EX-10.26
SERVICE AGREEMENT
between
TRANSCONTINENTAL GAS PIPE LINE CORPORATION
and
NORTH CAROLINA GAS SERVICE (an NUI Company)
July 1, 1996
SERVICE AGREEMENT UNDER RATE SCHEDULE GSS
THIS AGREEMENT entered into this 1st day of July, 1996, by and
between TRANSCONTINENTAL GAS PIPELINE CORPORATION, a Delaware
corporation, hereinafter referred to as "Seller", first party, and
NORTH CAROLINA GAS SERVICE (an NUI Company), a Delaware corporation,
(formerly NORTH CAROLINA GAS SERVICE DIVISION OF PENNSYLVANIA &
SOUTHERN GAS COMPANY), hereinafter referred to as "Buyer", second
party,
WITNESSETH:
WHEREAS, Buyer desires to purchase and Seller desires to sell
natural gas storage service under Seller's Rate Schedule GAS as set
forth herein; and
WHEREAS, pursuant to the terms of the Joint Stipulation and
Settlement Agreement approved by the Federal Energy Regulatory
Commission's ("Commission") Order dated July 16, 1993 in Docket Nos.
RS92-86-003, RP92-108-000, and RP92-137-000 which amended Seller's
Certificate in Docket No. CP61-194, Seller and Buyer agreed to a
twenty year contract through March 31, 2013, as set forth in that
order, for the Storage Demand Quantity and Storage Capacity Quantity
which are supported by service provided by CNG Transmission
Corporation; and
WHEREAS, pursuant to the terms of the Application to Amend
Seller's Certificate, in Docket No. CP61-94, as approved by the
Commission's Order dated June 13, 1996 in docket No. CP96-226-000,
Seller and Buyer agreed to the Storage Demand Quantity and Storage
Capacity Quantity set forth in Article I hereof;
NOW, THEREFORE, Seller and Buyer agree as follows:
ARTICLE I
SERVICE TO BE RENDERED
Subject to the terms and provisions of this agreement and of
Seller's Rate Schedule GSS, Seller agrees to receive from Buyer for
storage, inject into storage for Buyer's account, store, withdraw from
storage (or cause to be injected into storage for Buyer's account,
stored and withdrawn from storage ) and deliver to Buyer, quantities
of natural gas as follows:
To withdraw from storage or cause to be withdrawn from
storage, transport and deliver to buyer at the delivery
points set forth below, the gas stored for Buyer's account
up to a maximum quantity in any day of
2,650 Mcf, during the period beginning on July 1, 1996 and
ending on June 30, 2001, and
1,441 Mcf during the period beginning on July 1, 2001 and
ending on March 31, 2013,
which quantity shall be Buyer's Storage Demand.
To receive and store or cause to be stored up to a total
quantity at any one time of
134,229 Mcf, during the period beginning on July 1, 1996 and
ending on June 30, 2001, and
76,451 Mcf during the period beginning on July 1, 2001 and
ending on March 31, 2013,
which quantity shall be Buyer's Storage Capacity Quantity.
ARTICLE II
POINT(S) OF DELIVERY
The Point of Points of Delivery for all natural gas delivered by
Seller to Buyer under this agreement shall be at or near:
(1) Reidsville Meter and Regulator Station, located at milepost
1377.73 on Seller's main transmission line on the northeasterly
side of State Highway No. 87, approximately 6.5 miles
northwesterly from the City of Reidsville, Rockingham County,
North Carolina.
(2) Draper Meter and Regulator Station, located at milepost 1386.34
on Seller's main transmission line on the southeasterly side of
State Highway No. 770, approximately 7 miles easterly of the City
of Leaksville, Rockingham County, North Carolina.
(3) Bethany Meter and Regulator Station, located at milepost 1365.98
on Seller's main transmission line adjacent to North Carolina
State Highway No. 65 (approximately 3.2 miles southwest from
Seller's compressor Station No. 160), Rockingham County, North
Carolina.
(4) Spray Meter Station, located at milepost 1382.53 on Seller's main
transmission line adjacent to Transco's Dan River Meter Station,
approximately 0.5 miles south of Dan River, Rockingham County,
North Carolina.
ARTICLE III
DELIVERY PRESSURE
Seller shall deliver natural gas to Buyer at the Point(s) of
Delivery at a pressure(s) of: not less than fifty (50) pounds per
square inch gauge, or at such other pressures as may be agreed upon in
the day-to-day operations of Buyer and Seller.
ARTICLE IV
TERM OF AGREEMENT
This agreement shall be effective July 1, 1996 and shall remain
in force and effect through March 31, 2013.
ARTICLE V
RATE SCHEDULE AND PRICE
Buyer shall pay Seller for natural gas service rendered hereunder
in accordance with Seller's Rate Schedule GSS and the applicable
provisions of the General Terms and Conditions of Seller's FERC Gas
Tariff as filed with the Federal Energy Regulatory Commission, and as
the same may be amended or superseded from time to time at the
initiative of either party. Such rate schedule and General Terms and
Conditions are by this reference made a part hereof.
AFTICLE VI
MISCELLANEOUS
1. The subject headings of the Articles of this agreement are
inserted for the purpose of convenient reference and are not intended
to be a part of this agreement nor to be considered in any
interpretation of the same.
2. This agreement supersedes and cancels as of the effective date
hereof the following contract(s):
Any and all Service Agreements previously entered into between
Buyer and Seller under Seller's Rate Schedule GSS.
3. No waiver by either party of any one or more defaults by the
other in the performance of any provisions of this agreement shall
operate or be construed as a waiver of any future default or defaults,
whether of a like or different character.
4. This agreement shall be interpreted, performed and enforced in
accordance with the laws of the State of North Carolina.
5. This agreement shall be binding upon, and inure to the benefit of
the parties hereto and their respective successors and assigns.
IN WITNESS WHEREOF, the parties hereto have caused this agreement
to be signed by their respective Presidents or Vice Presidents
thereunto duly authorized and have caused their respective corporate
seals to be hereunto affixed and attested by their respective
Secretaries or Assistant Secretaries the day and year above written.
TRANSCONTINENTAL GAS PIPELINE
CORPORATION
(Seller)
ATTEST:
[SEAL]
/S/ Randall R. Conklin By: /s/ Frank J. Ferazzi
Assistant Secretary Vice President
Customer Service
NORTH CAROLINA GAS SERVICE (an NUI Company)
(Buyer)
ATTEST:
[SEAL]
/S/ James R. Van Horn By: /s/ Thomas E. Smith
Secretary Vice President
Supply and Planning