Exhibit 10.12

Contract # 1.0433

 

 

SERVICE AGREEMENT

between

TRANSCONTINENTAL GAS PIPE LINE CORPORATION

and

WASHINGTON GAS LIGHT COMPANY

 

 

 

 

 

April 1, 1995

 

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AGREEMENT ID     198.0    

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SERVICE AGREEMENT

      THIS AGREEMENT entered into this 1st day of April, 1995, by and between
TRANSCONTINENTAL GAS PIPE LINE CORPORATION, a Delaware corporation, hereinafter
referred to as “Seller,” first party, and WASHINGTON GAS LIGHT COMPANY,
hereinafter referred to as “Buyer,” second party,

WITNESSETH

      WHEREAS, pursuant to the requirements of Order Nos. 636, 636-A and 636-B,
issued by the Federal Energy Regulatory Commission, Columbia Gas Transmission
Corporation (“Columbia”) has assigned to Buyer upstream capacity previously
provided under the Transportation Agreement dated October 1, 1987 (System
Contract 0.2255); and

      WHEREAS, upon the effective date of this agreement, the contractual
arrangement between Columbia and Seller is terminated and abandonment of service
under the Transportation Agreement dated October 1, 1987 (System
Contract 0.2255) is automatically authorized; and

      WHEREAS, Buyer has been assigned a portion of Columbia’s capacity
previously provided under the Transportation Agreement dated October 1, 1987
(System Contract 0.2255), and agrees to such assignment and assumes Columbia’s
obligations pursuant to the Service Agreement and Seller’s FT Rate Schedule of
Vol. 1 of its FERC Gas Tariff; and

      WHEREAS, Seller will provide service hereunder to Buyer pursuant to
Seller’s blanket certificate authorization and Rate Schedule FT for the assigned
capacity designated hereinbelow.

      NOW, THEREFORE, Seller and Buyer agree as follows:

ARTICLE I

GAS TRANSPORTATION SERVICE

      1.     Subject to the terms and provisions of this agreement and of
Seller’s Rate Schedule FT, Buyer agrees to deliver or cause to be delivered to
Seller gas for transportation and Seller agrees to receive, transport and
redeliver natural gas to Buyer or for the account of Buyer, on a firm basis, up
to the dekatherm equivalent of a Transportation Contract Quantity (“TCQ”) of
6,250 Mcf per day.

      2.     Transportation service rendered hereunder shall not be subject to
curtailment or interruption except as provided in Section 11 of the General
Terms and Conditions of Seller’s FERC Gas Tariff.

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SERVICE AGREEMENT

(Continued)

ARTICLE II

POINT(S) OF RECEIPT

      Buyer shall deliver or cause to be delivered gas at the point(s) of
receipt hereunder at a pressure sufficient to allow the gas to enter Seller’s
pipeline system at the varying pressures that may exist in such system from time
to time; provided, however, the pressure of the gas delivered or caused to be
delivered by Buyer shall not exceed the maximum operating pressure(s) of
Seller’s pipeline system at such point(s) of receipt. In the event the maximum
operating pressure(s) of Seller’s pipeline system, at the point(s) of receipt
hereunder, is from time to time increased or decreased, then the maximum
allowable pressure(s) of the gas delivered or caused to be delivered by Buyer to
Seller at the point(s) of receipt shall be correspondingly increased or
decreased upon written notification of Seller to Buyer. The point(s) of receipt
for natural gas received for transportation pursuant to this agreement shall be:

      See Exhibit A, attached hereto, for points of receipt.

ARTICLE III

POINT(S) OF DELIVERY

      Seller shall redeliver to Buyer or for the account of Buyer the gas
transported hereunder at the following point(s) of delivery and at a pressure(s)
of:

      See Exhibit B, attached hereto, for points of delivery and pressures.

ARTICLE IV

TERM OF AGREEMENT

      This agreement shall be effective as of April 1, 1995 and shall remain in
force and effect until 8:00 a.m. Eastern Standard Time February 2, 1998 and
thereafter until terminated by Seller or Buyer upon at least six (6) months
prior written notice; provided, however, this agreement shall terminate
immediately and, subject to the receipt of necessary authorizations, if any,
Seller may discontinue service hereunder if (a) Buyer, in Seller’s reasonable
judgement fails to demonstrate credit worthiness, and (b) Buyer fails to provide
adequate security in accordance with Section 8.3 of Seller’s Rate Schedule FT.
As set forth in Section 8 of Article II of Seller’s August 7, 1989 revised
Stipulation and Agreement in Docket Nos. RP88-68 et.al., (a) pregranted
abandonment under Section 284.221(d) of the Commission’s Regulations shall not
apply to any long term conversions from firm sales service to transportation
service under Seller’s Rate Schedule FT and (b) Seller shall not exercise its
right to terminate this service agreement as it applies to transportation
service resulting from

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SERVICE AGREEMENT

(Continued)

conversions from firm sales service so long as Buyer is willing to pay rates no
less favorable than Seller is otherwise able to collect from third parties for
such service.

ARTICLE V

RATE SCHEDULE AND PRICE

      1.     Buyer shall pay Seller for natural gas delivered to Buyer hereunder
in accordance with Seller’s Rate Schedule FT and the applicable provisions of
the General Terms and Conditions of Seller’s FERC Gas Tariff as filed with the
Federal Energy Regulatory Commission, and as the same may be legally amended or
superseded from time to time. Such Rate Schedule and General Terms and
Conditions are by this reference made a part hereof.

      2.     Seller and Buyer agree that the quantity of gas that Buyer delivers
or causes to be delivered to Seller shall include the quantity of gas retained
by Seller for applicable compressor fuel, line loss make-up (and injection fuel
under Seller’s Rate Schedule GSS, if applicable) in providing the transportation
service hereunder, which quantity may be changed from time to time and which
will be specified in the currently effective Sheet No. 44 of Volume No. 1 of
this Tariff which relates to service under this agreement and which is
incorporated herein.

      3.     In addition to the applicable charges for firm transportation
service pursuant to Section 3 of Seller’s Rate Schedule FT, Buyer shall
reimburse Seller for any and all filing fees incurred as a result of Buyer’s
request for service under Seller’s Rate Schedule FT, to the extent such fees are
imposed upon Seller by the Federal Energy Regulatory Commission or any successor
governmental authority having jurisdiction.

ARTICLE VI

MISCELLANEOUS

      1.     This Agreement supersedes and cancels as of the effective date
hereof the following contract(s):

          Transportation Agreement dated October 1, 1987 (System
Contract 0.2255) between Transcontinental Gas Pipe Line Corporation and Columbia
Gas Transmission; specifically for that portion of capacity provided in
Article I above.

      2.     No waiver by either party of any one or more defaults by the other
in the performance of any provisions of this agreement shall operate or be
construed as a waiver of any future default or defaults, whether of a like or
different character.

      3.     The interpretation and performance of this agreement shall be in
accordance with the laws of the State of Texas, without recourse to the law
governing conflict of laws, and to all present and future valid laws with
respect

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SERVICE AGREEMENT

(Continued)

to the subject matter, including present and future orders, rules and
regulations of duly constituted authorities.

      4.     This agreement shall be binding upon, and inure to the benefit of
the parties hereto and their respective successors and assigns.

      5.     Notices to either party shall be in writing and shall be considered
as duly delivered when mailed to the other party at the following address:

  (a) If to Seller:
Transcontinental Gas Pipe Line Corporation
P.O. Box 1396
Houston, Texas 77251
Attention:     Customer Services     (b) If to Buyer:
Washington Gas Light Company
6801 Industrial Road
Springfield, Virginia 22151
Attn:     Mr. Frank J. Hollewa

Such addresses may be changed from time to time by mailing appropriate notice
thereof to the other party by certified or registered mail.

      IN WITNESS WHEREOF, the parties hereto have caused this agreement to be
signed by their respective officers or representatives thereunto duly
authorized.

TRANSCONTINENTAL GAS PIPE LINE CORPORATION
(Seller)     By:  /s/ James P. Avioli

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James P. Avioli
Vice President, Gas Control   WASHINGTON GAS LIGHT COMPANY     By:  /s/ Frank J.
Hollewa

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Frank J. Hollewa
Senior Vice President, Gas Supply

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EXHIBIT A

                      Buyer’s         Cumulative         Mainline Capacity      
  Entitlement Point(s) of Receipt

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  (Mcf/Day)

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1.  
Discharge Side of Seller’s Compressor Station 45 at the Existing point of
Interconnection between Seller’s Southwest Louisiana Lateral and Seller’s
Mainline Beauregard Parish, Louisiana. (Station 45 TP#7101)
    1,562   2.  
Existing Point of Interconnection between Seller and Texas Eastern Transmission
Corporation, (Seller Meter No. 4198) at Ragley, Beauregard Parish, Louisiana.
(Ragley-TET TP#6217)
    1,562   3.  
Existing Point of Interconnection between Seller and Trunkline Gas Company.
(Seller Meter No. 4215) at Ragley, Beauregard Parish, Louisiana.
(Ragley-Trunkline TP#6218)
    1,562   4.  
Existing Point of Interconnection between Seller and Tennessee Gas Transmission
Company (Seller Meter No. 3371) at Kinder, Allen Parish, Louisiana. (Kinder
TGT-TP#6149)**
    1,562   5.  
Existing Point of Interconnection between Seller and Texas Gas Transmission
Corporation (Seller Meter Nos. 3227, 4314, 4457) at Eunice, Evangeline Parish,
Louisiana. (Eunice Mamou Tx. Gas TP#6923)
    1,562  

 

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                      Buyer’s         Cumulative         Mainline Capacity      
  Entitlement Point(s) of Receipt

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  (Mcf/Day)

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6.  
Suction Side of Seller’s Compressor Station 50 at the Existing Point of
Interconnection between Seller’s Central Louisiana Lateral and Seller’s Mainline
Evangeline Parish, Louisiana. (Station 50 TP#6948)
    2,750   7.  
Existing Point of Interconnection between Seller and Columbia Gulf Transmission
Corporation (Seller Meter No. 3142) at Eunice, Evangeline Parish, Louisiana.
(Eunice Evangeline Col. Gulf TP#6414)
    2,750   8.  
Discharge Side of Seller’s Compressor Station 54 at Seller’s Washington Storage
Field, St. Landry parish, Louisiana (Station 54 TP#6768)
    2,750   9.  
Existing Point of Interconnection between Seller and Acadian Pipeline (Seller
Meter No. 3506) in Pointe Coupee Parish, Louisiana. (Morganza-Acadian Pipeline
TP#7060)
    2,750   10.  
Existing Point of Interconnection (Seller Meter No. 3272) at M.P. 566.92,
Morganza Field, Pointe Coupee Parish, Louisiana. (Morganza Field - TP#576)
    2,750   11.  
Existing Point of Interconnection between Seller and Meter named West Feliciana
Parish-Creole (Seller Meter No. 4464), in West Feliciana Parish, Louisiana.
(West Feliciana Parish-Creole TP#7165)
    2,750  

 

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                      Buyer’s         Cumulative         Mainline Capacity      
  Entitlement Point(s) of Receipt

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  (Mcf/Day)

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12.  
Existing Point of Interconnection between Seller and Mid-Louisiana Gas Company
(Seller Meter Nos. 4137, 4184, 3229) at Ethel, East Feliciana Parish, Louisiana.
(Ethel-Mid LA TP#6083)
    2,750   13.  
Existing Point of Interconnection between Seller and Meter named Liverpool
Northwest (Seller Meter No. 3390), in St. Helena Parish, Louisiana. (Liverpool
Northwest-TP#6757)
    2,750   14.  
Suction Side of Seller’s Compressor Station 62 on Seller’s Southeast Louisiana
Lateral in Terrebonne Parish Louisiana. (Station 62 TP#7141)
    3,500   15.  
Existing Point of Interconnection between Seller and Meter named Texas
Gas-TLIPCO-Thibodeaux (Seller Meter No. 3533), in Lafourche Parish, Louisiana.
(TXGT-TLIPCO-Thibodeaux-TP#7206)
    3,500   16.  
Existing Point of Interconnection between Seller and Meter named
Romeville-Monterey Pipeline (Seller Meter No. 4410), in St. James Parish,
Louisiana. (Romeville-Monterey Pipeline-TP#580)
    3,500   17.  
Existing Point of Interconnection between Seller and Meter named St. James CCIPC
(Seller Meter No. 4462), in St. James Parish, Louisiana. (St. James
CCIPC-TP#7164**
    3,500  

 

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                      Buyer’s         Cumulative         Mainline Capacity      
  Entitlement Point(s) of Receipt

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  (Mcf/Day)

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18.  
Existing Point of Interconnection between Seller and Meter named St. James
Faustina (St. Amelia) (Seller Meter No. 3328), in St. James Parish, Louisiana.
(St. James Faustina (St. Amelia) TP#6268) **
    3,500   19.  
Existing Point of Interconnection between Seller and Meter named St. James
Acadian (Seller Meter No. 4366), in St. James Parish, Louisiana. (St. James
Acadian-TP#6677)**
    3,500   20.  
Existing Point of Interconnection between Seller and Meter Named
Livingston-Flare (Seller Meter No. 3540), in Livingston Parish, Louisiana.
(Livingston-Flare-TP#8739)
    3,500   21.  
Existing Point of Interconnection between Seller and Florida Gas Transmission
Company (Seller Meter No. 3217) at St. Helena, St. Helena Parish, Louisiana.
(St. Helena FGT-TP#6267)
    3,500   22.  
Existing Point of Interconnection between Seller and Meter named Beaver Dam
Creek (Seller Meter No. 3536), in St. Helena Parish, Louisiana. (Beaver Dam
Creek- TP#8218)
    3,500   23.  
Suction Side of Seller’s Compressor Station 65 at the Existing Point of
Interconnection between Seller’s Southeast Louisiana Lateral and Seller’s
Mainline St. Helena Parish, Louisiana. (Station 65 TP#6685)
    6,250  

 

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                      Buyer’s         Cumulative         Mainline Capacity      
  Entitlement Point(s) of Receipt

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  (Mcf/Day)

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24.  
Existing Point of Interconnection between Seller and Meter named Amite
County/Koch (Seller Meter No. 3332), in Amite County, Mississippi (Amite
County/Koch-TP#6701)
    6,250   25.  
Existing Point of Interconnection between Seller and Meter named McComb (Seller
Meter No. 3461, in Pike County, Mississippi. (McComb-TP#6446)
    6,250   26.  
Existing Point of Interconnection between Seller and United Gas Pipe Line
Company at Holmesville (Seller Meter No. 3150), Pike County, Mississippi.
(Holmesville-United TP#6128)
    6,250   27.  
Discharge Side of Seller’s Compressor Station 70 at M.P. 661.77 in Walthall of
County, Mississippi. (M.P. 661.77-Station 70 Discharge-TP#7142)
    6,250   28.  
Existing Point of Interconnection between Seller and United Gas Pipe Line
Company at Walthall (Seller Meter No. 3095), Walthall County, Mississippi.
(Walthall-UGPL TP#6310)
    6,250   29.  
Existing Point of Interconnection between Seller and Meter named Darbun-Pruett
34-10 (Seller Meter No. 3446) at M.P. 668.46 on Seller’s Main Transmission Line,
Darbun Field, Walthall County, Mississippi. (Darbun Pruett TP#6750)
    6,250  

 

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                      Buyer’s         Cumulative         Mainline Capacity      
  Entitlement Point(s) of Receipt

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  (Mcf/Day)

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30.  
Existing Point of Interconnection between Seller and Meter named Ivy Newsome
(Seller Meter No. 3413) in Marion County, Mississippi. (Ivy Newsome-TP#6179)
    6,250   31.  
Existing Point of Interconnection between Seller and West Oakvale Field at M.P.
680.47-Marion County, Mississippi. (M.P. 680.47-West Oakvale Field-TP#7144)
    6,250   32.  
Existing Point of Interconnection between Seller and East Morgantown Field at
M.P. 680.47 in Marion County, Mississippi. (M.P. 680.47-E. Morgantown
Field-TP#7145)
    6,250   33.  
Existing Point of Interconnection between Seller and Greens Creek Field, at M.P.
681.84 Marion County, Mississippi. (M.P. 681.84 Greens Creek Field TP#7146)
    6,250   34.  
Existing Point of Interconnection between Seller and Meter named M.P.
685.00-Oakvale Unit 6-6 in Jefferson Davis County, Mississippi. (M.P.
685.00-Oakvale Unit 6-6-TP#1376)
    6,250   35.  
Existing Point of Interconnection between Seller and Meter named M.P.
687.23-OakvaleField in Marion County, Mississippi. (M.P. 687.23-Oakvale
Field-TP#7147)
    6,250  

 

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                      Buyer’s         Cumulative         Mainline Capacity      
  Entitlement Point(s) of Receipt

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  (Mcf/Day)

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36.  
Existing Point of Interconnection between Seller and Bassfield at named M.P.
696.40 in Marion County, Mississippi. (M.P. 696.40 Bassfield-TP#9439)
    6,250   37.  
Existing Point of Interconnection between Seller and Meter named Lithium/Holiday
Creek -Frm (Seller Meter No. 3418), in Jefferson Davis County, Mississippi.
(Lithium/Holiday Creek-Fm-TP#7041)
    6,250   38.  
Existing Point of Interconnection between Seller and S. W. Sumrall Field and
Holiday Creek at M.P. 692.05-Holiday Creek in Jefferson Davis, Mississippi.
(M.P. 692.05-Holiday Creek-TP#7159)
    6,250   39.  
Existing Point of Interconnection between Seller and ANR Pipe Line Company at
Holiday Creek (Seller Meter No. 3241), Jefferson Davis County, Mississippi.
(Holiday Creek-ANR TP#398)
    6,250   40.  
Existing Point of Interconnection between Seller and Mississippi Fuel Company at
Jeff Davis (Seller Meter No. 3252), Jefferson Davis County, Mississippi.
(Jefferson Davis County-Miss Fuels TP#6579)
    6,250   41.  
Existing Point of Interconnection between Seller and Meter named Jefferson
Davis-Frm (Seller Meter No. 4420), in Jefferson Davis County, Mississippi.
(Jefferson Davis-Frm- TP#7033)
    6,250  

 

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                      Buyer’s         Cumulative         Mainline Capacity      
  Entitlement Point(s) of Receipt

--------------------------------------------------------------------------------

  (Mcf/Day)

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42.  
Existing Point of Interconnection between Seller and Carson Dome Field M.P.
696.41, in Jefferson Davis County, Mississippi. (M.P. 696.41-Carson Dome
Field-TP#7148)
    6,250   43.  
Existing Point of Interconnection between Seller and Meter Station named
Bassfield-ANR Company at M.P. 703.17 on Seller’s Main Transmission Line (Seller
Meter No. 3238), Covington County, Mississippi. (Bassfield-ANR TP#7029)
    6,250   44.  
Existing Point of Interconnection between Seller and Meter named Patti Bihm #1
(Seller Meter No. 3468), in Covington County, Mississippi. (Patti Bihm
#1-TP#7629)
    6,250   45.  
Discharge Side of Seller’s Compressor at Seller’s Eminence Storage Field (Seller
Meter No. 4166 and 3160) Covington County, Mississippi. (Eminence Storage
TP#5561)
    6,250   46.  
Existing Point of Interconnection between Seller and Dont Dome Field at M.P.
713.39 in Covington, County, Mississippi. (M.P. 713.39-Dont Dome-TP#1396)
    6,250   47.  
Existing Point of Interconnection between Seller and Endevco in Covington
County, Mississippi. (Hattiesburg-Interconnect storage TP#1686)
    6,250   48.  
Existing Point at M.P. 719.58 on Seller’s Main Transmission Line (Seller Meter
No. 3544), Certerville Dome Field, Jones County, Mississippi. (Centerville Dome
Field-TP#l532)
    6,250  

 

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                      Buyer’s         Cumulative         Mainline Capacity      
  Entitlement Point(s) of Receipt

--------------------------------------------------------------------------------

  (Mcf/Day)

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49.  
Existing Point of Interconnection between Seller and Meter named Calhoun (Seller
Meter No. 3404), in Jones County, Mississippi. (Calhoun-TP#378)
    6,250   50.  
Existing Point at M.P. 727.78 on Seller’s Main Transmission Line, Jones County,
Mississippi. (Jones County-Gitano TP#7166)
    6,250   51.  
Existing Point of Interconnection between Seller and a Meter named Koch Reedy
Creek (Seller Meter No. 3333), Jones County, Mississippi. (Reedy Creek-Koch
TP#670)
    6,250   52.  
Existing Point of Interconnection between Seller and Meter named Sharon Field
(Seller Meter No. 3000), in Jones County, Mississippi. (Sharon Field-TP#4l9)
    6,250   53.  
Existing Point of Interconnection between Seller and Tennessee Gas Transmission
Company at Heidelberg (Seller Meter No. 3109), Jasper County, Mississippi.
(Heidelberg-Tennessee TP#6120)
    6,250   54.  
Existing Point of Interconnection between Seller and Mississippi Fuel Company at
Clarke (Seller Meter No. 3254), Clarke County, Mississippi. (Clarke County-Miss
Fuels TP#6047)
    6,250  

 

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                      Buyer’s         Cumulative         Mainline Capacity      
  Entitlement Point(s) of Receipt

--------------------------------------------------------------------------------

  (Mcf/Day)

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55.  
Existing Point of Interconnection between Seller and Meter named Clarke
County-Koch at M.P. 757.29 in Clarke County, Mississippi. (Clarke
County-Koch-TP#5566)
    6,250   56.  
Existing Point of Interconnection between Seller’s mainline and Mobile Bay
Lateral at M.P. 784.66 in Choctaw County, Alabama (Station 85 - Mainline Pool
TP#6971)
    6,250   57.  
Existing Point of Interconnection between Seller and Magnolia Pipeline in
Chilton County, Alabama. (Magnolia Pipeline Interconnect-TP#1808)
    6,250   58.  
Existing Point of Interconnection between Seller and Southern Natural Gas
Company, (Seller Meter No. 4087) at Jonesboro, Clayton County, Georgia.
(Jonesboro-SNG-TP#6141)
    6,250  

Buyer shall not tender, without the prior consent of Seller, at any point(s) of
receipt on any day a quantity in excess of the applicable Buyer’s Cumulative
Mainline Capacity Entitlement for such point(s) of receipt.

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*   These quantities do not include the additional quantities of gas retained by
Seller for applicable compressor fuel and line loss make-up provided for in
Article V, 2 of this Service Agreement, which are subject to change as provided
for in Article V, 2 hereof.   **   Receipt of gas by displacement only.

 

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EXHIBIT B

              Points of Delivery

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  Pressure(s)

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1.
  A point of interconnection between the facilities of Columbia Gas Transmission
and Transco at Dranesville Meter Station located at mile post 1599.40 on
Transco’s main transmission line, located two (2) miles eastward from
Dranesville, Virginia on Virginia Highway #7   Not less than fifty (50) pounds
per square inch gauge or at such other pressures as may be agreed upon in the
day-to-day operations of Buyer and Seller.