AMENDMENT
TO GAS PURCHASE CONTRACT
The undersigned parties, in consideration of the mutual covenants contained
herein, hereby agree to amend, as described below, the gas purchase contract
("Contract") dated October 1, 1990 between Arkansas Western Gas Company
("Buyer") for the account of Associated Natural Gas Company, a division of
Arkansas Western Gas Company, and SEECO, Inc. ("Seller").
1. The phrase "Contract Annual Quantity" shall be changed to "Contract
Annual Volume" wherever it appears throughout the Contract.
2. Section 2(B) shall be deleted in its entirety and replaced with the
following:
(B) It is understood that Seller shall deliver to Buyer on a
daily basis the quantity requested by Buyer up to the Maximum
Daily Quantity. Should Buyer desire a daily quantity in excess
of such quantities, Seller shall advise Buyer of the
availability or nonavailability of such gas and, if available,
when deliveries can commence. However, notwithstanding
anything contained in this contract, Buyer's receipts of gas
hereunder shall fluctuate only to the extent such fluctuations
are required by the demands of Buyer's utility customers in
northeast Arkansas and southeast Missouri. Seller shall have
no obligation to deliver gas to Buyer under this contract to
be used for resale to third parties other than Buyer's
northeast Arkansas and southeast Missouri utility customers.
Buyer shall take gas hereunder at monthly rates which match as
closely as reasonably possible Buyer's historical monthly
takes under this contract.
3. Section 6(A) shall be deleted in its entirety and replaced with the
following:
(A) Subject to the provisions hereinafter set forth, the price
payable hereunder shall be the price contained in the
currently effective contract pricing schedule attached to this
contract. The first such contract pricing schedule shall be
effective October 1, 1997. Each time the price payable under
this contract is redetermined, a new contract pricing schedule
which identifies the redetermined price shall be attached to
this contract, and shall supersede the previous contract
pricing schedule.
4. Section (A) (c) of the General Terms and Conditions shall be deleted
in its entirety and replaced with the following:
(c)The volume of gas shall be measured at each Point of
Delivery by orifice meters installed and operated and
computations made as prescribed in the latest accepted version
of the American Gas Association Gas Measurement Committee
Report No. 3, except as the parties may otherwise agree or may
otherwise have provided elsewhere herein. The values of the
Reynolds number factor, expansion factor, and manometer
factor, or any of them, may be assumed by Buyer to be one (1).
Dated September 30, 1997.
ARKANSAS WESTERN GAS COMPANY SEECO, INC
By: /s/ CHARLES V. STEVENS By: /s/ DEBBIE J. BRANCH
------------------------- --------------------------
Charles V. Stevens Debbie J. Branch
Vice President and Senior Vice President
Assistant to Chairman Southwestern Energy Services
Company, Agent for SEECO,
Inc.
CONTRACT PRICING SCHEDULE
TO OCTOBER 1, 1990 GAS PURCHASE CONTRACT
Effective October 1, 1997, the price payable for gas purchased
hereunder shall be as follows:
Monthly Reservation Fee: $91,250
Commodity Cost Per MMBtu: The index as published in Inside
FERC's Gas Market Report (Prices
of Spot Gas Delivered to Pipelines,
per MMBtu dry) for the first day of
the applicable month for deliveries
into NorAm Gas Transmission
Company (East)
Commodity Price Cap: $16,250 per month from October
1997 through September 1998. The
commodity cost per MMBtu dry
(excluding reservation fee and price
cap fee) shall not exceed $3.60
NorAm East for the first 300,000
MMBtu purchased in November
1997, the first 450,000 MMBtu
purchased in December 1997, the
first 450,000 MMBtu purchased in
January 1998, and the first 300,000
MMBtu purchased in February 1998.
Dated September 30, 1997.
ARKANSAS WESTERN GAS COMPANY SEECO, INC
By: /s/ CHARLES V. STEVENS By: /s/ DEBBIE J. BRANCH
-------------------------- --------------------------
Charles V. Stevens Debbie J. Branch
Vice President and Senior Vice President
Assistant to Chairman Southwestern Energy Services
Company, Agent for SEECO,
Inc.