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                                                                   EXHIBIT 10.01
                             LONG TERM GAS AGREEMENT

This Agreement is made this 12th day of April 2001 between Midland Cogeneration
Venture Limited Partnership ("MCV" or "Buyer") and Engage Energy America LLC
("Seller") for the purpose of entering into a long-term gas supply arrangement
on the terms and conditions that follow. In this Agreement, Seller and Buyer may
also be referred to individually as "Party" or collectively as "Parties."

1.       Definitions. The following terms when used in this Agreement shall have
         the following meanings:

         1.1.     "Agreement" shall mean this Agreement and all Exhibits hereto.

         1.2.     "Btu" shall mean one (1) British Thermal Unit, the amount of
                  heat required to raise the temperature of one (1) pound of
                  water one (1) degree Fahrenheit at sixty (60) degrees
                  Fahrenheit. BTU is measured on a dry basis.

         1.3.     "Business Day" shall mean any Day other than a Day on which
                  banks in the U.S.A. are allowed by law to be closed.

         1.4.     "Contract Year" shall mean any calendar year during the term
                  of this Agreement.

         1.5.     "Cubic Foot of Gas" shall mean the volume of Gas contained in
                  one (1) cubic foot of space at a pressure of fourteen and
                  seventy-three hundredths (14.73) dry Psia, at a temperature of
                  sixty degrees (60 (degrees)) Fahrenheit.

         1.6.     "Day" shall mean a period of twenty-four (24) consecutive
                  hours (23 hours when changing from Standard to Daylight time
                  and 25 hours when changing back to Standard time) beginning
                  and ending at 9:00 a.m. Central clock time.

         1.7.     "Disputed Amount" shall have the meaning set forth in Section
                  5.1.2.

         1.8.     "Gas" shall mean any mixture of hydrocarbon and noncombustible
                  gases in a gaseous form consisting primarily of methane and
                  includes natural Gas produced from gas wells (gas well gas),
                  Gas which immediately prior to being produced from a reservoir
                  is in solution with crude oil or dispersed in an intimate
                  association with crude oil or in contact with crude oil across
                  a gas-oil contact (casinghead gas), or residue gas resulting
                  from the processing of either or both casinghead gas and gas
                  well gas.

         1.9.     "Material Adverse Change" shall mean: (i) with respect to
                  Guarantor, having consolidated net worth of less than
                  $800,000,000 ($US) as presented in its financial statements
                  and having a Standard & Poor's rating lower than BBB-; (ii)
                  with respect to MCV having less than $60 million Cash Reserves
                  as reported in the Liquidity Section of Midland Cogeneration
                  Venture's annual 10K report and quarterly 10Q report; and
                  (iii) with respect to Midland Funding Corp. 1 having a
                  Standard & Poor's rating lower than BBB-. Cash Reserves equal
                  the total Cash Reserves as reported less the funds restricted
                  for rental payments (presently $137,000,000) and funds
                  restricted for management nonqualified plans (presently
                  $1,800,000).

         1.10.    "Mcf" shall mean one thousand (1,000) cubic feet of Gas.

         1.11.    "MMBtu" shall mean a quantity of Gas equal to one million
                  (1,000,000) Btu, which is equivalent to one (1) dekatherm.

         1.12.    "Month" shall mean the period beginning at 9 a.m. Central
                  clock time on the first Day of any calendar month and ending
                  at 9 a.m. Central clock time on the first Day of the next
                  succeeding calendar month.

         1.13.    "Point of Delivery" shall mean the point where Seller delivers
                  Gas to Buyer as set forth in Exhibit A of this Agreement.

         1.14.    "Prime Rate" shall mean the fluctuating per annum lending rate
                  of interest from time to time published by CITIBANK, N.A., or
                  its successor, for its best commercial customers.

         1.15.    "Psia" shall mean pounds per square inch absolute.

         1.16.    "Transporter" shall mean any pipeline transporting Gas subject
                  to this Agreement as referenced in Exhibit A.

         1.17.    "Undisputed Amount" shall have the meaning set forth in
                  Section 5.1.2.

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2.       Quantity. Seller agrees to deliver and sell and MCV agrees to receive
         and purchase 3,500 MMBtu/Day, on a firm basis, in accordance with the
         terms and conditions of this Agreement.

3.       Price.
         3.1.     The price to be paid by Buyer to Seller for all quantities of
                  Gas delivered hereunder inclusive of all taxes and other
                  adjustments or costs not provided for herein shall be $5.43
                  per MMBtu for all Gas delivered to the Point of Delivery.

         3.2.     Seller shall be responsible for all taxes prior to the Point
                  of Delivery. MCV shall be responsible for all taxes at and
                  after the Point of Delivery.

4.       Term.  Deliveries of Gas shall commence on May 1, 2001 and continue
         through March 31, 2003.

5.       Billing, Payments and Audit.
         5.1.     Billing and payment procedures are as follows:
                  5.1.1.   After the delivery of Gas has commenced hereunder,
                           Seller shall, on or about the fifteenth (15) Day of
                           each month, render to Buyer a statement showing the
                           estimated (or actual if available) quantity of Gas
                           delivered at each Point of Delivery during the prior
                           month and the amounts due Seller hereunder. Seller
                           shall also render to Buyer, if necessary, a separate
                           statement showing the adjustment, if any, required to
                           conform the prior month's estimated and actual
                           deliveries and prices. Payment of the amount due
                           based on such statements shall be made by Buyer to
                           Seller by wire transfer with immediately available
                           funds the later of (a) ten (10) Days following
                           receipt of such statement or (b) the twenty-fifth
                           (25th) Day of the month. If the due date falls on a
                           Day that is not a Business Day, then payment shall be
                           made on the next Business Day. If Buyer bills Seller,
                           the same procedure shall be followed as set forth in
                           this Section 5.1.1.

                  5.1.2.   In the event that either Party shall in good faith
                           dispute any portion of the amount shown in the other
                           Party's statement (hereinafter called the "Disputed
                           Amount"), the disputing Party shall (a) notify the
                           other Party in writing as to the Disputed Amount, and
                           (b) pay the remaining undisputed portion of the other
                           Party's statement when due (hereinafter, the
                           "Undisputed Amount").

                  5.1.3.   If it is determined that the failure to pay any
                           Disputed Amount of any statement was not justifiable,
                           interest on such Disputed Amount shall accrue at a
                           rate per annum equal to the Prime Rate plus one
                           percent (1.0%) from the time payment would have been
                           due until the time payment is made, but in no event
                           shall the interest on such unpaid portion exceed the
                           applicable lawful nonusurious rate of interest.
                           Payment of any previously unpaid Disputed Amount
                           shall be credited first to all interest accrued and
                           then to principle.

         5.2.     Each Party hereto shall have the right, upon reasonable
                  written notice, during normal business hours and at its own
                  expense to examine and to obtain copies of the relevant
                  portion of the books and records of the other Party to the
                  extent necessary to verify the accuracy of any statement,
                  charge, computation, or demand made under or pursuant to this
                  Agreement. Such examination shall be conducted no more than
                  once in a twelve-month period. Any error or discrepancy in
                  statements furnished pursuant to this Agreement shall be
                  promptly reported to Seller or Buyer, as applicable, and
                  proper adjustment thereof shall be made within thirty (30)
                  Days after final determination of the correct volumes or
                  amounts involved; provided, however, that if no such errors or
                  discrepancies are reported to Seller or Buyer, as applicable,
                  within two (2) years from the end of the calendar year in
                  which such errors or discrepancies occurred, the same shall be
                  conclusively deemed to be correct.

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6.       Deliveries.
         6.1.     Exhibit A hereto sets forth the Point of Delivery under this
                  Agreement. Seller shall not use any other point to deliver Gas
                  without Buyer's written consent, which Buyer may grant or
                  withhold in its sole discretion.

         6.2.     To the extent that the procedures for the delivery of Gas set
                  forth herein conflict with the rules and tariffs of any
                  Transporter, the Transporter's rules and tariffs will control
                  and the Parties shall cooperate fully with each other in
                  complying with such rules and tariffs.

7.       Third Party Gas. Buyer understands and agrees the Gas delivered
         hereunder may be supplied either from Seller's Gas or from Gas
         purchased by Seller from third parties; provided however, if such Gas
         is purchased from third parties, Seller shall be solely responsible for
         the payment of the purchase price of Gas to such third parties.

8.       Title. Title and risk of loss to Gas delivered hereunder shall pass
         from Seller to Buyer at the Point of Delivery.

9.       Delivery Pressure. Seller shall be required to deliver or cause
         delivery of the Gas to the Point of Delivery and for delivering such
         Gas at a pressure sufficient to effect such delivery. Notwithstanding
         anything to the contrary herein, Seller shall have the right but not
         the obligation to install compression to effect deliveries of Gas
         hereunder.

10.      Quality of Gas. The Gas to be delivered by Seller hereunder at the
         Point of Delivery shall comply with the quality, heat, and pressure
         requirements of the receiving Transporter.

11.      Measurement and Tests of Gas. The quantity and quality of Gas delivered
         to the Buyer's account at the Point of Delivery shall be determined in
         accordance with the established standard terms and conditions
         applicable to the Transporter's gas transportation contracts.

12.      Warranty of Title. Seller hereby warrants (i) title to all Gas sold
         hereunder or the right to sell such Gas, (ii) that it has the right to
         sell same to Buyer, and (iii) that all such Gas shall be free from any
         and all liens and adverse claims of any nature whatsoever. Seller
         agrees to indemnify and hold Buyer harmless, including but not limited
         to, all costs, damages, and expenses (including Buyer's reasonable
         attorney fees) incurred by Buyer in defending against any liens or
         adverse claims of any nature whatsoever, including but not limited to,
         third parties from whom Seller purchased Gas as permitted in Section 7,
         in addition to any other remedies Buyer may have hereunder or at law.

13.      Credit Worthiness.
         13.1.    This Agreement is subject to Seller providing, for the term of
                  this Agreement, a parental guaranty to Buyer in the form
                  attached hereto as Exhibit "B." SUCH GUARANTY SHALL BE
                  EFFECTIVE AS OF THE DATE OF THIS AGREEMENT. If the Seller's
                  guarantor is merged, acquired or otherwise controlled by
                  another entity and no longer has a long-term credit rating of
                  at least BBB-, Seller will cause a substitute guaranty in the
                  same form without change to any material obligation and in the
                  same amount to be issued by an affiliated entity with a
                  minimum credit rating of BBB-.

         13.2.    At any time, and from time to time during the term of this
                  Agreement (and notwithstanding whether an Event of Default has
                  occurred as defined in Section 21) but not more than once in
                  any seven (7) Day period, if the Termination Payment (as such
                  term is defined in Section 13.5) should exceed $5 million with
                  respect to Buyer and $5 million with respect to Seller (the
                  "Security Threshold"), then either Party may request the other
                  Party to provide additional Performance Assurance in an amount
                  equal to the amount by which the Termination Payment exceeds
                  the Security Threshold (rounding upwards for any fractional
                  amount to the next $100,000). The Performance Assurance shall
                  be delivered within fourteen (14) calendar days of the date of
                  the request. If such additional Performance Assurance is not
                  received by the requesting Party within fourteen (14) calendar
                  days, then the requesting Party, in addition to any other
                  remedy available, may immediately suspend performance with
                  respect to the quantities associated with the amount in excess
                  of the Security Threshold, plus any

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                  Performance Assurance already in place, and cover such lost
                  supply or market, as the case may be. Incremental gas costs
                  (as referenced in Section 17 with respect to either Buyer or
                  Seller, as applicable) incurred by the covering Party shall be
                  recoverable from the other Party. Such suspension will be
                  implemented on a pro rata basis to a level at which assurances
                  have been provided. In addition, a failure to provide
                  Performance Assurance as requested shall constitute an Event
                  of Default under Section 21.

         13.3.    Either Party, at its sole expense, may request the other Party
                  to reduce its Performance Assurance then in place if the
                  Termination Payment (with respect to this Agreement) reverts
                  back to an amount less than or equal to the sum of the
                  Performance Assurance and the Security Threshold then in place
                  (rounding upwards for any fractional amount to the next
                  $100,000). Such request for reduction shall be no more
                  frequently than weekly, with respect to Letters of Credit and
                  guaranties, and daily, with respect to cash. The consent to
                  such request(s) shall not be unreasonably withheld.

         13.4.    Either Party may at any time make a calculation of the
                  Termination Payment and submit same to the other Party for
                  review. If within thirty (30) Days of the submission of the
                  value of the Termination Payment from one Party to the other,
                  agreement has not been reached by the Parties as to the amount
                  of the Termination Payment, the determination of the amount of
                  the Termination Payment shall be submitted to arbitration as
                  provided for in Section 18 of this Agreement. Notwithstanding
                  the submission of the determination of the amount of the
                  Termination Payment to arbitration, all requirements in
                  Section 13 of this Agreement shall remain in effect.

         13.5.    With respect to this Section 13: (a) "Performance Assurance"
                  means collateral in the form of either cash or Letters of
                  Credit. The requesting Party may also accept a parental
                  guaranty or other collateral deemed sufficient by the
                  requesting Party. If the collateral is in the form of cash,
                  then such cash shall be placed in a segregated,
                  interest-bearing escrow account on deposit with a major U.S.
                  commercial bank having a credit rating of at least "A-" from
                  Standard and Poor's or "A3" from Moody's (interest to accrue
                  to the Party posting the collateral); (b) "Letter of Credit"
                  means one or more irrevocable, transferable standby letters of
                  credit from a major U.S. commercial bank or foreign bank with
                  a U.S. office having a credit rating of at least "A-" from
                  Standard & Poor's or "A3" from Moody's; (c) "Termination
                  Payment" means the amount by which the requesting Party shall
                  aggregate Gains, Losses, and Costs (as those terms are defined
                  in Section 21.2.5 with respect to this Agreement) into a
                  single net amount. The Termination Payment shall include all
                  amounts owed but not yet paid by one Party to the other Party,
                  whether or not such amounts are then due, for performance
                  already performed pursuant to this Agreement.

14.      Right to Terminate Agreement.
         14.1.    In addition to any other remedy of Buyer under law or provided
                  under this Agreement, Buyer shall have the right at its
                  election to terminate this Agreement upon twenty (20) Days
                  written notice to Seller if Seller for any reason other than:
                  (i) Force Majeure with a duration of less than sixty (60)
                  days, (ii) Buyer's failure to take, or (iii) failure by Buyer
                  to pay any Undisputed Amounts, fails, over a period of at
                  least sixty (60) Days, to deliver an average of ninety percent
                  (90%) of the agreed quantity, and provided further, that such
                  failure occurred not more than one hundred forty (140) Days
                  immediately preceding the giving of such notice of
                  termination. Seller shall have twenty (20) Days after receipt
                  of such cancellation notice to cure any failure, in which case
                  Buyer's cancellation is null and void, and this Agreement
                  shall remain in full force and effect.

         14.2.    In addition to the other remedies of Seller under law or
                  provided under this Agreement, Seller shall have the right at
                  its election to terminate this Agreement upon twenty (20) Days
                  written notice to Buyer if Buyer for any reason other than:
                  (i) Force Majeure with a duration of less than sixty (60)
                  days, (ii) Seller's failure to deliver, or (iii) failure by
                  Seller to pay any Undisputed Amounts, fails, over a period of
                  at least sixty (60) Days, to take a volume of Gas not less
                  than an average of ninety percent (90%) of the agreed
                  quantity, and provided further, that such failure occurred not
                  more than one hundred forty (140) Days immediately preceding
                  the giving of such notice of termination. Buyer shall have
                  twenty (20) Days after receipt of such

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                  cancellation notice to cure any failure, in which case
                  Seller's cancellation is null and void, and this Agreement
                  shall remain in full force and effect.

         14.3.    Notwithstanding Section 21.1.3, in the event of an on-going
                  Force Majeure continuing sixty (60) days or longer, in
                  addition to any other remedy under law or provided under this
                  Agreement, then such event of Force Majeure may be treated as
                  an Event of Default, and the Party who did not claim such
                  Force Majeure shall have the additional rights of a
                  Non-Defaulting Party as enumerated under Section 21.2.

15.      Assignment.
         15.1.    The terms, covenants and conditions hereof shall be binding on
                  the Parties hereto and on their successors and permitted
                  assignees.

         15.2.    Either Party may assign its interest under this Agreement with
                  the consent of the other Party, which consent shall not be
                  unreasonably withheld, to an affiliate or any company that
                  shall succeed, by merger or consolidation, to substantially
                  all of its assets. In the event of any such assignment, such
                  successor shall be entitled to the rights and shall be subject
                  to the obligations of its predecessor. Seller acknowledges
                  that pursuant to a certain Gas Backup Agreement among
                  Consumers Energy Company (formerly Consumers Power Company),
                  The Dow Chemical Company ("Dow"), and Midland Cogeneration
                  Venture Limited Partnership dated January 27, 1987, Buyer may
                  be required to make an assignment to Dow of certain rights
                  under this Agreement. Seller specifically agrees to accept
                  such assignments, if any, made by Buyer to Dow in accordance
                  with the aforementioned Gas Backup Agreement; provided,
                  however, that such assignment shall not relieve Buyer of its
                  obligations under this Agreement absent Seller's written
                  consent.

         15.3.    Except as provided above, neither Party shall assign this
                  Agreement without the prior consent of the other Party, which
                  consent shall not be unreasonably withheld. Nothing herein
                  contained shall prevent or restrict either Party from
                  pledging, granting a security interest in, or assigning as
                  collateral all or any portion of such Party's interest to
                  secure any debt or obligation of such Party under any
                  mortgage, deed of trust, security agreement, or similar
                  instrument.

         15.4.    Either Party desiring to make an assignment for which it has
                  the right pursuant to the foregoing may upon request obtain a
                  written consent within sixty (60) Days to such assignment from
                  the other Party evidencing its consent.

16.      Notices. All Notices required hereunder may be sent by facsimile or
         mutually acceptable electronic means, a nationally recognized overnight
         courier service, first class mail, or hand delivered to the addressee
         as provided below or at such other address as either Party may from
         time to time specify in writing to the other Party. Any notice,
         request, demand, or statement given in writing or required to be given
         in writing by the terms of this Agreement shall be deemed given when
         received on a Business Day by the addressee. In the absence of proof of
         the actual receipt date, the following presumptions will apply. Notices
         sent by facsimile shall be deemed to have been received upon the
         sending party's receipt of its facsimile machine confirmation of
         successful transmission, if the day on which such facsimile is received
         is not a Business Day or is after five p.m., recipient's time, on a
         Business Day, then such facsimile shall be deemed to have been received
         on the next following Business Day. Notice by overnight mail or courier
         shall be deemed to have been received on the next Business Day after it
         was sent or such earlier time as is confirmed by the receiving party.
         Notice via first class mail shall be considered delivered two Business
         Days after mailing.

         TO SELLER:
                Invoices:       Engage Energy America LLC
                                Attn: Vice President Structured Gas, Midwest
                                3000 Town Center Suite 2800; Southfield MI 48075
                                Telephone: 248-304-3218  Facsimile: 248-304-3243

                Other Notices:  Engage Energy America LLC
                                Attn: Vice President Structured Gas, Midwest
                                3000 Town Center Suite 2800; Southfield MI 48075
                                Telephone: 248-304-3218  Facsimile: 248-304-3243

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                Wire Transfer: BANK: BankOne N.A., Chicago, IL
                               ACCT: 10-51051
                               ABA: 071000013

         TO BUYER:
                Invoices:      Midland Cogeneration Venture Limited Partnership
                               Attn: Gas Accounting
                               100 Progress Place; Midland MI 48640
                               Telephone: 517-633-7854   Facsimile: 517-633-7857

                Other Notices: Midland Cogeneration Venture Limited Partnership
                               Attn: Contract Administration
                               100 Progress Place; Midland MI 48640
                               Telephone: 517-633-7852   Facsimile: 517-633-7857

                Wire Transfer: BANK: U.S. Bank Trust, N.A., Minneapolis, MN
                               ACCT: 180121167365
                               ABA: 091000022
                               DETAILS: MI Clearing 47300196 - FBO MCV 76608640
         Gas nomination notices will be in accordance with the terms and
         conditions applicable to Transporter.

17.      Remedies. In the event Seller fails to deliver the daily quantities for
         reasons not otherwise excused by Force Majeure, Seller shall
         be responsible for any incremental gas costs incurred by MCV in
         replacing such Gas. MCV agrees to use commercially reasonable efforts
         to purchase replacement Gas at the lowest available price. Seller's
         obligation to pay MCV for incremental replacement Gas costs (and any
         transportation penalties or transportation demand charges resulting
         from unused transportation) shall be MCV's sole and exclusive remedy
         for Seller's failure to deliver except as provided in Section 14. In
         the event that MCV fails to take Gas for reasons not otherwise excused
         by Force Majeure, MCV shall pay Seller for any incremental decrease in
         the resale price of such Gas. Seller agrees to use commercially
         reasonable efforts to resell such deficiency Gas at the highest
         achievable price. MCV's obligation to pay Seller for such decrease (and
         any transportation penalties or transportation demand charges resulting
         from unused transportation) shall be Seller's sole and exclusive remedy
         for MCV's failure to take Gas except as provided in Section 14.

18.      Arbitration.
         18.1.    If the Parties are unable to resolve a disagreement arising
                  under this Agreement, such disagreement shall be settled by
                  arbitration. Either Party may then commence arbitration by
                  serving written notice thereof on the other Party designating
                  the issue to be arbitrated.

         18.2.    The Parties shall each appoint one (1) arbitrator and the two
                  (2) arbitrators so appointed will select a third arbitrator,
                  all of such arbitrators to be qualified by education,
                  knowledge, and experience to resolve the dispute or
                  controversy. If either Party fails to appoint an arbitrator
                  within ten (10) Days after a request for such appointment is
                  made by the other Party in writing, or if the two (2)
                  appointed fail to agree on a third arbitrator within ten (10)
                  Days after the appointment of the second, the arbitrator or
                  arbitrators necessary to complete a board of three (3)
                  arbitrators will be appointed upon application by either Party
                  therefore to the American Arbitration Association ("AAA").

         18.3.    The jurisdiction of the arbitrators will be limited to the
                  single issue referred to arbitration and the arbitration shall
                  be conducted pursuant to the guidelines set forth by the AAA;
                  provided however, that should there be any conflict between
                  such guidelines and the procedures set forth in this
                  Agreement, the terms of this Agreement shall control.

         18.4.    Within fifteen (15) Days following selection of the third
                  arbitrator, each Party shall furnish the arbitrators in
                  writing its position regarding the issue being arbitrated. The
                  arbitrators may, if they deem necessary, convene a hearing
                  regarding the issue being arbitrated. Within thirty (30) Days
                  following the later of the appointment of the third arbitrator
                  or of the hearing, if one is held, the arbitrators shall
                  notify the Parties in writing as to which of the two (2)
                  positions submitted is most consistent with the meaning of
                  this Agreement with respect to the issue being arbitrated. No
                  other position may be selected. Such decision shall be binding
                  on the

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                  Parties hereto and shall remain in effect until and unless
                  changed in accordance with the provisions of this Agreement.

         18.5.    Enforcement of the award may be entered in any court having
                  jurisdiction over the Parties.

         18.6.    Each Party will pay the expenses of the arbitrator selected by
                  or for it, and its counsel, witnesses, and employees. All
                  other costs of arbitration will be equally divided between the
                  Parties.

19.      Force Majeure. The term "Force Majeure" as employed herein for all
         purposes relating hereto, shall mean acts of God, strikes, lockouts, or
         other industrial disturbances, acts of public enemy, wars, blockades,
         insurrections, riots, epidemics, landslides, lightning, earthquakes,
         hurricanes, explosions, fires, arrests and restraints of governments
         and people, civil disturbance, freeze-up of Seller's wells or wells
         from which Seller is furnishing Gas hereunder, or other temporary
         inability of Seller's wells or wells from which Seller is furnishing
         Gas hereunder to produce, mechanical breakdowns or repairs of MCV's
         plant or pipeline facilities or those of any Transporter used to
         transport Gas hereunder, inability of any Party hereto to obtain
         necessary materials, supplies, or permits due to existing or future
         rules, regulations, orders, laws, or proclamations of governmental
         authorities (federal, state, or local), including both civil and
         military, and any other causes whether of the kind herein enumerated or
         otherwise not within the control of the Party claiming suspension and
         that by the exercise of due diligence such Party is unable to prevent
         or overcome. Neither party shall be entitled to the benefit of the
         provisions of Force Majeure to the extent performance is affected by
         any or all of the following circumstances: (i) the curtailment of
         interruptible or secondary firm transportation unless primary, in-path,
         firm transportation is also curtailed; (ii) the party claiming excuse
         failed to remedy the condition and to resume the performance of such
         covenants or obligations with reasonable dispatch; or (iii) economic
         hardship, to include, without limitation, Seller's ability to sell Gas
         at a higher or more advantageous price than the Contract Price, Buyer's
         ability to purchase Gas at a lower or more advantageous price than the
         Contract Price, or a regulatory agency disallowing, in whole or in
         part, the pass through of costs resulting from this Agreement; (iv) the
         loss of Buyer's market(s) or Buyer's inability to use or resell Gas
         purchased hereunder

20.      Transportation. Both Parties shall cooperate in an effort to eliminate
         imbalances on either Party's transporting pipeline(s). The Parties
         further agree that if any imbalance penalties or charges (including
         cash out charges) are imposed on a Party as a result of the other
         Party's failure to deliver or accept the required quantities then the
         failing Party shall reimburse the nonfailing Party for such charges or
         penalties.

 21.     Defaults and Remedies.
         21.1.    Event of Default. A Party shall be deemed in default under
                  this Agreement upon the occurrence of any one
                  or more of the following events ("Events of Default"):

                  21.1.1.  The unexcused failure by a Party (the "Defaulting
                           Party") to make, when due, any payment required
                           pursuant to this Agreement if such failure is not
                           remedied within three (3) Business Days after written
                           notice of such failure is given to the Defaulting
                           Party by the other Party (the "Non-Defaulting Party")
                           and provided the payment is not a Disputed Amount as
                           described in Section 5.1.2;

                  21.1.2.  Any representation or warranty made by a Party herein
                           shall at any time during the term of this Agreement
                           prove to be false or misleading in any material
                           respect;

                  21.1.3.  The failure by a Party to perform, in any material
                           respect, any material covenant or provision set forth
                           in this Agreement (other than (i) the events that are
                           otherwise specifically covered in this Section 21.1
                           as a separate Event of Default and (ii) the events
                           that are covered in Sections 14 and 17) and such
                           failure is not cured within five (5) Business Days
                           (or such longer period of time if reasonably
                           necessary to cure the failure and the Defaulting
                           Party is making continuous and diligent efforts to
                           cure) after written notice thereof to the Defaulting
                           Party unless such failure is excused by Force
                           Majeure;

                  21.1.4.  A Party (i) makes an assignment or any general
                           arrangement for the benefit of creditors; (ii) files
                           a petition or otherwise commences, authorizes, or
                           acquiesces in the

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                           commencement of a proceeding or cause under any
                           bankruptcy or similar law for the protection of
                           creditors or have such petition filed or proceeding
                           commenced against it; or (iii) has a receiver,
                           provisional liquidator, conservator, custodian,
                           trustee or other similar official appointed with
                           respect to it or substantially all of its assets; or

                  21.1.5.  The failure of a Party, upon the occurrence of a
                           Material Adverse Change, to provide, for so long as
                           the Material Adverse Change is occurring, adequate
                           assurance as reasonably determined by the
                           Non-Defaulting Party but not to exceed the
                           Termination Amount (in the form of cash or a Letter
                           of Credit to be provided at the election of the
                           Defaulting Party or a guaranty deemed acceptable by
                           the Non-Defaulting Party, which such acceptance of
                           such guaranty may not be unreasonably withheld) of
                           its ability to perform all of its outstanding
                           obligations to the Non-Defaulting Party under this
                           Agreement within a period not to exceed three (3)
                           Business Days of the Defaulting Party's receipt, in
                           accordance with the notice provisions of Section 16,
                           of a demand therefore by the Non-Defaulting Party.

                  21.1.6.  If a party to this Agreement becomes subject to
                           Bankruptcy Code proceedings, it is understood and
                           agreed that the other Party shall be entitled to
                           exercise its contractual right to liquidate as a
                           forward contract merchant under Section 556 of the
                           U.S. Bankruptcy Code.

         21.2.    Remedies Upon an Event of Default.
                  21.2.1.  If an Event of Default occurs with respect to a
                           Defaulting Party at any time during the term of this
                           Agreement, the Non-Defaulting Party shall have the
                           right at its sole discretion for so long as the Event
                           of Default is continuing to (i) establish a date
                           (which date shall be between 5 and 10 Business Days
                           after the Non-Defaulting Party delivers written
                           notice to the Defaulting Party of its intent to
                           exercise the remedy described herein) ("Early
                           Termination Date") on which this Agreement shall
                           terminate, and (ii) withhold any payments due;
                           provided however, upon the occurrence of any Event of
                           Default listed in Section 21.1, as it may apply to
                           any Party, this Agreement in respect thereof shall
                           automatically terminate, without notice, and without
                           any other action by either Party as if an Early
                           Termination Date had been declared immediately prior
                           to such event.

                  21.2.2.  If an Early Termination Date has been designated, the
                           Non-Defaulting Party shall in good faith calculate
                           its Gains, Losses, and Costs resulting from the
                           termination of this Agreement. The Gains, Losses, and
                           Costs shall be determined by comparing the value of
                           the remaining term, contract quantities, and contract
                           prices under this Agreement, had it not been
                           terminated, to the equivalent quantities and relevant
                           market prices for the remaining term either quoted by
                           a bona fide third-party offer or that are reasonably
                           expected to be available in the market under a
                           replacement contract for the balance of this
                           Agreement. To ascertain the market prices of a
                           replacement contract, the Non-Defaulting Party may
                           consider, among other valuations, settlement prices
                           of NYMEX natural gas futures contracts, quotations
                           from leading dealers in natural gas swap contracts,
                           and other bona fide third party offers, all adjusted
                           for the length of the remaining term and differences
                           in transportation. It is expressly agreed that a
                           Party shall not be required to enter into replacement
                           transactions in order to determine the Termination
                           Amount (as hereinafter defined.)

                  21.2.3.  The Non-Defaulting Party shall aggregate such Gains,
                           Losses, and Costs with respect to the balance of this
                           Agreement into a single net amount ("Termination
                           Amount"). The Non-Defaulting Party shall provide the
                           Defaulting Party with a notice and statement
                           containing a clear identification and calculation of
                           the Termination Amount owed by or due to the
                           Defaulting Party and shall be accompanied by
                           sufficient information to enable the Defaulting Party
                           to determine the basis upon which the calculation was
                           made and the accuracy thereof. If the Non-Defaulting
                           Party's aggregate Losses and Costs exceed its
                           aggregate Gains, the Defaulting Party shall, within
                           five (5) Business Days of receipt of such statement,
                           pay the Termination Amount to the Non-Defaulting
                           Party, which amount shall bear interest at the
                           interest rate as set forth in Section 5.1.3 above,
                           from the Early Termination Date until paid. If

                                     Page 8
<PAGE>   9

                           the Non-Defaulting Party's aggregate Gains exceed its
                           aggregate Losses and Costs, if any, resulting from
                           the termination of this Agreement, the Non-Defaulting
                           Party shall pay such excess to the Defaulting Party
                           on or before the latter of: (i) twenty (20) Days
                           after the end of the month ending on or after the
                           Early Termination Date, and (ii) five (5) Business
                           Days after receipt by the Defaulting Party of the
                           Non-Defaulting Party's notice of the Termination
                           Amount, which amount shall bear interest at the
                           interest rate as set forth in Section 5.1.3 above,
                           from the Early Termination Date until paid.

                  21.2.4.  If the Defaulting Party disputes the Non-Defaulting
                           Party's right to terminate this Agreement or
                           disagrees with its calculation of the Termination
                           Amount, in whole or in part, the Defaulting Party
                           shall, within three (3) Business Days of receipt of
                           the Non-Defaulting Party's calculation of the
                           Termination Amount, provide to the Non-Defaulting
                           Party a detailed written explanation of the basis for
                           such dispute or disagreement and, if the Termination
                           Amount is due from the Defaulting Party, shall
                           promptly pay to the Non-Defaulting Party such portion
                           thereof as is conceded to be correct. Upon receipt of
                           the Defaulting Party's explanation, the Parties shall
                           seek to resolve the issues in accordance with
                           mutually agreeable dispute resolution procedures.

                  21.2.5.  As used herein in this Section 21.2, with respect to
                           each Party: (i) "Costs" shall mean reasonable
                           brokerage fees, commissions, and other similar
                           transaction costs and expenses reasonably incurred by
                           a Party either in terminating or entering into new
                           arrangements which replace this Agreement, and
                           reasonable attorney's fees, if any, reasonably
                           incurred in connection with enforcing its rights
                           under this Agreement; (ii) "Gains" shall mean an
                           amount equal to the present value (calculated using
                           the interest rate as set forth in Section 5.1.3 above
                           as the prevailing discount rate) of the economic
                           benefit (exclusive of Costs), if any, to a Party
                           resulting from the termination of its obligations
                           with respect to this Agreement, determined in a
                           commercially reasonable manner; and (iii) "Losses"
                           shall mean an amount equal to the present value
                           (calculated using the interest rate as set forth in
                           Section 5.1.3 above as the prevailing discount rate)
                           of the economic loss (exclusive of Costs), if any, to
                           a Party from the termination of its obligations, with
                           respect to this Agreement, determined in a
                           commercially reasonable manner. In no event, however,
                           shall a Party's Costs, Gains, or Losses include any
                           costs or expenses incurred by a Party in terminating
                           or reestablishing any arrangement pursuant to which
                           it has hedged its obligations under this Agreement.

22.      Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUCTED ACCORDING TO
         THE LAWS OF THE STATE OF MICHIGAN.

23.      Miscellaneous.
         23.1.    No waiver by either Seller or Buyer of any default by the
                  other under this Agreement shall operate as a waiver of any
                  future default, whether of like or different character or
                  nature.

         23.2.    The descriptive headings of particular provisions of this
                  Agreement are for the purpose of facilitating administration
                  and shall not be construed as having any substantive effect on
                  the terms of this Agreement.

         23.3.    The Parties agree to proceed with due diligence and make good
                  faith effort to obtain such governmental authorizations as may
                  be necessary to enable performance of this Agreement.

         23.4.    This Agreement is subject to the January 27, 1987, Gas Supply
                  Option between Buyer and Dow and to Dow's rights under a
                  certain Gas Backup Agreement with Buyer and Consumers Energy
                  Company (formerly Consumers Power Company) dated January 27,
                  1987.

         23.5.    If any provision of this Agreement is determined to be
                  invalid, void, or unenforceable by any court having
                  jurisdiction, such determination shall not invalidate, void,
                  or make unenforceable any other provision of this Agreement.

         23.6.    Neither Buyer nor Seller shall disclose to any third Party
                  (other than its partners, parents, affiliates, directors,
                  officers, employees, consultants, representatives, agents,
                  prospective purchasers, or those third parties providing
                  financing to it provided such persons have agreed

                                     Page 9

<PAGE>   10

                  to keep such terms confidential) any information received from
                  the other Party that is explicitly marked "Confidential" (such
                  information hereinafter referred to as "Confidential
                  Information"); provided however, that nothing shall be deemed
                  Confidential Information that:

                  23.6.1.  is part of the public domain;

                  23.6.2.  becomes publicly known otherwise than through an
                           action or inaction of the receiving Party;

                  23.6.3.  is independently developed by the receiving Party; or

                  23.6.4.  is required to be disclosed pursuant to any law,
                           rule, or regulation, or pursuant to any order of a
                           governmental instrumentality, provided that the Party
                           receiving the order shall, if feasible, notify the
                           other Party of any such requirement at least ten (10)
                           Days before compliance is required, and if so
                           requested by the other Party, shall use reasonable
                           efforts to oppose the required disclosure, as
                           appropriate under the circumstances, or to otherwise
                           make such disclosure pursuant to a protective order
                           or other similar arrangement for confidentiality.

         23.7.    This Agreement may be amended only by a written instrument
                  executed by the Parties hereto. This Agreement, the Guaranty
                  (Exhibit B attached hereto), and the Consent and Agreement
                  (Exhibit C attached hereto) contain the entire understanding
                  of the Parties with respect to the matter contained in said
                  documents. There are no promises, covenants, or undertakings
                  other than those expressly set forth in said documents.

         23.8.    Buyer represents and warrants that it has full and complete
                  authority to enter into and to perform this Agreement. Seller
                  represents and warrants that it has full and complete
                  authority to enter into and to perform this Agreement. Each
                  person who executes this Agreement on behalf of Buyer
                  represents and warrants that he or she has full and complete
                  authority to do so, and that Buyer will be bound thereby. Each
                  person who executes this Agreement on behalf of Seller
                  represents and warrants that he or she has full and complete
                  authority to do so, and that Seller will be bound thereby.

         23.9.    Notwithstanding anything to the contrary contained in this
                  Agreement, the liabilities and obligations of MCV arising out
                  of, or in connection with, this Agreement or any other
                  agreements entered into pursuant hereto shall not be enforced
                  by any action or proceeding wherein damages or any money
                  judgment or specific performance of any covenant in any such
                  document and whether based upon contract, warranty,
                  negligence, indemnity, strict liability, or otherwise, shall
                  be sought against the assets of the partners of MCV. By
                  entering into this Agreement, Seller waives any and all right
                  to sue for, seek, or demand any judgment against such partners
                  and their affiliates, other than MCV by reason of the
                  performance by MCV of its obligations under this Agreement or
                  any other agreements entered into pursuant hereto, except to
                  the extent such partners are legally required to be named in
                  any action to be brought against MCV.

24.      Limitations: NEITHER PARTY HERETO SHALL BE LIABLE TO THE OTHER PARTY
         FOR ANY CONSEQUENTIAL, INCIDENTAL, OR PUNITIVE DAMAGES ARISING OUT OF,
         OR RELATED TO, A BREACH OF THIS AGREEMENT.

IN WITNESS WHEREOF, this Agreement is executed in multiple originals effective
as of the day and year first herein above written.

<TABLE>
<S>                                                    <C>

Midland Cogeneration Venture Limited Partnership       Engage Energy America LLC

LeRoy W. Smith                                         Mark Stiers
---------------------------------------                -----------
Name:  LeRoy W. Smith                                  Name:  Mark Stiers
Title:  Vice President Energy Supply and Marketing     Title:  Senior Vice President

</TABLE>

                                    Page 10

<PAGE>   11

                                                                       EXHIBIT A

                                POINT OF DELIVERY

                Delivery point on the pipeline of Great Lakes Gas
           Transmission Limited Partnership commonly known as Midland

                                    Page 11

<PAGE>   12

                                                                       EXHIBIT B

                                    GUARANTY

Guaranty dated effective as of the 12th day of April 2001, by Westcoast Energy
Inc., a Canadian Federal corporation (hereinafter referred to as the
"Guarantor"), in favour of Midland Cogeneration Venture Limited Partnership, a
Michigan limited partnership (hereinafter referred to as "Creditor").

         WHEREAS, Creditor and Engage Energy Canada, L.P. and/or Engage Energy
America LLC (hereinafter referred to as "Debtor") have entered into a certain
Long Term Gas Agreement dated April 12, 2001, as may be amended from time to
time (hereinafter referred to as the "Contract"); and

         WHEREAS, as a condition precedent to Creditor's entering into the
Contract, Guarantor has agreed to provide this Guaranty as provided herein;

         NOW THEREFORE, for and in consideration of the premises, Guarantor
hereby agrees as follows:

1)       Guaranty. With respect to the period from May 1, 2001 to March 31, 2003
         during which Obligations (as defined below) are to be performed (the
         "Guarantee Period"), Guarantor unconditionally guarantees to Creditor
         the payment of amounts due and payable by Debtor pursuant to the
         Contract (such obligations being hereinafter referred to as the
         "Obligations"); provided however, that as to Obligations which
         Guarantor is called upon to honor, Guarantor is and shall be entitled
         to assert any and all claims, counterclaims, defenses, offsets, and
         other rights which Debtor could assert against Creditor with respect to
         the Obligations, except as provided in paragraph 8 below. In the event
         Debtor defaults in the payment of any of the Obligations, after thirty
         days written notice to Guarantor at the address provided below,
         Guarantor shall make such payment or otherwise cause same to be paid.
         Guarantor's Obligations are subject to its receiving from Creditor
         copies of any and all notices of defaults and events of default given
         by Creditor to Debtor pursuant to the Contract in the same manner and
         at the same time as such notices are given by Creditor to Debtor,
         except to Guarantor's address for notice set forth in this Guaranty.

2)       Guaranty Maximum Amount. The Obligations so guaranteed will be for a
         dollar amount up to, but in no event in excess of, ten million United
         States Dollars (US $10,000,000) (the "Guarantee Maximum Amount"). The
         Guarantor has the unconditional right to satisfy all performance
         obligations by means of payment of a dollar amount necessary to satisfy
         in full the Obligations in question.

3)       Termination. This Guaranty is continuing and irrevocable at all times
         during the Guarantee Period, unless terminated earlier in accordance
         with the terms and conditions of the Contract; provided that,
         notwithstanding such termination, the Guarantor shall remain liable for
         and this Guaranty shall remain in full force and effect until all
         Obligations with respect to transactions entered into prior to the
         effective date of such termination, have been fully satisfied.

4)       Waiver. Except as is otherwise provided in this Guaranty, Guarantor
         waives notice of acceptance of the guaranty contained herein,
         presentment, demand, notice of dishonor, protest and notice of protest,
         and prosecution of litigation in connection with the Obligations.

5)       Assignment. Neither Guarantor nor Creditor may assign its respective
         rights or obligations under this Guaranty without the other's written
         consent. Subject to the foregoing, this Guaranty shall be binding upon
         and inure to the benefit of the parties hereto and their respective
         successors, permitted assigns and legal representatives.

6)       Notices. Any notice or other communication required or permitted to be
         given to Guarantor or Creditor under this Guaranty shall be deemed to
         have been given when delivered personally or otherwise actually
         received if registered or certified, postage prepaid, or one (1) day
         after delivery

                                    Page 12

<PAGE>   13

         to a nationally recognized overnight courier service, fee prepaid,
         return receipt requested, if in writing and addressed as follows:

<TABLE>
              <S>                <C>

               Guarantor:        Westcoast Energy Inc.
                                 1333 West Georgia Street
                                 Vancouver, B.C.
                                 V6E 3K9

                                 Attention: Assistant Treasurer
                                 Telephone: (604) 488-8058
                                 Fax: (604) 488-8070

               Creditor:         Midland Cogeneration Venture Limited Partnership
                                 100 Progress Place
                                 Midland, Michigan
                                 48640

                                 Attention: Vice-President, Energy, Supply and Marketing
                                 Telephone: (517) 633-7850
                                 Fax: (517) 633-7857

</TABLE>

7)       Applicable Law. This Guaranty shall in all respects be governed by,
         enforced under and construed in accordance with the laws of the State
         of Michigan.

8)       Effect of Certain Events. Guarantor agrees that Guarantor's liability
         hereunder will not be released, reduced, impaired, or affected by the
         occurrence of any one or more of the following events:

             a)      The insolvency, bankruptcy, reorganization or disability of
                     Debtor;
             b)      The renewal, consolidation, extension, modification, or
                     amendment from time to time of the Contract;
             c)      The failure, delay, waiver or refusal by Creditor to
                     exercise any right or remedy held by Creditor with respect
                     to the Contract;
             d)      The sale, encumbrance, transfer or other modification of
                     the ownership of Debtor or the change in the financial
                     condition or management of Debtor.

             IN WITNESS WHEREOF, Guarantor and Creditor have duly executed this
Guaranty effective as of the date first written above.

                           WESTCOAST ENERGY INC.

                           -----------------------------------------------------
                           Name:
                           Title:

                           MIDLAND COGENERATION VENTURE LIMITED PARTNERSHIP

                           -----------------------------------------------------
                           Name:  LeRoy W. Smith
                           Title:  Vice President Energy Supply and Marketing

                                    Page 13

<PAGE>   14

                                                                       EXHIBIT C

                              CONSENT AND AGREEMENT

         CONSENT AND AGREEMENT, dated as of April 12, 2001, made by Engage
Energy America LLC, a Delaware limited liability company, (the "undersigned") to
the parties whose names appear on Schedule A attached hereto (the "Transaction
Parties"), provides as follows:

         1. Midland Cogeneration Venture Limited Partnership ("MCV"), and the
undersigned entered into the Long Term Gas Agreement dated April 12, 2001, as
the same may be amended, modified or supplemented from time to time in
accordance with the provisions thereof and of this Consent and Agreement (the
"Contract"). MCV was the owner of an approximately 1370 MW gas-fired
cogeneration facility in Midland, Michigan (the "Facility"). Pursuant to several
separate Participation Agreements, each dated as of June 1, 1990, MCV sold and
leased-back several separate Undivided Interests in the Facility under several
separate Leases each having a basic term of 25 years. The general structure of
the sale and lease-back transactions is described in more detail in Schedule B
attached hereto.

         2. The undersigned hereby acknowledges notice of the sale and
lease-back transactions described in Schedule B and receipt of a photocopy of
each Participation Agreement (including Appendix A thereto but excluding other
Appendices, Exhibits and Schedules referenced therein unless specifically
requested). Photocopies of the related Transaction Documents will be made
available by MCV to the undersigned at its request for inspection. The
undersigned further acknowledges and consents to the assignments of and Liens on
the Contract pursuant to the Transaction Documents related to each sale and
lease-back transaction, and hereby agrees with each of the Transaction Parties
(provided, however, that each of the Indenture Trustees will have the rights set
forth herein only until the undersigned receives written notice from such
Indenture Trustee that the related Undivided Interest in the Facility is no
longer subject to the Lien of the Indenture to which such Indenture Trustee is a
party and the Secured Notes issued pursuant to such Indenture have been paid in
full) that:

                  (a) Each Owner Trustee and each related Indenture Trustee
shall be entitled, after a Lease Event of Default or an Indenture Event of
Default under the Lease or the Indenture, as the case may be, to which such
Person is a party, to exercise any and all rights of MCV under the Contract in
accordance with the terms of the related Lease, the related Lessee Security
Agreement, the related Indentures and this Consent and Agreement, and the
undersigned will comply in all respects with such exercise by any of such
Persons.

                  (b) The undersigned will give each owner Trustee and Indenture
Trustee prompt written notice of any default of which it has knowledge under the
Contract which, if not cured, would give the undersigned the right to suspend
its performance under, or to terminate, the Contract. Each Owner Trustee and
Indenture Trustee (and their respective designee(s)) shall have the right,
within 10 days (or such longer period, to the extent a longer period is provided
to cure such default under the terms of the Long Term Gas Agreement dated April
12, 2001, other than defaults in respect to the nonpayment of money by MCV) of
receipt by each such Person of such written notice, to cure such default.

                  (c) In the event any Owner Trustee or Indenture Trustee
succeeds to MCV's rights or interests under the Contract after a Lease Event of
Default or an Indenture Event of

                                    Page 14

<PAGE>   15

Default under the Lease or the Indenture, as the case may be, to which such
Person is a party, whether by foreclosure or otherwise, such Person shall have
the right to exercise all rights of MCV under such Contract, and the undersigned
will comply in all respects with such exercise by such Person.

                  (d) The exercise of remedies under any Lease or foreclosure of
any Indenture, whether by judicial proceedings or under power of sale contained
in such Indenture or otherwise or any conveyance from MCV or any Owner Trustee
to either related Indenture Trustee in lieu thereof, following a Lease Event of
Default or Indenture Event of Default under the Lease or the Indenture, as the
case may be, to which such Person is a party, shall not require the further
consent of the undersigned.

         3. It is understood and agreed that the Contract and this Consent and
Agreement are subject to all tariffs and all Applicable Laws relating to such
services. Except as required, in the undersigned's reasonable opinion or by any
Applicable Law, the undersigned will not, without the prior written consent of
each Owner Trustee and Indenture Trustee (unless MCV delivers to the undersigned
a certificate stating that such consent is not required by the terms of the
related Transaction Documents), cancel, amend, modify or terminate or accept any
cancellation, amendment, modification or termination thereof, except if such
cancellation or termination is in accordance with the express terms of the
Contract, but subject to the rights of each Owner Trustee and Indenture Trustee
to cure any defaults and to keep the Contract in full force and effect as
provided in Section 2(b) above.

         4. In the event that any Owner Trustee or Indenture Trustee (or their
respective designee(s)) assumes the Contract or otherwise elects to perform the
duties of MCV under the Contract, such Person shall not have any personal
liability to the undersigned for the performance of MCV's obligations under the
Contract, it being understood that the sole recourse of the undersigned seeking
enforcement of such obligations shall be to such Person's interest in the
Facility and the related rights and Revenues therefrom.

         5. If the Contract is rejected by a trustee or debtor-in-possession in
any bankruptcy, insolvency or similar proceeding involving any Persons other
than the undersigned, or is terminated for any other reason (except as a result
of a default which was not appropriately cured as provided herein and in the
Contract), and if, (i) within 30 days thereafter, MCV (in the case of a
bankruptcy, insolvency or similar proceeding involving any Owner Trustee or
Owner Participant), any Owner Trustee, Indenture Trustee or their respective
successors or assigns so request and (ii) all payment defaults under the
Contract have been cured, the undersigned will execute and deliver to the Person
or Persons making such request in proportion to their respective interests in
the Contract a new Contract for the services remaining to be performed under the
original Contract and containing the same terms and conditions as the original
Contract (except for any requirements which have been fulfilled prior to such
termination). Such new Contract also shall be subject to the terms of this
Consent and Agreement.

         6. The undersigned acknowledges that after the end of the respective
Lease Terms and during the respective Residual Terms, each Owner Trustee, as the
assignee of an Undivided Interest in the Contract pursuant to the related
Facility Agreements Assignment, shall have all of the rights and shall be liable
for all of the obligations (to the extent of its respective Undivided Interest
Percentage) on a non-recourse basis of MCV under the Contract. The undersigned
further acknowledges that MCV shall be the initial Operator of the Facility
under the Operating Agreement and further agree that the Owner Trustees may
appoint any Person to

                                    Page 15

<PAGE>   16

serve as a successor Operator thereunder so long as such Person satisfies the
requirements set forth in the Operating Agreement.

         7. No termination, amendment or waiver of any provision of this Consent
and Agreement or consent to any departure by the undersigned from any provision
of this Consent and Agreement shall be effective unless the same shall be in
writing and signed by the Owner Trustees, the Indenture Trustees and MCV and
then such waiver or consent shall be effective only in a specified instance for
the specific purpose for which it was given.

         8. This Consent and Agreement shall be governed by, and construed in
accordance with, the laws of the State of Michigan, and shall be binding on the
parties hereto and their respective successors and assigns.

         IN WITNESS WHEREOF, the undersigned by its officers thereunto duly
authorized, have duly executed this Agreement as of the day and year first above
written.

                                             Engage Energy America LLC

                                             By:  Mark Stiers
                                                  -----------

                                             Title:  Senior Vice President
                                                     ---------------------

Seen and Agreed to this 12th day of April 2001.

MIDLAND COGENERATION VENTURE
    LIMITED PARTNERSHIP, as
    Lessee

By: LeRoy Smith
    -----------

Title:  Vice President Energy Supply and Marketing

                                    Page 16

<PAGE>   17

                                   SCHEDULE A

MIDLAND COGENERATION VENTURE LIMITED PARTNERSHIP,
as Lessee,

FIRST MIDLAND LIMITED PARTNERSHIP,
DCC PROJECT FINANCE ONE, INC.,
EDISON CAPITAL (formerly, Mission Funding Epsilon),
BELL ATLANTIC CREDIT CORPORATION (formerly, NYNEX Credit Company),
RESOURCES CAPITAL MANAGEMENT CORPORATION,
as the several Owner Participants,

STATE STREET BANK AND TRUST COMPANY
(formerly, Fleet National Bank, Shawmut Bank Connecticut, National Association,
and The Connecticut National Bank),
not in its individual capacity but solely as Owner Trustee
under several separate Trust Agreements,

UNITED STATES TRUST COMPANY OF NEW YORK,
not in its individual capacity but solely as Senior Indenture Trustee
under several separate Senior Trust Indenture, Leasehold Mortgage
and Security Agreements for the benefit of the Senior Secured Notes,

FIRST UNION NATIONAL BANK
(formerly, Meridian Trust Company),
not in its individual capacity but solely as Subordinated Indenture Trustee
under several separate Subordinated Trust Indenture,
Leasehold Mortgage and Security Agreements
for the benefit of the Subordinated Secured Notes, and

MIDLAND FUNDING CORPORATION I AND
MIDLAND FUNDING CORPORATION II,
as purchasers of the Secured Notes.

                                    Page 17

<PAGE>   18

                                   SCHEDULE B

                  A. As described below, the Owner Participants named in
Schedule A acquired separate Undivided Interests in the Facility and leased such
Undivided Interests back to MCV through separate Owner Trustees acting on behalf
of separate Owner Trusts. The beneficial interest in each Owner Trust is held by
Owner Participant.

                  B. For purposes of this Schedule B and the Consent and
Agreement, capitalized terms used herein and not otherwise defined herein shall
have the meanings assigned to such terms in Appendix A to the several separate
Amended and Restated Participation Agreements (the "Participation Agreements"),
each dated as of June 1, 1990, to which MCV, an Owner Participant, the related
Owner Trustee, the related Indenture Trustees, the Funding Corporations, MDC and
the Institutional Senior Bond Purchasers named therein are parties. The rules of
usage set forth in such Appendices also shall apply hereto; provided, that when
the terms defined in Appendix A to a particular Participation Agreement as
relating only to the transaction contemplated therein are used in the plural
herein, such terms are intended to apply to the terms applicable to the
transactions contemplated by all Participation Agreements collectively. In
addition, the word "related", when used with respect to any Person, interest,
instrument, agreement or document, shall denote a Person which is a party to, or
an interest, instrument, agreement or document which is a part of, the
transaction contemplated in a particular Participation Agreement and the
Transaction Documents referred to in such Participation Agreement.

                  C. Pursuant to a related Participation Agreement, MCV sold and
transferred to each Owner Trustee, and each Owner Trustee acquired, subject to
Dow's Prior Rights and Consumers' Prior Rights, an Undivided Interest in the
Facility equal to the respective Undivided Interest Percentage of such Owner
Trustee (with the Undivided Interests in the Initial Assets having been sold and
transferred on the First Closing Date and the Undivided Interests in the Second
Closing Assets being sold and transferred on the Second Closing Date). Each
Owner Trustee leased its Undivided Interest in the Facility back to the Lessee
pursuant to a related Lease, under which MCV has the use, possession and control
of the Undivided Interest in the Facility for the related Lease Term (with the
Undivided Interests in the Initial Assets having been leased on the First
Closing Date and the Undivided Interests in the Second Closing Assets being so
leased on the Second Closing Date).

                  D. On the Second Closing Date, (i) MCV assigned to each Owner
Trustee a separate Undivided Interest in the Facility Agreements and the
Cogeneration Agreements pursuant to a related Facility Agreements Assignment and
a related Cogeneration Agreements Assignment, respectively, (ii) each Owner
Trustee assumed the obligations of MCV under the PPA and the SEPA, to the extent
of its respective Undivided Interest Percentage, pursuant to a related
Cogeneration Agreements Assignment, (iii) pursuant to the related Lease, each
Owner Trustee subassigned its Undivided Interests in the Cogeneration Agreements
and Facility Agreements back to MCV for the respective Lease Term, subject to
the Lien of the related Indentures, and MCV, as lessee, accepted such
subassignment, and (iv) MCV granted to each Owner Trustee a Lien on, without
limitation, MCV's right, title and interest in the related Undivided Interests
in the Cogeneration Agreements and the Facility Agreements (and the Revenues
therefrom) as collateral security for the related Secured Obligations pursuant
to a related Lessee Security Agreement.

                                    Page 18

<PAGE>   19

                  E. Each Owner Trustee, as provided in the related
Participation Agreement, financed a portion of the Purchase Price for its
Undivided Interest in the Facility with the proceeds of Senior Secured Notes
issued by it to Midland Funding Corporation I pursuant to a related Senior Trust
Indenture and related Subordinated Secured Notes issued by it to Midland Funding
Corporation II pursuant to a related Subordinated Trust Indenture, and Midland
Funding Corporation I and Midland Funding Corporation II purchased such Secured
Notes.

                  F. Each Owner Trustee granted to the related Indenture
Trustees Liens on, among other things, the Owner Trustee's Undivided Interests
in the Facility, the Cogeneration Agreements and the Facility Agreements, the
Site Interest and its interest in certain of the related Transaction Documents
as collateral security for the Owner Trustee's obligations under the related
Secured Notes.

                  G. On the Second Closing Date, the Funding Corporations issued
Bonds pursuant to a Senior Collateral Trust Indenture and a Subordinated
Collateral Trust Indenture, respectively, for the purpose of participating in
the payment of the Purchase Price for each Undivided Interest in the Facility
and acquiring the funds necessary to purchase the Senior Secured Notes and the
Subordinated Secured Notes pursuant to a related Participation Agreement. The
Funding Corporations secured their obligations under the Bonds by a pledge to
the related Collateral Trust Trustees of the related Secured Notes (and the
collateral security therefor) held by the Funding Corporations.

                  H. MCV, each Owner Trustee and Indenture Trustee and the
Working Capital Lender, on the Second Closing Date, entered into an
Intercreditor Agreement with the Collateral Agent providing for the deposit with
and disbursement of all Revenues from the Undivided Interests in the Project by
the Collateral Agent.

                  I. MCV and each Owner Trustee also entered into an Operating
Agreement appointing MCV as the initial operator of the Project during the
respective Residual Terms, commencing on the Operation Commencement Date (as
such term is defined in the Operating Agreement).

                  J. On the Second Closing Date, in order to obtain necessary
working capital for the operation of the Facility, MCV obtained the Working
Capital Line from the Working Capital Lender and granted to the Working Capital
Lender first priority Liens on MCV's right, title and interest (as subassignee
of the separate Undivided Interests in the Cogeneration Agreements and the
Facility Agreements during the respective Lease Terms) in and to (i) all Earned
Receivables, (ii) its Natural Gas Inventory and (iii) the Gas Brokering
Contract.

                  K. Each Owner Trustee has agreed to reassign its Undivided
Interest in the Project (including the Undivided Interest in the Facility
Agreements) and the Site Interest back to MCV at the expiration of the related
Support Term.

                                    Page 19<PAGE>   1
                                                                   EXHIBIT 10(i)

                          Amendment of Trust Agreement

         RESOLVED, that, effective May 16, 2001, the Trust Agreement between
         Ralston Purina Company ("Company") and Wachovia Bank of North Carolina,
         N.A. ("Trustee"), dated as of September 15, 1994, (the "Trust
         Agreement") be, and it hereby is, amended in accordance with the
         provisions of Section 11 of the Trust Agreement, to provide that the
         assets held by the Grantor Trust created by such Trust Agreement shall
         be subject to the claims of the creditors of the Company, and to the
         claims of the creditors of any subsidiary of the Company which incurs
         liabilities to its employees under the Benefit Plans and Programs
         identified in Schedule 1 of the Trust Agreement; and

         FURTHER RESOLVED, that W.P. McGinnis, J.R. Elsesser and W.H. Sackett
         be, and each of them hereby is, authorized to do any and all acts and
         execute any and all documents they, or any of them, deem necessary or
         desirable to effect the foregoing amendment, subject to approval by
         Nestle Holdings, Inc. and Wachovia Bank of final language of the Trust
         Agreement evidencing such amendment.

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