EXHIBIT 10-A-31
SERVICE AGREEMENT
between
TRANSCONTINENTAL GAS PIPE LINE CORPORATION
and
PUBLIC SERVICE COMPANY OF NORTH CAROLINA, INC.
DATED
JANUARY 23, 1996
System Contract 001.2387
Transcontinental Gas Pipe Line Corporation
SERVICE AGREEMENT
THIS AGREEMENT entered into this 23 day of JANUARY , 1996 by and between
TRANSCONTINENTAL GAS PIPE LINE CORPORATION, a Delaware corporation, hereinafter
referred to as "Seller," first party, and PUBLIC SERVICE COMPANY OF NORTH
CAROLINA, INC. hereinafter referred to as "Buyer," second party,
W I T N E S S E T H
WHEREAS, Seller and Buyer wish to enter into an agreement for the transportation
of Natural Gas; NOW, THEREFORE, Seller and Buyer agree as follows:
ARTICLE I
GAS TRANSPORTATION SERVICE
1. Subject to the terms and provisions of this agreement and of Seller's
Rate Schedule IT, Buyer agrees to deliver or cause to be delivered to Seller gas
for transportation and Seller agrees to receive, transport and redeliver natural
gas to Buyer or for the account of Buyer, on an interruptible basis, up to a
maximum daily quantity of 300,000 DT per day. Seller, after having satisfied any
pending requests for service under Rate Schedule IT, may transport daily
quantities of gas tendered by Buyer in excess of the specified maximum daily
quantity; however, in no event shall Seller be obligated to receive at any
point(s) of receipt a quantity of gas in excess of the lower of Buyer's (1)
maximum daily quantity plus compressor fuel and line loss make-up or (2) the
daily quantity scheduled for delivery to Seller. Nor shall Buyer tender at any
one or all point(s) of receipt a cumulative quantity of natural gas in excess of
such daily quantity without the prior consent of Seller.
2. Transportation service rendered hereunder shall be subject to curtailment
or interruption when in Seller's judgment such curtailment or interruption is
necessary due to operating conditions or insufficient pipeline capacity
available on Seller's system, or is otherwise necessary to protect authorized
firm services. In the event Seller is unable to receive or deliver the total
quantity of natural gas requested to be transported for all Buyers of service
under Rate Schedule IT, then seller shall allocate available capacity among such
Buyers in accordance with Section 6 of Seller's Rate Schedule IT and Section 28
of the General Terms and Conditions of Seller's FERC Gas Tariff.
ARTICLE II
POINT(S) OF RECEIPT
Buyer shall deliver or cause to be delivered gas at the point(s) of receipt
hereunder at a pressure sufficient to allow the gas to enter Seller's pipeline
system at the varying pressures that may exist in such system from time to time;
provided, however, that such pressure of the gas delivered or caused to be
delivered by Buyer shall not exceed the maximum allowable operating pressure
specified below.
System Contract 001.2387
Transcontinental Gas Pipe Line Corporation
SERVICE AGREEMENT
(Continued)
In the event the maximum operating pressure of Seller's pipeline system, at the
point(s) of receipt hereunder, is from time to time increased or decreased, then
the maximum allowable pressure of the gas delivered or caused to be delivered by
Buyer to Seller at the point(s) of receipt shall be correspondingly increased or
decreased. The point(s) of receipt for natural gas received for transportation
pursuant to this agreement shall include all available points of receipt on
Seller's System as posted in the "Bulletin Board" Section of the transportation
request log program required by Commission Regulation 250.16(b)(2).
ARTICLE III
POINT(S) OF DELIVERY AND PRESSURE(S)
Seller shall redeliver to Buyer or for the account of Buyer the gas
transported hereunder at the following point(s) of delivery:
POINT(S) OF DELIVERY
--------------------
SEE EXHIBIT A
ARTICLE IV
TERM OF AGREEMENT
This agreement shall be effective as of JANUARY 23, 1996, and shall remain
in force and effect through FEBRUARY 22, 1996, and thereafter until terminated
by Seller or Buyer upon at least thirty (30) days written notice to the other
specifying a termination date; provided, however, this agreement shall terminate
immediately and, subject to the receipt of necessary authorizations, if any,
Seller may discontinue service hereunder if (a) Buyer, in Seller's sole
judgment, fails to demonstrate credit worthiness, and (b) Buyer fails to provide
adequate security in accordance with Section 32 of the General Terms and
Conditions of Seller's Volume No. 1 Tariff.
ARTICLE V
RATE SCHEDULE AND PRICE
1. Buyer shall pay Seller for natural gas delivered to Buyer hereunder in
accordance with Seller's Rate Schedule IT 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 legally amended or
superseded from time to time. Such Rate Schedule and General Terms and
Conditions are by this reference made a part hereof.
System Contract 001.2387
Transcontinental Gas Pipe Line Corporation
SERVICE AGREEMENT
(Continued)
2. Seller and Buyer agree that the quantity of gas that Buyer delivers or
causes to be delivered to Seller shall include the quantity of gas retained by
Seller for applicable compressor fuel and line loss make-up in providing the
transportation service hereunder, which quantity may be made from time to time
and will be specified on the currently effective Sheet No. 44 of Volume No. 1 of
Seller's Tariff which relate to service under this agreement and which are
incorporated herein.
3. Buyer shall reimburse Seller for any and all filing fees incurred as a
result of Buyer's request for service under this Rate Schedule, to the extent
such fees are imposed upon Seller by the Federal Energy Regulatory Commission or
any successor governmental authority having jurisdiction.
ARTICLE VI
MISCELLANEOUS
1. This agreement supersedes and cancels as of the effective date hereof
the following contract(s) between the parties hereto:
NONE
2. 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.
3. The interpretation and performance of this agreement shall be in
accordance with the laws of the State of Texas, without recourse to the law
governing conflict of laws and to all present and future valid laws with respect
to the subject matter, including present and future orders, rules and
regulations of duly constituted authorities.
4. This agreement shall be binding upon, and inure to the benefit of the
parties hereto and their respective successors and assigns.
5. Notices to either party shall be in writing and shall be considered as
duly delivered when mailed to the other party at the following address:
System Contract 001.2387
Transcontinental Gas Pipe Line Corporation
SERVICE AGREEMENT
(Continued)
(a) If to Seller:
Transcontinental Gas Pipe Line Corporation
P. O. Box 1396
Houston, Texas 77251
Attention: Customer Service
(b) If to Buyer:
PUBLIC SERVICE COMPANY OF N.C., INC.
P.O. BOX 698
GASTONIA, NORTH CAROLINA 28053-0698
ATTN: DIANA WOOD
Such addresses may be changed from time to time by mailing appropriate notice
thereof to the other party by certified or registered mail.
IN WITNESS WHEREOF, the parties hereto have caused this agreement to be
signed by their respective officers or representatives thereunto duly
authorized.
TRANSCONTINENTAL GAS PIPE LINE CORPORATION
(Seller)
By: s\ Frank J. Ferazzi
---------------------------------
Frank J. Ferazzi
Vice President - Customer Service
PUBLIC SERVICE COMPANY OF NORTH CAROLINA, INC.
(Buyer)
By: s\ Franklin H. Yoho
---------------------------------
Senior Vice President -
Marketing and Gas Supply
Page No. 1
System Contract 001.2387
EXHIBIT A
Attached to and forming a part of the gas transportation agreement dated
JANUARY 23, 1996, between Transcontinental Gas Pipe Line Corporation (Seller)
and PUBLIC SERVICE COMPANY OF NORTH CAROLINA, INC. (Buyer).
A. Delivery Point Transfer No Delivery Point MDQ
6585 WASHINGTON GAS LIGHT COMPANY 10,000
6608 PUBLIC SERVICE NORTH CAROLINA 290,000
TOTAL 300,000
B. Delivery Point Pressures: Not less than the pressure(s) as may be
mutually agreed upon in the day-to-day operation of the interconnecting
company's pipeline, but in no event in excess of Seller's operating pressure;
or, if applicable, not less than the pressure(s) as stated in the existing sales
service agreement between Seller and interconnecting Company, unless otherwise
mutually agreed upon between Seller and such interconnecting Company.
C. Receipt Point Pressures: Buyer shall deliver or cause to be delivered
gas at Seller's point(s) of receipt, at a pressure sufficient to allow the gas
to enter Seller's pipeline system at the varying pressures that may exist in
such system from time to time; provided, however, that such pressure of the gas
delivered or caused to be delivered by Buyer shall not exceed the maximum
allowable operating pressure specified below.
In the event the maximum operating pressure of the Seller's pipeline
system, at Seller's point(s) of receipt, is from time to time increased or
decreased, then the maximum allowable pressure of the gas delivered or caused to
be delivered by Buyer to Seller at the point(s) of receipt shall be
correspondingly increased or decreased.
D. Receipt Point information: The point(s) of receipt for natural gas
received for transportation pursuant to this agreement shall include all
available points of receipt on Seller's System as posted in the "Bulletin Board"
Section of the transportation request log program required by Commission
Regulation 250.16(b)(2).
Page No. 2
System Contract No. 001.2387
EXHIBIT A
(Footnotes)
"Please note: The following may or may not pertain to this particular contract.
These are frequently used footnotes and are therefore listed on this footnote
page for your information. Only the footnote numbers associated with receipt and
delivery points listed on the Exhibit A will apply to this contract."
1/ "VARIOUS" HAS BEEN USED UNDER "PRODUCER" AND "SOURCE" FOR TGPL
ADMINISTRATIVE PURPOSES OF PROCESSING THE CONTRACT. THE SPECIFIC
PRODUCERS AND SOURCES FOR A GIVEN RECEIPT POINT MUST STILL BE
IDENTIFIED AT THE TIME OF SCHEDULING THE GAS AND ARE LIMITED TO THE
PRODUCER/SOURCES ITEMIZED ON THE CONTRACT UNDER DELIVERY POINT
__________ (TRANSFER POINT NO. ).
2/ SPECIFIC SOURCES AND PRODUCERS MUST BE IDENTIFIED PRIOR TO GAS
FLOWING.
3/ RECEIPTS BY DISPLACEMENT OF SCHEDULED DELIVERIES.
4/ DELIVERIES BY DISPLACEMENT OF SCHEDULED RECEIPTS. 5/ USES TGPL
CAPACITY IN HIOS.
6/ USES TGPL CAPACITY IN UTOS.
7/ USES TGPL CAPACITY IN HIOS/UTOS.
8/ FOR ADMINISTRATIVE PURPOSES ONLY.
9/ DELIVERY CONTINGENT UPON CORRESPONDING REQUEST FOR INJECTION INTO
WASHINGTON STORAGE BY A RATE SCHEDULE WSS CUSTOMER.
10/ SUPPLIER TO PROVIDE SPECIFIC SOURCE AND PRODUCER INFORMATION PRIOR TO
GAS FLOWING.