EXHIBIT 10 RATE SCHEDULE FT FIRM TRANSPORTATION SERVICE FORM OF SERVICE AGREEMENT CONTRACT NO. T-FTS-01335O THIS AGREEMENT is made effective as of the 1st day of December, 1993, by and between: TRUNKLINE GAS COMPANY, (hereinafter called "Trunkline"), a Delaware Corporation, and THE PEOPLES GAS LIGHT AND COKE COMPANY (hereinafter called "Shipper"). Shipper represents and warrants that Shipper conforms to the requirements of 18 C.F.R. Section 284.102 (284B - Intrastate Pipelines or Local Distribution Companies) ------------- Section 284.222 (284G - Interstate Pipelines) ------------- Section 284.223 (284G - Others) X ------------- In consideration of the mutual covenants and agreements as herein set forth, both Trunkline and Shipper covenant and agree as follows: ARTICLE 1 - SERVICE Trunkline agrees to receive at the Points of Receipt and deliver at the Points of Delivery, on a firm basis, Quantities of Natural Gas up to the following daily Quantity (Dt), which shall constitute the Maximum Daily Quantity: 60,000 (Dt). The Maximum Daily Quantity is stated in delivered Quantities, for which received Quantities must be adjusted for fuel usage and lost or unaccounted for Gas as set out in the then-effective, applicable rates and charges under Trunkline's Rate Schedule FT. Exhibit A hereto states the Points of Receipt and Points of Delivery. Exhibit A may be revised from time to time by written agreement between Trunkline and Shipper and, as may be revised, is by this reference incorporated in its entirety into this Agreement and made an integral part hereof. Shipper's Maximum Daily Quantity shall be assigned among the primary Points of Receipt set out on Exhibit A, as well as among the primary Points of Delivery set out on Exhibit A. Such assignment may be changed, subject to the availability of capacity, in accordance with the General Terms and Conditions. RATE SCHEDULE FT (Continued) FIRM TRANSPORTATION SERVICE FORM OF SERVICE AGREEMENT ARTICLE 2 - TERM The term of this Agreement shall commence on 12/01/1993 and shall remain effective for a primary term of 5 year(s) and thereafter shall continue in effect until terminated by Trunkline or Shipper upon at least six (6) months prior written notice to the other, as of any date not earlier than the date of expiration of the primary term, provided that the term of this Agreement shall be subject to applicable provisions of Section 11 of the General Terms and Conditions. Trunkline shall have the right to terminate service hereunder in the following circumstances: (1) if 18 C.F.R., Part 284 of the Commission's Regulations in effect on the date stated above is stayed, modified or overturned by an appellate court or by the Commission in response to the order of an appellate court; (2) if Trunkline terminates self-implementing transportation under Section 311 of the NGPA or Section 7(c) of the Natural Gas Act on a general, non-discriminatory basis; or (3) pursuant to any effective provisions for termination of this Agreement by Trunkline as stated in Rate Schedule FT or the General Terms and Conditions. ARTICLE 3 - RATES AND CHARGES For the services provided or contracted for hereunder, Shipper agrees to pay Trunkline the then-effective, applicable rates and charges under Trunkline's Rate Schedule FT filed with the Commission, as such rates and charges and Rate Schedule FT may hereafter be modified, supplemented, superseded, or replaced generally or as to the service hereunder. Trunkline reserves the right from time to time to unilaterally file and to make effective any such changes in the terms or rate levels under Rate Schedule FT and the applicability thereof, the General Terms and Conditions or any other provisions of Trunkline's Tariff, subject to the applicable provisions of the Natural Gas Act and the Commission's Regulations thereunder. ARTICLE 4 - FUEL REIMBURSEMENT In addition to collection of the rates and charges provided for in Article 3, Trunkline shall retain, as Fuel Reimbursement, the percentage of the Quantities delivered to Shipper hereunder, as provided pursuant to Rate Schedule FT. ARTICLE 5 - GENERAL TERMS AND CONDITIONS This Agreement and all terms for service hereunder are subject to the further provisions of Rate Schedule FT and the General Terms and Conditions of Trunkline's Tariff, as such may be modified, supplemented, superseded or replaced generally or as to the service hereunder. Trunkline reserves the right from time to time to unilaterally file and to make effective any such changes in the provisions of Rate Schedule FT and the General Terms and Conditions, subject to the applicable provisions of the Natural Gas Act and the Commission's Regulations thereunder. Such Rate Schedule and General Terms and Conditions, as may be changed from time to time, are by this reference incorporated in their entirety into this Agreement and made an integral part hereof. RATE SCHEDULE FT (Continued) FIRM TRANSPORTATION SERVICE FORM OF SERVICE AGREEMENT ARTICLE 6 - CANCELLATION OF PREVIOUS CONTRACTS This Agreement supersedes, cancels, and terminates, as of the date(s) stated below, the following Agreement(s) (if any) with respect to the Transportation of Natural Gas between Trunkline and Shipper: T-FTS-012317 ARTICLE 7 - NOTICES The Post Office addresses of both Trunkline and Shipper are as follows: TRUNKLINE Payment: Trunkline Gas Company Attn: Cash Management P. 0. Box 1311 Houston, Texas 77251-1311 Nomination and Scheduling: Trunkline Gas Company Attn: Nominations and Allocations P. 0. Box 1642 Houston, Texas 77251-1642 BUSINESS DAY, OR SATURDAY AND SUNDAY 8 a.m. - 12 p.m. CT Phone: (713) 627-5638 FAX: (713) 627-5636 ALL OTHER HOURS Attn: Gas Control Operations Phone: (713) 627-5621 Pipeline Emergencies: Trunkline Gas Company (Not to be used for any other purpose) Attn: Gas Control P. O. Box 1642 Houston, Texas 77251-1642 Phone: (713) 627-5621 Toll Free: 1-800-225-3913 Texas only: 1-800-221-1084 All Other: Trunkline Gas Company Attn: Marketing Operations P. O. Box 1642 Houston, Texas 77251-1642 Phone: (713) 627-4707 Fax: (713) 627-4752 RATE SCHEDULE FT (Continued) FIRM TRANSPORTATION SERVICE FORM OF SERVICE AGREEMENT SHIPPER Billing: THE PEOPLES GAS LIGHT AND COKE COMPANY 122 S. MICHIGAN AVE., ROOM 915 CHICAGO, IL 60603 Attn: MR. ECKHARD BLAUMUELLER 312-431-7057 Nomination and THE PEOPLES GAS LIGHT AND COKE COMPANY Scheduling: (1) 122 S. MICHIGAN AVE., ROOM 915 CHICAGO, IL 60603 Attn: MR. ANTHONY COMPTON 312-431-4157 All Other: THE PEOPLES GAS LIGHT AND COKE COMPANY 122 S. MICHIGAN AVE., ROOM 915 CHICAGO, IL 60603 Attn: MR. ECKHARD BLAUMUELLER 312-431-7057 (1) Please provide street address in addition to mailing address. IN WITNESS WHEREOF, both Trunkline and Shipper have caused this Agreement to be executed in several counterparts by their respective officers or other persons duly authorized to do so. THE PEOPLES GAS LIGHT AND COKE COMPANY By: Thomas M. Patrick ----------------- Title: Vice President ----------------- EXECUTED /S/ Thomas M Patrick -------------------- TRUNKLINE GAS COMPANY By: /S/ G M RANA ----------------- Title: VICE PRESIDENT ----------------- EXECUTED 12-1-93 ----------------- RATE SCHEDULE FT (Continued) FIRM TRANSPORTATION SERVICE FORM OF SERVICE AGREEMENT EXHIBIT A Transportation Agreement For Firm Service Under Rate Schedule FT Primary Points of Delivery Seq. Meter No. Delivered To Location County State No. MDDO - --- ------------- ----------- -------- -------- -------- ---- 1 PEOPLES GAS (MANLO) 09 21N 07E CHAMPA IL 80601 60000 Description of Facilities Atmos. Seq. Existing/ Operated and Pres. No. Proposed Zone Maintained by (Psia) - --- -------- ---- ------------- ------- 1 EXISTING Z-2 TRUNKLINE GAS 14.40 Secondary Points of Delivery Shipper shall have the secondary Points of Delivery as set forth in Section 2 of Trunkline's Rate Schedule FT. RATE SCHEDULE FT (Continued) FIRM TRANSPORTATION SERVICE FORM OF SERVICE AGREEMENT EXHIBIT A Transportation Agreement For Firm Service Under Rate Schedule FT Primary Points of Receipt MDRO Seq. Meter (Net of Fuel No. Received From Location County State No. Reimbursement) - --- ------------------- -------------- ------- ----- ----- -------------- 1 AMERADA HESS ST 20 S TIM 175 OFFSHO LA 82507 10000 2 VALERO BEE T BMLS A2&3 BEE TX 81729 30430 3 MOBIL (LA GLORIA ) I PENAA345 JIM WE TX 81582 19570 Description of Facilities Atmos. Seq. Existing/ Operated and Pres. No. Proposed Zone Maintained by (Psia) - --- -------- ---- ------------- ------ 1 EXISTING FLD TRUNKLINE GAS 14.70 2 EXISTING FLD VALERO TRANSM 14.70 3 EXISTING FLD TRUNKLINE GAS 14.70 Secondary Points of Receipt Shipper shall have the secondary Points of Receipt as set forth in Section 2.2 of Trunkline's Rate Schedule FT.