EXHIBIT 10b
SERVICE AGREEMENT
THIS AGREEMENT entered into as of the 1st day of November, 1994, by and
between ANR Storage Company, a Michigan Corporation, hereinafter referred to
as "Seller," and Atlanta Gas Light Company, hereinafter referred to as
"Customer."
W I T N E S S E T H
WHEREAS, Customer has requested Seller to store Gas on its behalf; and
WHEREAS, Seller has sufficient capacity available to provide the Storage
Service for Customer on the terms specified herein;
NOW, THEREFORE, Seller and Customer agree as follows:
ARTICLE I
STORAGE SERVICE
1. Seller's service hereunder shall be subject to receipt of all requisite
regulatory authorizations from the Federal Energy Regulatory Commission
("Commission"), or any successor regulatory authority, and any other
necessary governmental authorizations, in a manner and form acceptable to
Seller.
2. Subject to the terms and provisions of this Agreement, Customer may on
any Day deliver or cause to be delivered to Seller, Gas up to the Maximum
Daily Injection Quantity plus Seller's Injection Use for Storage of up to
the Maximum Storage Quantity, and at Customer's request on any Day Seller
agrees to tender Equivalent Quantities of Gas to or for the account of
Customer, on a firm basis, up to the Maximum Daily Withdrawal Quantity,
reduced by Seller's Withdrawal Use.
3. Seller may, if requested by Customer, inject or withdraw from storage
daily quantities in excess of the Maximum Daily Injection Quantity or
Maximum Daily Withdrawal Quantity specified in Paragraph 2, above, if it can
do so without adverse effect on Seller's operations or its ability to meet
its higher priority obligations.
SERVICE AGREEMENT
(Continued)
ARTICLE II
POINT OF INJECTION AND POINT OF WITHDRAWAL
1. Customer shall deliver or cause to be delivered Gas hereunder at the
Point of Injection.
2. Seller shall tender to or for the account of Customer, Equivalent
Quantities of Gas stored hereunder, at the Point of Withdrawal.
ARTICLE III
TERM OF AGREEMENT
1. This Agreement shall be effective as of the date first above written and
shall remain in effect for a primary term commencing November 1, 1994 and
ending March 31, 2003.
ARTICLE IV
RATE SCHEDULE AND CHARGES
1. Each Month, Customer shall pay Seller for the service hereunder, an
amount determined in accordance with Seller's Rate Schedule FS and the
applicable provisions of the General Terms and Conditions of Seller's
F.E.R.C. Gas Tariff, Original Volume No. 1, as filed with the Commission.
Such Rate Schedule and General Terms and Conditions are incorporated by
reference and made a part hereof. Section VI & VII of Exhibit A hereto sets
forth the applicable information as follows, which shall be utilized for
transactions hereunder:
(a) Rates and Charges
(b) Additional charges which are applicable
SERVICE AGREEMENT
(Continued)
Exhibit A to this Agreement shall specify the Rates and Charges and
Additional charges which are applicable. When the level of any Rates and
Charges or Additional charges is changed pursuant to Commission authorization
or direction, Seller may unilaterally effect an amendment to Exhibit A to
reflect such change(s) by so specifying in a written communication to
Customer.
2. It is further agreed that Seller may seek authorization from the
Commission and/or other appropriate body for such changes to any rate(s) and
terms and conditions set forth herein, in Rate Schedule FS or in the General
Terms and Conditions of Seller's Original Volume No. 1 FERC Gas Tariff, as
may be found necessary to assure Seller just and reasonable rates. Nothing
herein contained shall be construed to deny Customer any rights it may have
under the Natural Gas Act, as amended, including the right to participate
fully in rate proceedings by intervention or otherwise to contest Seller's
filing in whole or in part.
3. Further Agreement:
a) Customer's Reservation Rates shall be as follows:
Deliverability - Monthly $2.35820
Capacity - Monthly $0.02406
These rates will remain in effect through the term of this Service Agreement
or until the rates set forth in Seller's Rate Schedule FS are changed, at
which time Customer's rates will change to become the same as the new maximum
rates under the then effective Rate Schedule FS.
SERVICE AGREEMENT
(Continued)
EXHIBIT "A"
to Agreement between
ANR Storage Company (Seller)
and
Atlanta Gas Light Company (Customer)
Dated November 1, 1994
I. STORAGE DEMAND INJECTION QUANTITY (dth) 43,448
II. STORAGE DEMAND WITHDRAWAL QUANTITY (dth) 56,483
III. MAXIMUM STORAGE QUANTITY (dth) 5,648,279
IV. POINT OF INJECTION - Point of interconnection between the pipeline
systems of Great Lakes Gas Transmission Limited
Partnership and Seller in Frederic Township,
Crawford County, Michigan.
V. POINT OF WITHDRAWAL - Point of interconnection between the
pipeline systems of Great Lakes Gas
Transmission Limited Partnership and Seller in
Frederic Township, Crawford County, Michigan.
VI. RATES AND CHARGES - Maximum Rates as set forth on Sheet No. 5 of
Original Volume No. 1 unless otherwise agreed
to.
VII. ADDITIONAL CHARGES - pursuant to Section 5 of Rate Schedule FS.
SERVICE AGREEMENT
(Continued)
ARTICLE V
NOTICE
1. Except as may be otherwise provided, any notice, request, demand,
statement or bill provided for in this Agreement or any notice which a party
may desire to give the other shall be in writing and mailed by regular mail,
effective as of the postmark date, to the post office address of the party
intended to receive the same, as the case may be, as follows:
Seller: ANR Storage Company
500 Renaissance Center
Detroit, Michigan 48243
Attention: Marketing Department
Customer: Atlanta Gas Light Company
303 Peachtree Street N.E.
Atlanta, Georgia 30308-3249
Attention: Stephen Gunther - General Correspondence
Attention: Gas Supply Dept. - Billing
ARTICLE VI
INCORPORATION BY REFERENCE
The provisions of Rate Schedule FS and the General Terms and Conditions of
Seller's FERC Gas Tariff, Original Volume No. 1, are specifically
incorporated herein by reference and made a part hereof.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
signed by their respective Officers or Representatives thereunto duly
authorized.
ANR Storage Company
By /s/ Michael A. Mujadin
Its Executive Vice President
Atlanta Gas Light Company
By /s/ Stephen J. Gunther
Its Vice President