Exhibit 10.34


 


REDACTED


 


	
  

  	
   

  	
  Texas
  Eastern 

  Transmission Corporation 

  5400 Westheimer
  Ct. 77056-5319 

  P.O. Box 1642 

  Houston, TX 77251-1642

  



 


David
A. Weathers

Director

Electric Market Services


 


June 30, 2000


 


Mr. Larry Wall

Vice President

Duke Energy Hinds, LLC

5400 Westheimer CT.

Houston, TX. 77056


 


Re:                  Rate Schedule
FT-1 Service Agreement between Texas Eastern Transmission Corporation and Duke
Energy Hinds, LLC (Texas Eastern Contract No. 830103)


 


Dear Mr. Wall:


 


Duke Energy Hinds,
LLC (“DEH”) and Texas Eastern Transmission Corporation (“Texas Eastern”) are
parties to the referenced Rate Schedule FT-1 Service Agreement (Texas Eastern
Contract No. 830103, referred to herein as the “FT-1 Service Agreement”). In
consideration of the mutual covenants and agreements herein contained, DEH and
Texas Eastern desire to enter into this Agreement to set forth certain terms
and conditions related to the rates for transportation service under the FT-1
Service Agreement and hereby agree to the following:


 


1.                         Subject
to the provisions of Paragraph 2 and 6 herein, commencing on April 1, 2001 and
continuing through March 31, 2008, Texas Eastern shall charge DEH, and DEH
agrees to pay Texas Eastern, a Reservation Charge rate of [* * *] per month per
dekatherm (“Dth”) of DEH’s maximum daily quantity (“MDQ”) under the FT-1
Service Agreement, plus all maximum Usage rates in effect from time to time per
Dth delivered for DEH’s account, the ACA surcharge, the GRI surcharge if
applicable, and any other applicable surcharges.


 


2.                         The
discount agreed to in Paragraph 1 herein shall be applicable only to
transportation of gas quantities received in Texas Eastern’s Access Area Zone
ELA and redelivered at Texas Eastern’s M&R No. 73252. In addition the
discount agreed to in Paragraph 1 herein shall be applicable only up to the MDQ
specified in the FT-1 Service Agreement. To the extent DEH utilizes points of
receipt and/or points of delivery other than those points specified in this
Paragraph 2. Texas Eastern shall charge, and DEH agrees to pay Texas Eastern,
the maximum reservation charge rates applicable to service under Texas Eastern’s
Rate Schedule FT-1 and the FT-1 Service Agreement for such service.


 


_________


***
Certain information on this page has been omitted and filed separately with the
SEC. Confidential treatment has been requested with respect to the omitted
portions.


 

















 


3.                         Texas
Eastern and DEH recognize that Texas Eastern’s Rate Schedule FT-1 rates may be
subject to modification from time to time. With regard to the rates applicable
to the FT-1 Service Agreement, Texas Eastern and DEH expressly agree that DEH
shall be entitled to refunds of payments paid by DEH pursuant to the FT-1
Service Agreement and Rate Schedule FT-1 only in the event the final,
non-appealable maximum rate, as determined by the Federal Energy Regulatory
Commission (“Commission”) for a given time period (“Final Maximum Rate”) is
lower than the rate actually paid by DEH during such time period (“Actual Rate”).
Subject to the condition precedent set forth in the foregoing sentence, DEH’s
principal refund shall be equal to the product of the difference between the
Actual Rate and the Final Maximum Rate and DEH’s MDQ during the refund period.
DEH agrees not to initiate or instigate any action or proceedings for the
purpose of obtaining refunds in excess of the foregoing amount.


 


4.                         Notwithstanding
the discount agreed to herein, in no event will Texas Eastern charge rates
greater than or less than the respective maximum or minimum rates on file with
the Commission for service under the FT-1 Service Agreement.


 


5.                         DEH
acknowledges and agrees that all terms and conditions of Texas Eastern’s FERC
Gas Tariff, as effective from time to time, and applicable form of service
agreement, including provisions for filing of changes in Texas Eastern’s FERC
Gas Tariff and in rates, which changes may affect this Agreement, are
applicable to the FT-1 Service Agreement. In the event of a conflict between
this Agreement and Texas Eastern’s FERC Gas Tariff and/or form of service
agreement, Texas Eastern’s FERC Gas Tariff and/or the form of service agreement
shall control.


 


6.                         The
discount agreed to in Paragraph 1 herein shall be applicable only for the
period commencing on April 1, 2001, and continuing through and including March
31, 2008.


 


7.                         This
Agreement shall be interpreted and performed in accordance with the laws of the
State of Texas without recourse to the law governing conflict of laws.


 


	
   

  	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TEXAS
  EASTERN TRANSMISSION 

  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ A. N. Harris

  	
   

  
	
   

  	
   

  	
  Agent
  and Attorney-in-Fact

  



 


2

















 


	
  ACCEPTED
  AND AGREED TO 

  THIS       DAY OF JUNE, 2000

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Duke
  Energy Hinds, LLC

  	
   

  	
   

  
	
   

  
	
  BY:

  	
  /s/ Larry Wall

  	
   

  	
   

  
	
   

  	
  Larry Wall

  	
   

  	
   

  
	
   

  	
  Vice President

  	
   

  	
   

  
					



 


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