North Shore Gas 10-Q 2000 Q2 Quarterly report

EXHIBIT 10(c)

RATE SCHEDULE FS

FLEXIBLE STORAGE SERVICE

FORM OF STORAGE AGREEMENT

CONTRACT NO. 016773

THIS AGREEMENT, made and entered into as of the  1^stday of   April  ,   2000  , by and between:

PANHANDLE EASTERN PIPE LINE COMPANY, (hereinafter called "Panhandle"), a Delaware Corporation,

and

PEOPLES GAS LIGHT AND COKE COMPANY (THE) (hereinafter called "Shipper"), a(n) LOCAL DISTRIBUTION COMPANY incorporated in the State of IL.

W I T N E S S E T H:

WHEREAS, Panhandle has available underground Gas Storage capacity; and

WHEREAS, Shipper desires to purchase and Panhandle desires to provide certain storage and transportation service.

NOW, THEREFORE, Panhandle and Shipper do mutually agree as follows:

ARTICLE 1

DELIVERY OF THE STORED VOLUME

1.1 Shipper hereby agrees to purchase the storage service offered by Panhandle hereunder and desires to have the volumes hereinafter set forth (Stored Volume) injected into the storage facilities identified below for Shipper's account during the term hereof, up to the Maximum Stored Quantity, set out below, which shall be the maximum inventory Shipper may have injected into storage during the Injection Period as defined below and maintained in storage hereunder at any given time. Stored Volu

This contract is for Market Area Storage	x
This contract is for Field Area Storage

Injection Period:

Withdrawal Period:

Effective from 04/01/2000 through 09/30/2000:

Maximum Stored Quantity (MSQ):	2,634,482 Dt.
Maximum Daily Injection Quantity(MDIQ):	32,000 Dt./Day
Maximum Daily Withdrawal Quantity (MDWQ):	0 Dt./Day

Percentage of the Stored Volume
to the
Maximum Stored Quantity	Available Withdrawal Quantities
100% - 0%	100% of MDWQ

1.2 In each year of the term of this Storage Agreement, Shipper may elect to retain a portion of its Stored Volume as carry-over volume (Carry-over Volume) to be left in storage during the succeeding Injection Period as set forth herein and withdrawn in the succeeding Withdrawal Period as set forth herein. Shipper may so retain up to 20% of its Maximum Stored Quantity for such carry-over without penalty. In the event the retained Carry-over Volume exceeds 20% of its Maximum Stored Quantity,

1.3 Shipper agrees to furnish, in addition to volumes delivered into storage, a volume of Gas equal to the percentage set out in effective Tariff Sheet No. 14 of such volumes delivered for injection into storage in each year of the term hereof to be retained by Panhandle for use of compressor fuel, plus an additional volume of Gas equal to the percentage set out in effective Tariff Sheet No. 14 of volumes delivered to Shipper in each year of the term hereof to be retained by Panhandle for us

1.4 Panhandle shall receive from Shipper and inject into storage each Month during the Injection Period as set forth herein, Gas as nominated pursuant to the General Terms and Conditions.

1.5 Where Shipper has designated as the WS point a point not located on Panhandle's system, then the maximum quantities for injection and withdrawal on any Day shall be subject to any restrictions or other limitations applicable to the lease or storage agreement between Panhandle and the owner or operator of the storage facility, in addition to the restrictions and limitations of this agreement and Rate Schedule FS.

ARTICLE 2

BILLING AND PAYMENT

For the services provided or contracted for hereunder, Shipper agrees to pay Panhandle the then-effective, applicable rates and charges under Panhandle's Rate Schedule FS filed with the Commission, as such rates and charges and Rate Schedule FS may hereafter be modified, supplemented, superseded, or replaced generally or as to the service hereunder. Panhandle reserves the right from time to time to unilaterally file and to make effective any such changes in the terms or rate levels under Rate S

From time to time Panhandle and Shipper may agree in writing, on a level of discount of the otherwise applicable rates and charges hereunder, pursuant to the effective applicable provisions of Rate Schedule FS and subject to the Regulations and Orders of the Commission. For example, Panhandle and Shipper may agree that a specified discounted rate shall apply: (a) only to certain Quantities under this Agreement; (b) only if specified Quantity levels are actually achieved or only with respect to

From time to time Panhandle and Shipper may agree to a Negotiated Rate for a specified term for service hereunder. Provisions governing such Negotiated Rate and term shall be set forth an Exhibit A hereto.

ARTICLE 3

POINTS OF RECEIPT AND DELIVERY

During the Injection Period Gas shall be received by Panhandle from Shipper for injection into storage, and during the Withdrawal Period the Stored Volume withdrawn for the account of Shipper hereunder shall be delivered to Shipper, at the WS Point as defined in the General Terms and Conditions on a firm basis.

ARTICLE 4

TERM

4.1 This Agreement shall be effective from the date first stated above. Panhandle shall provide firm storage service for Shipper pursuant to this Agreement from lst day of April, 2000 through 31st day of March, 2003, when the term of this Agreement shall expire.

ARTICLE 5

GENERAL TERMS AND CONDITIONS

This Agreement and all terms for service hereunder are subject to the further provisions of Rate Schedule FS and the General Terms and Conditions of Panhandle's Tariff, as such may be modified, supplemented, superseded or replaced generally or as to the service hereunder. Panhandle reserves the right from time to time to unilaterally file and to make effective any such changes in the provisions of Rate Schedule FS and/or the General Terms and Conditions, subject to the applicable provisions of Commission's Regulations thereunder. Such Rate Schedule and General Terms and Conditions, as may be changed from time to time, are by this reference incorporated in their entirety into this Agreement and made an integral part hereof.

ARTICLE 6

SUCCESSION AND ASSIGNMENT

This Agreement shall be binding upon and inure to the benefit of any successor(s) to either Panhandle or Shipper by merger, consolidation or acquisition. Either Panhandle or Shipper may assign or pledge this Agreement and all rights and obligations hereunder under the provisions of any mortgage, deed of trust, indenture or other instrument which it has executed or may execute hereafter as security for indebtedness; otherwise, except as provided in Section 15 of the General Terms and Conditions,

ARTICLE 7

NOTICES

Except as herein otherwise provided, any notice, request, demand, statement or bill provided for in this Storage Agreement and in the General Terms and Conditions of the Tariff and the Rate Schedules to which they apply, or any notices which either Panhandle or Shipper may desire to give to the other, shall be in writing and shall be considered as duly delivered when mailed by registered mail to the post office address of Panhandle or Shipper, or at such other address as either shall designate

PANHANDLE
Payment:	Panhandle Eastern Pipe Line Company
	P. 0. Box 201202
	Houston, Texas 77216-1202
Nomination and	Panhandle Eastern Pipe Line Company
Scheduling:	Attn: Marketing Operations
	P. 0. Box 4967
	Houston, Texas 77210-4967
	Phone: (713) 989-7590
	Facsimile: (713) 989-1121
Pipeline Emergencies:	Panhandle Eastern Pipe Line Company
(Not to be used for	Attn: Gas Control
any other purpose)	P. 0. Box 4967
	Houston, Texas 77210-4967
	Phone: (713) 627-5623
	Toll Free: 1-800-225-3913
All Other:	Panhandle Eastern Pipe Line Company
	Attn: Customer Services
	P. 0. Box 4967
	Houston, Texas 77210-4967
	Phone: (713) 627-4272 or
	1-800-275-7375
	Facsimile: (713) 989-1178
SHIPPER
Billing:	PEOPLES GAS LIGHT AND COKE COMPANY (THE)
	Mailing: 130 E RANDOLPH DR, 22TH FLOOR
	CHICAGO, IL 60601
	Street : 130 E RANDOLPH DR, 22TH FLOOR
	CHICAGO,.IL 60601
	Attn: DAVID WEAR 312-240-4554
Nomination and	PEOPLES GAS LIGHT AND COKE COMPANY (THE)
Scheduling: (1)	Mailing: 130 E RANDOLPH DR, 22TH FLOOR
	CHICAGO, IL 60601
	Street : 130 E RANDOLPH DR, 22TH FLOOR
	CHICAGO, IL 60601
	Attn: DAVID WEAR 312-240-4554
All Other:	PEOPLES GAS LIGHT AND COKE COMPANY (THE)
	Mailing: 130 E RANDOLPH DR, 22TH FLOOR
	CHICAGO, IL 60601
	Street : 130 E RANDOLPH DR, 22TH FLOOR
	CHICAGO, IL 60601
	Attn: ROY RODRIGUEZ 312-240-4294

(1) Please provide street address in addition to mailing address.

Contract-No: 016773

IN WITNESS WHEREOF, both Panhandle and Shipper have caused this Agreement to be executed in several counterparts by their respective officers or other persons duly authorized to do so, as of the date first stated above.

PANHANDLE EASTERN PIPE LINE COMPANY
By	/s/ Craig R. Fishbeck
	(Please type or print name)
Title	Vice President, Marketing
Executed		(Date)

PEOPLES GAS LIGHT AND COKE COMPANY (THE)
By	/s/ D. M. Field
	D. M. Field
	(Please type or print name)
Title	Executive Vice President
Executed	March 3, 2000	(Date)

QUANTITIES

Storage Agreement

Between

Panhandle Eastern Pipe Line Company

For

Firm Storage Service

Under Rate Schedule FS

and

PEOPLES GAS LIGHT AND COKE COMPANY (THE)

Contract No. 016773

Effective from 04/01/2000 through 09/30/2000:
	Maximum Stored Quantity (MSQ):	2,634,482 Dt.
	Maximum Daily Injection Quantity(MDIQ):	32,000 Dt./Day
	Maximum Daily Withdrawal Quantity (MDWQ):	0 Dt./Day
Effective from 10/01/2000 through 11/30/2000:
	Maximum Stored Quantity (MSQ):	2,634,482 Dt.
	Maximum Daily Injection Quantity(MDIQ):	32,000 Dt./Day
	Maximum Daily Withdrawal Quantity (MDWQ):	87,816 Dt./Day
Effective from 12/01/2000 through 03/31/2001:
	Maximum Stored Quantity (MSQ):	2,634,482 Dt.
	Maximum Daily Injection Quantity(MDIQ):	42,500 Dt./Day
	Maximum Daily Withdrawal Quantity (MDWQ):	87,816 Dt./Day
Effective from 04/01/2001 through 09/30/2001:
	Maximum Stored Quantity (MSQ):	2,634,482 Dt.
	Maximum Daily Injection Quantity(MDIQ):	32,000 Dt./Day
	Maximum Daily Withdrawal Quantity (MDWQ):	0 Dt./Day
Effective from 10/01/2001 through 11/30/2001:
	Maximum Stored Quantity (MSQ):	2,634,482 Dt.
	Maximum Daily Injection Quantity(MDIQ):	32,000 Dt./Day
	Maximum Daily Withdrawal Quantity (MDWQ):	87,816 Dt./Day
Effective from 12/01/2001 through 03/31/2002:
	Maximum Stored Quantity (MSQ):	2,634,482 Dt.
	Maximum Daily Injection Quantity(MDIQ):	42,500 Dt./Day
	Maximum Daily Withdrawal Quantity (MDWQ):	87,816 Dt./Day
Effective from 04/01/2002 through 09/30/2002:
	Maximum Stored Quantity (MSQ):	2,634,482 Dt.
	Maximum Daily Injection Quantity(MDIQ):	32,000 Dt./Day
	Maximum Daily Withdrawal Quantity (MDWQ):	0 Dt./Day
Effective from 10/01/2002 through 11/30/2002:
	Maximum Stored Quantity (MSQ):	2,634,482 Dt.
	Maximum Daily Injection Quantity(MDIQ):	32,000 Dt./Day
	Maximum Daily Withdrawal Quantity (MDWQ):	87,816 Dt./Day
Effective from 12/01/2002 through 03/31/2003:
	Maximum Stored Quantity (MSQ):	2,634,482 Dt.
	Maximum Daily Injection Quantity(MDIQ):	42,500 Dt./Day
	Maximum Daily Withdrawal Quantity (MDWQ):	87,816 Dt./Day

Contract-No: 016773

Storage Agreement

For

Firm Storage Service

Under Rate Schedule FS

Point(s) of Delivery

			Function-
		Meter	alization/
No.	Delivered To	No.	Mileage	County	State	Quantity
Effective from: 04/01/2000 Through: 09/30/2000
1	PEOPLES GAS LIGHT AND COK	66591	T/ 832	LENAWE	MI	0
Effective from: 10/01/2000 Through: 03/31/2001
2	PEOPLES GAS LIGHT AND COK	66591	T/ 832	LENAWE	MI	87,816
Effective from: 04/01/2001 Through: 09/30/2001
3	PEOPLES GAS LIGHT AND COK	66591	T/ 832	LENAWE	MI	0
Effective from: 10/01/2001 Through: 03/31/2002
4	PEOPLES GAS LIGHT AND COK	66591	T/ 832	LENAWE	MI	87,816
Effective from: 04/01/2002 Through: 09/30/2002
5	PEOPLES GAS LIGHT AND COK	66591	T/ 832	LENAWE	MI	0
Effective from: 10/01/2002 Through: 03/31/2003
4	PEOPLES GAS LIGHT AND COK	66591	T/ 832	LENAWE	MI	87,816

Description of Facilities

				Atmos.
	Existing/	Operated and		Pres.
No.	Proposed	Installed by	Maintained by	(Psia)
Effective from: 04/01/2000 Through: 09/30/2000
1	EXISTING	------	PANHANDLE EASTERN PIPE LINE	0
Effective from: 10/01/2000 Through: 03/31/2001
2	EXISTING	------	PANHANDLE EASTERN PIPE LINE	0
Effective from: 04/01/2001 Through: 09/30/2001
3	EXISTING	------	PANHANDLE EASTERN PIPE LINE	0
Effective from: 10/01/2001 Through: 03/31/2002
4	EXISTING	------	PANHANDLE EASTERN PIPE LINE	0
Effective from: 04/01/2002 Through: 09/30/2002
5	EXISTING	------	PANHANDLE EASTERN PIPE LINE	0
Effective from: 10/01/2002 Through: 03/31/2003
6	EXISTING	------	PANHANDLE EASTERN PIPE LINE	0

Contract-No: 016773

Storage Agreement

For

Firm Storage Service

Under Rate Schedule FS

Point(s) of Receipt

			Function-
		Meter	alization/
No.	Received From	No.	Mileage	County	State	Quantity
Effective from: 04/01/2000 Through: 11/30/2000
1	PEOPLES GAS LIGHT AND COK	66590	T/ 832	LENAWE	MI	32,000
Effective from: 12/01/2000 Through: 03/31/2001
2	PEOPLES GAS LIGHT AND COK	66590	T/ 832	LENAWE	MI	42,500
Effective from: 04/01/2001 Through: 11/30/2001
3	PEOPLES GAS LIGHT AND COK	66590	T/ 832	LENAWE	MI	32,000
Effective from: 12/01/2001 Through: 03/31/2002
4	PEOPLES GAS LIGHT AND COK	66590	T/ 832	LENAWE	MI	42,500
Effective from: 04/01/2002 Through: 11/30/2002
5	PEOPLES GAS LIGHT AND COK	66590	T/ 832	LENAWE	MI	32,000
Effective from: 12/01/2002 Through: 03/31/2003
4	PEOPLES GAS LIGHT AND COK	66590	T/ 832	LENAWE	MI	42,500

Description of Facilities

				Atmos.
	Existing/	Operated and		Pres.
No.	Proposed	Installed by	Maintained by	(Psia)
Effective from: 04/01/2000 Through: 11/30/2000
1	EXISTING	------	PANHANDLE EASTERN PIPE LINE	0
Effective from: 12/01/2000 Through: 03/31/2001
2	EXISTING	------	PANHANDLE EASTERN PIPE LINE	0
Effective from: 04/01/2001 Through: 11/30/2001
3	EXISTING	------	PANHANDLE EASTERN PIPE LINE	0
Effective from: 12/01/2001 Through: 03/31/2002
4	EXISTING	------	PANHANDLE EASTERN PIPE LINE	0
Effective from: 04/01/2002 Through: 11/30/2002
5	EXISTING	------	PANHANDLE EASTERN PIPE LINE	0
Effective from: 12/01/2002 Through: 03/31/2003
6	EXISTING	------	PANHANDLE EASTERN PIPE LINE	0

PANHANDLE EASTERN PIPE LINE COMPANY

5444 Westheimer Road/P.O. Box 4967

Houston, Texas 77056/77210-4967

Marketing Administration Department

(713) 627-4272

Fax: (713) 989-1178

December 3, 1999

PEOPLES GAS LIGHT AND COKE COMPANY (THE)

130 E RANDOLPH DR, 22TH FLOOR

CHICAGO, IL 60601

Gentlemen:

Re: 016773

Currently, Panhandle Eastern Pipe Line Company ("Transporter") is transporting natural gas pursuant to and in accordance with the regulations issued by the Federal Energy Regulatory Commission ("FERC") enabling Transporter to provide transportation pursuant to Section 7 of the Natural Gas Act ("NGA") and Subpart G of 18 C.F.R. Part 284.

In order for Transporter to initiate transportation of natural gas in accordance with the referenced service agreement, certain assurances must be obtained from you, as Shipper.

Shipper represents and warrants that the gas purchased for transportation and transported by Transporter pursuant to the referenced transportation agreement is eligible for transportation pursuant to Subpart G of 18 C.F.R. Part 284 or other similar applicable laws, regulations, and authorities.

Please execute in the spaces provided for below and return with the executed Transportation Agreement.

Sincerely,

PANHANDLE EASTERN PIPE LINE COMPANY
By:	/s/ Craig R. Fishbeck
Title	Vice President, Marketing

Agreed to and Accepted this
3   day of   March  ,   2000
PEOPLES GAS LIGHT AND COKE COMPANY (THE)
By	/s/ D. M. Field
	D. M. Field
	(Please type or print name)
Title	Executive Vice President