SERVICE AGREEMENT NO. 79616 CONTROL NO. 2004-05-26-0009 SST SERVICE AGREEMENT THIS AGREEMENT, made and entered into this 16th day of August, 2004 by and between: Columbia Gas Transmission Corporation ("Transporter") AND PG Energy Inc ("Shipper") WITNESSETH: That in consideration of the mutual covenants herein contained, the parties hereto agree as follows: Section 1. Service to be Rendered. Transporter shall perform and Shipper shall receive service in accordance with the provisions of the effective SST Rate Schedule and applicable General Terms and Conditions of Transporter's FERC Gas Tariff, Second Revised Volume No. 1 (Tariff), on file with the Federal Energy Regulatory Commission (Commission), as the same may be amended or superseded in accordance with the rules and regulations of the Commission. The maximum obligation of Transporter to deliver gas hereunder to or for Shipper, the designation of the points of delivery at which Transporter shall deliver or cause gas to be delivered to or for Shipper, and the points of receipt at which Shipper shall deliver or cause gas to be delivered, are specified in Appendix A, as the same may be amended from time to time by agreement between Shipper and Transporter, or in accordance with the rules and regulations of the Commission. Service hereunder shall be provided subject to the provisions of Part 284, 223 of Subpart G of the Commission's regulations. Shipper warrants that service hereunder is being provided on behalf of Shipper. Section 2. Term. Service under this Agreement shall commence as of April 1, 2005, and shall continue in full force and effect until March 31, 2010. Pre-granted abandonment shall apply upon termination of this Agreement, subject to any right of first refusal Shipper may have under the Commission's regulations and Transporter's Tariff. Section 3. Rates. Shipper shall pay Transporter the charges and furnish Retainage as described in the above-referenced Rate Schedule, unless otherwise agreed to by the parties in writing and specified as an amendment to this Service Agreement. Transporter may agree to discount its rate to Shipper below Transporter's maximum rate, but not less than Transporter's minimum rate. Such discounted rate may apply to: a) specified quantities (contract demand or commodity quantities); b) specified quantities above or below a certain level or all quantities if quantities exceed a certain level; c) quantities during specified time periods; d) quantities at specified points, locations, or other defined geographical areas; and e) that a specified discounted rate will apply in a specified relationship to the quantities actually transported (i.e., that the reservation charge will be adjusted in a specified relationship to quantities actually transported). In addition, the discount agreement may include a provision that if one rate component which was at or below the applicable maximum rate at the time the discount agreement was executed subsequently exceeds the applicable maximum rate due to a change in Transporter's maximum rate so that such rate component must be adjusted downward to equal the new applicable maximum rate, then other rate components may be adjusted upward to achieve the agreed overall rate, so long as none of the resulting rate components exceed the maximum rate applicable to that rate component. Such changes to rate components shall be applied prospectively, commencing with the date a Commission order accepts revised tariff sheets. However, nothing contained herein shall be construed to alter a refund obligation under applicable law for any period during which rates had been charged under a discount agreement exceeded rates which ultimately are found to be just and reasonable. SERVICE AGREEMENT NO. 79616 CONTROL NO. 2004-05-26-0009 SST SERVICE AGREEMENT Section 4. Notices. Notices to Transporter under this Agreement shall be addressed to it at Post Office Box 1273, Charleston, West Virginia 25325-1273, Attention: Manager-Customer Services and notices to Shipper shall be addressed to it at: PG Energy Inc Director Of Gas Supply One PEI Center Wilkes-Barre,. PA 18711-0601 ATTN: Bill Eckert until changed by either party by written notice. SERVICE AGREEMENT NO. 79616 CONTROL NO. 2004-05-26-0009 SST SERVICE AGREEMENT Section 5. Superseded Agreements. This Service Agreement supersedes and cancels, as of the effective date hereof, the Following Service Agreements: N/A. PG Energy Inc By: /s/ Bruce Davis --------------------------------- Name: Bruce Davis Title: Vice-President of Marketing & Gas Supply Date: August 5, 2004 Columbia Gas Transmission Corporation By: /s/ T. N. Brasselle --------------------------------- Name: T. N. Brasselle Title: MGR Customer Services Date: AUG 17 2004 REVISION NO. ______________ CONTROL NO. 2004-05-26-0009 APPENDIX A TO SERVICE AGREEMENT NO. 79616 UNDER RATE SCHEDULE SST BETWEEN (TRANSPORTER) COLUMBIA GAS TRANSMISSION CORPORATION AND (SHIPPER) PG ENERGY INC OCTOBER THROUGH MARCH TRANSPORTATION DEMAND. 11,282 DTH/DAY APRIL THROUGH SEPTEMBER TRANSPORTATION DEMAND 5,641 DTH/DAY PRIMARY RECEIPT POINTS SCHEDULING POINT NO. SCHEDULING POINT NAME MAXIMUM DAILY QUANTITY (DTH/DAY) - --------- --------------------- -------------------------------- STOW STORAGE WITHDRAWALS STOW 11,282 REVISION NO. ______________ CONTROL NO. 2004-05-26-0009 APPENDIX A TO SERVICE AGREEMENT NO. 79616 UNDER RATE SCHEDULE SST BETWEEN (TRANSPORTER) COLUMBIA GAS TRANSMISSION CORPORATION AND (SHIPPER) PG ENERGY INC Primary Delivery Points Maximum Minimum Daily Design Delivery Delivery Daily Aggregate Pressure Hourly Scheduling Scheduling Measuring Measuring Obligation Quantity Daily Obligation Flowrate Point No. Point Name Point No. Point Name (Dth/day) (1/) (Dth/day) (1/) Quantity (1/) (psig) (1/) (Dth/hour) (1/) - ---------- ------------ --------- ------------- -------------- -------------- ------------- ----------- --------------- E5 MARTINS E5 13,769 FN01 CK3/DELIVERY E9 YNG WOMANS E9 13,769 FN01 CK-RENOVA 57 PA GAS WTR 600039 RENOVO P.G.W. 7,000 FN01 OP-08 REVISION NO. ______________ CONTROL NO. 2004-05-26-0009 APPENDIX A TO SERVICE AGREEMENT NO. 79616 UNDER RATE SCHEDULE SST BETWEEN (TRANSPORTER) COLUMBIA GAS TRANSMISSION CORPORATION AND (SHIPPER) PG ENERGY INC (1/) Application of MDDOs, DDQs, and ADQs and/or minimum pressure and/or hourly flowrate shall be as follows: FN01 Shipper's MDDOs in the winter period, that is, from November 1 through March 31 of each year, shall be 13,769 Dth/day at Martin's Creek [E5] and 0 (zero) Dth/day at Young Woman's Creek [E9]. Shipper's MDDOs in the summer period, that is, from April 1 through October 31 of each year shall be 0 (zero) Dth/day at Martin's Creek [E5} and 13,769 Dth/day at Young Woman's Creek [E9]. As long as Rate Schedule X-103 dated October 10, 1980 between Columbia Gas Transmission Corporation and Transcontinental Pipe Line Corporation ("Transco") is in effect. Transporter may schedule, utilizing the X-103 Rate Schedule, a corresponding amount of natural gas for delivery to Transco's delivery points at Muncy, Old Lycoming and Saylor Temp Meter. Upon termination of Rate Schedule X-103, Transporter will make deliveries for Shipper at Martin's Creek [E5] or Young Woman's Creek [E9] as set forth above, and Shipper will be responsible for arranging downstream transportation on Transco for further downstream deliveries. In addition, Shipper shall have an additional year round MDDO of 7,000 Dth/day at scheduling point [57] Renova. The following notes apply to all scheduling points on this contract: GFN1 UNLESS STATION SPECIFIC MDDOS ARE SPECIFIED IN A SEPARATE FIRM SERVICE AGREEMENT BETWEEN SELLER AND BUYER, SELLERS AGGREGATE MAXIMUM DAILY DELIVERY OBLIGATION, UNDER THIS AND ANY OTHER SERVICE AGREEMENT BETWEEN SELLER AND BUYER, AT THE STATIONS LISTED ABOVE SHALL NOT EXCEED THE MDDO QUANTITIES SET FORTH ABOVE FOR EACH STATION. REVISION NO. ______________ CONTROL NO. 2004-05-26-0009 APPENDIX A TO SERVICE AGREEMENT NO. 79616 UNDER RATE SCHEDULE SST BETWEEN (TRANSPORTER) COLUMBIA GAS TRANSMISSION CORPORATION AND (SHIPPER) PG ENERGY INC The Master list of Interconnects (MLI) as defined in Section 1 of the General Terms and Conditions of Transporter's Tariff is incorporated herein by reference for purposes of listing valid secondary receipt and delivery points. Yes X No (Check applicable blank) Transporter and Shipper have - ----- ----- mutually agreed to a Regulatory Restructuring Reduction Option pursuant to Section 42 of the General Terms and Conditions of Transporter's FERC Gas Tariff. Yes X No (Check applicable blank) Shipper has a contractual right of - ----- ----- first refusal equivalent to the right of first refusal set forth from time to time in Section 4 of the General Terms and Conditions of Transporter's FERC Gas Tariff. NOTE: SHIPPER CONTINUES TO HAVE A REGULATORY RIGHT OF FIRST REFUSAL. Service pursuant to this Appendix A, Revision No. 0 shall be affective April 1, 2005 through March 31, 2010. Yes X No (Check applicable blank) This Appendix A, Revision No. 0 - ----- ----- shall cancel and supersede the Previous Appendix A, Revision No. _________________________ effective as of _______, 20__, to the Service Agreement referenced above. X Yes No (Check applicable blank) All Gas shall be delivered at - ----- ----- existing points of Interconnection within the MDDO's, and/or ADQ's, and/or DDQ's, as applicable, set forth in Transporter's currently effective Rate Schedule SST Appendix A, Revision No. 0 with Shipper, which for such points set forth are incorporated herein by reference. With the exception of this Appendix A, Revision No. 0 all other terms and conditions of said Service Agreement shall remain in full force and effect. PG Energy Inc By: /s/ Bruce Davis --------------------------------- Name: Bruce Davis Title: Vice-President of Marketing & Gas Supply Date: August 5, 2004 Columbia Gas Transmission Corporation By: /s/ T. N. Brasselle --------------------------------- Name: T. N. Brasselle Title: MGR Customer Services Date: AUG 17 2004 REVISION NO. 10 CONTROL NO. 2004-03-16-0002 APPENDIX A TO SERVICE AGREEMENT NO. 38047 UNDER RATE SCHEDULE SST BETWEEN (TRANSPORTER) COLUMBIA GAS TRANSMISSION CORPORATION AND (SHIPPER) PG ENERGY INC The Master list of Interconnects (MLI) as defined in Section 1 of the General Terms and Conditions of Transporter's Tariff is incorporated herein by reference for purposes of listing valid secondary receipt and delivery points. Yes X No (Check applicable blank) Transporter and Shipper have - ----- ----- mutually agreed to a Regulatory Restructuring Reduction Option pursuant to Section 42 of the General Terms and Conditions of Transporter's FERC Gas Tariff. Yes X No (Check applicable blank) Shipper has a contractual right of - ----- ----- first refusal equivalent to the right of first refusal set forth from time to time in Section 4 of the General Terms and Conditions of Transporter's FERC Gas Tariff. NOTE: SHIPPER CONTINUES TO HAVE A REGULATORY RIGHT OF FIRST REFUSAL. Service pursuant to this Appendix A, Revision No. 10 shall be effective November 1, 2004 through March 31, 2005. X Yes No (Check applicable blank) This Appendix A, Revision No. 10 - ----- ----- shall cancel and supersede the Previous Appendix A, Revision No. 9 effective as of October 1, 2001, to the Service Agreement referenced above. X Yes No (Check applicable blank) All Gas shall be delivered at - ----- ----- existing points of interconnection within the MDDO's, and/or ADQ's, and/or DDQ's, as applicable, set forth in Transporter's currently effective Rate Schedule SST Appendix A, Revision No. 10 with Shipper, which for such points set forth are incorporated herein by reference. With the exception of this Appendix A, Revision No. 10 all other terms and conditions of said Service Agreement shall remain in full force and effect. PG Energy Inc By: /s/ Bruce Davis --------------------------------- Name: Bruce Davis Title: Vice-President of Marketing & Gas Supply Date: August 5, 2004 Columbia Gas Transmission Corporation By: /s/ T. N. Brasselle --------------------------------- Name: T. N. Brasselle Title: MGR Customer Services Date: AUG 17 2004