: Transporter agrees to the rates specified
herein or on Attachment A in exchange for Shipper’s agreement to forego
credits or other benefits to which Shipper would otherwise be entitled,
but only to the extent such credits or benefits would result in a greater
economic benefit over the applicable term than that represented by the
agreed-upon rate. Accordingly, unless Transporter otherwise
agrees, Shipper will not receive credits (with the exception of (1)
penalty revenue credits provided pursuant to Section 31 of the General
Terms and Conditions of Transporter’s Tariff, and (2) capacity release
credits) from rates, refunds or other revenues collected by Transporter or
Shipper if to do so would effectively result in a lower rate or greater
economic benefit to Shipper; provided, however, that for a Shipper taking
service under a Negotiated Rate agreement, Transporter and Shipper can
agree pursuant to Section 19.8 of the General Terms and Conditions of
Transporter’s Tariff that Transporter will retain some or all of the
capacity release credits to the extent those credits exceed the amount of
the Shipper’s
invoiced demand component. If the parties’
agreement to the foregoing is determined invalid or if Shipper seeks to
obtain credits or benefits inconsistent therewith, unless Transporter
otherwise agrees, it will have the right to immediately terminate or
modify any provisions herein or of Attachment A that would allow Shipper
to pay amounts less than the maximum applicable Tariff
rate.
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(ii)
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Limitation on Agreed
Upon Rate: Unless Transporter agrees otherwise, if at
any time receipts and/or deliveries are initially sourced into the system,
nominated, scheduled and/or made, by any means or by operation of any
Tariff mechanisms, with respect to the capacity obtained by, through or
under the Agreement at points, or under conditions, other than those
specified herein or on Attachment A, then as of such date, and for the
remainder of the Service Month in which such non-compliance occurred, or
the remainder of the term of the Agreement, whichever is shorter, Shipper
shall be obligated to pay no less than the maximum applicable Tariff rates
for service under the Agreement. This limitation shall not
apply to the extent that Transporter has requested Shipper to receive
and/or deliver other than as specified herein or on Attachment
A. Such request may be made via e-mail, in writing, or via
Internet Web Site posting and the document in which such request is made
shall be deemed to amend this Agreement to the extent
applicable.
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(iii)
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Regulatory
Authority: This Agreement (including Attachment A) is
subject to Section 16 of the GT&C of Transporter’s
Tariff. Transporter and Shipper hereby acknowledge that this
Agreement is subject to all valid and applicable federal and local laws
and to the orders, rules and regulations of any duly constituted federal
or local regulatory body or governmental authority having
jurisdiction. Any provision of this Agreement which is
determined by any court or regulatory body having jurisdiction to be
invalid or unenforceable will be ineffective to the extent of such
determination only, without invalidating, or otherwise affecting the
validity of, the remaining provisions. Unless the parties agree
otherwise, if Transporter has made a good faith determination that a
federal or local law, or order, rule or regulation of any governmental
authority having or asserting jurisdiction (1) requires performance by
Transporter that is inconsistent with the terms specified herein or on
Attachment A, or (2) conditions or prohibits the granting of selective
discounts or other rates specified herein or on Attachment A, then
Transporter may provide notice that it intends to renegotiate the rates
under the Agreement. If the parties fail to reach agreement
within forty-five (45) days of any renegotiation notice given pursuant to
the terms of this paragraph, then: (1) the rate provisions
herein or on Attachment A shall be terminated, and the rate for service
herein or under Attachment A shall be Transporter’s applicable maximum
Tariff rate, or (2) if Transporter’s applicable maximum Tariff rate is
greater than the rate for service herein or on Attachment A, at the
Shipper’s option, the Agreement and any applicable Attachment A
shall terminate. The effective date of this renegotiation or
termination shall be the first
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Page
3 of 6
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AMENDED
AND RESTATED
FIRM
(RATE SCHEDULE FT)
TSA
NO. 1006667
day
of the month following the end of the 45-day renegotiation period;
provided, however, that the effective date will comply with the
requirements of the applicable federal or local law, or order, rule or
regulation of any governmental authority having or asserting
jurisdiction.
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(iv)
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Entire
Agreement: Attachment A, if applicable, shall supplement
the Agreement with respect to the matters agreed to, and together shall
constitute the entire understanding of the parties relating to said
matters as of the effective date stated therein. Unless
otherwise specified, all prior agreements, correspondence, understandings
and representations are hereby superseded and replaced by Attachment A and
the Agreement. Except as otherwise provided herein, all terms
used herein with initial capital letters are so used with the respective
meanings ascribed to them in Transporter’s Tariff.
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(v)
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Failure to Exercise
Rights: Failure to exercise any right under Attachment
A, if applicable, or the Agreement shall not be considered a waiver of
such right in the future. No waiver of any default in the
performance of Attachment A or the Agreement shall be construed as a
waiver of any other existing or future default, whether of a like or
different character.
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(e)
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Inability to Collect
Negotiated Rates: If this Agreement covers a Negotiated
Rate transaction, and Transporter is unable to collect Negotiated Rates
due to a change in Commission policy or rejection of the transaction by
the Commission prior to or during the term of such transaction, then,
unless the parties agree otherwise, Shipper shall pay the maximum Tariff
rate for the services. In such event, Transporter shall notify
Shipper in writing of the requirement to pay maximum Tariff rates and, if
the maximum Tariff rates are greater than the Negotiated Rates under such
transaction, Shipper shall have no more than thirty (30) days from the
date of such notification to give notice in writing of termination of the
applicable Agreement, with such termination to be effective no earlier
than the end of the Month following the Month in which such termination
notice is received.
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5)
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OTHER
PROVISIONS:
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5.1)
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Payments
shall be received by Transporter within the time prescribed by Section 14
of the GT&C of Transporter’s Tariff. Amounts past due
hereunder shall bear interest as provided in Section 14 of the GT&C of
the Tariff. Shipper shall pay all costs associated with the
collection of such past due amounts including, but not limited to,
attorney’s fees and court costs. Shipper hereby represents and
warrants that the party executing this Agreement on its behalf is duly
authorized and possesses all necessary corporate or other authority
required to legally bind Shipper.
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5.2)
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Do
the parties agree that the provisions of Section 13.4 of the GT&C of
Transporter’s Tariff shall apply with respect to third-party
transportation? Yes ____ No __X__
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5.3)
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a)
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Does
this Agreement supersede and cancel a pre-existing Transportation Service
Agreement(s) between the parties? Yes ____ No
__X__
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b)
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Does
this Agreement amend and restate in its entirety a pre-existing
Transportation Service Agreement(s) between the parties?
Yes _X__ No ____
If
Yes, the Transportation Service Agreement(s) are described as
follows: Effective April 1, 2009, this Agreement amends and
restates Transportation Service Agreement #1006667, originally effective
November 5, 2008, as subsequently amended, restated and/or superseded
prior to or as of the effective date hereof.
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5.4)
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Is
this Agreement entered into pursuant to and subject to CAPACITY RELEASE,
Section 19 of the GT&C of Transporter’s Tariff? Yes
____ No __X__
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Page
4 of 6
AMENDED
AND RESTATED
FIRM
(RATE SCHEDULE FT)
TSA
NO. 1006667
5.5)
|
Does
this Agreement include any other terms/provisions permitted by the
Tariff? Yes __X__ No ____
If
Yes, those provisions (including a specific reference to the Tariff
authority for each such provision) are as follows:
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a)
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In
accordance with Section 19.8 of the GT&C of the Tariff, the parties
hereby agree that Transporter shall retain, and not credit back to
Shipper, credits, if any, for capacity releases to the extent that amounts
paid by or invoiced to Replacement Shipper(s) as, or attributable to,
demand or reservation type charges up to the then applicable Transporter’s
maximum tariff rate exceed on a daily basis, or any lesser applicable
period, the amount of Shipper’s invoiced demand
component.
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b)
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In
accordance with Section 21.1 of the GT&C of the tariff, the parties
hereby agree that Shipper shall have contractual “right of first refusal”
which will provide to it the same rights and obligation regarding
extending service under the Agreement as to reserved capacity on
Transporter’s system beyond the termination or expiration date as would be
available to Shippers eligible to invoke the provisions of Section 21 of
the GT&C of the Tariff, as on file and in effect from time to
time.
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6)
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All
modifications, amendments or supplements to the terms and provisions
hereof shall be effected only by supplementary written (or electronic, to
the extent Transporter permits or requires) consent of the
parties.
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7)
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SIGNATURE: This
Agreement constitutes a contract with Transporter for the transportation
of natural gas, subject to the terms and conditions hereof, the General
Terms and Conditions attached hereto, and any applicable attachment(s),
all of which are incorporated herein by reference and made part of this
Agreement.
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CENTERPOINT
ENERGY GAS TRANSMISSION
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LACLEDE
ENERGY RESOURCES, INC.
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COMPANY
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By:
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/s/
Xxxxxx Xxxxxxxxx
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By:
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/s/
X.X. Xxxxxxxxx
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Name:
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Xxxxxx
Xxxxxxxxx
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Name:
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X.X.
Xxxxxxxxx
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Title:
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Vice
President, Marketing
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Title:
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Vice
President and General Manager
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Date:
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3/31/09
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Date:
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3/30/09
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Page
5 of 6
GENERAL
TERMS AND CONDITIONS
TO
AMENDED AND RESTATED
FIRM
(RATE SCHEDULE FT)
TRANSPORTATION
SERVICE AGREEMENT
TSA
NO. 1006667
1.
|
This
Agreement shall be subject to the provisions of Rate Schedule FT as well
as the General Terms and Conditions (“GT&C”) set forth in
Transporter’s Tariff, as on file and in effect from time to time, all of
which by this reference are made a part
hereof.
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2.
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In
accordance with Section 12.2 of the GT&C of Transporter’s Tariff,
Transporter shall have the right at any time, and from time to time, to
file and place into effect unilateral changes or modifications in the
rates and charges, and other terms and conditions of service hereunder,
and as set forth in said Rate Schedule and in said GT&C of
Transporter’s Tariff, in accordance with the Natural Gas Act or other
applicable law. Nothing contained in the foregoing provision
shall preclude or prevent Shipper from protesting any such changes or
modifications; however, Shipper agrees to pay all rates and charges, and
to comply with all terms and conditions, in effect under the
Tariff.
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3.
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Upon
Shipper’s failure to pay when due all or any part of amounts billed in
connection with services rendered or to comply with the terms of this
Agreement, Transporter may terminate this Agreement and/or suspend
service, as appropriate, in accordance with the provisions of Section 14
of the GT&C of Transporter’s
Tariff.
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4.
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In
accordance with Section 21.1 of the GT&C of Transporter’s Tariff, upon
termination hereof for whatever reason, Shipper agrees to stop delivering
gas to Transporter for service and, unless otherwise agreed by
Transporter, to seek no further service from Transporter
hereunder. Shipper agrees to cooperate with and assist
Transporter in obtaining such regulatory approvals and authorizations, if
any, as are necessary or appropriate in view of such termination and
abandonment of service hereunder.
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5.
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In
accordance with Section 5.7(e) of the GT&C of Transporter’s Tariff,
termination of this Agreement shall not relieve either party of any
obligation that might otherwise exist to cash-out or correct any Imbalance
hereunder nor relieve Shipper of its obligation to pay any monies due
hereunder to Transporter and any portions of this Agreement necessary to
accomplish such purposes shall be deemed to survive for the time and to
the extent required.
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6.
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In
accordance with Sections 2.1 and 2.2 of Rate Schedule FT of Transporter’s
Tariff, subject to the provisions of the Tariff and this Agreement,
Transporter shall receive, transport, and deliver, for the account of
Shipper for the purposes contemplated herein, on a firm basis a quantity
of Gas up to the quantity or quantities specified in the
Agreement.
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7.
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In
accordance with Sections 2.1 and 3.3 of Rate Schedule FT of Transporter’s
Tariff, Gas shall be (i) tendered to Transporter for transportation
hereunder at the Point(s) of Receipt and (ii) delivered by Transporter
after transportation to Shipper, or for Shipper’s account, at the Point(s)
of Delivery on the terms and at the points shown in this
Agreement. Subject to the provisions of the Tariff, Transporter
shall tender for delivery quantities of Gas thermally-equivalent to those
delivered by Shipper, less, as applicable, Delhi Fuel Use, Wheeling LUFG,
Line CP Fuel Use and LUFG, Fuel Use and LUFG, or Storage Fuel Use and
LUFG, retained.
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8.
|
Except
as otherwise permitted in the Tariff, and in accordance with Section 19 of
the GT&C of Transporter’s Tariff, this Agreement shall not be assigned
by Shipper in whole or in part, nor shall Shipper agree to provide
services to others by use of any capacity contracted for under the
Agreement, without Transporter’s prior written consent. In
addition to all other rights and remedies, Transporter may terminate the
Agreement immediately if it is assigned by Shipper or if Shipper
subcontracts the capacity to others contrary to the provisions hereof,
whether the assignment or contract be voluntary, or by operation of law or
otherwise. Subject to the above, the respective rights and
obligations of the parties under the Agreement shall extend to and be
binding upon their heirs, successors, assigns and legal
representatives. Subject to Section 14 of the GT&C of
Transporter’s Tariff, Shipper may assign this Agreement to an entity with
which it is affiliated. Any person which shall succeed by
purchase, merger or consolidation to the properties, substantially as an
entirety, of either party hereto, shall be entitled to the rights and
shall be subject to the obligations of its predecessor in title under this
Agreement; and either party may assign or pledge this Agreement under the
provisions of any mortgage, deed of trust, indenture, bank credit
agreement, assignment or similar instrument which it has executed or may
execute hereafter.
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9.
|
Any
notice, statement, or xxxx provided for in this Agreement shall be in
writing (or provided electronically via the Internet to the extent
Transporter permits or requires) and shall be considered as having been
given if hand delivered, or, if received, when mailed by United States
mail, postage prepaid, to the addresses specified herein, or such other
addresses as either party shall designate by written notice to the
other. Additionally, notices shall be considered as having been
given, if received, when sent via facsimile or through electronic data
interchange.
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10.
|
In
accordance with the form of credit application contained in the Tariff,
Shipper agrees that any representations and agreements contained in any
credit application submitted in connection with this service shall be
incorporated herein by reference and made a part
hereof.
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Page
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