exv10w2



 






Exhibit 10.2


SERVICE AGREEMENT

UNDER RATE SCHEDULE FTS




THIS AGREEMENT, made and entered into as of this 1st day of January, 2004, by
and between DOMINION COVE POINT LNG, LP (“Operator”) and WASHINGTON GAS LIGHT
COMPANY (“Buyer”).




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




     Section 1. Service to be Rendered. Operator shall perform and Buyer shall
receive service in accordance with the provisions of the effective Rate
schedule FTS, the applicable General Terms and Conditions of Operator’s FERC
Gas Tariff, Original Volume No. 1, 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Commission (Commission), as the same may be amended or superseded in accordance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 and the terms and conditions
of the Service Agreement including Appendix A. The maximum obligation of
Operator to provide FTS service to or for Buyer is specified in Appendix A, as
the same may be amended from time to time by agreement between Buyer and
Operator. Service hereunder shall be provided subject to the provisions of
Subpart G of Part 284 of the Commission’s regulations.



     Section 2.
Term. Service under this Agreement shall commence as of ten days
after the date that Operator notifies Buyer that Operator is prepared to
transport gas under this Agreement, but no earlier than June 1, 2004, and shall
continue in full force and effect for a primary term of twenty years. This
Agreement shall continue from year to year thereafter until either party gives
at least twelve months’ written notice to the other prior to the start of a
contract year. Pre-granted abandonment shall apply upon termination of this
Agreement, provided, however, that Buyer shall have any rights of first refusal
applicable under the tariff.



     Section 3. Rates. Buyer shall pay Operator the rates and charges
described on Exhibit B.



     Section 4. Notices. Notices to Operator under this Agreement shall be
addressed to it at 120
Tredegar St., Richmond, VA 23219 Attention: Jeffrey L. Keister and notices
to Buyer shall be addressed to it at 6801 Industrial Rd.
Springfield, VA 22151 Attention: Tim
Sherwood Dept. Head Energy Acquisition until changed by either party by
written notice.



	 	 	 	 	 	 	 
	DOMINION COVE POINT LNG, LP

	 	WASHINGTON GAS LIGHT COMPANY	 
	By: Its Partner,
	 	 	 	 	 
	Dominion Cove Point LNG Company, LLC

Operator

	 	Buyer	 	 
	 
	 	 	 	 	 	 
	By:	/s/ [ILLEGIBLE]	 	By:	/s/ Terry McCallister	 	 
	 	

	 	 	

	 
	Its:
	Managing Director, Transmission	 	Its:
	Terry McCallister	 	 
	 	Marketing & Customer Service

	 	 	President and	 	 
	

	 	 	 	Chief Operating Officer	 	 

















 






Appendix A

To

FTS Service Agreement

Between DOMINION COVE POINT LNG, LP (Operator)

And WASHINGTON GAS LIGHT COMPANY (Buyer)

Dated as of January 1, 2004




Maximum Firm Transportation Quantity (MFTQ): 350,000 (Dth/day)

FTS Service is not being performed as the Elected FTS Service option pursuant
to Rate Schedule FPS-l, FPS-2 or FPS-3.




	 	 	 
	

	 	Primary Receipt Points







	 	 	 	 	 	 	 
	 	 	Measuring	 	Maximum Daily
	 	 	Station Name
	 	Quantity (Dth/day)

	1.
	 	Interconnect between Dominion Transmission, Inc. And Operator at Loudoun, VA	 	 	100,000	 
	2.
	 	Interconnect between Transcontinental Gas Pipeline Company and Operator at Pleasant Valley	 	 	150,000	 
	3.
	 	Interconnect between Columbia Gas Transmission Corporation at Loudoun, VA	 	 	100,000	 
	 
	 	 	 	 	 	 







	 	 	 
	

	 	Primary Delivery Points







	 	 	 	 	 	 	 
	 	 	Measuring	 	Maximum Daily
	 	 	Station Name
	 	Quantity (Dth/day)

	1.
	 	Interconnect between Operator and Buyer at Centerville	 	 	95,000	 
	2.
	 	Interconnect between Operator and Buyer at White Plains	 	 	9,000	 
	3.
	 	Interconnect between Operator and Buyer at Gardnier Road	 	 	234,000	 
	4.
	 	Interconnect between Operator and Buyer at Prince Fredrick	 	 	6,000	 
	5.
	 	Interconnect between Operator and Buyer at Patuxent	 	 	6,000	 







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




[SIGNATURES ON FOLLOWING PAGE]














 








	 	 	 	 	 	 	 
	WASHINGTON GAS LIGHT	DOMINION COVE POINT LNG, LP
	COMPANY

	 	 	By: Its Partner, Dominion Cove Point LNG
	

	 	 	 	 	Company, LLC
	 
	 	 	 	 	 	 
	By:	 	/s/ Terry McCallister	 	 	By:	 /s/ [ILLEGIBLE]
	 	 	
	 	 	 	

	Title:

	 	Terry McCallister
	 	 	Title:
	Date:

	 	President and
	 	 	Date:
	

	 	Chief Operating Officer 	 	 	 	 







 









 






Appendix B

To

FTS Service Agreement

Between Dominion Cove Point LNG, LP (Operator) and

Washington Gas Light Company (Buyer)

Dated as of January 1, 2004




Rates and Charges:




     Unless otherwise mutually agreed in a written amendment to this Agreement,
Buyer shall pay Operator for transportation services rendered pursuant to this
Agreement, the maximum rates and charges, including the incremental fuel
retention and electric power surcharge, provided under Rate Schedule FTS for
the Cove Point East Project set forth in the “Summary of Incremental Rates” in
Operator’s effective FERC Gas Tariff, as well as all other rates, charges,
surcharges, and penalties applicable under Rate Schedule FTS, including the
maximum usage charge and the applicable Fuel Retention Percentage. Upon the
beginning of the term of this Agreement, the incremental reservation rate shall
be consistent with the FERC’s order granting Operator its certificate in Docket
Nos. CP03-74-000.















 








	 	 	 
	Dominion Cove Point LNG, LP

	 	 
	FERC Gas Tariff

	 	First Revised Sheet No. 12
	Pro Forma Original Volume No. 1
	 	 







SUMMARY OF INCREMENTAL
RATES
 ($ PER DTH)




	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Base	 	Reservation	 	 
	 	 	Reservation	 	Electric	 	Fuel
	 	 	Rate
	 	Surcharge 1/
	 	Retention 2/

	Cove Point East (X-l)
	 	 	1.9704	 	 	 	0.3016	 	 	 	0.30	%







1/ Updated annually in electric tracker.

2/ Updated annually in fuel tracker.




	 	 	 
	Issued by: Anne E. Bomar, Managing Director-Rates & Regulatory

	Issued on:

	 	Effective on: