Document:

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                                                                   Exhibit 10.54

                     DIRECTOR RETIREMENT BENEFITS AGREEMENT

         This DIRECTOR RETIREMENT BENEFITS AGREEMENT, made and effective this
the 1st day of September, 1999, by and between Piedmont Natural Gas Company,
Inc. (the "Company"), and ____________ (the "Director").

                              W I T N E S S E T H:

         WHEREAS, the Board of Directors of the Company (the "Board") by
resolutions adopted at a meeting of the Board on April 26, 1994 (a) approved a
directors' retirement benefit plan (the "Plan") providing for the payment of
retirement benefits to non-employee directors under certain conditions and (b)
authorized the Company to enter into a contract with each non-employee director
of the Company for the payment of benefits in accordance with the provisions of
the Plan; and

         WHEREAS, the Board by resolutions adopted at a meeting of the Board on
February 26, 1999 (a) authorized an amendment to the Plan and (b) directed the
Chairman of the Board to execute on behalf of the Company an amendment to the
then existing retirement agreements between the Company and each director; and

         WHEREAS, the Board by resolutions adopted at a meeting of the Board on
August 27, 1999 (a) authorized a further amendment to the Plan and (b) directed
the appropriate officers of the Company to execute on behalf of the Company
amended retirement agreements between the Company and each director.

         NOW, THEREFORE, in consideration of the services to be rendered by the
Director to the Company, the Company and the Director agree as follows:

         1. If at the time of his or her retirement from the Board, the Director
shall be not less than 72 years of age or shall have served not less than ten
continuous years on the Board, the

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Director shall receive from the Company an annual retirement benefit equal to
the directors' annual retainer fee (presently $24,000) at the time of his or her
retirement, which annual retirement benefits shall (a) commence upon retirement
from the Board, (b) continue for life, and (c) be payable in twelve (12) equal
monthly payments.

         2. Should the Director die after retirement before receiving the
retirement benefit described in paragraph one above for at least ten years (120
monthly payments), the retirement benefits shall be paid to the Director's
designated beneficiary(s) for the remaining portion of the ten year period. The
Director shall determine in the Addendum attached hereto and incorporated in all
respects, that any payment due pursuant to this Agreement shall be paid to the
designated beneficiary(s) either (1) as a lump-sum payment within ninety days of
the Director's death, or (2) in periodic monthly payments for the remainder of
the ten-year period following the Director's retirement date from the Board. If
no Addendum shall be attached hereto, the Director shall be deemed to have
elected a lump sum payment payable to his or her estate.

         3. Should the Director die while serving on the Board, the Director's
previously designated beneficiary(s) shall be paid ten times the annual director
retainer fees that are in effect at the date of the Director's death. Such
payment shall be made within ninety days of the death of such Director.

         4. In the event of a "Change in Control" (as hereinafter defined) or a
"Potential Change in Control" (as hereinafter defined) during the time when the
Director is serving on the Board, Director shall have the option, at his or her
sole discretion, (i) to receive a lump sum cash payment equal to his or her
"Fixed Retirement Benefits" (as hereinafter defined) or (ii) to receive the
benefits to which he or she would otherwise be entitled under Paragraphs 1 and 2
of this Agreement had the Director retired on the date immediately preceding the
Change in Control or Potential Change in Control and served not less than 10
continuous years on the Board. For the purposes of option (ii) above, it shall
be assumed that the Director has served not less than 10

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continuous years without regard to the actual time of service. For purposes of
this Paragraph, the following terms shall have the meanings indicated below:

                  (A) "Affiliate" shall have the meaning set forth in Rule 12b-2
         promulgated under Section 12 of the Exchange Act.

                  (B) "Beneficial Owner" shall have the meaning set forth in
         Rule 13d-3 under the Exchange Act.

                  (C) "Board" shall mean the Board of Directors of the Company.

                  (D) A "Change in Control" shall be deemed to have occurred if
         the event set forth in any one of the following paragraphs shall have
         occurred:

                           (i) any Person is or becomes the Beneficial Owner,
                  directly or indirectly, of securities of the Company (not
                  including in the securities beneficially owned by such Person
                  any securities acquired directly from the Company or its
                  affiliates) representing 20% or more of the combined voting
                  power of the Company's then outstanding securities, excluding
                  any Person who becomes such a Beneficial Owner in connection
                  with a transaction described in clause (a) of paragraph (iii)
                  below; or

                           (ii) the following individuals cease for any reason
                  to constitute a majority of the number of directors then
                  serving: individuals who, on the date hereof, constitute the
                  Board and any new director (other than a director whose
                  initial assumption of office is in connection with an actual
                  or threatened election contest, including but not limited to a
                  consent solicitation, relating to the election of directors of
                  the Company) whose appointment or election by the Board or
                  nomination for election by the Company's shareholders was
                  approved or recommended by a vote of at least two-thirds (2/3)
                  of the directors then still in

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                  office who either were directors on the date hereof or whose
                  appointment, election or nomination for election was
                  previously so approved or recommended; or

                           (iii) there is consummated a merger or consolidation
                  of the Company or any direct or indirect subsidiary of the
                  Company with any other corporation, other than (a) a merger or
                  consolidation which would result in the voting securities of
                  the Company outstanding immediately prior to such merger or
                  consolidation continuing to represent (either by remaining
                  outstanding or by being converted into voting securities of
                  the surviving entity or any parent thereof), in combination
                  with the ownership of any trustee or other fiduciary holding
                  securities under an employee benefit plan of the Company or
                  any subsidiary of the Company, at least 50% of the combined
                  voting power of the securities of the Company or such
                  surviving entity or any parent thereof outstanding immediately
                  after such merger or consolidation, or (b) a merger or
                  consolidation effected to implement a recapitalization of the
                  Company (or similar transaction) in which no Person is or
                  becomes the Beneficial Owner, directly or indirectly, of
                  securities of the Company (not including in the securities
                  Beneficially owned by such Person any securities acquired
                  directly from the Company or its Affiliates other than in
                  connection with the acquisition by the Company or its
                  Affiliates of a business) representing 20% or more of the
                  combined voting power of the Company's then outstanding
                  securities; or

                           (iv) the shareholders of the Company approve a plan
                  of complete liquidation or dissolution of the Company or there
                  is consummated an agreement for the sale or disposition by the
                  Company of all or substantially all of the Company's assets,
                  other than a sale or disposition by the Company of all or
                  substantially all of the Company's assets to an entity, at
                  least 50% of the

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                  combined voting power of the voting securities of which are
                  owned by shareholders of the Company in substantially the same
                  proportions as their ownership of the Company immediately
                  prior to such sale.

                  (E) "Company" shall mean Piedmont Natural Gas Company, Inc.
         and, except in determining whether or not any Change in Control of the
         Company has occurred, shall include any successor to its business
         and/or assets which assumes and agrees to perform this Agreement by
         operation of law, or otherwise.

                  (F) "Exchange Act" shall mean the Securities Exchange Act of
         1934, as amended from time to time.

                  (G) "Fixed Retirement Benefits" shall with respect to a
         non-employee director mean the lump sum cash amount equal to 150% of
         the net present value of the retirement benefits to the Director would
         otherwise be determined to receive under this Agreement had he or she
         been entitled to the payments provided in paragraph 1 above. In
         determining the applicable lump sum cash amount, the net cash value
         shall be determined in the same manner as provided in the case of a
         lump sum election under the Company's Employee Retirement Plan as in
         effect on the date immediately prior to the Change in Control or
         Potential Change in Control.

                  (H) "Person" shall have the meaning given in Section 3(a)(9)
         of the Exchange Act, as modified and used in Sections 13(d) and 14(d)
         thereof, except that such term shall not include (a) the Company or any
         of its subsidiaries, (b) a trustee or other fiduciary holding
         securities under an employee benefit plan of the Company or any of its
         Affiliates, (c) an underwriter temporarily holding securities pursuant
         to an offering of such securities, or (d) a corporation owned, directly
         or indirectly, by the shareholders of the Company in substantially the
         same proportions as their ownership of stock of the Company.

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                  (I) "Potential Change in Control" shall be deemed to have
         occurred if the event set forth in any one of the following paragraphs
         shall have occurred:

                           (a) the Company enters into an agreement, the
                  consummation of which would result in the occurrence of a
                  Change in Control; or

                           (b) the Company or any Person publicly announces an
                  intention to take or to consider taking actions which, if
                  consummated, would constitute a Change in Control; or

                           (c) any Person becomes the Beneficial owner, directly
                  or indirectly, of securities of the Company representing 15%
                  or more of either the then outstanding shares of common stock
                  of the Company or the combined voting power of the Company's
                  then outstanding securities (not including in the securities
                  beneficially owned by such Person any securities acquired
                  directly from the Company or its affiliates); or

                           (d) the Board adopts a resolution to the effect that,
                  for purposes of this Agreement, a Potential Change in Control
                  has occurred.

A Change in Control or a Potential Change in Control shall not relieve the
Company or its successors or assigns of the obligations to make any payments
required by paragraphs 2 or 3 of this Agreement.

         5. The Company will pay the premium for medical insurance for the
Director while he or she is serving on the Board. The medical insurance will
provide substantially the same benefits as the Company provides to its senior
executive officers or, if the Company is owned or controlled by another entity,
the same benefits as the controlling entity provides to its senior executive
officers or to persons preforming functions similar to those provided by senior
executive officers of a corporation. In addition, the Director shall have the
option to include his or her spouse and/or dependent children upon payment of
the additional premiums required to

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insure such persons. If at this time of his or her retirement from the Board,
the Director is entitled to receive the benefits provided by paragraph 1 or
paragraph 4 of this Agreement, the Company will continue to pay the insurance
premiums (and shall provide the Director the option to pay the premiums for his
or her spouse and/or dependent children) for the Director for his or her life.
If the Director is entitled to receive other medical insurance benefits from the
Company, he or she shall have the option of selecting such other medical
insurance benefits or the medical insurance benefits provided under this
Agreement, but not both.

         6. That this Agreement shall supersede in all respects any previously
executed agreement between the Company and the Director pertaining to director
retirement benefits.

         7. The retirement benefits provided for in this Agreement may not be
canceled or terminated except upon the written agreement of the Company and the
Director.

         IN WITNESS WHEREOF, Piedmont Natural Gas Company, Inc., has caused this
Agreement to be executed in its name by its duly authorized officers and its
corporate seal to be hereto affixed; and the above named Director has hereto
subscribed his or her signature, all the day and year first above written.

PIEDMONT NATURAL GAS COMPANY, INC.          DIRECTOR

By: /s/ John H. Maxheim
    --------------------------------        -----------------------------
    Chairman of the Board

ATTEST: /s/ Martin C. Ruegsegger
        ----------------------------

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               ADDENDUM TO DIRECTOR RETIREMENT BENEFITS AGREEMENT

         The undersigned Director directs that any payment due pursuant to
Paragraph 2 or 3 to the attached Director Retirement Benefits Agreement be paid
to the beneficiary(s) designated below as follow:

         1.       Lump-sum payment within                 ______________________
                  ninety days of my death:

                           or

         2.       Periodic monthly payments               ______________________
                  following my death while serving
                  on the Board of Directors of the
                  Company or for the reminder of the
                  ten -year period following my
                  retirement date from the Board of
                  Directors of the Company

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

         Beneficiary(s) designated pursuant to the attached Director Retirement
Benefits Agreement.

         Payment of any Director retirement benefits shall be made directly to
the following person(s):

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Name                                    Name

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Printed or Typed Name                   Printed or Typed Name

----------------------------            -----------------------------
Street Address                          Street Address

----------------------------            -----------------------------
City and State                          City and State

----------------------------            -----------------------------
Zip Code                                Zip Code

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----------------------------            -----------------------------
Name                                    Name

----------------------------            -----------------------------
Printed or Typed Name                   Printed or Typed Name

----------------------------            -----------------------------
Street Address                          Street Address

----------------------------            -----------------------------
City and State                          City and State

----------------------------            -----------------------------
Zip Code                                Zip Code

----------------------------            -----------------------------
Name                                    Name

----------------------------            -----------------------------
Printed or Typed Name                   Printed or Typed Name

----------------------------            -----------------------------
Street Address                          Street Address

----------------------------            -----------------------------
City and State                          City and State

----------------------------            -----------------------------
Zip Code                                Zip Code

                                        Director:
                                                 --------------------

                                        Date:
                                             ------------------------<PAGE>   1
                                                                   Exhibit 10.55

                    SERVICE AGREEMENT UNDER RATE SCHEDULE GSS

         THIS AGREEMENT entered into this 1st day of July, 1996, by and between
TRANSCONTINENTAL GAS PIPE LINE CORPORATION, a Delaware corporation, hereinafter
referred to as "Seller", first party, and, PIEDMONT NATURAL GAS COMPANY, INC.,
a(n) New York corporation, hereinafter referred to as "Buyer", second party,

                                   WITNESSETH:

         WHEREAS, Buyer desires to purchase and Seller desires to sell natural
gas storage service under Seller's Rate Schedule GSS as set forth herein; and

         WHEREAS, pursuant to the terms of the Joint Stipulation and Settlement
Agreement approved by the Federal Energy Regulatory Commission's ("Commission")
Order dated July 16, 1993 in Docket Nos. RS92-86-003, RP92-108-000, and
RP92-137-000 which amended Seller's Certificate in Docket No. CP61-194, Seller
and Buyer agreed to a twenty year contract term through March 31, 2013, as set
forth in that Order, for the Storage Demand Quantity and Storage Capacity
quantity which are supported by service provided by CNG Transmission
Corporation; and

         WHEREAS, pursuant to the terms of the Application to Amend Seller's
Certificate, in Docket No. CP61-194, as approved by the Commission's Order dated
June 13, 1996 in Docket No. CP96-226-000, Seller and Buyer agreed to the Storage
Demand Quantity and Storage Capacity Quantity set forth in Article I hereof;

         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 GSS, Seller agrees to receive from Buyer for storage, inject into
storage for Buyer's account, store, withdraw from storage (or cause to be
injected into storage for Buyer's account, stored, and withdrawn from storage)
and deliver to Buyer, quantities of natural gas as follows:

         To withdraw from storage or cause to be withdrawn from storage,
         transport and deliver to Buyer at the delivery points set forth below,
         the gas stored for Buyer's account up to a maximum quantity in any day
         of
                  68,955 Mcf, during the period beginning on July 1, 1996 and
                  ending on June 30, 2001, and 37,486 Mcf during the period
                  beginning on July 1, 2001 and ending on March 31, 2013,
         which quantity shall be Buyer's Storage Demand.

         To receive and store or cause to be stored up to a total quantity at
         any one time of
                  3,858,940 Mcf, during the period beginning on July 1, 1996 and
                  ending on June 30, 2001, and 2,197,887 Mcf during the period
                  beginning on July 1, 2001 and ending on March 31, 2013,
         which quantity shall be Buyer's Storage Capacity Quantity.

                                   ARTICLE II
                              POINT(S) OF DELIVERY

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                    SERVICE AGREEMENT UNDER RATE SCHEDULE GSS
                                   (Continued)

         The Point or Points of Delivery for all natural gas delivered by Seller
to Buyer under this agreement shall be at or near:

(1)      Anderson Meter Station, located at milepost 1162.72 on Seller's main
         transmission line in Anderson County, South Carolina, approximately 3.5
         miles southeasterly from Anderson, South Carolina, on County Road near
         Broadway Lake.

(2)      Charlotte Meter Station, located at milepost 1287.10 on Seller's main
         transmission line in Iredell County, North Carolina, adjoining Seller's
         Compressor Station No. 150 site near Davidson, North Carolina.

(3)      Greensboro Meter Station, located at milepost 1355.06 on Seller's main
         transmission line in Guilford County, North Carolina, approximately 12
         miles southwesterly from Greensboro, North Carolina, near the
         intersection of State Highway #150 and State Highway #68.

(4)      Greenville Meter Station, located at milepost 1183.96 on Seller's main
         transmission line in Greenville County, South Carolina, approximately
         17 miles southeasterly from Greenville, South Carolina, on County Road
         near Woodville, South Carolina.

(5)      Iva-Starr Meter Station, located at milepost 1159.01 on Seller's main
         transmission line, approximately 4 miles south of Anderson, Anderson
         County, South Carolina.

(6)      Owens-Corning Meter Station, located at milepost 1159.01 on Seller's
         main transmission line approximately 4 miles south of Anderson, South
         Carolina, near the juncture of South Carolina Highway #82 and #811.

(7)      Salisbury Meter Station, located at milepost 1308.45 on Seller's main
         transmission line in Rowan County, North Carolina, approximately 6
         miles northwesterly from Salisbury, North Carolina, near U.S. Highway
         #70.

(8)      Simpsonville Meter Station, located at milepost 1190.00 on Seller's
         main transmission line on U. S. Highway No. 276, approximately 1.75
         miles northwesterly from Fountain Inn, Greenville County, South
         Carolina.

(9)      Spartanburg Meter Station, located at milepost 1214.34 on Seller's main
         transmission line in Spartanburg County, South Carolina, approximately
         3.5 miles southeasterly from Spartanburg, South Carolina on State
         Highway #56.

(10)     Startex Meter Station, located in Spartanburg County, South Carolina,
         approximately 7.5 miles south of Spartanburg, South Carolina, on
         Compressor Station No. 140 Site.

(11)     Winston-Salem Meter Station, located at milepost 1340.48 on Seller's
         main transmission line in Davidson County, North Carolina,
         approximately 8 miles southeasterly from Winston-Salem, North Carolina,
         near Wallburg, North Carolina.

(12)     Woodruff Meter Station, located at milepost 1171.30 on Seller's main
         transmission line on State Highway No. 101, approximately 5.5 miles
         northwesterly from Woodruff, Spartanburg County, South Carolina.

(13)     Belton Meter Station, located at milepost 1171.30 on Seller's main
         transmission line in Anderson

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                   SERVICE AGREEMENT UNDER RATE SCHEDULE GSS
                                   (Continued)

         County, South Carolina, near the City of Belton, South Carolina.

(14)     Greenwood Meter Station, located at the point of connection of Seller's
         facilities and those of the City of Greenwood, South Carolina on
         Seller's main transmission line approximately 2 miles northeast of the
         City of Belton, Anderson County, South Carolina.

(15)     Stokesdale Meter Station, located at milepost 1359.63 on Seller's main
         transmission line in Guilford County, North Carolina, near the City of
         Stokesdale, North Carolina.

(16)     Kernersville Meter Station, located at milepost 1348.86 on Seller's
         main transmission line near Kernersville, Forsyth County, North
         Carolina.

(17)     Cowpens Meter Station, located at milepost 1222.66 on Seller's main
         transmission line near Cowpens, Cherokee County, South Carolina.

(18)     Inman Meter Station, located on Seller's Mill Spring Extension at
         approximately milepost 15.16 in Spartanburg County, South Carolina.

(19)     Landrum Meter Station, located on Seller's Mill Spring Extension at
         approximately milepost 23.81 in Spartanburg County, South Carolina.

(20)     Hickory Meter Station, located at milepost 1269.23 on Seller's main
         transmission line near Stanley, North Carolina.

(21)     Lowesville Meter Station, located on Seller's Maiden Extension at
         approximately milepost 0.18 at the intersection of State Highway Nos.
         1394 and 73 in Lincoln County, North Carolina.

(22)     Maiden Meter Station, located on Seller's Maiden Extension at
         approximately milepost 17.76 near the intersection of State Highway
         Nos. 1882 and 1883 in Catawba County, North Carolina.

(23)     Moore Meter Station, located at milepost 1205.89 on Seller's main
         transmission line on the side of Seller's Compressor Station No. 140,
         Spartanburg County, South Carolina.

(24)     Spencer-Buck Meter Station, located milepost 1312.72 on Seller's main
         transmission line in Rowan County, North Carolina, near the
         intersection of State Highway 601 and Young Road.

(25)     West Startex Meter Station, located adjacent to Seller's Mill Spring
         Extension in Spartanburg County, South Carolina approximately 6.0 miles
         from Seller's Compressor Station No. 140.

(26)     The point of connection of Seller's facilities and those of Duke Power
         Company adjacent to Seller's main transmission line at milepost
         1175.55, in Anderson County, South Carolina for delivery to gas to the
         Duke Lee Meter Station.

                                   ARTICLE III
                                DELIVERY PRESSURE

         Seller shall deliver natural gas to Buyer at the Point(s) of Delivery
at a pressure(s) of: not less than fifty (50) pounds per square inch gauge, or
at such pressures as may be agreed upon in the day-to-day operations of Buyer
and Seller.

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                    SERVICE AGREEMENT UNDER RATE SCHEDULE GSS
                                   (Continued)

                                   ARTICLE IV
                                TERM OF AGREEMENT

         This agreement shall be effective July 1, 1996 and shall remain in
force and effect through March 31, 2013.

                                    ARTICLE V
                             RATE SCHEDULE AND PRICE

         Buyer shall pay Seller for natural gas service rendered hereunder in
accordance with Seller's Rate Schedule GSS 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 at the initiative of either party. Such rate
schedule and General Terms and Conditions are by this reference made a part
hereof.

                                   ARTICLE VI
                                  MISCELLANEOUS

         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 contract(s):

                  Any and all Service Agreements previously entered into between
                  Buyer and Seller under Seller's Rate Schedule GSS.

         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 North Carolina.

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

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                    SERVICE AGREEMENT UNDER RATE SCHEDULE GSS
                                   (Continued)

         IN WITNESS WHEREOF, the parties hereto have caused this agreement to be
signed by their respective Presidents or Vice Presidents thereunto duly
authorized and have caused their respective corporate seals to be hereunto
affixed and attested by their respective Secretaries or Assistant Secretaries
the day and year above written.

                                              TRANSCONTINENTAL GAS PIPE
                                              LINE CORPORATION
                                                                        (Seller)
ATTEST:
(SEAL)

/s/ Randall R. Conkle                         BY /s/ Frank J. Ferazzi
----------------------------                     ------------------------------
Asst. Secretary                                  Frank J. Ferazzi
                                                 Vice President
                                                 Customer Service

                                              PIEDMONT NATURAL GAS COMPANY,
                                              INC.
                                                                        (Buyer)
ATTEST:
(SEAL)

/s/ Ted C. Coble                              By /s/ Thomas E. Skains
----------------------------                     ------------------------------
Asst. Secretary                               Sr. Vice President
                                              Gas Supply and Services

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