Document:

exv10w5

 

Exhibit 10.5

FT AGREEMENT
– CONTRACT #200386

With Dominion
Transmission, Inc.

Effective November 1, 2004 thru November 1, 2014

 

 

			
	AGREEMENT ID	 
	533	 
	
	 	 

FT CONTRACT NO.

200386         

SERVICE AGREEMENT

APPLICABLE TO TRANSPORTATION OF NATURAL GAS

UNDER RATE SCHEDULES FT

     AGREEMENT
made as of this 26 day of November, 2003, by and between
DOMINION TRANSMISSION, INC., a Delaware corporation, hereinafter called
“Pipeline,” and WASHINGTON GAS LIGHT COMPANY, INC., a District of Columbia and
Virginia corporation, hereinafter called “Customer.”

            WHEREAS, by Order issued by the Federal Energy Regulatory Commission
(“FERC”) on September 11, 2003 in Docket Nos. CP03-41-000 and CP03-43-000,
Pipeline was issued a certificate of public convenience and necessity pursuant
to Section 7 of the Natural Gas Act and Part 157 of the Commission’s
Regulations authorizing Pipeline to construct, own, and operate facilities
providing a total of 223,000 Dekatherms (Dt) per day of firm transportation
service and a total of 5.6 Bcf of firm storage capacity (the “Mid-Atlantic
Project”);

     WHEREAS, Pipeline has accepted the certificate issued by the FERC in
Docket Nos. CP03-41-000 and CP03-43-000;

     WHEREAS, Customer has requested that Pipeline transport natural gas for it
as part of the Mid-Atlantic Project; and

     WHEREAS, Pipeline is willing to provide transportation service for
Customer as part of the Mid-Atlantic Project commencing on November 1, 2004, or
as soon as any additional necessary rights and regulatory approvals are
received and accepted by Pipeline and as the necessary facilities are
constructed and ready for service.

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

ARTICLE I

Quantities

     A. During the term of this Agreement, Pipeline will transport for
Customer, on a firm basis, and Customer may furnish, or cause to be
furnished, to
Pipeline natural gas for such transportation, and Customer will accept, or
cause to
be accepted, delivery from Pipeline of the quantities Customer has
tendered for
transportation.

     B. The maximum quantities of gas which Pipeline shall deliver and which
Customer may tender shall be as set forth on Exhibit A, attached hereto.

 

 

FT CONTRACT NO.

200386         

ARTICLE II

Rate

     A. Unless otherwise mutually agreed in a written amendment to this
Agreement, Customer shall pay Pipeline for transportation services
rendered
pursuant to this Agreement, the maximum rates and charges provided under
Rate
Schedule FT for the Mid-Atlantic Project set forth in the “Summary of
Incremental
Rates” in Pipeline’s effective FERC Gas Tariff, including applicable
surcharges and
the Fuel Retention Percentage. Upon the beginning of the term of this
Agreement,
that rate shall be consistent with the FERC’s order granting Pipeline its
certificate
in Docket Nos. CP03-41-000 and CP03-43-000 (as modified upon rehearing, if
applicable).

     B. Pipeline shall have the right to propose, file and make effective with
the
FERC or any other body having jurisdiction, revisions to any applicable
rate
schedule, or to propose, file, and make effective superseding rate
schedules for the
purpose of changing the rate, charges, and other provisions thereof
effective as to
Customer; provided, however, that (i) Section 2 of Rate Schedule FT
“Applicability
and Character of Service,” (ii) term, (iii) quantities, and (iv) points of
receipt and
points of delivery shall not be subject to unilateral change under this
Article. Said
rate schedule or superseding rate schedule and any revisions thereof which
shall be
filed and made effective shall apply to and become a part of this Service
Agreement.
The filing of such changes and revisions to any applicable rate schedule
shall be
without prejudice to the right of Customer to contest or oppose such
filing and its
effectiveness.

ARTICLE III

Term of Agreement

     Subject to all the terms and conditions herein, this Agreement shall be
effective ten days after Pipeline notifies Customer that it is prepared to
transport gas for Customer under the Agreement, which date shall be no earlier
than ten days prior to November 1, 2004. Service pursuant to this Agreement
shall continue in effect from that date for a primary term of ten years, and
from year to year thereafter; provided, however, that either Pipeline or
Customer may terminate the Agreement at the end of the primary term by giving
written notice to the other party at least twelve months prior to the start of
the next contract year.

 

 

FT CONTRACT NO.

200386         

ARTICLE IV

Points of Receipt and Delivery

     The Primary Points of Receipt and Delivery and the maximum quantities for
each point for all gas that may be received for Customer’s account for
transportation by Pipeline shall be as set forth on Exhibit A. Customer shall
also be entitled to utilize Secondary Receipt and Delivery Points in
accordance with applicable provisions of Rate Schedule FT.

ARTICLE V

Regulatory Approval

     Performance under this Agreement by Pipeline and Customer shall be
contingent upon Pipeline and Customer receiving all necessary regulatory or
other governmental approvals upon terms satisfactory to each. Should Pipeline
and Customer be denied such approvals to provide or continue the service
contemplated herein or to construct and operate any necessary facilities
therefor upon the terms and conditions requested in the application therefor,
then Pipeline’s and Customer’s obligations hereunder shall terminate.

ARTICLE VI

Incorporation By Reference of Tariff Provisions

     A. To the extent not inconsistent with the terms and conditions of
this Agreement, the following provisions of Pipeline’s effective FERC Gas
Tariff, and any revisions thereof that may be made effective hereafter,
are hereby made applicable to and a part hereof by reference:

     1. All of the provisions of Rate Schedule FT, or any effective superseding
rate schedule or otherwise applicable rate schedule; and

     2. All of the provisions of the General Terms and Conditions, as they may
be revised or superseded from time to time.

ARTICLE VII

Miscellaneous

     A. No change, modification or alteration of this Agreement shall be or
become effective until executed in writing by the parties hereto; provided,
however, that the parties do not intend that this Article VII.A. requires a
further written agreement either prior to the making of any request or filing
permitted under Article II hereof or prior to the effectiveness of such request
or filing after Commission approval, provided further, however, that nothing in
this Agreement shall be deemed to prejudice any position the parties may take
as to whether the

 

 

FT CONTRACT NO.

200386         

request, filing or revision permitted under Article II must be made under
Section 7 or Section 4 of the Natural Gas Act.

     B. Any notice, request or demand provided for in this Agreement, or any

notice which either party may desire to give the other, shall be in
writing and sent
to the following addresses:

	 	 	 
	Pipeline:

	 	Dominion Transmission, Inc.
	

	 	120 Tredegar Street
	

	 	Richmond, VA 23219
	

	 	Attention: Jeffrey Keister
	

	 	Phone: (804) 819-2820
	

	 	Fax: (804) 819-2062
	 
	 	 
	Customer:

	 	Washington Gas Light Company
	

	 	6801 Industrial Road
	

	 	Springfield, Virginia 22151
	

	 	Attention: Tim Sherwood
	

	 	Phone:
(703) 750-5816
	

	 	Fax: (703) 750-7945

or any such other address as either party shall designate by formal written
notice.

     C. No presumption shall operate in favor of or against either party hereto
as a result of any responsibility either party may have had for drafting
this
Agreement.

     D. The subject headings of the provisions of this Agreement are inserted
for the purpose of convenient reference and are not intended to become a
part of or
to be considered in any interpretation of such provisions.

ARTICLE VIII

Prior Contract

     To the extent not inconsistent with the terms and conditions of this
Agreement, the provisions of the Precedent Agreement for Firm Transportation
Service between Customer and Pipeline dated December 31, 2001, and as amended,
shall survive; otherwise, the provisions of this Agreement shall govern.

 

 

FT CONTRACT NO.

200386         

     IN WITNESS WHEREOF, the parties hereto intending to be legally bound, have
caused this Agreement to be signed by their duly authorized officials as of the
day and year first written above.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Dominion Transmission, Inc.	 	 
	 	 	(Pipeline)	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ [ILLEGIBLE]
	 	 	 	 	

	

	 	Its:
	 	MANAGING, DIRECTOR	 	 	 	 
	 	 	 	 	

	

	 	 	 	 	 	(Title)	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	Washington Gas Light Company	 	 
	 	 	(Customer)	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Terry McCallister
	 	 	 	 	

	

	 	Its:
	 	 	 	President & COO	 	 	 	 
	 	 	 	 	

	

	 	 	 	 	 	(Title)	 	 	 	 

 

 

			
	 	 	FT CONTRACT NO.
	 	 	200386
	 	 	 

EXHIBIT A

To The FT Agreement

Dated November 26, 2003

Between Dominion Transmission, Inc.

And Washington Gas Light Company

A. Quantities

     1. The maximum quantities of gas which Pipeline shall deliver and which
Customer may tender shall be as follows:

     a. A Maximum Daily Transportation Quantity (MDTQ) of 25,000 Dt.

     b. A Maximum Annual Transportation Quantity (MATQ) of 9,125,000 Dt.

B. Points of Receipt and Delivery

     1. The Point of Receipt and the maximum quantities for that point shall
be as follows:

     Up to 25,000 Dt per Day at a point of interconnection between the
facilities of Pipeline and Texas Eastern Transmission, L.P. in Westmoreland
County, Pennsylvania known as the Oakford Interconnection, at a pressure of
not less than 575 pounds per square inch gauge. In addition to these
quantities, Customer may increase the quantities furnished to Pipeline at the
Point(s) of Receipt provided that such quantities, when reduced by the
applicable fuel retention percentage specified in Pipeline’s then-effective
FERC Gas Tariff, do not exceed the MDTQ.

     2. The Point of Delivery and the maximum quantities for that point shall
be as follows:

     Up to 25,000 Dt per Day at an existing interconnection between the
facilities of Pipeline and Dominion Cove Point LNG, Limited Partnership in
Loudoun County, Virginia, known as the Loudoun Interconnection. Each of the
parties shall use due care and diligence to ensure that pressures are
maintained within the normal operating tolerances at the Point of Delivery as
reasonably may be required to render service hereunder.exv10w6

 

Exhibit 10.6

Contract # 9020256
  Leidy East      

SERVICE AGREEMENT

between

TRANSCONTINENTAL GAS PIPE LINE CORPORATION

and

WASHINGTON GAS LIGHT COMPANY

Dated

October 1, 2004

 

 

SERVICE AGREEMENT

     THIS
AGREEMENT entered into this  29th day of
SEPTEMBER,
2004, by and
between TRANSCONTINENTAL GAS PIPE LINE CORPORATION, a Delaware corporation,
hereinafter referred to as “Seller,” first party, and WASHINGTON GAS LIGHT
COMPANY, hereinafter referred to as “Buyer,” second party,

WITNESSETH

     WHEREAS, by orders issued October 25, 2001 and October 23, 2002 in Docket
Nos. CP01-389-000 and CP01-389-003, the Federal Energy Regulatory Commission
(“FERC”) has authorized Seller’s Leidy East Expansion Project (referred to as
“Leidy East Project”); and

     WHEREAS, Seller and Reliant Energy Services, Inc. (“Reliant”) are parties
to that certain Rate Schedule FT Service Agreement, dated May 30, 2001 and
amended on September 27, 2002 (and effective November 1, 2002), for firm

transportation service of 25,000 dekatherms per day under the Leidy East
Project (“Leidy East Agreement”); and

     WHEREAS, pursuant to Section 42.14 of the General Terms and Conditions of
Seller’s FERC Gas Tariff, Reliant has permanently released all of its firm
transportation capacity under the Leidy East Agreement to Buyer, and Buyer has
agreed to accept such permanent release, effective as of October 1, 2004; and

     WHEREAS, Seller is willing to provide the requested firm transportation
service for Buyer under the Leidy East Project pursuant to the terms and
conditions of this agreement and Seller’s Rate Schedule FT commencing as
provided in Article IV of this agreement.

     NOW, THEREFORE, Seller and Buyer agree as follows:

ARTICLE I

GAS TRANSPORTATION SERVICE

     1. Subject to the terms and provisions of this agreement and of Seller’s
Rate Schedule FT,
Buyer agrees to deliver or cause to be delivered to Seller gas for
transportation and Seller agrees to receive,
transport and redeliver natural gas to Buyer or for the account of Buyer,
on a firm basis, up to a Transportation
Contract Quantity (“TCQ”) of 25,000 dekatherms per day.

     2. Transportation service rendered hereunder shall not be subject to
curtailment or interruption
except as provided in Section 11 and, if applicable, Section 42 of the
General Terms and Conditions of Seller’s
FERC Gas Tariff.

ARTICLE II

POINT(S) OF RECEIPT

     Buyer shall deliver or cause to be delivered gas at the point(s) of
receipt hereunder at a pressure sufficient to allow the gas to enter Seller’s
pipeline system at the varying pressures that may exist in such system from
time to time; provided, however, the pressure of the gas delivered or caused
to be delivered by Buyer shall not exceed the maximum operating pressure(s) of
Seller’s pipeline system at such point(s) of receipt. In the event the maximum
operating pressure(s) of Seller’s pipeline system, at the point(s) of receipt
hereunder, is from time to time increased or decreased, then the maximum
allowable pressure(s) of the gas delivered or caused to be delivered by Buyer
to Seller at the point(s) of receipt shall be correspondingly increased or
decreased upon written notification of Seller to Buyer. The point(s) of
receipt for natural gas received for transportation pursuant to this agreement
shall be:

1

 

SERVICE AGREEMENT

(CONTINUED)

     See Exhibit A, attached
hereto, for points of receipt.

ARTICLE III

POINT(S) OF DELIVERY

     Seller shall redeliver to Buyer or for the account of Buyer the gas
transported hereunder at the following point(s) of delivery and at a
pressure(s) of:

     See Exhibit B, attached hereto, for points of delivery and pressures.

ARTICLE IV

TERM OF AGREEMENT

     This agreement shall be effective as of October 1, 2004 and shall remain
in force and effect until 9:00 a.m. Central Clock Time November 1, 2022 and
thereafter until terminated by Seller or Buyer upon at least two year’s
written notice; provided, however, this agreement shall terminate immediately
and, subject to the receipt of necessary authorizations, if any, Seller may
discontinue service hereunder if (a) Buyer, in Seller’s reasonable judgment
fails to demonstrate credit worthiness, and (b) Buyer fails to provide
adequate security in accordance with Section 32 of the General Terms and
Conditions of Seller’s Volume No. 1 Tariff. As set forth in Section 8 of
Article II of Seller’s August 7, 1989 revised Stipulation and Agreement in
Docket Nos. RP88-68 et.al., (a) pregranted abandonment under Section 284.221
(d) of the Commission’s Regulations shall not apply to any long term
conversions from firm sales service to transportation service under Seller’s
Rate Schedule FT and (b) Seller shall not exercise its right to terminate this
service agreement as it applies to transportation service resulting from
conversions from firm sales service so long as Buyer is willing to pay rates
no less favorable than Seller is otherwise able to collect from third parties
for such service.

ARTICLE V

RATE SCHEDULE AND PRICE

     1. Buyer shall pay Seller for natural gas delivered to Buyer hereunder in
accordance with Seller’s
Rate Schedule FT and the applicable provisions of the General Terms and
Conditions of Seller’s FERC Gas
Tariff as filed with the FERC, and as the same may be legally amended or
superseded from time to time.
Such Rate Schedule and General Terms and Conditions are by this reference
made a part hereof. In the
event Buyer and Seller mutually agree to a negotiated rate pursuant to the
provisions in Section 53 of the
General Terms and Conditions and specified term for service hereunder,
provisions governing such
negotiated rate (including surcharges) and term shall be set forth on
Exhibit C to the service agreement.

     2. Seller and Buyer agree that the quantity of gas that Buyer delivers or
causes to be delivered to
Seller shall include the quantity of gas retained by Seller for applicable
compressor fuel, line loss make-up
(and injection fuel under Seller’s Rate Schedule GSS, if applicable) in
providing the transportation service
hereunder, which quantity may be changed from time to time and which will
be specified in the currently
effective Sheet No. 44 of Volume No. 1 of this Tariff which relates to
service under this agreement and which
is incorporated herein.

     3. In addition to the applicable charges for firm transportation service
pursuant to Section 3 of
Seller’s Rate Schedule FT, Buyer shall reimburse Seller for any and all
filing fees incurred as a result of
Buyer’s request for service under Seller’s Rate Schedule FT, to the extent
such fees are imposed upon Seller
by the Federal Energy Regulatory Commission or any successor governmental
authority having jurisdiction.

2

 

SERVICE AGREEMENT

(CONTINUED)

ARTICLE VI

MISCELLANEOUS

     1. This Agreement supersedes and cancels as of the effective date hereof
the following
contract(s) between the parties hereto: None

     2. No waiver by either party of any one or more defaults by the other in
the performance of any
provisions of this agreement shall operate or be construed as a waiver of
any future default or defaults,
whether of a like or different character.

     3. The interpretation and performance of this agreement shall be in
accordance with the laws of
the State of Texas, without recourse to the law governing conflict of
laws, and to all present and future valid
laws with respect to the subject matter, including present and future
orders, rules and regulations of duly
constituted authorities.

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

     5. Notices to either party shall be in writing and shall be considered as
duly delivered when
mailed to the other party at the following address:

	(a)	 	If to Seller:

Transcontinental Gas Pipe Line Corporation

P.O. Box 1396

Houston, Texas, 77251-1396

Attn: Director Marketing Services Transco (South)
	 
	(b)	 	If to Buyer:

Washington Gas Light

6801 Industrial Road

Springfield, Virginia 22151

Attn: DEPT. HEAD - ENERGY ACQUISITION

Such addresses may be changed from time to time by mailing appropriate notice
thereof to the other party by certified or registered mail.

3

 

SERVICE AGREEMENT

(CONTINUED)

     IN WITNESS WHEREOF, the parties hereto have caused this agreement to be
signed by their respective officers or representatives thereunto duly
authorized.

	 	 	 	 	 
	 	 	       TRANSCONTINENTAL GAS PIPE LINE CORPORATION
	

	 	 	 	(Seller)     
	 
	 	 	 	 
	

	 	By:
	 	/s/ Frank J. Ferazzi

	

	 	 	 	Frank J. Ferazzi
	

	 	 	 	Vice President, Commercial Operations
	 
	 	 	 	 
	 	 	       WASHINGTON GAS LIGHT COMPANY
	

	 	 	 	                                                           (Buyer)
	 
	 	 	 	 
	

	 	By:
	 	/s/ Terry McCallister

	`

	 	Title:
	 	PRESIDENT/ C.O.O.

4

 

SERVICE AGREEMENT

(CONTINUED)

Exhibit A

ATTACHED AND MADE PART OF THAT SERVICE AGREEMENT BY AND BETWEEN
TRANSCONTINENTAL GAS PIPE LINE CORPORATION, AS SELLER, AND WASHINGTON GAS LIGHT
COMPANY, AS BUYER, DATED SEPTEMBER 29, 2004.

	 	 	 
	

	 	Seller’s
	

	 	Cumulative
	

	 	Daily Receipt
	Point(s) of Receipt

	 	Obligation (Dt/d)1
	The
point of interconnection between Seller and

CNG Transmission Corporation at Leidy,

Clinton County, Pennsylvania.

	 	25,000*
	 
	 	 
	The
point of interconnection between Seller and
National Fuel Gas
Distribution Corporation at Leidy,
 Clinton County, Pennsylvania
	 	 

*Note: The sum of the receipts from the points specified above, not
inclusive of fuel and line loss make-up, may not exceed the TCQ of
25,000 dt/d except as permitted in Seller’s FERC Gas Tariff, as
effective at the time of receipt.

	1	 	These quantities do not include the additional quantities of gas retained
by Seller for applicable compressor fuel and line loss make-up provided
for in Article V, 2 of this Service Agreement, which are subject to change
as provided for in Article V, 2 hereof. Therefore, Buyer shall also
deliver or cause to be delivered at the receipt points such additional
quantities of gas in kind to be retained by Seller for compressor fuel and
line loss make-up.

 

 

SERVICE AGREEMENT

(CONTINUED)

Exhibit B

ATTACHED AND MADE PART OF THAT SERVICE AGREEMENT BY AND BETWEEN
TRANSCONTINENTAL GAS PIPE LINE CORPORATION, AS SELLER, AND WASHINGTON GAS LIGHT
COMPANY, AS BUYER, DATED SEPT. 29, 2004.

	 	 	 	 	 
	

	 	Maximum Daily

	Point(s) of Delivery and Pressures 1

	 	Delivery Quantity (Dt/d)2

	The point of interconnection between Seller’s, Leidy

	 	25,000	 	 
	Line and its Main line in Mercer County, New Jersey
	 	 	 	 
	(referred to as “Princeton Junction” or “Station 210”)
	 	 	 	 

	1	 	Pressure(s) shall not be less than fifty (50) pounds per square inch
gauge or at such other pressures as may be agreed upon by Buyer and
Seller.
	 
	2	 	Deliveries to or for the account of Buyer at the delivery point(s) shall
be subject to the limits of the Delivery Point Entitlement (DPE’s), if
applicable, of the entities receiving the gas at the delivery points, as
such DPE’s are set forth in Transco’s FERC Gas Tariff, as amended from
time to time.

 

 

SERVICE AGREEMENT

(CONTINUED)

Exhibit C

ATTACHED AND MADE PART OF THAT SERVICE AGREEMENT BY AND BETWEEN
TRANSCONTINENTAL GAS PIPE LINE CORPORATION, AS SELLER, AND WASHINGTON GAS LIGHT
COMPANY, AS BUYER, DATED SEPTEMBER 29, 2004

Specification of Negotiated Rate and Term

Primary Term: 18 Years and 1 month

The Negotiated Reservation Rate shall be effective during the primary term of
this Service Agreement

Negotiated Monthly Reservation Rate: ($/Dth) $6.39

Negotiated Daily Reservation Rate: ($/Dth) $0.21008

In addition to the negotiated reservation rate, Buyer shall be responsible for
fuel retention, electric power charges, and all surcharges, except for the
Great Plains Surcharge, applicable to Seller’s Rate Schedule FT Service as
approved by the FERC. Fuel retention, electric power charges and applicable
surcharges are subject to change from time to time as approved by the FERC.

Seller agrees not to file or cause to be filed with the FERC under Section 4
of the Natural Gas Act (“NGA”) to seek to modify the negotiated reservation
rate, and Buyer agrees not to file or cause to be filed with the FERC any
action, claim, complaint, or other pleading under Section 4 or 5 of the NGA,
or to support or participate in any such proceeding initiated by any other
party, relating to the negotiated reservation rate.

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