86006
SERVICE AGREEMENT
(APPLICABLE TO RATE SCHEDULE AFT-1)
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This Agreement ("Agreement") is made and entered into this 1st day of
September, 1994, by and between Algonquin Gas Transmission Company, a
Delaware Corporation (herein called "Algonquin"), and Connecticut
Natural Gas Corporation (herein called "Customer" whether one or more
persons).
WHEREAS, Algonquin and its customers entered into a settlement
agreement in Algonquin's Docket Nos. RP93-14-000, et al. which
provided, among other things, for Algonquin's assignment of 1,702 MMBtu
per day of service entitlements on Texas Eastern Transmission
Corporation's system to Customer, and for Algonquin to provide an
equivalent quantity of service under Rate Schedule AFT-1 on the
Algonquin system; and
WHEREAS, the Federal Energy Regulatory Commission issued an order on
July 8, 1994, approving the settlement in Docket Nos. RP93-14-000, et
al.; and
NOW THEREFORE, in consideration of the premises and of the mutual
covenants herein contained, the parties do agree as follows:
ARTICLE I
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SCOPE OF AGREEMENT
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1.1 Subject to the terms, conditions and limitations hereof and of
Algonquin's Rate Schedule AFT-1, Algonquin agrees to receive from
or for the account of Customer for transportation on a firm basis
quantities of natural gas tendered by Customer on any day at the
Point(s) of Receipt; provided, however, Customer shall not tender
without the prior consent of Algonquin, at any Point of Receipt on
any day a quantity of natural gas in excess of the applicable
Maximum Daily Receipt Obligation for such Point of Receipt plus
the applicable Fuel Reimbursement Quantity; and provided further
that Customer shall not tender at all Point(s) of Receipt on any
day or in any year a cumulative quantity of natural gas, without
the prior consent of Algonquin, in excess of the following
quantities of natural gas plus the applicable Fuel Reimbursement
Quantities:
Maximum Daily Transportation Quantity 1,702 MMBtu
Maximum Annual Transportation Quantity 459,540 MMBtu
1.2 Algonquin agrees to transport and deliver to or for the account of
Customer at the Point(s) of Delivery and Customer agrees to accept
or cause acceptance of delivery of the quantity received by
Algonquin on any day, less the Fuel Reimbursement Quantities;
provided, however, Algonquin shall not be obligated to deliver at
any Point of Delivery on any day a quantity of natural gas in
excess of the applicable Maximum Daily Delivery Obligation.
86006
SERVICE AGREEMENT
(APPLICABLE TO RATE SCHEDULE AFT-1)
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ARTICLE II
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TERM OF AGREEMENT
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2.1 This Agreement shall become effective as of the date set forth
hereinabove and shall continue in effect for a term ending on and
including April 30, 1999 ("Primary Term") and shall remain in
force from year to year thereafter unless terminated by either
party by written notice one year or more prior to the end of the
Primary Term or any successive term thereafter. Algonquin's right
to cancel this Agreement upon the expiration of the Primary Term
hereof or any succeeding term shall be subject to Customer's
rights pursuant to Sections 8 and 9 of the General Terms and
Conditions.
2.2 This Agreement may be terminated at any time by Algonquin in the
event Customer fails to pay part or all of the amount of any bill
for service hereunder and such failure continues for thirty days
after payment is due; provided Algonquin gives ten days prior
written notice to Customer of such termination and provided
further such termination shall not be effective if, prior to the
date of termination, Customer either pays such outstanding bill or
furnishes a good and sufficient surety bond guaranteeing payment
to Algonquin of such outstanding bill; provided that Algonquin
shall not be entitled to terminate service pending the resolution
of a disputed bill if Customer complies with the billing dispute
procedure currently on file in Algonquin's tariff.
ARTICLE III
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RATE SCHEDULE
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3.1 Customer shall pay Algonquin for all services rendered hereunder
and for the availability of such service under Algonquin's Rate
Schedule AFT-1 as filed with the Federal Energy Regulatory
Commission and as the same may be hereafter revised or changed.
The rate to be charged Customer for transportation hereunder shall
not be more than the maximum rate under Rate Schedule AFT-1, nor
less than the minimum rate under Rate Schedule AFT-1.
3.2 This Agreement and all terms and provisions contained or
incorporated herein are subject to the provisions of Algonquin's
applicable rate schedules and of Algonquin's General Terms and
Conditions on file with the Federal Energy Regulatory Commission,
or other duly constituted authorities having jurisdiction, and as
the same may be legally amended or superseded, which rate
schedules and General Terms and Conditions are by this reference
made a part hereof.
86006
SERVICE AGREEMENT
(APPLICABLE TO RATE SCHEDULE AFT-1)
---------------------------------
3.3 Customer agrees that Algonquin shall have the unilateral right to
file with the appropriate regulatory authority and make changes
effective in (a) the rates and charges applicable to service
pursuant to Algonquin's Rate Schedule AFT-1, (b) Algonquin's Rate
Schedule AFT-1, pursuant to which service hereunder is rendered or
(c) any provision of the General Terms and Conditions applicable
to Rate Schedule AFT-1. Algonquin agrees that Customer may
protest or contest the aforementioned filings, or may seek
authorization from duly constituted regulatory authorities for
such adjustment of Algonquin's existing FERC Gas Tariff as may be
found necessary to assure that the provisions in (a), (b), or (c)
above are just and reasonable.
ARTICLE IV
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POINT(S) OF RECEIPT
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Natural gas to be received by Algonquin for the account of Customer
hereunder shall be received at the outlet side of the measuring
station(s) at or near the Primary Point(s) of Receipt set forth in
Exhibit A of the service agreement, with the Maximum Daily Receipt
Obligation and the receipt pressure obligation indicated for each such
Primary Point of Receipt. Natural gas to be received by Algonquin for
the account of Customer hereunder may also be received at the outlet
side of any other measuring station on the Algonquin system, subject to
reduction pursuant to Section 6.2 of Rate Schedule AFT-1.
ARTICLE V
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POINT(S) OF DELIVERY
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Natural gas to be delivered by Algonquin for the account of Customer
hereunder shall be delivered on the outlet side of the measuring
station(s) at or near the Primary Point(s) of Delivery set forth in
Exhibit B of the service agreement, with the Maximum Daily Delivery
Obligation and the delivery pressure obligation indicated for each such
Primary Point of Delivery. Natural gas to be delivered by Algonquin
for the account of Customer hereunder may also be delivered at the
outlet side of any other measuring station on the Algonquin system,
subject to reduction pursuant to Section 6.4 of Rate Schedule AFT-1.
86006
SERVICE AGREEMENT
(APPLICABLE TO RATE SCHEDULE AFT-1)
---------------------------------
ARTICLE VI
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ADDRESSES
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Except as herein otherwise provided or as provided in the General Terms
and Conditions of Algonquin's FERC Gas Tariff, any notice, request,
demand, statement, bill or payment provided for in this Agreement, or
any notice which any party may desire to give to the other, shall be in
writing and shall be considered as duly delivered when mailed by
registered, certified, or first class mail to the post office address
of the parties hereto, as the case may be, as follows:
(a) Algonquin: Algonquin Gas Transmission Company
1284 Soldiers Field Road
Boston, MA 02135
Attn: John J. Mullaney
Vice President, Marketing
(b) Customer: Connecticut Natural Gas Corporation
100 Columbus Boulevard
P. O. Box 1500
Hartford, CT 06144-1500
Attn: Harry Kraiza, Jr.
Vice President, Energy Services
or such other address as either party shall designate by formal written
notice.
ARTICLE VII
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INTERPRETATION
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The interpretation and performance of the Agreement shall be in
accordance with the laws of the Commonwealth of Massachusetts,
excluding conflicts of law principles that would require the
application of the laws of a different jurisdiction.
86006
SERVICE AGREEMENT
(APPLICABLE TO RATE SCHEDULE AFT-1)
---------------------------------
ARTICLE VIII
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AGREEMENTS BEING SUPERSEDED
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When this Agreement becomes effective, it shall supersede the following
agreements between the parties hereto, except that in the case of
conversions from former Rate Schedules F-2 and F-3, the parties'
obligations under Article II of the service agreements pertaining to
such rate schedules shall continue in effect.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
signed by their respective agents thereunto duly authorized, the day
and year first above written.
ALGONQUIN GAS TRANSMISSION COMPANY
By: /s/ John J. Mullaney
Title: /s/ Vice President, Marketing
CONNECTICUT NATURAL GAS CORPORATION
By: /s/ Edna M. Karanian
Title: /s/ Ass't Vice Pres. Energy Planning & Procurement
86006
SERVICE AGREEMENT
(APPLICABLE TO RATE SCHEDULE AFT-1)
---------------------------------
Exhibit A
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Point(s) of Receipt
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Dated: September 1, 1994
To the service agreement under Rate Schedule AFT-1
between Algonquin Gas Transmission Company (Algonquin)
and Connecticut Natural Gas Corporation (Customer) concerning Point(s) of
Receipt
Primary Maximum Daily Maximum
Point of Receipt Obligation Receipt Pressure
Receipt (MMBtu) (Psig)
-------- ------------------ ----------------
At any pressure requested
by Algonquin not in excess
of 750 Psig.
Signed for Identification
Algonquin: /s/ John J. Mullaney
Customer: /s/ Edna M. Karanian
86006
SERVICE AGREEMENT
(APPLICABLE TO RATE SCHEDULE AFT-1)
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Exhibit B
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Point(s) of Delivery
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Dated: September 1, 1994
To the service agreement under Rate Schedule AFT-1
between Algonquin Gas Transmission Company (Algonquin) and
Connecticut Natural Gas Corporation(Customer) concerning Point(s)of Delivery
Primary Maximum Daily Minimum
Point of Delivery Obligation Delivery Pressure
Delivery (MMBtu) (Psig)
-------- ------------------- -----------------
Signed for Identification
Algonquin: /s/ John J. Mullaney
Customer: /s/ Edna M. Karanian
FTS/cl