[EXHIBIT 10ss TO COLONIAL GAS COMPANY
FORM 10-K FOR YEAR ENDING 12/31/93]
SERVICE AGREEMENT
APPLICABLE TO THE STORAGE OF NATURAL GAS
UNDER RATE SCHEDULE GSS
(SECTION 7(c))
AGREEMENT made as of this October 1, 1993, by and
between CNG TRANSMISSION CORPORATION, a Delaware
corporation, hereinafter called "Pipeline," and COLONIAL GAS
COMPANY, a Massachusetts corporation, hereinafter called
"Customer."
WITNESSETH: That in consideration of the mutual
covenants herein contained, the parties hereto agree that
Pipeline will store natural gas for Customer during the
term, at the rates and on the terms and conditions
hereinafter provided and, with respect to gas delivered by
each of the parties to the other, under and subject to
Pipeline's Rate Schedule GSS and all of the General Terms
and Conditions contained in Pipeline's FERC Gas Tariff and
any revisions thereof that may be made effective hereafter:
ARTICLE I
Quantities
Beginning as of October 1, 1993 and thereafter for
the remaining term of this agreement, Customer agrees to
deliver to Pipeline and Pipeline agrees to receive for
storage in Pipeline's underground storage properties, and
Pipeline agrees to inject or cause to be injected into
storage for Customer's account, store, withdraw from
storage, and deliver to Customer and Customer agrees to
receive, quantities of natural gas as set forth on Exhibit
A, attached hereto.
ARTICLE II
Rate
A. For storage service rendered by Pipeline to
Customer hereunder, Customer shall pay Pipeline in
accordance with Rate Schedule GSS contained in Pipeline's
effective FERC Gas Tariff or any effective superseding rate
schedule. Said rate schedule or superseding rate schedule
and any revisions thereof which shall be filed and made
effective shall apply to and be a part of this Agreement.
Pipeline shall have the right to propose to and file with
the Federal Energy Regulatory Commission or other body
having jurisdiction, changes and revisions of any effective
rate schedule, or to propose and file superseding rate
schedules, for the purpose of changing the rate, charges,
and other provisions thereof effective as to Customer;
provided, however, that any request by Pipeline to amend the
terms and conditions of Rate Schedule GSS must be consistent
with the terms and conditions of Article VII, Part 2,
Paragraph (F) of the Stipulation filed on March 31, 1993 by
Pipeline in Docket No. RS92-14 and conform to the
requirements of Section 7(b) of the Natural Gas Act, if
applicable, and provided further that Pipeline and Customer
agree that they will not seek to place in effect a change in
any aspect of the terms and conditions under Section 8 of
Rate Schedule GSS for a period of two years from the date of
such request. The filing of requests, changes and revisions
of Rate Schedule GSS shall be without prejudice to the right
of Customer to contest or oppose such requests, filings or
revisions and their effectiveness.
B. The Storage Demand Charge and the Storage
Capacity Charge provided in the aforesaid rate schedule
shall commence on October 1, 1993.
ARTICLE III
Term of Agreement
Subject to all the terms and conditions herein,
this Agreement shall be effective as of October 1, 1993, and
shall continue in effect for a primary term through and
including March 31, 2006, and for subsequent annual terms of
April 1 through March 31 thereafter, until either party
terminates this Agreement by giving written notice to the
other at least twenty-four months prior to the start of an
annual term.
ARTICLE IV
Points of Receipt and Delivery
The Points of Receipt for Customer's tender of
storage injection quantities, and the Point(s) of Delivery
for withdrawals from storage shall be specified on Exhibit
A, attached hereto.
ARTICLE V
Special Operating Conditions
For the sole purpose of calculating Customer's
Storage Gas Balance to determine the initial decline in
Customer's Daily Entitlement, Pipeline shall multiply
Customer's actual Storage Gas Balance by a factor of 1.176.
For purposes other than calculating the initial decline in
Customer's Daily Entitlement, Customer's Storage Gas Balance
shall remain equal to Customer's actual inventory in
storage.
ARTICLE VI
Miscellaneous
A. No change, modification or alteration of this
Agreement shall be or become effective until executed in
writing by the parties hereto; provided, however, that the
parties do not intend that this Article VI.A. requires a
further written agreement either prior to the making of any
request or filing permitted under Article II hereof or prior
to the effectiveness of such request or filing after
Commission approval, provided further, however, that nothing
in this Agreement shall be deemed to prejudice any position
the parties may take as to whether the request, filing or
revision permitted under Article II must be made under
Section 7 or Section 4 of the Natural Gas Act.
B. Any notice, request or demand provided for in
this Agreement, or any notice which either party may desire
to give the other, shall be in writing and sent to the
following addresses:
Pipeline: CNG Transmission Corporation
445 West Main Street
Clarksburg, West Virginia 26301
Attention: Vice President, Marketing
and Customer Services
Customer: Colonial Gas Company
40 Market Street
Lowell, MA 01852
Attention: John P. Harrington
or at such other address as either party shall designate by
formal written notice.
C. No presumption shall operate in favor of or
against either party hereto as a result of any
responsibility either party may have had for drafting this
Agreement.
D. The subject headings of the provisions of
this Agreement are inserted for the purpose of convenient
reference, and are not intended to become a part of or to be
considered in any interpretations of such provisions.
ARTICLE VII
Prior Contracts
This Service Agreement shall supersede and cancel,
as of the effective date, the Service Agreements for storage
service between Customer and Pipeline dated June 1, 1993.
IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be signed by their duly authorized
officials as of the day and year first above written.
CNG TRANSMISSION CORPORATION
(Pipeline)
By: _________________________
Its: Vice President
COLONIAL GAS COMPANY
(Customer)
By: John P. Harrington
Its: Vice President, Gas Supply
(Title)
EXHIBIT A
To The GSS (Section 7(c))
Storage Service Agreement
Dated October 1, 1993
Between CNG Transmission Corporation and
Colonial Gas Company
A. Quantities
The quantities of natural gas storage service which
Customer may utilize under this Service Agreement, as well
as Customer's applicable Billing Determinants, are as
follows:
1. Storage Capacity of 823,529 Dekatherms (Dt), and
2. Storage Demand of 11,000 Dt per day.
B. Points of Receipt and Delivery
1. The Points of Receipt for Customer's tender of storage
injection quantities, and the maximum quantities and
character of service for each point shall be as set
forth below. Pipeline will use due care and diligence
to assure, and Customer will use due care and diligence
to cause its transporter to assure, that uniform
pressures will be maintained at the Receipt Points as
reasonably may be required to render service hereunder,
but Pipeline will not be required to accept gas at less
than the minimum pressures specified herein. Pipeline
will not be required to accept gas for injection into
storage at the points specified in B.1.b., below,
unless either (i) Customer tenders at the same time no
less than 474 Dt per day at the Leidy Interconnection
or (ii) Customer, during that Summer Period, has
already tendered 71,574 Dt or more at the Leidy
Interconnection.
a. Up to 4,575 Dt per Day at the interconnection of
the facilities of Pipeline and Texas Eastern
Transmission Corporation ("Texas Eastern") or
Transcontinental Gas Pipe Line Corporation
("Transco") or other pipeline(s) in Clinton
County, Pennsylvania, known as the Leidy
Interconnection, at a pressure of not less than
one thousand (1,000) pounds per square inch gauge
("psig").
b. Up to 4,575 Dt per Day at the "Texas Eastern
Market Zone 2 Point" which shall consist of any
combination of the following points:
1. The interconnection of the facilities of
Pipeline and Texas Eastern or other
pipeline(s) in Westmoreland County,
Pennsylvania, known as the Oakford
Interconnection, at a pressure of not less
than five hundred seventy-five (575) psig.
2. An existing point of interconnection between
Pipeline and Texas Eastern Transmission
Corporation ("Texas Eastern") located in
Noble County, Ohio, at Texas Eastern
Measuring Station 450, at the operating
pressure existing at the point of delivery.
3. An existing point of interconnection between
Pipeline and Texas Eastern located in Monroe
County, Ohio, at Texas Eastern Measuring
Station 471, at a pressure of not less than
two hundred (200) psig.
4. An existing point of interconnection between
Pipeline and Texas Eastern located in Monroe
County, Ohio, at Texas Eastern Measuring
Station 983, at a pressure of not less than
three hundred (300) psig.
5. An existing point of interconnection between
Pipeline and Texas Eastern located in Monroe
County, Ohio, at Texas Eastern Measuring
Station 004, at the pressure provided for in
the General Terms and Conditions of Texas
Eastern's FERC Gas Tariff.
6. An existing point of interconnection between
Pipeline and Texas Eastern located in
Marshall County, West Virginia at Texas
Eastern Measuring Station 372, at the
operating pressure existing at the point of
delivery.
7. An existing point of interconnection between
Pipeline and Texas Eastern located in Green
County, Pennsylvania at Texas Eastern
Measuring Station 037, at the pressure
provided for in the General Terms and
Conditions of Texas Eastern's FERC Gas
Tariff.
8. An existing point of interconnection between
Pipeline and Texas Eastern located in
Somerset County, Pennsylvania at Texas
Eastern Measuring Station 051, at the
pressure provided for in the General Terms
and Conditions of Texas Eastern's FERC Gas
Tariff.
2. The quantity of gas which Customer shall be entitled to
tender to Pipeline for injection into storage at the
Leidy Interconnection on a firm basis on any Day during
the Storage Year shall be one-one hundred eightieth
(1/180th) of Customer's Storage Capacity whenever
Customer's Storage Gas Balance is less than or equal to
one half of Customer's Storage Capacity, and one-two
hundred fourteenth (1/214th) of Customer's Storage
Capacity whenever Customer's Storage Gas Balance is
greater than one half of Customer's Storage Capacity.
3. The Points of Delivery for withdrawals from storage,
and the maximum quantities and character of service for
each point, shall be as set forth below. Pipeline will
use due care and diligence to assure, and Customer will
use due care and diligence to cause its transporter to
assure, that uniform pressures will be maintained at
the Delivery Points as reasonably may be required to
render service hereunder, and Pipeline will use due
care and diligence to deliver gas (or cause gas to be
delivered) within the pressure limitations specified
herein.
a. Up to 474 Dt per Day on a firm basis (and up to
10,526 Dt per Day, if, in Pipeline's sole opinion,
its operating or other circumstances permit) at
the interconnection of the facilities of Pipeline
and Texas Eastern Transmission Corporation ("Texas
Eastern") or Transcontinental Gas Pipe Line
Corporation ("Transco") or other pipeline(s) in
Clinton County, Pennsylvania, known as the Leidy
Interconnection, at a pressure of not less than
one-thousand, two-hundred (1,200) psig.
b. Up to 11,000 Dt per Day at the interconnection of
the facilities of Pipeline and Texas Eastern or
other pipeline(s) in Westmoreland County,
Pennsylvania, known as the Oakford
Interconnection, at a pressure of not less than
eight hundred fifty (850) psig.
c. Up to 11,000 Dt per Day at an existing point of
interconnection between the facilities of Pipeline
and Texas Eastern, in Franklin County,
Pennsylvania, known as the Chambersburg
Interconnection, on an interruptible basis if
operating conditions permit, at a pressure of not
more than seven hundred (700) psig.
d. Up to 11,000 Dt per Day at an existing point of
interconnection between the facilities of Pipeline
and Texas Eastern, in Greene County, Pennsylvania,
known as the Crayne Interconnection, on an
interruptible basis if operating conditions
permit, at a pressure of not more than eight
hundred sixty-five (865) psig.
e. Up to 11,000 Dt per Day at an existing point of
interconnection between the facilities of Pipeline
and Texas Eastern, in Cambria County,
Pennsylvania, known as the Rager Mountain
Interconnection, on an interruptible basis if
mutually agreed between Pipeline and Customer, at
the operating pressure existing at the point of
delivery.
[END OF EXHIBIT 10ss TO COLONIAL GAS COMPANY
FORM 10-K FOR YEAR ENDING 12/31/93]