Document:

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                                                                   EXHIBIT 10.23

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                             CONSENT AND AGREEMENT
                 (Interruptible Gas Transportation Agreement,
                      Firm Gas Transportation Agreement,
                        Hot Tap Reimbursement Agreement
                    and Letter of Credit Drawing Agreement)

                         Dated as of December 6, 1999

                                      by

                        Tennessee Gas Pipeline Company,
                            a Delaware corporation

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                             CONSENT AND AGREEMENT
                 (Interruptible Gas Transportation Agreement,
                      Firm Gas Transportation Agreement,
                        Hot Tap Reimbursement Agreement
                    and Letter of Credit Drawing Agreement)

     1.   Tennessee Gas Pipeline Company, a Delaware corporation (the
"Undersigned") has been informed that pursuant to the Security Agreement dated
as of December 6, 1999 ("Security Agreement"), between Project Orange
Associates, L.P., a Delaware limited partnership ("Borrower"), and U.S. Bank
Trust National Association ("Agent"), as agent for the benefit of the Secured
Parties to that certain Indenture ("Financing Agreement") dated as of December
6, 1999, between U.S. Bank Trust National Association, as Trustee for the
benefit of the holder's of the Borrower's 10.5% Senior Secured Notes due 2007
(the "Holders") and, together with Trustee, the "Secured Parties") has assigned
its interest under (i) that certain Gas Transportation Agreement between the
Undersigned and Borrower dated as of November 11, 1999 relating to interruptible
gas transportation services (the "Interruptible Gas Transportation Contract");
(ii) that certain Firm Natural Gas Transportation Agreement between the Borrower
and the Undersigned, dated March 29, 1991 (the "Firm Gas Transportation
Contract"); (iii) that certain Letter of Credit Drawing Agreement dated as of
March 29, 1991 between the Undersigned and Borrower, as amended by that certain
Amendment No. 1 to Letter of Credit Drawing Agreement dated as of June 26, 1992
(the "Letter of Credit Drawing Agreement"); and (iv) that certain agreement
relating to installation of a Hot Tap, Measurement and DAC (the "Reimbursement
Agreement") between G.A.S. Orange Development, Inc., a New York corporation
("Development") and the Undersigned dated May 25, 1988, as amended by that
certain amendatory letter dated August 11, 1988, and as assigned to Borrower
pursuant to an Assignment and Assumption Agreement between Development and
Borrower dated November 30, 1990 (collectively referred to as the "Contracts")
to Agent for the benefit of the Secured Parties. The Undersigned consents to
such assignment (including the assignments, described in the respective
descriptions of the Contracts above) and agrees with the Agent for the benefit
of the Secured Parties as follows:

             (a)  Unless otherwise defined, all terms used herein which are
     defined in the Security Agreement or, if not defined therein, in the
     Financing Agreement, shall have their respective meanings as defined
     therein.

             (b)  The Undersigned agrees that Agent shall be entitled to
     exercise all rights and to cure any defaults of the Borrower under the
     Contracts in the manner and within the times allowed to Borrower under the
     Contracts. Upon receipt of notice from Agent, the Undersigned agrees to
     accept such exercise and cure by Agent and to render all performance due by
     it under the Contracts and this Consent and Agreement to Agent. The
     Undersigned agrees to make all payments (if any) to

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     be made by it under the Contracts directly to Agent upon receipt of Agent's
     written instructions. Borrower agrees to the foregoing provisions of this
     paragraph 1(b) and agrees that the Undersigned shall under no circumstances
     incur liability to Borrower as a result of honoring notices and accepting
     cure from, and rendering performance under the Contracts to, the Agent.

             (c)  The Undersigned will not, without using reasonable efforts to
     obtain the prior written consent of Agent (such consent not to be
     unreasonably withheld) (i) cancel or terminate any of the Contracts except
     as provided in the Contracts and, if such cancellation or termination will
     result in breach or default thereof by Borrower, in accordance with
     paragraph 1(d) hereof, or consent to or accept any cancellation or
     termination thereof by Borrower, (ii) sell, assign or otherwise dispose (by
     operation of law or otherwise) of any part of its interest in the Contracts
     except as provided in the Contracts and unless the purchaser or assignee of
     the Contracts agrees to be bound by the terms hereof or (iii) amend or
     modify the Contracts in any material respect; provided, however, that (A)
     nothing in this Consent and Agreement shall prevent the Undersigned from
     proposing or making any modification or amendment to the Undersigned's gas
     tariff or the rates or charges payable to the Undersigned pursuant to such
     tariff and (B) nothing in this Consent and Agreement shall prevent the
     Undersigned from making any modification or amendment of the Contracts
     necessary, in the Undersigned's good faith judgment, to conform with the
     requirements of any governmental or regulatory authority having
     jurisdiction.

             The Undersigned will use reasonable efforts to deliver duplicates
     or copies of all notices of default or breach delivered under or pursuant
     to the Contracts to Agent promptly upon receipt thereof and will use
     reasonable efforts to advise Agent of any material amendments to the
     Contracts. Failure or delay by the Undersigned to deliver any such notice
     to Agent shall not constitute a waiver of any breach or default by Borrower
     under the Contracts, provided that this sentence shall not affect the
     operation of paragraph 1(d) hereof.

             (d)  The Undersigned will not terminate any of the Contracts on
     account of any default or breach of Borrower thereunder without first
     providing to Agent (i) thirty (30) days from the date notice of default or
     breach is delivered to Agent to cure such default if such default is the
     failure to pay amounts to the Undersigned which are due and payable under
     such Contracts or (ii) a reasonable opportunity, but not fewer than ninety
     (90) days, to cure such breach or default if the breach or default cannot
     be cured by the payment of money to the Undersigned so long as Agent or its
     designee shall have commenced to cure the breach or default within such 90
     day period and thereafter diligently pursues such cure to completion and
     continues to perform any monetary obligations under the Contracts and all
     other

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     obligations under the Contracts are performed by Borrower or Agent. If
     possession of the Project is necessary to cure such non-monetary breach of
     default, and Agent declares Borrower in default and commences foreclosure
     proceedings, Agent will be allowed a reasonable period to complete such
     proceedings. If Agent is prohibited by any court order or bankruptcy or
     insolvency proceedings from curing the default or from commencing or
     prosecuting foreclosure proceedings, the foregoing time periods shall be
     extended by the period of such prohibition. The Undersigned consents to the
     transfer of Borrower's interest under the Contracts to the Agent, for the
     benefit of the Secured Parties, or a purchaser or grantee at a foreclosure
     sale by judicial or nonjudicial foreclosure and sale or by a conveyance by
     Borrower in lieu of foreclosure and agrees that upon such foreclosure, sale
     or conveyance, the Undersigned shall upon receipt of written notice
     recognize the Agent or other purchase or grantee as the applicable party
     under the Contracts.

             (e)  In the event that any of the Contracts is terminated by virtue
     of being rejected by a trustee or debtor-in-possession in any bankruptcy or
     insolvency proceeding and if, within 45 days after such termination, the
     Agent or its successors or assigns shall so request, the Undersigned will
     execute and deliver to the Agent new contracts, which Contracts shall be on
     the same terms and conditions as the original Contracts for the remaining
     term of the Contracts before giving effect to such termination; provided,
     however, that if any regulatory approvals are required for the Undersigned
     to enter into or perform under any such new Contract, the effectiveness of
     such new Contract shall be subject to such regulatory approvals to the
     extent required by law, and the Undersigned agrees to diligently pursue
     such regulatory approvals in good faith and to use its best efforts to
     obtain such approvals in good faith and to use its best efforts to obtain
     such approvals as rapidly as possible.

             (f)  In the event Agent or its designee or assignee elect to
     perform Borrower's obligations under the Contracts or to enter into new
     contracts as provided in paragraph 1(d) or 1(e) respectively above, Agent,
     the Secured Parties, their designees and assignees, shall not have personal
     liability to the Undersigned for the performance of such obligations, and
     the sole recourse of the Undersigned in seeking the enforcement of such
     obligations shall be to such parties' interest in the Project; provided,
     however, that any successors to Borrower's interest under the Contracts, or
     any new Contracts entered into pursuant to paragraph 1(e) hereof, agree
     that the obligation to provide security under the Letter of Credit Drawing
     Agreement shall remain in full force and effect. In the event Agent
     succeeds to Borrower's interest under the Contracts, or performs any of
     Borrower's obligations under the Contracts, Agent shall cure any defaults
     for failure to pay amounts owed under the Contracts, but shall not
     otherwise be required to perform any of Borrower's other obligations under
     the Contracts that were unperformed at such

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     time. Agent shall have the right to assign all or part of its interest in
     the Contracts or new contracts entered into pursuant to paragraph 1(e) to a
     person or entity to whom the Project is transferred, provided such
     transferee assumes the obligations of Borrower (or Agent) under the
     Contracts (including the obligation to provide security under the Letter of
     Credit Drawing Agreement) and has a financial capability at least
     equivalent to that of Borrower on the date hereof. Upon such assignment,
     the Secured Parties (including their agents, employees and contractors)
     shall be released from any further liability thereunder to the extent of
     the interest assigned.

             (g)  The Undersigned agrees that the defined term "Security and
     Collection Agreement" contained in the Contracts shall be deemed to mean
     the Letter of Credit Drawing Agreement.

     2.   The Undersigned hereby represents and warrants that, assuming the due
authorization, execution and delivery of the Contracts and this Consent and
Agreement by the other parties thereto, (a) the execution and delivery by the
Undersigned of the Contracts and this Consent and Agreement have been duly
authorized by all necessary corporate action on the part of the Undersigned, and
do not and will not require any further consents or approvals on the part of the
Undersigned which have not been obtained, the performance by the Undersigned of
the Contracts and this Consent and Agreement has been duly authorized by all
necessary corporate action and does not, as of the date hereof, require any
consents or approvals on the part of the Undersigned which have not been
obtained and such execution, delivery and performance do not violate any
provision of any law, regulation, order, judgment, injunction or similar matters
or materially breach any agreement presently in effect with respect to or
binding on the Undersigned, (b) this Consent and Agreement and the Contracts are
legal, valid and binding obligations of the Undersigned enforceable against the
Undersigned except to the extent that enforceability may be limited by
applicable bankruptcy, insolvency, moratorium, reorganization or other similar
laws, and subject to general equitable principles, (c) all government approvals
necessary as of the date hereof for the execution, delivery and performance by
the Undersigned of its obligations under the Contracts have been obtained and
are in full force and effect and the Undersigned has no reason to expect that
any necessary governmental approvals required in the future may not be obtained
without undue delay or expense, (d) as of the date hereof, the Contracts are in
full force and effect as against the Undersigned and have not been amended,
supplemented or modified, and (e) to the best of the Undersigned's knowledge
Borrower has fulfilled all of its obligations under the Contracts, and to the
best of the Undersigned's knowledge there are no breaches or unsatisfied
conditions presently existing (or which would exist after the passage of time
and/or giving of notice) under the Contracts.

     3.   All Notices required or permitted hereunder shall be in writing and
shall be effective (i) upon receipt if hand delivered, (ii) when the appropriate
answer back is received if sent by telex and (iii) if otherwise delivered, upon
the earlier of receipt or two (2) Business Days

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after being sent registered or certified mail, return receipt requested, with
proper postage affixed thereto, or by private courier or delivery service with
charges prepaid, and addressed as specified below:

     If to the Undersigned:

     For the Reimbursement Agreement and this Consent and Agreement:

       Tennessee Gas Pipeline Company
       P.O. Box 2511
       Houston, TX 77252-2511
       Attn: Facility Contracts
       Phone: (713) 420-3242
       FAX: (713) 420-2155

     For the Interruptible Gas Transportation Contract, the Firm Gas
     Transportation Contract and the Letter of Credit Drawing Agreement:

       Tennessee Gas Pipeline Company
       P.O. Box 2511
       Houston, TX 77252-2511
       Attn.: Transportation Services
       Phone: (713) 420-4210
       FAX: (713) 420-5079

     If to Agent:

       U.S. Bank Trust National Association
       100 Wall Street, Suite 1600
       New York, NY 10005
       Attn: Corporate Trust Administration
       FAX: (212) 809-5459

     4.   This Consent and Agreement shall be binding upon and benefit the
successors and assigns of the Undersigned, Borrower, Agent, the Secured Parties,
and their respective successors, transferees and assigns. No termination,
amendment, variation or waiver of any provisions of this Consent and Agreement
shall be effective unless in writing and signed by the Undersigned, Agent and
Borrower. Each and every provision of this Consent and Agreement is entirely
subject to any governmental approvals which may be required in connection
herewith; provided, however, that no signatory is aware that any such approval
required as of the date

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hereof has not been obtained. This Consent and Agreement shall be governed by
the laws of the State of New York.

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IN WITNESS WHEREOF, the Undersigned by its officer hereunto duly authorized, has
duly executed this Consent and Agreement as of the date set forth below.

     Dated: November 18, 1999

                                        TENNESSEE GAS PIPELINE COMPANY,
                                          a Delaware corporation

                                        By: /s/ Matthew W. Rowland
                                           ____________________________________
                                        Name: Matthew W. Rowland
                                        Title: Agent and Attorney-in-Fact

     Accepted:

     U.S. BANK TRUST NATIONAL ASSOCIATION,
      for itself and as Agent for the benefit
      of the Secured Parties

     By: /s/ Ward A. Spooner
         _______________________________
         Name:
         Title:

     By: /s/ John Bowman
         _______________________________
         Name:
         Title:

     PROJECT ORANGE ASSOCIATES, L.P.,
      a Delaware limited partnership

     By: G.A.S. ORANGE ASSOCIATES, LLC
         a Delaware limited liability company,
         general partner

         By: /s/ Douglas Corbett
             ___________________________
         Name: Douglas Corbett
         Title: Vice President

                                      -7-<PAGE>

                                                                   EXHIBIT 10.24

                             CONSENT AND AGREEMENT

          TransCanada PipeLines Limited ("TransCanada"), a corporation organized
     under the laws of Canada, hereby consents upon the terms and conditions
     herein set forth to the collateral assignment of the Assigned Agreement (as
     defined below) by Canadian Hunter Exploration Ltd. ("Canadian Hunter"), an
     Alberta corporation, to Project Orange Associates, L.P. ("Project Orange"),
     a Delaware limited partnership pursuant to that certain Collateral
     Assignment of the Firm Service Agreement dated as of April 5, 1991 between
     Canadian Hunter and Project Orange ("Collateral Assignment").

          TransCanada hereby consents upon the terms and conditions herein set
     forth to the assignment of the Assigned Agreement (as defined below) by
     Project Orange to U.S. Bank Trust National Association, as collateral agent
     ("Agent") pursuant to that certain Security Agreement dated as of December
     6, 1999 between Agent and Project Orange (the "Security Agreement").

          For purposes of this Consent and Agreement, the term "Assigned
     Agreement" shall mean the Firm Service Contract entered into by TransCanada
     and Canadian Hunter made as of October 11, 1990, as such Firm Service
     Contract may be amended or supplemented from time to time.

          Canadian Hunter, Project Orange, Agent and TransCanada agree as
     follows:

       1. (a) Project Orange or Agent, as the case may be, may at its election,
     upon (i) satisfying TransCanada's financial assurance requirements; (ii)
     supplying TransCanada with all information reasonably requested by
     TransCanada pertaining to gas supply and upstream and downstream
     transportation arrangements and TransCanada being satisfied with such
     information; (iii) providing TransCanada with evidence that Project Orange
     or the Agent, as the case may be, has obtained such certificates, permits,
     orders, licenses and authorizations from regulators or other governmental
     agencies in the United States of America or Canada, as the case may be, as
     are necessary to enable Project Orange or the Agent, as the case may be, to
     remove from the province of production and deliver to TransCanada at the
     Receipt Point(s) (as defined in the Assigned Agreement) and to receive from
     TransCanada, export from Canada, import and deliver into the United States
     of America at the Delivery Point(s) (as defined in the Assigned Agreement)
     the quantities of gas to be transported by TransCanada under the Assigned
     Agreement; and (iv) prior written notice to TransCanada and Canadian
     Hunter:

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            (i)  given at any time after the termination of the Restated Gas
                 Sale and Purchase Agreement dated as of March 18, 1991 (the
                 "Restated Gas Sale and Purchase Agreement"), by and between
                 Project Orange and Canadian Hunter (as successor by assignment
                 to Noranda Inc.), by Project Orange pursuant to Section 12.1 of
                 the Restated Gas Sale and Purchase Agreement, exercise any and
                 all rights of Canadian Hunter under the Assigned Agreement in
                 accordance with the terms of the Assigned Agreement to the same
                 extent as if Project Orange or Agent were a party to the
                 Assigned Agreement in the place of Canadian Hunter, or assign
                 any and all of Canadian Hunter's rights under the Assigned
                 Agreement to any person or entity to whom Project Orange or
                 Agent is authorized to assign the rights and obligations of
                 Canadian Hunter under the Assigned Agreement pursuant to
                 Section 1(f) hereof (such person or entity, a "Permitted
                 Assignee"), whereupon the Permitted Assignee shall be entitled
                 to exercise any and all rights of Canadian Hunter under the
                 Assigned Agreement in accordance with the terms of the Assigned
                 Agreement; or

            (ii) given at any time after the occurrence of a default by Canadian
                 Hunter under the Restated Gas Sale and Purchase Agreement such
                 that Project Orange has the right to obtain and is obtaining
                 Substitute Supplies (as defined in the Restated Gas Sale and
                 Purchase Agreement), at Project Orange's or Agent's election,
                 exercise any and all rights of Canadian Hunter under the
                 Assigned Agreement in accordance with the terms of the Assigned
                 Agreement, to the same extent as if Project Orange or Agent, as
                 the case may be, were a party to the Assigned Agreement in the
                 place of Canadian Hunter, for so long as Project Orange is
                 obtaining Substitute Supplies in respect of the particular
                 default (provided that such notice may be given only during the
                 continuance of such default unless the termination of the
                 Restated Gas Sale and Purchase Agreement as contemplated in
                 clause (i) has occurred);

     provided, however, that TransCanada does not waive any rights it may have
     pursuant to the Assigned Agreement, and provided further that any
     assignment of rights under the Assigned Agreement to anyone other than
     Project Orange or Agent, or any reassignment by any assignee of Project
     Orange or Agent, shall be subject to the provisions of Section 1(f) hereof.
     Canadian Hunter agrees with TransCanada that TransCanada is authorized to
     act in accordance with the exercise by Project Orange, Agent or any
     Permitted Assignee of Canadian Hunter's rights in accordance with this
     Section 1(a) and that TransCanada shall bear no liability to Canadian
     Hunter in connection therewith, provided however, that nothing contained in
     this sentence will affect any claim which Canadian Hunter, Project Orange,
     Agent or any such Permitted Assignee may have against any other such
     Person.

            (b)  Canadian Hunter, Project Orange and Agent agree that the
     conditions under which Project Orange or Agent may exercise the rights or
     make an assignment as

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     described in Section 1(a) hereof are subject to further restrictions
     contained in Section 3 of the Collateral Assignment. Such restrictions
     shall not in any manner be binding upon TransCanada, nor shall TransCanada
     be required to inquire whether such restrictions have been complied with.

            (c)  Any notice to TransCanada from Agent (or an assignee of Agent)
     shall be given priority by TransCanada over any notice from Project Orange
     (or an assignee of Project Orange), notwithstanding the time of giving
     notice.  Project Orange (or an assignee of Project Orange) may exercise
     Canadian Hunter's rights in accordance with Section 1(a) hereof provided
     that and only for such period of time as TransCanada has not received
     notice that Agent intends to exercise Canadian Hunter's rights in
     accordance with such Section l(a).  In the event TransCanada receives
     notices from both Project Orange (or an assignee of Project Orange) and
     Agent (or an assignee of Agent) the parties hereto agree that TransCanada
     shall give priority to and act in accordance with the notice from Agent (or
     any assignee of Agent) and shall bear no liability to Agent (or any
     assignee of Agent) or to Project Orange (or any assignee of Project Orange)
     in connection therewith.

            (d)  TransCanada may in good faith rely conclusively on any notice
     received from Project Orange or Agent pursuant to Section 1(a) hereof,
     without inquiring as to the circumstantial basis for such notice.

            (e)  In the event that Project Orange or Agent exercises or succeeds
     to any or all of Canadian Hunter's rights and interests under the Assigned
     Agreement, whether by foreclosure or otherwise, Project Orange or Agent, as
     the case may be, shall assume liability for all of Canadian Hunter's
     obligations under the Assigned Agreement, including without limitation,
     payment of all amounts due and owing to TransCanada under the Assigned
     Agreement, whether such amounts shall have accrued before or after the date
     of succession, and for the performance of the representations, warranties
     and conditions of Canadian Hunter under the Assigned Agreement from and
     after the date of succession.  Unless and until Project Orange or Agent
     notifies TransCanada pursuant to Section 1(a) that it is exercising or
     succeeding to any or all of the rights of Canadian Hunter under the
     Assigned Agreement, neither Project Orange nor Agent shall have any
     obligations or liabilities whatsoever to TransCanada under or in connection
     with the Assigned Agreement and TransCanada shall have no obligation or
     liability to Project Orange or Agent other than each such party's
     obligation to comply with the terms of this Consent and Agreement. Nothing
     in this Section 1(e) is intended to or shall: (i) limit the right of
     TransCanada to proceed against Canadian Hunter for recovery in respect of
     any default or unperformed obligations under the Assigned Agreement
     accruing or arising in respect of any period prior to the effective date of
     such exercise or succession; or (ii) diminish any liability or obligation
     of Canadian Hunter to Project Orange or Agent

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<PAGE>

     (including but not limited to any obligation to indemnify Project Orange or
     Agent) under the Collateral Assignment; provided, however, that such
     liability or obligation of Canadian Hunter to Project Orange or Agent shall
     not affect the rights of TransCanada with respect to Project Orange or
     Agent arising under this Consent and Agreement and the Assigned Agreement.

            (f)  Upon the exercise by Project Orange or Agent, as the case may
     be, of any of the remedies which it is entitled to exercise after a default
     by Canadian Hunter under the Restated Gas Sale and Purchase Agreement and
     during the continuance thereof, Project Orange or Agent, as the case may
     be, may assign the rights and interests of Canadian Hunter under the
     Assigned Agreement to any person or entity if such person or entity shall
     assume all of the obligations of Canadian Hunter under the Assigned
     Agreement including, without limitation, payment of all amounts due and
     owing to TransCanada under the Assigned Agreement, whether such amounts
     shall have accrued before or after the date of assignment, and for the
     performance of the covenants and agreements of Canadian Hunter under the
     Assigned Agreement from and after the date of assignment; provided that any
     such assignment shall be subject to:  (i) the prior written consent of
     TransCanada, which consent shall not be unreasonably withheld or delayed if
     TransCanada reasonably determines that the assignee satisfies the
     requirements of TransCanada's Gas Tariff and TransCanada's financial
     assurance requirements (which financial assurance requirements may exceed
     those set forth in TransCanada's Gas Tariff); and (ii) the assignee's prior
     execution and delivery to TransCanada of an assumption agreement
     substantially in the form attached hereto as Exhibit A, and, provided
     further, that TransCanada does not waive any rights it may have pursuant to
     the Assigned Agreement.  Upon such assignment, assumption and consent by
     TransCanada, Canadian Hunter, Project Orange or Agent, as the case may be,
     shall be relieved of all obligations, if any, which it may have under or
     with respect to the Assigned Agreement arising after such assignment and
     assumption.

            (g)  Upon receipt by TransCanada of a notice from a person who is an
     assignee of the Assigned Agreement pursuant to Section l(f) above that such
     person requests that Canadian Hunter succeed to such person's rights and
     obligations under the Assigned Agreement (which notice shall be based on
     the circumstances described in Section 4 of the Collateral Assignment, as
     to which circumstances TransCanada shall in no manner be required to
     inquire), such person may assign the rights and interests under the
     Assigned Agreement to Canadian Hunter if Canadian Hunter shall assume all
     of the obligations of such person under the Assigned Agreement including,
     without limitation, payment of all amounts due and owing to TransCanada
     under the Assigned Agreement, whether such amounts shall have accrued
     before or after the date of assignment, and for the performance of the
     covenants and agreements of such person under the Assigned Agreement from
     and after the date of assignment; provided that any such assignment

                                      -4-
<PAGE>

     shall be subject to: (i) the prior written consent of TransCanada, which
     consent shall not be unreasonably withheld or delayed if TransCanada
     reasonably determines that Canadian Hunter satisfies the requirements of
     TransCanada's Gas Tariff and TransCanada's financial assurance requirements
     (which financial assurance requirements may exceed those set forth in
     TransCanada's Gas Tariff); and (ii) Canadian Hunter's prior execution and
     delivery to TransCanada of an assumption agreement substantially in the
     form attached hereto as Exhibit A, and, provided, further, that TransCanada
                             ---------
     does not waive any rights it may have pursuant to the Assigned Agreement.
     Upon such assignment, assumption and consent by TransCanada, such person
     shall be relieved of all obligations, if any, which it may have under or
     with respect to the Assigned Agreement arising after such assignment and
     assumption.

            (h)  References in the Assigned Agreement to the defined term
     "Consent and Agreement" shall be deemed to refer to this Consent and
     Agreement.

       2.  (a)   TransCanada acknowledges that Canadian Hunter has agreed with
     Project Orange that Canadian Hunter will obtain the consent of Project
     Orange for any amendment to the Assigned Agreement (which consent will not
     be unreasonably withheld) and further acknowledges that Project Orange has
     agreed pursuant to the Financing Agreement (as defined in the Security
     Agreement) that Project Orange will obtain the consent of the Trustee (as
     defined in the Security Agreement) for certain amendments to the Assigned
     Agreement, provided that: (i) it shall be Canadian Hunter's responsibility
     to ensure compliance with its agreement with Project Orange (and
     TransCanada shall not be required to inquire whether Canadian Hunter has
     fulfilled this responsibility); (ii) it shall be Project Orange's
     responsibility to ensure compliance with its agreement with Agent (and
     TransCanada shall not be required to inquire whether Project Orange has
     fulfilled this responsibility); (iii) neither agreement shall prevent
     TransCanada from proposing or making any modification or amendment to
     TransCanada's Gas Tariff; and (iv) neither agreement shall prevent
     TransCanada from making any modification or amendment of the Assigned
     Agreement necessary, in TransCanada's good faith judgment, to conform with
     the requirements of any governmental or regulatory authority having
     jurisdiction, including but not limited to the National Energy Board
     ("NEB").

            (b)  Canadian Hunter has agreed with Project Orange to provide
     Project Orange promptly with a copy of each material notice sent by
     TransCanada to Canadian Hunter in connection with the Assigned Agreement.
     It shall be Canadian Hunter's responsibility to ensure compliance with its
     agreement with Project Orange and any failure by Canadian Hunter to do so
     shall not affect TransCanada's ability to exercise any rights that it has
     under the Assigned Agreement.

                                      -5-
<PAGE>

       3.   TransCanada will deliver to Project Orange and Agent notice of
     default or breach by Canadian Hunter of the Assigned Agreement concurrently
     with delivery of any such notice to Canadian Hunter.  Project Orange and
     Agent will be given the same time period allowed to Canadian Hunter to cure
     such default or breach.  If through inadvertence, TransCanada fails to
     deliver such notice to Project Orange or Agent, TransCanada shall incur no
     liability therefor to any party hereto or to any successor or assign
     thereof.

       4.  (a)  Any notice, request or demand ("Notice") to or upon the
     respective parties hereto shall be in writing and shall be validly
     communicated by the delivery thereof to its addressee, either personally or
     by courier, first class mail, or telecopier to the address hereinunder
     mentioned:

     In the case of TransCanada:

       Mailing Address:

       TransCanada PipeLines Limited
       P.O. Box 1000
       Station M
       Calgary, Alberta T2P 4K5
       Attention: Vice President, Transportation
       FAX: (403) 267-8620

       Delivery Address:

       TransCanada PipeLines Limited
       TransCanada PipeLines Tower
       3000, 111 - 5th Avenue S.W.
       Calgary, Alberta T2P 3Y5
       Attention: Vice President, Transportation

     In the case of Project Orange:

       Project Orange Associates, L.P.
       c/o G.A.S. Orange Associates, LLC
       90 Presidential Plaza
       Syracuse, New York 13209
       Attention: Richard S. Scolaro, Esq.
       Fax: (315) 471-1355

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<PAGE>

     In the case of Canadian Hunter:

       Canadian Hunter Exploration Ltd.
       2800, 605 5/th/ Avenue S.W.
       Calgary, Alberta T2P 3H5
       Attention: Vice President, Marketing
       FAX: (403) 260-1146

     In the case of Agent:

       U.S. Bank Trust National Association
       100 Wall Street, Suite 1600
       New York, New York 10005
       Attention: Corporate Trust Administration
       FAX: (212) 809-5459

           (b)  Any such Notice shall be sent in order to ensure prompt receipt
     of such Notice by the other party(ies). Such Notice sent as aforesaid shall
     be deemed to have been received by the party to whom it is sent at the time
     of its delivery if personally delivered or if sent by telecopier, or on the
     business day following the transmittal thereof if sent by courier, or on
     the third business day following the transmittal thereof if sent by first
     class mail, provided however, that in the event normal mail service,
     courier service, or telecopier service shall be interrupted by a cause
     beyond the control of the parties hereto, then the party sending the Notice
     shall utilize any service that has not been so interrupted or shall deliver
     such Notice. Each party shall provide Notice to the other parties of any
     change of address for the purposes hereof.

       5.  Notwithstanding anything herein to the contrary, TransCanada agrees
     that Project Orange or Agent may, without TransCanada's consent, assign its
     rights, but not its obligations, under this Consent and Agreement to any
     person and entity.

       6.  TransCanada hereby represents that: (i) this Consent and Agreement
     has been duly authorized, executed and delivered by TransCanada, and is in
     full force and effect on the date hereof and constitutes the legal, valid
     and binding obligation of TransCanada, enforceable in accordance with its
     terms, except as (a) enforceability may be limited by bankruptcy,
     insolvency, moratorium, reorganization or other similar laws affecting
     creditor's rights generally, and (b) the availability of any particular
     remedy may be limited by general principles of equity, regardless of
     whether such enforceability is considered in a proceeding in equity or at
     law; (ii) no consent, license, approval or authorization of, or filing,
     registration or declaration with, or exemption by, any governmental body,
     authority, bureau or agency is required in connection with the

                                      -7-
<PAGE>

     execution, delivery or performance by TransCanada of this Consent and
     Agreement other than those which have been duly obtained and are in full
     force and effect.

       7.   The obligations of TransCanada hereunder are subject to all
     applicable valid rules, orders, regulations and laws of governmental and
     regulatory authorities having jurisdiction, including but not limited to
     the NEB.

       8.   This Consent and Agreement shall be governed by, and construed in
     accordance with, the laws of the Province of Alberta and, when applicable,
     the laws of Canada.

       9.   Notwithstanding any other provision of this Consent and Agreement,
     nothing herein set forth is intended to or shall amend, modify or in any
     other way change the Assigned Agreement and TransCanada does not waive any
     rights it may have pursuant to the Assigned Agreement.

       10.  This Consent and Agreement sets forth the terms and conditions upon
     which TransCanada consents to the collateral assignment of the Assigned
     Agreement by Canadian Hunter to Project Orange pursuant to the Collateral
     Assignment and the collateral assignment of the Assigned Agreement and the
     Collateral Assignment by Project Orange to the Agent pursuant to the
     Security Agreement. To the extent that there is a conflict between any term
     or provision set forth in this Consent and Agreement and any term or
     provision of the Collateral Assignment or the Security Agreement, the terms
     and provisions of this Consent and Agreement shall govern with respect to
     TransCanada's rights and obligations but the terms and provisions of the
     Collateral Assignment shall govern as to the rights and obligations of
     Project Orange and Canadian Hunter to each other and the terms and
     provisions of the Security Agreement shall govern as to the rights and
     obligations of Project Orange and Agent to each other. Furthermore, except
     as explicitly stated in this Consent and Agreement, TransCanada does not
     consent to any term or provision of the Collateral Assignment or the
     Security Agreement.

                        [THE REMAINDER OF THIS PAGE IS
                           INTENTIONALLY LEFT BLANK]

                                      -8-
<PAGE>

          IN WITNESS WHEREOF, the parties hereto by their respective officers
     thereunto duly authorized, have duly executed this Consent and Agreement as
     of the date set forth below.

     Dated:  December 6, 1999

                                   TRANSCANADA PIPELINES LIMITED

                                   By: /s/ Max Feldman
                                      ______________________________
                                      Name: Max Feldman
                                      Title: Senior Vice President
                                             Customer Sales & Services

                                   By: /s/ Steven D. Becker
                                      ______________________________
                                      Name: Steven D. Becker
                                      Title: Senior Vice-President
                                             Market Development

                                   CANADIAN HUNTER EXPLORATION LTD.

                                   By: /s/ John Kowal
                                      ______________________________
                                      Name: John Kowal
                                      Title: Treasurer

                                   By: /s/ Murray Lueke
                                      ______________________________
                                      Name: Murray Lueke
                                      Title: VP, Engineering

                                   PROJECT ORANGE ASSOCIATES, L.P.

                                      By: G.A.S. ORANGE ASSOCIATES, LLC
                                        a Delaware limited liability company

                                      By: /s/ Douglas Corbett
                                         ____________________________
                                         Name: Douglas Corbett
                                         Title: Vice President

                                      -9-
<PAGE>

                                   U.S. BANK TRUST NATIONAL ASSOCIATION
                                     as Agent

                                   By: /s/ Ward A. Spooner
                                      ______________________________
                                      Name:
                                      Title:

                                   By: /s/ John Bowman
                                      ______________________________
                                      Name:
                                      Title:

                                      -10-
<PAGE>

                                                                       Exhibit A

                             ASSUMPTION AGREEMENT

THIS ASSUMPTION AGREEMENT, dated as of ________________________,

BETWEEN: _______________________________________________________
          (hereinafter referred to as the "Assignee")

AND:      TRANSCANADA PIPELINES LIMITED, a Canadian corporation (hereinafter
          referred to as "TransCanada").

RECITALS:

     Canadian Hunter Exploration Ltd., an Alberta Corporation ("Canadian
Hunter") and TransCanada are parties to that certain Firm Service Contract made
as of October 11, 1990 (the "Firm Service Contract").  Pursuant to the
Collateral Assignment of the Firm Service Agreement dated as of April 5, 1991
(the "Collateral Assignment") between Canadian Hunter and Project Orange
Associates, L.P., a Delaware limited partnership (the "Partnership"), Canadian
Hunter assigned to the Partnership its rights under the Firm Service Contract in
order to secure the payment and performance of the obligations of Canadian
Hunter (as successor by assignment to Noranda Inc., an Ontario corporation)
under that certain Restated Gas Sale and Purchase Agreement dated as of March
18, 1991.  Pursuant to the Security Agreement, dated as of December 6, 1999 (the
"Security Agreement") by and between the Partnership and U.S. Bank Trust
National Association, as collateral agent ("Agent"), the Partnership assigned to
the Agent its rights under the Firm Service Contract in order to secure the
payment and performance of the obligations of the Partnership under the
Financing Agreement (as defined in the Security Agreement).  TransCanada,
Canadian Hunter, Agent and the Partnership have all entered into a Consent and
Agreement dated as of December 6, 1999 (the "Consent") pursuant to which
TransCanada consented to the assignment of Canadian Hunter's rights in, to and
under the Firm Service Contract to the Partnership and to the assignment of the
Partnership's rights in, to and under the Firm Service Contract to the Agent, as
the Partnership's assignee, on the terms specified in the Consent.

     The Partnership or Agent, as the case may be, has assigned its rights under
the Firm Service Contract, as set forth in the Collateral Assignment of the Firm
Service Contract, to the Assignee and the Assignee desires to effect such
assignment under the terms of the Consent by executing and delivering this
Assumption Agreement to TransCanada.

     The Assignee and TransCanada agree as follows:

                                      A-1
<PAGE>

       1.   Assumption.  The Assignee hereby assumes liability for all of
            ----------
Canadian Hunter's obligations under the Consent and the Firm Service Contract
including, without limitation, its obligations for payment of all amounts due
and owing to TransCanada under the Firm Service Contract, whether such amounts
shall have accrued before or after the date hereof, and for the performance of
the covenants and agreements of Canadian Hunter under the Consent and the Firm
Service Contract from and after the date hereof.  Nothing herein is intended to
limit the right of TransCanada or the Agent to proceed against Canadian Hunter
for recovery in respect of any default or unperformed obligations of Canadian
Hunter under the Consent or the Firm Service Contract accruing or arising in
respect of any period prior to the effective date of this Assumption Agreement.
The Assignee agrees to be bound by the terms of the Consent and the Firm Service
Contract as if it were substituted for Canadian Hunter.

       2.   Acknowledgment.  The Assignee acknowledges that any rights of the
            --------------
Partnership, or any assignee of the Partnership, are subordinate to the rights
of the Agent, or any assignee of the Agent, under the Firm Service Contract as
set forth in the Security Agreement and the Consent, including the right to
assume the Firm Service Contract and request that TransCanada render performance
thereunder directly to Agent or such assignee notwithstanding this Assumption
Agreement. Assignee acknowledges and agrees that if the Assignee is an assignee
of the Partnership, then forthwith upon receipt by TransCanada of a notice from
the Agent pursuant to Paragraph 1(a) of the Consent or upon an assignment by the
Agent pursuant to Paragraph 1(f) of the Consent, the Assignee shall thereupon
have no further rights or obligations under the Firm Service Contract provided
that the Assignee shall continue to be bound by those of its obligations that
arose prior to the date of receipt of such notice or the date of such
assignment, as the case may be.  Assignee agrees that TransCanada shall bear no
liability to Assignee resulting from rendering performance under the Firm
Service Contract directly to the Agent or from such assumption of the Firm
Service Contract by a subsequent person.

       3.   Release of the Partnership.  Upon the satisfaction of the
            --------------------------
requirements set forth in paragraph l(f) of the Consent, the Partnership shall
be relieved of all obligations to TransCanada, if any, which it may have under
or with respect to the Firm Service Contract arising after the date hereof.

       4.   Notices.  The address of the Assignee for the purposes of Section
            -------
6.1 of the Firm Service Contract and Article 4 of the Consent shall be:

     _______________________________
     _______________________________
     Attention:_____________________
     FAX:___________________________

                                      A-2
<PAGE>

       5.   Assignment.  The Assignee may assign its rights in, to and under the
            ----------
Firm Service Contract in accordance with the terms and conditions of the
Consent.

       6.   Governing Law, etc.  This Assumption Agreement shall be governed by,
            ------------------
and construed in accordance with, the laws of the Province of Alberta and, when
applicable, the laws of Canada.  The obligations of TransCanada are subject to
all applicable valid rules, orders, regulations and laws of governmental and
regulatory authorities having jurisdiction, including but not limited to the
National Energy Board.

     IN WITNESS WHEREOF, the parties hereto by their respective officers
thereunto duly authorized, have duly executed this Assumption Agreement as of
the date set forth below.

Dated:  ___________

                         ASSIGNEE:

                         By: _________________________
                         Title: ______________________

                         TRANSCANADA PIPELINES LIMITED

                         By: _________________________
                         Title:_______________________

                         By: _________________________
                         Title:_______________________

                                      A-3

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