SERVICE AGREEMENT
between
TRANSCONTINENTAL GAS PIPE LINE CORPORATION
and
PENNSYLVANIA GAS & WATER
SERVICE AGREEMENT UNDER RATE SCHEDULE LSS
THIS AGREEMENT entered into this first day of October, 1993, by and between
TRANSCONTINENTAL GAS PIPE LINE CORPORATION, a Delaware corporation, hereinafter
referred to as "Seller", first party, and PENNSYLVANIA GAS & WATER, a
Pennsylvania corporation, hereinafter referred to as "Buyer", second party,
W I T N E S S E T H:
WHEREAS, Buyer desires to purchase and Seller desires to sell natural gas
storage service under Seller's Rate Schedule LSS as set forth herein; and
WHEREAS, Seller and Penn York Energy Corporation ("Penn York") entered into
an agreement dated October 3, 1984 providing for underground natural gas storage
service by Penn York for Seller; and
WHEREAS, Seller and Consolidated Natural Gas Transmission Corporation
("CNG") are extending the term of the agreement providing for underground natural
gas storage service by CNG for Seller; and
WHEREAS, pursuant to the terms of the Joint Stipulation approved by the
Commission's 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. CP84-335,
Seller and Buyer agree to a twenty year contract term extension;
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 LSS, 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injected into storage for Buyer's account, stored, and withdrawn from storage)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 (less fuel allowance) 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To withdraw from storage or cause to be withdrawn from storage,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
(a) 7,518 dt, for the period October 1, 1993 through March 31,
1994, and
(b) 5,169 dt, for the period April 1, 1994 through 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
(a) 827,053 dt, for the period October l, 1993 through March 31,
1994, and
(b) 551,369 dt, for the period April 1, 1994 through March 31,
2013,
which quantity shall be Buyer's Storage Capacity Quantity.
ARTICLE II
POINT OF DELIVERY
The Point or Points of Delivery for all natural gas delivered by Seller to
Buyer under this agreement shall be at or near:
SERVICE AGREEMENT UNDER RATE SCHEDULE LSS
(Continued)
ARTICLE II
POINT OF DELIVERY
(Continued)
(1) Dallas Meter Station, located at the intersection of State Route #115 and
Leidy Line on south side of road adjacent to Natona Mills--western edge of
Dallas, Luzerne County, Pennsylvania.
(2) Saylor Meter Station, located at junction of Saylor Avenue and Transco
Pipeline, Plains Township, Luzerne County, Pennsylvania.
(3) Wyoming Monument Meter Station, located on Seller's Leidy Line near
Wyoming, Luzerne County, Pennsylvania.
(4) Muncy Meter Station, located at a point of connection of Seller's Leidy
Line and Buyer's facilities near Muncy, Lycoming County, Pennsylvania.
(5) Old Lycoming Meter Station, located at a point of connection of Seller's
Leidy Line and Buyer's facilities near the intersection of Legislative
Route No. 41033 and Route 410 in Lycoming County, Pennsylvania.
(6) Shickshinny Meter Station, located at a point of connection on Seller's
Leidy Line and Buyer's facilities near Salem Township, Luzerne County,
Pennsylvania.
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 October 1, 1993 and shall remain in force
and effect until April 1, 2013.
ARTICLE V
RATE SCHEDULE AND PRICE
Buyer shall pay Seller for natural gas service rendered hereunder in
accordance with Seller's Rate Schedule LSS 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.
SERVICE AGREEMENT UNDER RATE SCHEDULE LSS
(Continued)
ARTICLE 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:
Service Agreement dated October 31, 1984.
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 Pennsylvania.
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.
ATTEST: TRANSCONTINENTAL GAS PIPE LINE
CORPORATION
[SEAL]
/s/ Grace L. Hughes By /s/ Thomas E. Skains (seller)
Asst., Secretary Senior Vice President
Transportation and Customer
Services
ATTEST: PENNSYLVANIA GAS & WATER
/s/ Sandra M. Stefanowicz By /s/ Joseph Perugino (Buyer)
Asst Secretary Vice President
Marketing & Gas Supply