Document:

exv10w25

Exhibit 10.25

GAS SALES AGREEMENT

THIS AGREEMENT made and entered in this 1st day of July, 2008 (“Commencement Date”), by
and between JOHN D. OIL & GAS MARKETING CO., LLC, with its offices located at 3511 Lost Nation
Road, Willoughby, Ohio 44094, an Ohio Corporation (hereinafter referred to as “Seller”), and
NORTHEAST OHIO NATURAL GAS CORP. (hereinafter referred to as “NEO”), ORWELL NATURAL GAS COMPANY
(hereinafter referred to as “ONG”), and BRAINARD GAS CORP. (hereinafter referred to as “BGC”), with
all of their offices located at 8500 Station Street, Suite 100, Mentor, OH 44060 (hereinafter NEO,
ONG and BGC shall be collectively referred to as “Buyer”).

RECITALS:

WHEREAS, Buyer desires to acquire supplies of natural gas (“gas”) and to obtain delivery of such
gas to it’s facilities through various pipelines owned or leased by others; and

WHEREAS, Seller is in the business of acquiring natural gas supplies for resale; and

NOW, THEREFORE, in consideration of the mutual covenants contained herein, and other good and
valuable consideration, the parties hereby agree as follows:

ARTICLE 1

AGREEMENT Subject to the terms of this Agreement, Seller does hereby agree to sell to Buyer
on a best effort basis and Buyer does hereby agree to purchase, during the term of this Agreement,
those quantities of natural gas as described in the Agreement.

ARTICLE 2

TERM OF AGREEMENT The term of this Agreement shall be effective from the Commencement Date
and shall continue in full force and effect until September 31, 2023 (“Term”).

ARTICLE 3

QUANTITY Buyer agrees to purchase all of its gas requirements from Seller at the
location(s) described in the Agreement. Buyer herein affirms that it will purchase volumes from no
other supplier unless Seller cannot supply the amounts of gas requested by Buyer. In that event,
Buyer, on a temporary basis, may secure the volume of gas that Seller cannot provide from whatever
source Buyer chooses.

NOMINATIONS Buyer shall advise Seller in writing, such notice to be received no later than
fifteen (15) days prior to the first day of each month during the term of this Agreement, of
Buyer’s anticipated consumption of natural gas which buyer wishes to purchase from Seller
(“Nominated Volume”) hereunder for the following month.

REIMBURSEMENT To the extent Buyer’s monthly consumption result in the imposition of a
penalty or balancing charge by any interstate and/or intrastate pipeline utilized to transport gas
which is the subject of this Agreement, Buyer shall be responsible for and reimburse Seller for
such penalty or balancing charge which is the result of Buyer’s monthly nomination or consumption.

ARTICLE 4

DELIVERY POINT AND TRANSPORTATION Any gas purchased hereunder shall be sold by Seller or
Seller’s agent to Buyer and delivered to the pipelines designated by Buyer to transport gas to
Buyer’s pipelines located in Northeastern Ohio (“Delivery Point”). Title to the gas delivered
hereunder shall vest in Buyer upon delivery to the Delivery Point. Buyer shall arrange and pay for
all gas transportation costs and retainage imposed by pipelines downstream of the Delivery Point.
At and beyond the Delivery Point, Buyer or Buyer’s representative shall be in exclusive control and
possession and be responsible for any loss of gas, damage, or injury caused thereby.

ARTICLE 5

PURCHASE PRICE The price to be paid by NEO to Seller is set forth in Exhibit “A”; the
price to be paid by ONG to Seller is set forth in Exhibit “B”; and the price to be paid by BNG to
Seller is seth forth in Exhibit “C”. The Delivered Price (as defined in Exhibits “A”, “B”, and
“C”) may be modified from time to time subject to the mutual agreement of both Buyer and Seller to
reflect the then current market conditions. If the parties cannot agree upon any such
modification, the price in effect at that time shall then remain in effect, subject to any future
price adjustment as set forth in the following sentence. On the 5th anniversary and
10th anniversary of the Commencement Date of this Agreement (the “Bid Dates”), Buyer
shall have the right to seek bona fide third party bids from other gas marketers. Within thirty
(30) days of the applicable Bid Date, Buyer shall provide Seller with a copy of any such third
party bid that Buyer is willing to accept. Seller shall then have fifteen (15) days from the date
of its receipt of any such third party bid in which to: (i) agree to match the third party bid; or
(ii) elect not to match the third party bid. If Seller agrees to match the third party bid, the
Delivered Price shall be amended to reflect the Delivered Price proposed under the third party bid
that Seller agreed to match and Buyer shall be required to reject said thirty party bid. If Seller
elects not to match said third party bid, Seller shall deliver written notice to the Buyer of its
rejection and the Delivered Price shall continue to be the Delivered Price that was then in effect
prior to the date of Buyer’s receipt of the third party bids and Buyer shall remain obligated to
continue to purchase its

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gas requirements from Seller under the terms and conditions of this Agreement, and Buyer shall be
required to reject said third party bid. Notwithstanding anything hereinabove contained to the
contrary, Buyer and Seller will come to mutual agreement on any Delivered Price reduction, if
during the term of this Agreement, Buyer is unable to recover any portion of the Delivered Price
from its customers.

RIGHT OF LAST REFUSAL At the completion of the Term of this Agreement, Buyer agrees to
grant to Seller the right of last refusal to match any bona fide written offer received by Buyer
from another supplier to supply the volumes of gas hereunder upon the same terms as offered by such
other supplier. Buyer shall forward to Seller a copy of such bona fide offer together with all
particulars relating thereto. In the event Seller determines to meet such bona fide offer within
fifteen (15) days of receipt of such other offer from Buyer, Buyer’s cancellation of this Agreement
shall be deemed ineffective and this Agreement shall continue in full force and effect, subject to
the revised terms set forth in the third party bona fide offer accepted by the Seller.

ARTICLE 6

BILLING AND PAYMENT Seller shall invoice Buyer for gas delivered pursuant to this Agreement
every thirty (30) days. Buyer shall pay the amounts invoiced within ten (10) days of the invoice
date. Seller’s invoice statement shall report the total volumes of gas sold and delivered to Buyer
during the period covered.

A finance charge of one and one-half percent (1 1/2%) per month shall be due and payable on all
invoices that are not paid within fifteen (15) days of the invoice date. The quantities invoiced
by Seller will be based on the quantities delivered by Seller or Seller’s agent and measure at the
Delivery Point. In the event the actual quantities delivered to Buyer are unavailable, the
estimated volumes of gas tendered for delivery by Seller to Buyer shall be invoiced to Buyer. Any
appropriate adjustment shall be made in the following billing period. In addition, Seller shall
have the option to discontinue delivering gas to Buyer if payment is not received within thirty
(30) days of the invoice date.

ARTICLE 7

QUALITY AND MEASUREMENT Seller warrants that gas tendered by Seller shall be delivered at
temperatures, pressures, and other conditions acceptable for transportation by Buyer. Measurement
of the gas shall be in accordance with the policies and conditions of Buyer. The measurement of
gas by meter at the Delivery Point is conclusive on the Buyer and Seller, except when the meter is
found to be defective or ceases to register. In the latter event, while the meter is determined to
be inoperable, the gas delivered shall be estimated by use of any other appropriate meter(s) or by
the amount delivered by the said meter during a previous corresponding period under similar
conditions. In the event either party questions the accuracy of the meter, the Seller shall have
the meter removed, sealed, tested and repaired. The cost of testing and repairing the meter shall
be borne by the party challenging the accuracy of the same if the meter on test proves to be
correct, or within three percent (3%) fast or slow, otherwise the cost of testing and repairing the
meter shall be borne by the Seller.

ARTICLE 8

WARRANTY OF TITLE AND TAXES Seller warrants title to all gas delivered by it and warrants
that such gas is free from all liens and adverse claims. Seller shall indemnify and save Buyer
harmless against all suits, debts, damages, costs and expenses arising from adverse claims to the
gas delivered by it or taxes, payments or other charges thereon applicable before title to such gas
has passed to Buyer at the Delivery Point. Buyer shall pay, or cause to be paid, all taxes,
assessments, charges or fees imposed by governmental authorities, (including without limitation,
all applicable state sales and use taxes), whether levied upon or assessed against Seller or Buyer,
with respect to gas sold and delivered hereunder after title has passed to Buyer at the Delivery
Point. Buyer’s obligation to pay such taxes, assessments, charges or fees so imposed shall survive
any termination of this Agreement. Upon request, Buyer shall execute and deliver to Seller such
forms, certificates, or other documents as Seller requires to determine the applicability of any
such tax, assessment, charge or fee to the sale and use of the gas delivered hereunder.

ARTICLE 9

GOVERNING LAW The interpretation and performance of this Agreement shall be in accordance
with the laws of the State of Ohio.

ARTICLE 10

REGULATORY BODIES This Agreement shall be subject to all the rules and regulations of any
duly constituted Federal or State regulatory body having jurisdiction hereunder.

ARTICLE 11

FORCE MAJEURE If either Buyer or Seller is rendered unable, for a period not more than 30
days, wholly or in part, by force majeure to perform its obligations under this Agreement, other
than the obligation to make payments then or thereafter due, it is agreed that performance of the
respective obligations of the parties hereto to deliver and receive gas, so far as they are
affected by such force majeure, shall be suspended from the inception of any such inability until
it is corrected but for no longer as practicable after the occurrence of the force majeure. The
party claiming such inability shall give notice thereof to the other party as soon as practicable
after the occurrence of the force majeure. If such notice is first given by telephone
communication, it shall be confirmed promptly in writing giving full particulars. The party
claiming such inability shall promptly correct such inability to the extent it shall be corrected
through the exercise of reasonable diligence. Force majeure as used herein shall mean acts of god,
vandalism, wars, civil unrest, rebellion, blockades, strikes, lightning fires, floods, explosions,
hurricanes, breakage of machinery or pipelines, failure or freezing of wells or pipelines,

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availability of gas supply, failure of third party pipelines to transport gas hereunder, permanent
plant closing and other causes not within the control of the party claiming a force majeure
situation. If at some future date there is a change in any law, rule or regulation, and by such
change, governmental certificate or authorization is required, or Seller is prevented, prohibited
or frustrated from carrying out the terms of this Agreement in the manner contemplated hereunder,
then this Agreement, at the sole discretion of Seller, shall be canceled.

ARTICLE 12

NOTICES Whenever, under the terms of this Agreement, any notice, invoice, or payment is
required or permitted to be given by one party to the other, it shall be given in writing and shall
be deemed to have been sufficiently given for all purposes hereof if sent by U.S. mail, postage
prepaid, to the parties at the addresses set forth below:

	 	 	 	 	 
	 

	 	SELLER:
	 	JOHN D. OIL & GAS MARKETING CO., LLC

3511 Lost Nation Road

Willoughby, OH 44094

Phone: 440 255-1945; Fax: 440 255-1985
	 
	 	 	 	 
	 

	 	BUYER:
	 	NORTHEAST OHIO NATURAL GAS CORP.

8500 Station Street, Suite 100

Mentor, OH 44060

ARTICLE 13

ASSIGNMENT All of the covenants, conditions and obligations of this Agreement shall extend
to and be binding upon the heirs, personal representatives, successors and assigns respectively of
the parties hereto, provided, however, that this Agreement shall not be assigned by either party
without the written consent of the other party, which consent shall not be unreasonably withheld.
Notwithstanding the foregoing, no consent shall be required if either party assigns this Agreement
to an affiliated entity. For purposes of this Agreement, an affiliated entity shall mean any
entity or person that, directly or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with, such first entity or person. In addition, Buyer
shall not be permitted to withhold its consent if Seller assigns this Agreement to an entity or a
person which, at the time of such assignment, has been engaged in the business of acquiring natural
gas supplies for resale.

ARTICLE 14

CREDIT REQUIREMENTS Buyer and Seller agree that Buyer’s compliance with Seller’s credit
policies and requirements shall be condition precedent to Seller’s obligation to deliver natural
gas under this Agreement. Furthermore, if the financial status of Buyer becomes unsatisfactory,
Buyer upon demand of Seller shall give satisfactory security. Buyer’s failure to abide by the
provisions of this Article 14 shall be considered a breach hereof and, in such event, payment for
all natural delivered hereunder shall be immediately due and owing and shall be paid immediately
and Seller shall without waiving any rights or remedies it shall have, withhold further deliveries
until such payment or security is received.

ARTICLE 15

SURVIVAL OBLIGATIONS The obligations of Buyer to make payment for gas received hereunder
shall survive the termination or cancellation of this Agreement. The obligations of Seller to
indemnify Buyer pursuant to Article 8 (“Warranty of Title and Taxes”) and for Buyer to pay for any
taxes imposed on the gas shall survive the termination or cancellation of this Agreement. If any
provision in this Agreement is determined to be invalid, void, or unenforceable by any court having
jurisdiction, then such determination shall not invalidate, void, or make unenforceable any other
provision, agreement, or covenant in this Agreement. No waiver of any breach of this Agreement
shall be held to be a waiver of any other or subsequent breach. All remedies afforded in this
Agreement shall be taken and construed as cumulative, that is, in addition to every other remedy
provided therein or by law.

ARTICLE 16

COMPLETE AGREEMENT This Agreement represents the complete and entire understanding between
the parties, superceding any prior agreements, respecting the subject matter of this transaction.
The parties hereto declare that there are no promises, representations, conditions, warranties,
other agreements, expressed or implied, oral or written, made or relied upon by either party,
except those herein contained.

IN WITNESS WHEREOF, the parties, or their authorized agents, hereto have caused this Agreement to
be executed the day and year above written.

	 	 	 	 	 	 	 	 	 	 	 
	WITNESSES:	 	 	 	SELLER:

JOHN D. OIL & GAS MARKETING CO., LLC
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	BY
	 	/s/ Richard M. Osborne
 

	 	  	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	BY
	 	Richard M. Osborne
	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	ITS
	 	Managing Member	 	 	 	 

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	WITNESSES	 	 	 	BUYER:

NORTHEAST OHIO NATURAL GAS CORP.
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	BY
	 	/s/ Martin K. Whelan
 

	 	  	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	BY
	 	Martin K. Whelan	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	ITS
	 	VP	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	WITNESSES:	 	 	 	ORWELL NATURAL GAS COMPANY
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	BY
	 	/s/ Thomas J. Smith
 

	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	BY
	 	Thomas J. Smith	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	ITS 	 	President	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	WITNESSES:	 	 	 	BRAINARD GAS CORP.
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	BY
	 	/s/ Thomas J. Smith
 

	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	BY
	 	Thomas J. Smith	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	ITS	 	President	 	 	 	 

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EXHIBIT “A”

The price to be paid by NEO to Seller for natural gas delivered to NEO at the Delivery Point
during the Term shall be the greater of (a) Seller’s cost to deliver the gas to the Delivery Point
plus Ten Cents ($0.10) per Thousand Cubic Feet (“Mcf”) plus any applicable taxes, or (b) the
“Delivered Price” per Mcf set forth in the chart below, plus any applicable taxes. The greater of
(a) or (b) above shall be referred to in the Agreement as the “Delivered Price”.

	 	 	 	 	 	 	 	 	 
	 	 	Contract Term	 	 
	Location	 	Effective	 	Expiration	 	Rollover	 	Delivered Price
	GE (Petroxl wells)
	 	05/01/06	 	04/30/07	 	Mo. to Mo.	 	NYNEX + $0.50
	Polin Hatmaker
	 	03/14/06	 	03/13/07	 	Mo. to Mo.	 	NYNEX + $0.50
	Ponderosa wells
	 	03/20/06	 	03/19/07	 	Mo. to Mo.	 	NYNEX + $0.50
	West Wooster (Smail wells)
	 	07/18/05	 	06/30/07	 	Mo. to Mo.	 	$9.800
	Mormack Orrville
	 	01/01/07	 	12/31/09	 	Yr. to Yr.	 	N+$0.60 sum, +$0.65 win
	Hutton Wooster
	 	02/01/07	 	01/31/10	 	 	 	NYNEX + $1.00
	Hutton Orrville
	 	02/01/07	 	01/31/10	 	 	 	N+$0.60 sum, $0.65 win
	Bands Orrville
	 	6/1/2007	 	5/31/2010	 	Mo. to Mo.	 	N + $0.60 s, $0.65 w/98
	Broad Street-Orrville
	 	8/1/2007	 	7/31/2012	 	Mo. to Mo.	 	N + $0.60 s, N + $0.65 w
	Pheasants Rd.(Wooster)
	 	6/1/2007	 	5/31/2012	 	Mo. to Mo.	 	N + $0.60 s, N + $0.67 w
	Orrville System
	 	5/1/2007	 	4/30/2010	 	Mo. to Mo.	 	NYMEX + $0.80
	Cobra North Trumbull
	 	2/6/2008	 	1/31/2009	 	Mo. to Mo.	 	N + $1.20 x 1.0377
	Cobra Holmesville
	 	2/6/2008	 	1/31/2009	 	Mo. to Mo.	 	N + $1.00 x 1.0377
	Cobra Churchtown
	 	2/6/2008	 	1/31/2009	 	Mo. to Mo.	 	N + $1.05 x 1.0377
	Equity Oil and Gas (Fryburg)
	 	9/1/2007	 	8/1/2008	 	Mo. to Mo.	 	N + $0.75

A-1

 

EXHIBIT “B”

The price to be paid by ONG Buyer to Seller for natural gas delivered to ONG at the Delivery
Point during the Term shall be the greater of (a) NYMEX plus seventy-five cents ($.75) per
Thousand Cubic Feet (“Mcf”) plus any applicable taxes or (b) Seller’s cost to deliver the gas to
the Delivery Point plus Ten Cents ($0.10) per Thousand Cubic Feet (“Mcf”), plus any applicable
taxes. The greater of (a) or (b) above shall be referred to in the Agreement as the “Delivered
Price”.

B-1

 

EXHIBIT “C”

The price to be paid by BGC to Seller for natural gas delivered to BGC at the Delivery Point
during the Term shall be the greater of (a) NYMEX plus seventy-five cents ($0.75) per Thousand
Cubic Feet (“Mcf”) plus any applicable taxes or (b) Seller’s cost to deliver the gas to the
Delivery Point plus Ten Cents ($.10) per Thousand Cubic Feet (“Mcf”), plus any applicable taxes.
The greater of (a) or (b) above shall be referred to in the Agreement as the “Delivered Price”.

C-1exv10w26

Exhibit 10.26

NATURAL GAS TRANSPORTATION SERVICE AGREEMENT

     BY THIS AGREEMENT, executed this 1st day of July, 2008 Orwell-Trumbull Pipeline Co., LLC (“OTPC”),
Orwell Natural Gas Company (“ONG”) and Brainard Gas Corp. (“BGC”) (hereinafter ONG and BGC shall
collectively be referred to as “Shipper”), OTPC and Shipper are hereinafter sometimes referred to
collectively as the Parties and individually as a Party) for valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, do hereby recite and agree as follows:

RECITALS

     WHEREAS, OTPC owns a natural gas transmission pipeline system described on Exhibit A to this
Agreement (Pipeline); and

     WHERAS, OTPC is an Ohio intrastate pipeline operating natural gas pipelines and related
facilities located within the State of Ohio under authority of the Public Utility Commission of
Ohio; and

     WHEREAS, Shipper desires to utilize OTPC’s Pipeline for the transportation of natural gas
within the State of Ohio; and

     WHEREAS, OTPC has agreed to provide such transportation to Shipper subject to the terms and
conditions hereof,

     WITNESSETH: In consideration of the mutual covenants herein contained, the Parties hereto
agree that OTPC will transport for Shipper, on an Interruptible basis, and Shipper will furnish, or
cause to be furnished, to OTPC natural gas for such transportation during the term hereof, at
prices and on the terms and conditions hereinafter provided:

Page 1

 

AGREEMENTS

DEFINITIONS

     Except where the context otherwise indicates another or different meaning or intent, the
following terms are intended and used herein and shall be construed to have the meaning as follows:

	A.	 	“Btu” shall mean the British thermal unit as defined by international standards.
	 
	B.	 	“Business Day” shall mean any weekday, excluding federal banking holidays.
	 
	C.	 	“Central Clock Time” (C.T.) shall mean Central Standard Time adjusted for Daylight Savings
Time.
	 
	D.	 	“Company” means OTPC, its successors and assigns.
	 
	E.	 	“Customer” means any individual, governmental, or corporate entity taking transportation
service hereunder.
	 
	F.	 	“Dekatherm” or “Dth” means the Company’s billing unit measured by its thermal value. A
dekatherm is 1,000,000 Btus. Dekatherm shall be the standard unit for purposes of nominations,
scheduling, invoicing, and balancing.
	 
	G.	 	“Delivery Point(s)” shall mean the specific measurement location(s) listed on Exhibit B at
which OTPC delivers Shipper-owned Gas to Shipper and Shipper receives such Gas from OTPC.
Exhibit B is hereby incorporated into this Agreement.
	 
	H.	 	“Delivery Volume” shall mean the volume of Gas actually taken at the Delivery Point(s) by or
on behalf of Shipper.

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	I.	 	“Firm” shall mean that each Dth Shipper tenders at the Receipt Point will be delivered to
Shipper’s Delivery Point(s) minus OTPC’s Shrinkage without interruption except under Force Majeure
conditions or an energy emergency declared by the Commission.
	 
	J.	 	“Gas” shall mean natural gas of interstate pipeline quality.
	 
	K.	 	“Gas Day” or “Day” shall mean a period of 24 consecutive hours, beginning at 9:00 a.m.
Central Clock Time, as adjusted for Daylight Savings Time, and the date of the Day shall be
that of its beginning.
	 
	L.	 	“Heating Value” shall mean the gross heating value .on a dry basis, which is the number of
British thermal units produced by the complete combustion at constant pressure of the amount
of dry gas (gas containing no water vapor) that would occupy a volume of one Cubic Foot at
14.73 psia and 60° F with combustion air at the same temperature and pressure as the gas, the
products of combustion being cooled to the initial temperature of the gas and air, and the
water formed by combustion condensed to the liquid state.
	 
	M.	 	“Imbalance” shall mean the daily difference between the Dths tendered by or for Customer’s
account at the Receipt Point minus OTPC’s Shrinkage and the metered volumes allocated to
Shipper at the Delivery Point(s).
	 
	N.	 	“Interruptible” shall mean that each Dth Shipper tenders at the Receipt Point Will be
delivered to Shipper’s Delivery Point(s) less OTPC’s Shrinkage if OTPC, using reasonable
judgment, determines that capacity exists after all the Firm transport needs are accounted for
to permit redelivery of tendered gas.
	 
	O.	 	“Maximum Daily Quantity” or “(MDQ)” shall mean the maximum daily firm natural gas quantity
which Shipper shall be entitled to nominate during any 24-hour period. Shipper’s MDQ shall be
negotiated between Shipper and OTPC and incorporated into Shipper’s Service Agreement with
OTPC.

Page 3

 

	P.	 	“Month” shall mean a calendar month beginning at 9:00 a.m. Central clock time on the first
day of the calendar month and ending at 9:00 a.m. Central clock time the first day of the
following calendar month.
	 
	Q.	 	“OTPC System” shall mean the intrastate pipeline system owned by OTPC.
	 
	R.	 	“Nomination” shall mean the confirmed Quantity of Gas which Shipper shall arrange to have
delivered to the Receipt Point(s) for redelivery by OTPC to the Delivery Point(s). The
Nomination shall include sufficient gas to account for OTPC’s Shrinkage.
	 
	S.	 	“Operational Flow Order” or “OFO” shall mean a declaration made by OTPC that conditions are
such that OTPC can only safely transport an amount of Gas during a calendar day equal to the
amount of Gas which Shipper will actually receive at the Receipt Point on that calendar day.
OTPC shall only declare an Operational Flow Order if an upstream pipeline declares an
operational flow order or otherwise restricts the flow of Gas which normally would be
delivered to OTPC at the Receipt Point.
	 
	T.	 	“Overrun” shall mean any volume of Gas actually transported which, as measured on a daily
basis, exceeds the maximum daily quantity (MDQ) established by this Agreement.
	 
	U.	 	“PUCO” or “Commission” means the Public Utilities Commission of Ohio or any successor
governmental authority.
	 
	V.	 	“Quantity of Gas” shall mean the number of units of gas expressed in Dth or MMBtu unless
otherwise specified.
	 
	W.	 	“Receipt Point(s)” shall mean those measurement locations where Shipper-owned gas enters
OTPC’s system.

Page 4

 

	X.	 	“Service Agreement” Each Customer shall sign an individual Agreement with OTPC prior to
commencement of service that identifies the Receipt Point and Delivery Point(s),the MDQ,
declares whether the transportation is-Firm or Interruptible and establishes the cost for the
transportation. The Service Agreements shall be filed with the Commission pursuant to Section
4905.31, Revised Code for approval.
	 
	Y.	 	“Shrinkage” shall mean the quantity of Gas required by OTPC to replace the estimated quantity
of Gas which is required for compressor fuel, and lost-or-unaccounted-for Gas when
transporting the tendered quantities~ This percentage is set forth in Exhibit B.
	 
	Z.	 	“Written Notice” shall mean a legible communication received by the intended recipient of the
communication by United States mail, express courier, or confirmed facsimile. Written Notice
may also be provided by Email, but shall not be effective until such time as (a) the Email is
acknowledged by the intended recipient; (b) or a copy of such Email is received by the
intended recipient by US mail, express courier, or facsimile.

I. DELIVERY AND TRANSPORTATION

     1.1 Shipper shall arrange with suppliers of Shipper’s selection to have Gas in an amount not
to exceed Shipper’s MDQ adjusted for OTPC’s Shrinkage as specified on Exhibit B, tendered to the
Receipt Point(s) as specified on Exhibit B, for delivery into the OTPC Pipeline on Shipper’s
behalf. OTPC shall then redeliver, on an Interruptible basis, such quantities, less OTPC’s
Shrinkage, to Shipper, or on behalf of Shipper, at the Delivery Point(s) as specified on Exhibit B.
All transportation by OTPC for Shipper shall be governed by OTPC’s then current transportation
tariff on file with the PUCO, except as .expressly modified hereby.

Page 5

 

     1.2 ONG agrees that during the term of this Transportation Service Agreement it will use only
OTPC’s pipelines to transport gas for any of its customers; provided, however, that this exclusive
use of the OTPC pipelines shall remain in effect as long as OTPC has available capacity within its
pipelines. Should available capacity not exist, then during that period only ONG may use other
pipelines to transport its gas requirements. This Transportation Service Agreement will only be
utilized by BGC for back up purposes only and on an as needed basis.

     1.3 For planning purposes, Shipper shall provide Written Notice, at least three (3) business
days prior to the start of each calendar Month, to OTPC of the amount of Gas it intends to
transport each day of the upcoming Month. Shipper shall submit its Nomination to OTPC by no later
than 10:00 a.m. Central Clock Time for Gas flow the following day. This nomination should
correspond to scheduled deliveries Shipper makes on the upstream interstate pipeline and downstream
local distribution company operating the applicable Delivery Point(s). Should the Shipper desire to
modify its Nomination either on the current Day or after the Nomination deadline for Gas flow the
following day, OTPC shall make every attempt to accommodate Shipper’s request provided OTPC can
confirm such quantities with the upstream pipeline at the Receipt Point(s) and downstream entity at
the Delivery Point(s).

     1.4 Shipper shall be permitted to have delivered into and removed from OTPC’s Pipeline its
nominated Gas volume, adjusted for OTPC’s Shrinkage, up to the MDQ previously agreed to and found
on Exhibit B.

     1.5 If any of the interstate pipelines interconnected with OTPC issues an operational flow
order then OTPC may issue its own matching OFO on its Pipeline that will apply to Shippers. The OFO
may restrict Shippers to nominate into the OTPC Pipeline only that volume of Gas which Shipper will
have redelivered the same day adjusted for Shrinkage. OTPC will use its best efforts to limit such
OFO to just the time necessary to comply with applicable upstream interstate OFOs. OTPC will only
assess OFO penalties on a pro-rata basis if OTPC is actually assessed penalties by an applicable
upstream pipeline.

Page 6

 

     1.6 Imbalances caused by Shipper at the Delivery Point(s) shall be resolved by OTPC and
Shipper within thirty (30) days. Imbalances at the Receipt Point are governed by the terms and
conditions of the upstream pipeline(s) delivering into OTPC. Any imbalance charges or penalties or
costs of any kind incurred by OTPC as a result of Shipper’s over or under delivery of natural gas
into OTPC’s system, either on a daily or monthly basis, will be reimbursed by Shipper within ten
(10) days of receipt thereof. If Shipper fails to make any payments under this Agreement when due,
OTPC has the right to terminate this Agreement upon two (2) days notice, unless such payment is
made by the date specified in the termination notice.

     1.7 Shipper warrants that it has title to all Gas delivered to OTPC, free and clear of all
claims, liens, and other encumbrances, and further covenants and agrees to indemnify and hold
harmless from all claims, demands, obligations, suits, actions, debts, accounts, damages, costs,
losses, liens, judgments, orders, attorneys fees, expenses and liabilities of any kind or nature
arising from or attributable to the adverse claims of any and al] other persons or parties relating
to such Gas tendered by Shipper at the Receipt Point.

II. QUANTITY AND PRICE

     2.1 Shipper shall pay OTPC a Commodity Rate plus Shrinkage, as stated on Exhibit B, for each
volume of Gas delivered to the Delivery Point(s).

III. TERM

     3.1 The Agreement shall be effective as of 1st day of July, 2008 and shall continue in full
force and effect, terminating 15 years thereafter and shall continue from year to year thereafter,
unless cancelled by either party upon 30 days written notice.

Page 7

 

IV. MEASUREMENT AND QUALITY OF GAS •

     4.1 Measurement of the Gas delivered and billed to Shipper shall be based upon an allocation
conducted by the operator of the Delivery Point(s). Disputes regarding allocated throughput shall
be handled in accordance with the tariff of the Delivery Point(s) operator. Billings for all
receipts and deliveries hereunder shall be made on a thermal basis in Dth. OTPC shall provide to
Shipper at Shipper’s request, pertinent tariff information pertaining to method of allocating
deliveries at Delivery Point(s).

     4.2 All Gas delivered under this Agreement shall be commercially free from solid and liquid
impurities and shall satisfy all pipeline quality standards reasonably established from time to
time by OTPC and upstream or downstream pipelines.

V. BILLING AND PAYMENT

     5.1 On or about the tenth (10th) day of each calendar month, OTPC will render to Shipper a
statement setting forth the total volume of Gas delivered hereunder for Shipper during the
immediately preceding Month. In the event OTPC was not able to take actual meter readings at any
meter, or if OTPC has not received the necessary meter statements from the owner or operator of any
applicable meter in time for preparation of the monthly statement, OTPC may use an estimated Gas
delivery volume based upon confirmed nominations. Any such estimated delivery volume shall be
corrected in the first statement after the actual meter readings become available.

     5.2 In the event of a meter failure a reconstructed bill using the best information available
shall be used.

     5.3 Shipper agrees to pay OTPC the amount payable according to such statement on or before the
twenty-fifth (25th) day of the month or within ten (10) days of receipt of the invoice whichever is
later.

     5.4 Failure to tender payment within the above specified time limit shall result in a monthly
interest charge of one and one half percent (1-1/2%) per month on the

Page 8

 

unpaid balance. In addition, should Shipper’s payment be delinquent by more than thirty (30)
days, OTPC shall have the right, at its sole discretion, to terminate
this Agreement and to   .terminate Gas transportation in addition to its seeking other legal redress. OTPC will first
contact Shipper about any payment issues and try to resolve those issues in a reasonable manner.

     5.5 Any notice, request, demand, statement, or other correspondence shall be given by Written
Notice to the Parties hereto, as set forth below:

	 	 	 
	Shipper:

	 	Orwell Natural Gas Companyor Brainard Gas Company, as applicable
	 
	 	 
	 

	 	8500 Station Street, Suite 100

Mentor, Ohio 44060

	EMAIL:

	 	tsmith13@sprynet.com
	PHONE:

	 	(440) 974-3770
	FAX:

	 	(440) 974-0844
	ATTN:

	 	Thomas J. Smith
	 
	 	 
	OTPC:

	 	OTPC Gas Transmission Company, LLC
	 

	 	8500 Station Street
	 

	 	Suite 100
	 

	 	Mentor, OH 44060
	EMAIL:

	 	srigo@orwellgas.com
	PHONE

	 	(440) 974-3770
	FAX:

	 	(440) 205-8680
	ATTN:

	 	Stephen G. Rigo

VI. FORCE MAJEURE

     6.1 Except with regards to a party’s obligation to make payment due under Section 5 and
Imbalance Charges under Section 2, neither party shall be liable to the other for failure to
perform a firm obligation; to the extent such failure was caused by Force Majeure, The term “Force
Majeure” as employed herein means any cause not reasonably within the control of the party claiming
suspension, as further defined in Section 6.2.

Page 9

 

     6.2 Force Majeure shall include but not be limited to the following (1) physical events such
as acts of God, landslides, lightning, earthquakes, fires, storms or storm warnings, such as
hurricanes, which result in evacuation of the affected area, floods, washouts, explosions, breakage
or accident to machinery or equipment or lines of pipe; (ii) weather related events affecting an
entire geographic region, such as low temperatures which .cause freezing or failure of wells or
lines of pipe; (iii); (iv) acts of others such as strikes, lockouts or other industrial
disturbances, riots, sabotage, terrorism, insurrections or wars; and (v) governmental actions such
as necessity for compliance with any court order, law statute, ordinance, or regulations
promulgated by a governmental authority having jurisdiction. The Parties shall make reasonable
efforts to avoid the adverse impacts of a Force Majeure and to resolve the event of occurrence once
it has occurred in order to resume performance.

     6.3 Neither party shall be entitled to the benefit of the provision 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 Force Majeure failed to remedy the ‘condition and to resume
the performance of such covenants or obligations with reasonable dispatch; or (iii) economic
hardship. The claiming of Force Majeure shall not relieve either party from meeting all payment
obligations.

     6.4 Notwithstanding anything to the contrary herein, the parties agree that the settlement of
strikes, lockouts or other industrial disturbances shall be entirely within the sole discretion of
the party experiencing such disturbances.

     6.5 The party whose performance is prevented by Force Majeure must provide notice to the other
party. Initial notice may be given orally; however, written notification with reasonably full
particulars of the event or occurrence is required as soon as reasonably possible. Upon providing
written notification of Force Majeure to the other party, the affected party will be relieved of
its obligation to make or accept delivery of Gas as applicable to the extent and for the duration
of Force Majeure, and neither

Page 10

 

party shall be deemed to have failed in such obligation to the other during such occurrences
or event.

VII. ADDITIONAL TERMS

     7.1 Shipper shall join with OTPC in support of the application to the PUCO for approval of
this Agreement pursuant to Section 4905.31, Revised Code.

     7.2 In the event of an energy emergency declared by the Governor or any other lawful official
or body, it is understood that OTPC shall and will follow the dictates of any energy emergency
rule, or order. OTPC shall not be liable for any loss or damage suffered by Shipper as a result
thereof.

     7.3 This Agreement shall be construed under the laws of the State of Ohio.

     7.4 This Agreement, together with all schedules and exhibits hereto, constitutes the entire
agreement between the Parties pertaining to the subject matter hereof and supersedes all prior
agreements, understandings, negotiations and discussions, whether oral or written, of the Parties.
No supplement, modification or waiver of this Agreement shall be binding unless executed in writing
by the Party to be bound thereby. No waiver of any of the provisions of this Agreement shall be
deemed or shall constitute a waiver of any other provision hereof (regardless of whether similar),
nor shall any such waiver constitute a continuing waiver unless otherwise expressly provided.

     7.5 This Agreement shall be binding upon and. inure to the benefit of the Parties and their
respective permitted successors and assigns. Neither this Agreement nor any of the rights, benefits
or obligations hereunder shall be assigned, by operation of law or otherwise, by any Party hereto
without the prior written consent of the other Party, which consent shall not be unreasonably
withheld. Except as expressly provided herein, nothing in this Agreement is intended to confer upon
any person other than the

Page 11

 

Parties and their respective permitted successors and assigns, any rights, benefits or
obligations hereunder.

     7.6 The parties agree that any dispute arising hereunder or related to this Agreement shall be
resolved by binding arbitration under the auspices of the American Arbitration Association.
Preheating discovery shall be permitted in accordance with the procedures of the Ohio Rules of
Civil Procedure. The arbitrator or arbitrators shall have authority to impose any remedy at law or
in equity, including injunctive relief. The parties agree that any heating will be conducted in
Lake County, Ohio.

     7.7 Recovery by either Party of damages, if any, for breach of any provision hereof shall be
limited to direct, actual damages. Both Parties waive the right, if any, to recover consequential,
indirect, punitive and exemplary damages.

     7.8 Both parties shall have the right to demand credit assurances from the other party. If the
financial responsibility of any Party is at any time unsatisfactory to the other Party for any
reason, then the defaulting Party will provide the requesting Party with satisfactory security for
the defaulting Party’s performance hereunder upon requesting Party’s demand. Defaulting Party’s
failure to abide by the provisions of this Section shall be considered a breach hereof, and the
requesting Party may terminate this Agreement, provided the defaulting Party is afforded an
opportunity to cure any default within three (3) business days notice of any breach. Both Parties
have the right, in addition to all other rights and remedies, to set-off any such unpaid balance
due the other Party, or by the parent or any subsidiary of the other Party, under any separate
agreement or transaction.

     7.9 No presumption shall operate in favor of or against either party regarding the
construction or interpretation of this Agreement as a result of either party’s responsibility for
drafting this Agreement.

Page 12

 

IN WITNESS WHEREOF, the Parties hereto have caused this instrument to be executed as of the date
set forth above.

	 	 	 	 	 	 	 	 	 	 	 
	Orwell-Trumbull Pipeline Co., LLC	 	 	Brainard Gas Corp.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Steven G. Rigo
 

Stephen G. Rigo,
	 	 	 	By:
	 	/s/ Thomas J. Smith
 

Thomas J. Smith, President
	 	 
	 

	 	Executive Vice President	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:	 	July 1, 2008	 	 	 	Date: July 1, 2008	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Orwell Natural Gas Company	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Thomas J. Smith
 

	 	 
	 	 	 	 	 	 	Thomas J. Smith, President	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Date: July 1, 2008	 	 

Page 13

 

Exhibit A

OTPC Gas Transmission, LLC

     ALL PIPELINES OWNED BY OTPC LOCATED IN NORTHEASTERN OHIO.

Page 14

 

Exhibit B

OTPC Gas Transmission, LLC

Primary Receipt Point

Interconnection between QTPC and North Coast Gas Transmission, LLC’s Pipeline in Mantua,
Ohio

Primary Delivery Point(s)

For BGC: Various interconnections between OTPC and BGC. as required for back-up services
only.

For ONG: Various interconnections between OTPC and ONG.

Shrinkage

TBD

2000 Dth/day

*RATES

Commodity Charge (paid only on quantity transported)

November-March $0.95 per Thousand Cubic Feet (Mcf)

April-October $0.95 per Thousand Cubic Feet (Mcf)

 

*   Rates will adjust every five (5) years commencing on July 1, 2013 and continuing on each fifth
(5th) anniversary date for the remaining term of this Agreement to reflect the higher of
$0.95 per Thousand Cubic Feet (Mcf) or a negotiated rate to reflect the then current market
conditions existing on each such rate adjustment date. If the parties cannot agree on a rate
adjustment amount, OTPC shall have the option to increase the Rate by the increase in the consumer
price index all items (Cleveland, Ohio) (“CPI”) as calculated from July 1, 2008 to each applicable
rate adjustment date.

Page 15

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