SERVICE AGREEMENT
APPLICABLE TO THE STORAGE OF NATURAL GAS
UNDER RATE SCHEDULE GSS-II
AGREEMENT made as of this first day of September 1993, by and
between CNG TRANSMISSION CORPORATION, a Delaware corporation,
hereinafter called "Pipeline," and SOUTHERN CONNECTICUT GAS COMPANY,
a Connecticut 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-II 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-II 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 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-II
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-II for a period of two years
from the date of such request. The filing of requests, changes and
revisions of Rate Schedule GSS-II 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, 2012, 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 V.A. requires a further written agreement either
prior to the making of any requests of 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 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: Southern Connecticut Gas Company
P.O. Box 1540
855 Main Street
Bridgeport, CT 06604
Attention: Rod Cranford
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 May 25, 1992.
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
SOUTHERN CONNECTICUT GAS COMPANY
By:______________________________
Its:_____________________________
(Title)
EXHIBIT A
To The Storage Service Agreement
Dated September 1993
Between CNG Transmission Corporation and
Southern Connecticut 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 666,667 Dekatherms (Dt), and
2. Storage Demand of 6,667 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 such point shall be as set forth below. Each
of the parties will use due care and diligence to assure that
uniform pressures will be maintained at the Receipt Point as
reasonably may be required to render service hereunder, but
Pipeline will not be required to accept gas at less than the
minimum pressure specified herein.
Up to 3,704 Dt per Day at an existing point of
interconnection between the facilities of Pipeline and
Texas Eastern Transmission Corporation ("Texas Eastern"),
in Fayette County, Pennsylvania, known as the North
Summit Interconnection, at a pressure of not less than
seven hundred (700) pounds per square inch ("psig").
2. 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. Each of the parties will use due
care and diligence to assure that Points as reasonably may be
required to render service hereunder, but Pipeline will not be
required to deliver gas at greater than the maximum pressures
specified herein.
a. Up to 6,667 Dt per Day at an existing point of
interconnection between the facilities of Pipeline and
Texas Eastern, in Fayette County, Pennsylvania, known as
the North Summit Interconnection, at a pressure of not
more than one thousand (1,000) psig.
b. Up to 6,667 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.
c. Up to 6,667 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, on an interruptible basis
if operating conditions permit, at a pressure of not less
than eight hundred fifty (850) psig.
3. Pipeline shall deliver on a firm basis up to Customer's
Storage Demand, as adjusted pursuant to Section 8 of Rate
Schedule GSS-II and Article V of this Service Agreement.