Filed by Bowne Pure Compliance





Exhibit
10.7




SERVICE AGREEMENT NO. 80934

CONTROL NO. 2004-05-28 — 0001




SST SERVICE AGREEMENT




THIS
AGREEMENT, made and entered into this
29th day
of October, 2004, by and
between:



Columbia Gas Transmission Corporation

(“Transporter”)

AND

PPL Gas Utilities Corporation

(“Shipper”)



WITNESSETH: That in consideration of the mutual covenants herein contained, the parties hereto
agree as follows:



Section 1.
Service to be Rendered. Transporter shall perform and Shipper shall receive
service in accordance with the provisions of the effective SST Rate Schedule and applicable General
Terms and Conditions of Transporter’s FERC Gas Tariff, Second Revised Volume No. 1 (Tariff), on
file with the Federal Energy Regulatory Commission (Commission), as the same may be amended or
superseded in accordance with the rules and regulations of the Commission. The maximum obligation
of Transporter to deliver gas hereunder to or for Shipper, the designation of the points of
delivery at which Transporter shall deliver or cause gas to be delivered to or for Shipper, and the
points of receipt at which Shipper shall deliver or cause gas to be delivered, are specified in
Appendix A, as the same may be amended from time to time by agreement between Shipper and
Transporter, or in accordance with the rules and regulations of the Commission. Service hereunder
shall be provided subject to the provisions of Part 284. 223 of Subpart G of the Commission’s
regulations. Shipper warrants that service hereunder is being provided on behalf of Shipper.



Section 2. Term. Service under this Agreement shall commence as of April 1, 2005, and shall
continue in full force and effect until March 31, 2014. Pre-granted abandonment shall apply upon
termination of this Agreement, subject to any right of first refusal Shipper may have under the
Commission’s regulations and Transporter’s Tariff.



Section 3. Rates. Shipper shall pay Transporter the charges and furnish Retainage as
described in the above-referenced Rate Schedule, unless otherwise agreed to by the parties in
writing and specified as an amendment to this Service Agreement. Transporter may agree to
discount its rate to Shipper below Transporter’s maximum rate, but not less than Transporter’s
minimum rate. Such discounted rate may apply to: a) specified quantities (contract demand or
commodity quantities); b) specified quantities above or below a
certain level or all quantities if
quantities exceed a certain level; c) quantities during specified time periods; d) quantities at
specified points, locations, or other defined geographical areas; and e) that a specified
discounted rate will apply in a specified relationship to the quantities actually transported
(i.e., that the reservation charge will be adjusted in a specified relationship to quantities
actually transported). In addition, the discount agreement may include a provision that if one
rate component which was at or below the applicable maximum rate at the time the discount
agreement was executed subsequently exceeds the applicable maximum rate due to a change in
Transporter’s maximum rate so that such rate component must be adjusted downward to equal the new
applicable maximum rate, then other rate components may be adjusted upward to achieve the agreed
overall rate, so long as none of the resulting rate components exceed the maximum rate applicable
to that rate component. Such changes to rate components shall be applied prospectively,
commencing with the date a Commission order accepts revised tariff sheets. However, nothing
contained herein shall be construed to alter a refund obligation under applicable law for any
period during which rates had been charged under a discount agreement exceeded rates which
ultimately are found to be just and reasonable.



 


 









 





SERVICE AGREEMENT NO. 80934

CONTROL NO. 2004- 05-28 — 0001




SST SERVICE AGREEMENT



Section 4. Notices. Notices to Transporter under this Agreement shall be addressed
to it at Post Office Box 1273, Charleston, West Virginia 25325-1273, Attention: Manager — Customer
Services and notices to Shipper shall be addressed to it at:



PPL Gas Utilities Corporation

Theresa Sassman, GENPL7

Natural Gas Support

2 North Ninth Street

Allentown, PA 18101-1179

ATTN: Joe Cammarano



until changed by either party by written notice.



 


 









 





SERVICE AGREEMENT NO. 80934

CONTROL NO. 2004-05-28 — 0001




SST SERVICE AGREEMENT



Section 5. Superseded Agreements. This Service Agreement supersedes and cancels, as of the
effective date hereof, the following Service Agreements: N/A.




	 	 	 	 	 
	PPL Gas Utilities Corporation	 	 
	 
	 	 	 	 
	By: 

Name:

	 	/s/ Robert M. Geneczko
 

Robert M. Geneczko
	 	[SEAL] 
	Title:

	 	President	 	 
	Date:
	 	 	 	 
	 
	 	
 
	 	 






	 	 	 	 	 
	Columbia Gas Transmission Corporation	 	 
	 
	 	 	 	 
	By: 

Name:

	 	/s/ T. N. Brasselle
 

T. N. Brasselle
	 	 
	Title:

	 	MGR Customer Services	 	 
	Date:

	 	NOV 05 2004	 	 





 


 









 





Revision No.

Control No. 2004-05-28 — 0001




Appendix A to Service Agreement No. 80934

Under Rate Schedule SST

Between (Transporter) Columbia Gas Transmission Corporation

              and (Shipper) PPL Gas Utilities Corporation





	 	 	 	 	 
	October through March Transportation Demand

	 	10,715
	 	Dth/day
	 
	 	 	 	 
	April through September Transportation Demand

	 	5,358
	 	Dth/day







Primary Receipt Points




	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Maximum Daily	 
	Scheduling	 	Scheduling Point	 	 	Quantity	 
	Point No.	 	Name	 	 	(Dth/Day)	 
	STOW
	 	STORAGE STOW WITHDRAWALS	 	 	10,715	 





 


 









 








Revision No.

Control No. 2004-05-28 — 0001




Appendix A
to Service Agreement No. 80934


Under Rate Schedule SST

Between (Transporter) Columbia Gas Transmission Corporation

              and (Shipper) PPL Gas Utilities Corporation




Primary
Delivery Points




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Minimum	 	 
	 	 	 	 	 	 	 	 	 	 	Maximum	 	 	 	 	 	Delivery	 	 
	 	 	 	 	 	 	 	 	 	 	Daily Delivery	 	Design Daily	 	 	 	Pressure	 	 
	Scheduling	 	Scheduling Point	 	Measuring	 	Measuring Point	 	Obligation	 	Quantity	 	Aggregate	 	Obligation (psig)	 	Hourly Flowrate
	Point No.	 	Name	 	Point No.	 	Name	 	(Dth/Day) 1/	 	(Dth/Day) 1/	 	Daily Quantity 1/	 	1/	 	(Dth/hour) 1/
	56W

	 	PENN FUEL

OP-08-36
	 	 	600004	 	 	PPL-Clearfield
	 	 	3,893	 	 	 	 	 	 	 	150	 	 	 
	56-25

	 	PENN FUEL OP

04-25
	 	 	600007	 	 	EMMITSBURG
	 	 	2,563	 	 	 	 	FN02
	 	 	75	 	 	 
	56-21

	 	PENN FUEL OP

04-21
	 	 	600014	 	 	BANGOR
	 	 	12,216	 	 	 	 	FN01
	 	 	300	 	 	 
	56-29

	 	PENN FUEL OP

04-29
	 	 	600016	 	 	PINE GROVE
	 	 	1,774	 	 	 	 	FN02
	 	 	75	 	 	 
	56-29

	 	PENN FUEL OP

04-29
	 	 	600017	 	 	MT. VERNON
	 	 	774	 	 	 	 	FN02
	 	 	75	 	 	 
	56-21

	 	PENN FUEL OP

04-21
	 	 	600024	 	 	DELAWARE WATER GAP
	 	 	2,000	 	 	 	 	FN01
	 	 	125	 	 	 
	56-21

	 	PENN FUEL OP

04-21
	 	 	600025	 	 	STOUDSBURG NORTH
	 	 	4,897	 	 	 	 	FN01
	 	 	125	 	 	 
	56W

	 	PENN FUEL

OP-08-36
	 	 	600026	 	 	Counties Gas&Fuel
	 	 	834	 	 	 	 	 	 	 	100	 	 	 
	56W

	 	PENN FUEL

OP-08-36
	 	 	600027	 	 	Curwensville
	 	 	1,390	 	 	 	 	 	 	 	150	 	 	 
	56-25

	 	PENN FUEL OP

04-25
	 	 	600050	 	 	PFG-GlenFumey
	 	 	1,083	 	 	 	 	FN02
	 	 	50	 	 	 
	56-25

	 	PENN FUEL OP

04-25
	 	 	600051	 	 	WAYNESBORO
	 	 	3,449	 	 	 	 	FN02
	 	 	50	 	 	 
	56W

	 	PENN FUEL

OP-08-36
	 	 	600074	 	 	RENOVO PENN FUEL
	 	 	649	 	 	 	 	 	 	 	100	 	 	 
	C23

	 	PENNSBURG-23
	 	 	631929	 	 	PENNSBURG

(74-000577)
	 	 	4,741	 	 	 	 	FN01	 	 	 	 	 	 
	C22

	 	EAGLE-25
	 	 	632170	 	 	EAGLE C.S.


(74-000011)
	 	 	4,741	 	 	 	 	FN01	 	 	 	 	 	 
	56-29

	 	PENN FUEL OP

04-29
	 	 	633513	 	 	SPRING VALLEY
	 	 	1,000	 	 	 	 	FN02
	 	 	300	 	 	 







 


 











 




Revision No.

Control No. 2004-05-28 — 0001






Appendix A
to Service Agreement No. 80934


Under Rate Schedule SST

Between (Transporter) Columbia Gas Transmission Corporation

               and (Shipper) PPL Gas Utilities Corporation



 
	 	 	 
	1/

	 	Application of MDDOs, DDQs, and ADQs and/or minimum pressure and/or hourly flowrate shall be as
follows:

	 
	 	 
	FN01

	 	THIS METER IS
IN THE BANGOR-STROUDSBURG AGGREGATE AREA AND THE EASTERN MARKET
AGGREGATE AREA.

	 
	 	 
	FN02

	 	THIS METER IS IN THE EASTERN MARKET AGGREGATE AREA.
	 
	 	 
	 

	 	The following notes apply to all scheduling points on this contract:
	 
	 	 
	GFN1

	 	UNLESS STATION SPECIFIC MDDOS ARE SPECIFIED IN A SEPARATE FIRM SERVICE AGREEMENT BETWEEN SELLER AND
BUYER, SELLER’S AGGREGATE MAXIMUM DAILY DELIVERY OBLIGATION, UNDER THIS AND ANY OTHER SERVICE
AGREEMENT BETWEEN SELLER AND BUYER, AT THE STATIONS LISTED ABOVE SHALL NOT EXCEED THE MDDO
QUANTITIES SET FORTH ABOVE FOR EACH STATION. IN ADDITION, SELLER SHALL NOT BE OBLIGATED ON ANY DAY
TO DELIVER MORE THAN THE AGGREGATE DAILY QUANTITIES (ADQ) LISTED BELOW IN THE AGGREGATE AREAS LISTED
BELOW. THE STATIONS FOOTNOTED ABOVE WITH A 1 OR 2 ARE IN THE AGGREGATE AREAS SET FORTH IN GREATER
DETAIL BELOW. ANY STATION SPECIFIC MDDOS IN A SEPARATE FIRM SERVICE AGREEMENT BETWEEN SELLER AND
BUYER SHALL BE ADDITIVE BOTH TO THE INDIVIDUAL STATION MDDOS SET FORTH HEREIN AND TO ANY APPLICABLE
AGGREGATE DAILY QUANTITY SET FORTH BELOW. THE MARKET AREA IN WHICH EACH STATION IS LOCATED IS
POSTED ON SELLER’S EBB AND INCORPORATED HEREIN BY
REFERENCE.







	 	 	 	 	 	 	 
	FOOTNOTE	 	 	 	AGGREGATE	 
	NUMBER	 	AGGREGATE AREA NAME	 	DAILY QUANTITY	 
	1	 	BANGOR- STROUDSBURG AGGREGATE AREA
	 	12,216 DTH/D
	1+2	 	ADQ FOR AGGREGATE AREA FOOTNOTE
NUMBERS 1 AND 2
	 	19,757 DTH/D







DELIVERIES
TO BUYER AT PENNSBURG AND EAGLE ARE MADE VIA
TEXAS EASTERN BACKOFF OF SELLERS RECEIPTS.




DELIVERIES AT STATIONS IN MARKET AREA 36, OLEAN, ARE CONTINGENT UPON BUYER OBTAINING GAS
SUPPLIES AND ARRANGING FOR DELIVERY OF SUCH GAS SUPPLIES TO THIS
MARKET AREA. SELLER’S
OBLIGATION TO DELIVER GAS ON ANY DAY SHALL BE LIMITED TO THE
QUANTITIES ACTUALLY RECEIVED
FOR BUYER’S ACCOUNT TO THIS MARKET AREA.


 


 









 





Revision No.

Control No. 2004-05-28 — 0001




Appendix A
to Service Agreement No. 80934
Under Rate Schedule SST



Between
(Transporter) Columbia Gas Transmission
Corporation
              and
(Shipper) PPL Gas Utilities Corporation



The Master list of Interconnects (MLI) as defined in Section 1 of the General Terms and
Conditions of Transporter’s Tariff is incorporated herein by reference for purposes of listing
valid secondary receipt and delivery points.



o Yes þ No (Check applicable blank) Transporter and Shipper have mutually agreed to a
Regulatory Restructuring Reduction Option pursuant
to Section 42 of the General Terms and Conditions of Transporter’s FERC Gas Tariff.



o Yes þ No (Check applicable blank) Shipper has a contractual right of first refusal equivalent
to the right of first refusal set forth from time to
time in Section 4 of the General Terms and Conditions of Transporter’s FERC Gas Tariff.



Service
pursuant to this Appendix A, Revision No. 0 shall be effective April 1, 2005 through March
31, 2014.



o Yes þ No (Check applicable blank) This Appendix A, Revision No. 0 shall cancel and supersede
the Previous Appendix A, Revision No.      
effective as of                     , 20     , to the Service Agreement referenced above.



o Yes þ No (Check applicable blank) All Gas shall be delivered at existing points of
interconnection within the MDDO’s, and/or ADQ’s, and/or
DDQ’s, as applicable, set forth in Transporter’s currently effective Rate Schedule            Appendix A, Revision No. 0 with Shipper, which for such
points set forth are incorporated herein by reference.



With the exception of this Appendix A, Revision No. 0 all other terms and conditions of said
Service Agreement shall remain in full force and
effect.



	 	 	 	 	 
	PPL Gas Utilities Corporation	 	 
	 
	 	 	 	 
	By: 

Name:

	 	/s/ Robert M. Geneczko
 

Robert M. Geneczko
	 	 [SEAL]
	Title:

	 	President	 	 
	Date:

	 	 
 

	 	 
	 
	 	 	 	 
	Columbia Gas Transmission Corporation	 	 
	 
	 	 	 	 
	By: 

Name:

	 	/s/ T. N. Brasselle
 

T. N. Brasselle
	 	 
	Title:

	 	MGR Customer Services	 	 
	Date:

	 	NOV 05 2004