sjrgservagreement.htm


     

     

    Exhibit
10(a)(iii)


    SERVICE
AGREEMENT

    


    between

    


    TRANSCONTINENTAL
GAS PIPE LINE CORPORATION

    


    and

    


    SOUTH
JERSEY RESOURCES GROUP, LLC

    


    


    Effective:

    May 1,
2006

    


    



    
      
         


      

      
         


        
          

        

      

      
         


      

    


    


    SERVICE
AGREEMENT UNDER RATE SCHEDULE WSS-OPEN ACCESS

    


    


    THIS
AGREEMENT entered into this FIRST day of MAY, 2006, by and between
TRANSCONTINENTAL GAS PIPE LINE CORPORATION, a Delaware corporation, hereinafter
referred to as "Seller", first party, and SOUTH JERSEY RESOURCES GROUP, LLC, a
Delaware corporation, hereinafter referred to as "Buyer", second
party,

    


    WITNESSETH:

    


    WHEREAS,
Seller has made available to Buyer storage capacity from its Washington Storage
Field under Part 284 of the Commission's Regulations; and Buyer desires to
purchase and Seller desires to sell natural gas storage service under Seller's
Rate Schedule WSS-Open Access as set forth herein;

    


    NOW,
THEREFORE, Seller and Buyer agree as follows:

    


    ARTICLE
I

    SERVICE
TO BE RENDERED

    


    Subject
to the terms and provisions of this agreement and of Seller's Rate Schedule
WSS-Open Access, Seller agrees to inject into storage for Buyer's account, store
and withdraw from storage, quantities of natural gas as follows:

    


    To
withdraw from storage up to a maximum quantity on any day of 51,837 dt, which
quantity shall be Buyer's Storage Demand Quantity, or such greater daily
quantity, as applicable from time to time, pursuant to the terms and conditions
of Seller's Rate Schedule WSS-Open Access.

    


    To
receive and store up to a total quantity at any one time of 4,406,135 dt, which
quantity shall be Buyer's Storage Capacity Quantity.

    


    


    ARTICLE
II

    POINT(S)
OF RECEIPT AND DELIVERY

    


    The Point
of Receipt for injection of natural gas delivered to Seller by Buyer and the
Point of Delivery for withdrawal of natural gas delivered by Seller to Buyer
under this agreement shall be Seller's Washington Storage Field located at
Seller's Station 54 in St. Landry Parish, Louisiana.  Gas delivered or
received in Seller's pipeline system shall be at the prevailing pressure not to
exceed the maximum allowable operating pressure.

    



    
      
         


      

      
         


        
          

        

      

      
         


      

    


    


    SERVICE
AGREEMENT UNDER RATE SCHEDULE WSS-OPEN ACCESS

    (Continued)

    


    


    ARTICLE
III

    TERM OF
AGREEMENT

    


    This
agreement shall be effective May 1, 2006 and shall remain in force and effect
until October 31, 2017, and year to year thereafter, subject to termination by
either party upon six (6) months written notice to the other party.

    


    


    ARTICLE
IV

    RATE OF
SCHEDULE AND PRICE

    


    Buyer
shall pay Seller for natural gas service rendered hereunder in accordance with
Seller's Rate Schedule WSS-Open Access, 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 amended or
superseded from time to time. Such Rate Schedule and General Terms and
Conditions are by this reference made a part hereof. In the event Buyer and
Seller mutually agree to a negotiated rate pursuant to the provisions of Section
53 of the General Terms and Conditions and specified term for service hereunder,
provisions governing such negotiated rate (including surcharges) and term shall
be set forth on Exhibit A to the service agreement.

    


    


    ARTICLE
V

    MISCELI.ANEOUS

    


    1. The
subject headings of the Articles of this agreement are inserted for the purpose
of convenient reference and are not intended to be a part of this agreement nor
to be considered in any interpretation of the same.

    


    2. This
agreement supersedes and cancels as of the effective date hereof the
following
contracts between the parties hereto:  None.


    
      
         


      

      
         


        
          

        

      

      
         


      

    


    


    SERVICE
AGREEMENT UNDER RATE SCHEDULE WSS-OPEN ACCESS

    (Continued)

    


    3. 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.

    


    4. This
agreement shall be interpreted, performed and enforced in accordance with the
laws of the State of Texas.

    


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

    


    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

     

                                                BY /s/ Paul F. Egner, III

                                (Seller)

                            Paul F. Egner,
III

                            Director, Customer
Services

     

    
                                            SOUTH JERSEY RESOURCES GROUP, LLC

    


                                                BY /s/ Ken
DePriest

                            (Buyer)

                            Ken DePriest

                            Vice
President

    



    
      
         


      

      
         


        
          

        

      

      
         


      

    


    


    SERVICE
AGREEMENT UNDER RATE SCHEDULE WSS-OPEN ACCESS

    (Continued)

    


    


    EXHIBIT
A

    


    


    


    Specification of Negotiated
Rate and Term

    


    None