Tennessee Gas Pipeline 1010 Milam Street [LOGO]
A Tenneco Company P.O. Box 2511
Houston Texas 77252-2511
(713) 757-2131
EXHIBIT 10.16
July 21, 1995
Mr. Allen R. Neale
Essex County Gas Co
7 North Hunt Road; P.O. Box 500
Amesbury, MA 01913
Re: Amendment No. 1 to Gas Storage
Contract Dated December 1, 1994
Service Package No. 2272
Dear Allen:
TENNESSEE GAS PIPELINE COMPANY (TENNESSEE) AND ESSEX COUNTY GAS CO (ESSEX) agree
to amend the above referenced gas storage contract effective July 1, 1995, to
increase the Maximum Daily Withdrawal Quantity (MDWQ) when Shipper's storage
balance is equal to or less than 30% of the Maximum Storage Quantity (MSQ) and
20% of the MSQ, respectively, as reflected in the attached Exhibit A-1 and as
described below.
The parties agree to amend Article I of the subject gas storage contract as
follows:
Following the commencement of services hereunder, in accordance with the terms
of Transporter's Rate Schedule FS, and of this Agreement, Transporter shall
receive for injection for Shipper's account a daily quantity of gas up to
Shipper's Maximum Injection Quantity of 5,476 dekatherms (Dth) and Maximum
Storage Quantity (MSQ) of 821,460 (Dth) (on a cumulative basis) and on demand
shall withdraw from Shipper's storage account and deliver to Shipper a daily
quantity of gas up to Shipper's Maximum Daily Withdrawal Quantity (MDWQ) of
10,466 Dth; provided however, that when Shipper's storage balance is equal to or
less than 30% of the MSQ but greater than 20% of the MSQ, the Maximum Daily
Withdrawal Quantity shall be 9,540 Dth; and provided further, that when
Shipper's storage balance is less than or equal to 20% of the MSQ, the Maximum
Daily Withdrawal Quantity shall be 5,322 Dth. For demand charge purposes, the
MDWQ for balances greater than 30% of the MSQ shall be used.
Except as amended herein, all terms and provisions of the above referenced gas
storage contract shall remain in full force and effect as written.
If the foregoing is in accordance with your understanding of our agreement,
please so indicate by signing and returning to my attention both originals of
this letter. Upon Tennessee's execution, an original will be forwarded to you
for your files.
Tennessee Gas Pipeline
ESSEX COUNTY GAS CO
July 21, 1995
Page 2
Contract Number: 2272
Amendment number: 1
Amendment effective date: July 1, 1995
Should you have any questions, please do not hesitate to contact me at (713)
757-5125.
Sincerely,
/s/ John L. Templet
John L. Templet
Account Manager
ACCEPTED AND AGREED TO
This _____ day of ___________, 1995.
TENNESSEE GAS PIPELINE COMPANY
By: __________________________________
Title: Agent and Attorney-in-Fact
Date: ________________________________
ACCEPTED AND AGREED TO
This _____ day of ___________, 1995.
ESSEX COUNTY GAS CO
By: __________________________________
Title: _______________________________
Date: ________________________________
GAS STORAGE SERVICE AGREEMENT
EXHIBIT "A-1"
SHOWING REQUESTED CHANGES
AMENDMENT #1 TO GAS STORAGE CONTRACT
DATED December 1, 1994
BETWEEN
TENNESSEE GAS PIPELINE COMPANY
AND
ESSEX COUNTY GAS COMPANY
SERVICE PACKAGE MSQ: 821,460 Dth
MAXIMUM DAILY INJECTION QUANTITY: 5,476 Dth
MAXIMUM DAILY WITHDRAWAL QUANTITY (MDWQ):
STORAGE BALANCE STORAGE BALANCE MAXIMUM DAILY WITHDRAWAL
FROM DTH TO DTH QUANTITY DTH
246,439 821,460 10,466 Ratchet 0
164,293 246,438 9,540 Ratchet 1
0 164,292 5,322 Ratchet 2
SERVICE POINT: Compressor Station 313
INJECTION METER: 060018 TGP-NORTHERN STORAGE INJECTION
WITHDRAWAL METER: 070018 TGP-NORTHERN STORAGE WITHDRAWAL
STORAGE STORAGEMDIQ
METER METER NAME COUNTY ST ZONE I/W LEG BALANCE FROM BALANCE TO MDWQ
060018 TGP-NORTHERN STORAGE INJECTION POTTER PA 04 I 300 5,476
070018 TGP-NORTHERN STORAGE WITHDRAWAL POTTER PA 04 W 300 246,439 821,460 10,466 Ratchet 0
164,293 246,438 9,540 Ratchet 1
0 164,292 5,322 Ratchet 2