Exhibit 10-B-8
SERVICE AGREEMENT
between
TRANSCONTINENTAL GAS PIPE LINE CORPORATION
and
PUBLIC SERVICE COMPANY OF NORTH CAROLINA, INC.
July 1, 1996
SERVICE AGREEMENT UNDER RATE SCHEDULE GSS
THIS AGREEMENT entered into this day of , 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., a(n) North Carolina corporation, hereinafter referred to as
"Buyer", second party,
WITNESSETH:
WHEREAS, Buyer desires to purchase and Seller desires to sell natural
gas storage service under Sellers' Rate Schedule GSS 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, RP92-108000, and RP92-137-
000 which amended Seller's Certificate in Docket No. CP61-194, Seller and Buyer
agreed to a twenty year contract term 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. CP61-194, 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injected into storage for Buyer's account, stored, and withdrawn from storage)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To withdraw from storage or cause to be withdrawn from storage,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 quantiy in any day
of
32,095 Mcf, during the period beginning on July 1, 1996 and
ending on June 30, 2001, and 17,448 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
1,773,859 Mcf, during the period beginning on July 1, 1996 and ending
on June 30, 2001, and 1,010,314 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 11
POINT(S) 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 GSS
(1) Asheville Meter Station, located at milepost 1249.35 on Seller's main
transmission line near Kings Mountain, North Carolina.
(2) Davidson Meter Station, located at milepost 1287.10 on Seller's main
transmission line in Iredell County, North Carolina, at Compressor
Station No. 150, approximately two (2) miles northwesterly from
Davidson, North Carolina.
(3) Foote Mineral Meter Station, located at milepost 1251.55 on Seller's
main transmission line in Cleveland County, North Carolina.
(4) Gastonia Meter Station, located at milepost 1260.83 on Seller's main
transmission line in Gaston County, North Carolina, approximately three
(3) miles northwesterly from Gastonia, North Carolina, near West
Gastonia, North Carolina.
(5) Mooresville Meter Station, located at milepost 1292.90 on Seller's main
transmission line in Iredell County, North Carolina approximately two
(2) miles easterly from Mooresville, North Carolina.
(6) Stanley Meter Station, located at milepost 1269.23 on Seller's main
transmission line near Stanley, North Carolina.
(7) Greensboro Meter Station, located at milepost 1355.06 on Seller's main
transmission line in Guilford County, North Carolina, where the
facilities of Piedmont Natural Gas Company connect with those of
Seller.
(8) Dan River Meter Station, located at milepost 1382.53 on Seller's main
transmission line approximately 05 miles south of Dan River, North
Carolina.
(9) Statesville Meter Station, located on Seller's main transmission line
approximately 125 feet downstream from milepost 1305.81 in Rowan
County, North Carolina.
(10) Lithium Corporation Industrial Meter Station, located at milepost
1255.86 on Seller's main transmission line in Gaston County, near
Bessemer City, North Carolina, where U.S. Highway 29 intersects
Seller's main line.
(11) Tryon Meter Station, located on Seller's Mill Spring extension, at
approximately milepost 28.06, one (1) mile southeast of Tryon in Polk
County, North Carolina.
(12) Columbus Meter Station, located at milepost 31.41 on Seller's Mill
Spring extension approximately 112 mile east of Columbus in Polk
County, North Carolina.
(13) Mill Spring Meter Station, located at the terminus of Seller's Mill
Spring extension, in Polk County, North Carolina.
(14) Wise Meter Station, located at the terminus of Seller's Wise extension,
1/4 mile west of the intersection of Virginia State Highway No. 713 and
U.S. Highway No. 1, Warren 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.
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(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.
SERVICE AGREEMENT UNDER RATE SCHEDULE GSS
IN WITNESS WHEREOF, the parties hereto have caused this agreement to be
signed by their respective Presidents or Vice Presidents "hereunto 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 PIPE LINE
CORPORATION
(Seller)
ATTEST:
[SEAL]
- ------------------- By /s/ Frank J. Ferazzi
Secretary Frank J. Ferazzi
Vice President
Customer Service
PUBLIC SERVICE COMPANY OF
NORTH CAROLINA, INC.
(Buyer)
ATTEST:
(SEAL) By /s/ Franklin H. Yoho
/s/ J. Paul Douglas Senior Vice President
- -------------------
Secretary