AGREEMENT APPLICABLE TO THE STORAGE
OF NATURAL GAS
UNDER RATE SCHEDULE GSS
AGREEMENT made and entered into as of this first day of April,
1997, by and between CNG TRANSMISSION CORPORATION, a Delaware
corporation, hereinafter referred to as "Pipeline," and
CONNECTICUT NATURAL GAS CORPORATION, a Connecticut corporation,
hereinafter referred to as "Customer."
WHEREAS, Pipeline and Customer desire to enter into a service
agreement to provide for Pipeline to render to Customer natural
gas storage service as contemplated in the Precedent Agreement
between Pipeline and Customer dated April 10, 1996; and
WHEREAS, as contemplated by said Precedent Agreement, such
services are to be implemented in two phases, the first
commencing in 1997, and the second in 1999; and
WHEREAS, Pipeline desires to sell such a storage service to
Customer pursuant to the terms and conditions of Pipeline's Rate
Schedule GSS; and
WHEREAS, Pipeline and Customer have agreed that the costs
associated with the development of the proposed storage service
should be reflected in rates under Rate Schedule GSS on a
rolled-in basis; and
WHEREAS, in order to effect the eventual delivery of natural
gas to Customer, Customer will arrange for the firm
transportation of the natural gas to be injected and withdrawn
from storage pursuant to this Agreement.
NOW, THEREFORE, 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:
ARTICLE I
Quantities
----------
Beginning as of April 1, 1997, 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 the maximum rates and
charges provided under Rate Schedule GSS contained in Pipeline's
effective FERC Gas Tariff or any effective superseding rate
schedule.
B. Pipeline shall have the right to propose, file and make
effective with the FERC or any other body having jurisdiction,
revisions to any applicable rate schedule, or to propose, file,
and make effective superseding rate schedules for the purpose of
changing the rate, charges, and other provisions thereof
effective as to Customer; provided, however, that (i) Section 2
of Rate Schedule GSS "Applicability and Character of Service,"
(ii) term, (iii) quantities, and (iv) points of receipt and
points of delivery shall not be subject to unilateral change
under this Article. Said rate schedule or superseding rate
schedule and any revisions thereof which shall be filed and made
effective shall apply to and become a part of this Service
Agreement. The filing of such changes and revisions to any
applicable rate schedule shall be without prejudice to the right
of Customer to contest or oppose such filing and its
effectiveness.
C. The Storage Demand Charge and the Storage Capacity Charge
provided in the aforesaid rate schedule shall commence on April
1, 1997.
ARTICLE III
Term of Agreement
-----------------
Subject to all the terms and conditions herein, this Agreement
shall be effective as of April 1, 1997, and shall continue for a
primary term as follows:
A. Phase 1 Services. Commencing April 1, 1997, and continuing
in effect for a primary term through and including March 31,
2007, and from year to year thereafter, until either party
terminates this Agreement by giving written notice to the other
at least twenty-four months prior to the start of the next
contract year.
B. Phase 2 Services. Commencing April 1, 1999, and continuing
in effect for a primary term through and including March 31,
2009, and from year to year thereafter, until either party
terminates this Agreement by giving written notice to the other
at least twenty-four months prior to the start of the next
contract year.
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
Incorporation By Reference of Tariff Provisions
-----------------------------------------------
To the extent not inconsistent with the terms and conditions of
this Agreement, the following provisions of Seller's effective
FERC Gas Tariff, and any revisions thereof that may be made
effective hereafter are hereby made applicable to and a part
hereof by reference:
1. All of the provisions of Rate Schedule GSS, or any
effective superseding rate schedule or otherwise applicable rate
schedule; and
2. All of the provisions of the General Terms and Conditions,
as they may be revised or superseded from time to time.
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 VI.A. requires a further written
agreement either prior to the making of any request or 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 the 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: Connecticut Natural Gas Corporation
100 Columbus Boulevard, P.O. Box 1500
Hartford, Connecticut 06144-1500
Attention: Director of Energy Procurement
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
interpretation of such provisions.
ARTICLE VII
Prior Contract
--------------
Upon its execution by Pipeline and by Customer, this Service
Agreement shall supersede and cancel, as of its effective date,
the "Precedent Agreement For Firm CNG Storage Service Under Rate
Schedule GSS" between Customer and Pipeline dated April 10,
1996; and that certain "Letter Agreement Related to Seasonal
Service Expansion Project Precedent Agreements" between Pipeline
and Customer dated April 9, 1996.
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
CONNECTICUT NATURAL GAS
CORPORATION (Customer)
By: Edna M. Karanian
--------------------------
Its: V.P.
-------------------------
(Title)
EXHIBIT A
To The Storage Service Agreement
Dated April 1, 1997
Between CNG Transmission Corporation and
Connecticut Natural Gas Corporation
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. Phase 1. For the period commencing April 1, 1997, and
continuing in effect for a primary term through and including
March 31, 2007, and from year to year thereafter until either
party gives written notice in accordance with Article III of the
Storage Service Agreement:
a. A Storage Capacity of 1,305,000 Dekatherms ("Dt"); and
b. A Storage Demand of 14,658 Dt per Day.
2. Phase 2. For the period commencing April 1, 1999, and
continuing in effect for a primary term through and including
March 31, 2009, and from year to year thereafter until either
party gives written notice in accordance with Article III of the
Storage Service Agreement:
a. An additional Storage Capacity of 495,000 Dt (resulting in
a total MATQ of 1,800,000 Dt commencing as of April 1, 1999; and
b. An additional Storage Demand of 5,000 Dt per Day (resulting
in a total Storage Demand of 19,658 Dt per Day commencing as of
April 1, 1999).
B. Points of Receipt
The primary Points of Receipt for Customer's tender of storage
injection quantities, and the maximum quantities and character
of service for each point shall be as set forth below. Pipeline
will use due care and diligence to assure, and Customer will use
due care and diligence to cause its transporter to assure, that
uniform pressures will be maintained at the Receipt Points as
reasonably may be required to render service hereunder, but
Pipeline will not be required to accept gas at less than the
minimum pressures specified herein.
EXHIBIT A
To The Storage Service Agreement
Dated April 1, 1997
Between CNG Transmission Corporation and
Connecticut Natural Gas Corporation
Page 2 of 3
1. At the interconnection of facilities of Transcontinental Gas
Pipe Line Corporation or Texas Eastern Transmission Corporation
and Pipeline in Clinton County, Pennsylvania, known as the Leidy
Interconnection, at a pressure of not less than one thousand
(1,000) pounds per square inch gauge ("psig"); or
2. At the interconnection of facilities of Texas Eastern
Transmission Corporation and Pipeline in Westmoreland County,
Pennsylvania, known as the Oakford interconnection, at a
pressure of not less than five hundred seventy-five (575) psig;
or
3. At the following points of interconnection between the
facilities of Pipeline and Tennessee Gas Pipeline Company:
a. the Gilmore interconnection, located in Tuscarawas County,
Ohio;
b. the Augusta interconnection, located in Carroll County,
Ohio;
c. the Petersburg interconnection, located in Mahoning County,
Ohio;
d. the Cochranton interconnection, located in Crawford County,
Pennsylvania; and
e. the Ellisburg interconnection, located in Potter County,
Pennsylvania;
with the specific allocation of quantities among these points
to be determined by mutual agreement between Pipeline and
Customer.
4. In the event that Customer does not utilize the Primary
Receipt Points listed in paragraphs B.1, B.2, or B.3, above,
then the Point of Receipt under this GSS Agreement for firm
storage injection quantities shall be the points of injection
into Pipeline's storage pool(s). Customer shall either utilize
the receipt point rights under its Service Agreement with
Pipeline under Rate Schedule FT-GSS, or shall utilize some other
transportation service agreement with appropriate receipt point
entitlements, to nominate gas for subsequent injection into
storage under this GSS Agreement.
EXHIBIT A
To The Storage Service Agreement
Dated April 1, 1997
Between CNG Transmission Corporation and
Connecticut Natural Gas Corporation
Page 3 of 3
C. Point of Delivery
1. The Point of Delivery for subsequent transportation to
Customer of all firm storage withdrawal quantities shall be the
point(s) of withdrawal from Pipeline's storage pool(s).
2. This Point of Delivery shall only be Primary, as defined in
Pipeline's FERC Gas Tariff, to the extent that corresponding
transportation from the points of withdrawal from Pipeline's
storage pool(s) is provided under the "Service Agreement
Applicable to Transportation Of Natural Gas Under Section 9 of
Rate Schedule FT (FT-GSS Service)" between Pipeline and
Connecticut Natural Gas Corporation, dated April 1, 1997.