Document:

exv10w1

EXHIBIT 10.1

Page 1 of 3

ASSET MANAGEMENT AGREEMENT

          This contract is an Asset Management Agreement (“AMA”) by and between Orwell Natural Gas
Company (“Orwell”) and John D. Oil and Gas Marketing Company, LLC (“Marketing”). Orwell and
Marketing (jointly “The Parties”) expressly agree to use the Gas Sales Agreement dated July 1, 2008
(“GSA”) for such natural gas sales from Marketing to Orwell as may occur, from time-to-time, as
evidenced by a valid confirmation agreement. Therefore, this AMA incorporates the provisions of
the (“GSA”) unless a specific provision of the AMA expressly contradicts a provision of the GSA.

	 	1.	 	Asset Management Agreement. Orwell and Marketing agree that Marketing shall become
the Asset Manager of Orwell for gas sales and GTS service related to Orwell’s Service
Agreement #37962 with Columbia.
	 
	 	2.	 	Regulatory Compliance. It is the express intention of Orwell and of Marketing to
comply with all aspects of the rules, regulations and decisions of the Federal Energy
Regulatory Commission (the “FERC”) regarding Asset Management Agreements that were in
effect at the time of execution of this Addendum, or as such rules, regulations and
decisions may be changed throughout the term of the AMA. Deviations from such rules,
regulations and decisions of the FERC related to AMAs are due to mistake or inadvertence
and not to intent. If an action occurs that results in a material deviation from the
rules, regulations or decisions of the FERC, Orwell and Marketing pledge to make a good
faith effort to rectify such deviations, when discovered by either or both of them.
Material deviations that result in harm to competitive markets or harm to competitors will
be reported to the Chief Compliance Officer of Orwell.
	 
	 	3.	 	Term of Contract. This AMA shall commence on January 4, 2010. The provisions of the
AMA governing the release to Marketing of Orwell’s interstate pipeline Service Agreement
#37962 and all revisions thereto with Columbia Gas Transmission Corporation (“Columbia”)
may be terminated upon the mutual agreement of the Parties.
	 
	 	 	 	Orwell agrees to consult in good faith with Marketing prior to the expiration of Service
Agreement #37962 and to exercise Orwell’s right to roll over or extend the term of Service
Agreement #37962 in the event that Marketing agrees to extend the term of this AMA for a
period equal to the proposed life extension of Service Agreement #37962.
	 
	 	 	 	At such time as Marketing desires to convert this asset management agreement into a
long-term, permanent capacity release of Service Agreement #37962, Orwell agrees to enter
into such long-term capacity release at the maximum rate cap applicable to

 

 

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ASSET MANAGEMENT AGREEMENT

	 	 	 	Columbia’s GTS service. Orwell further agrees to use its best efforts to cause Columbia to
substitute Marketing for Orwell on Service Agreement #37962.

	 	4.	 	Pricing of Released Capacity. Marketing agrees: (1) to assume all the rights and
obligations specified in Service Agreement #37962, including payment of all costs related
to such Service Agreement including but not limited to rates, fuel charges, authorized or
unauthorized over-run charges, penalties or fees as are approved by the FERC for the GTS
service; and (2) to hold Orwell harmless from the incurrence of all such Service Agreement
costs. Marketing shall have the absolute right to receive any FERC ordered refunds or
rebates allocated to Service Agreement #37962.
	 
	 	5.	 	Express Conditions — Rights of Recall. Orwell shall have the right to inject and
withdraw one hundred percent of its daily contract demand if necessary to meet its firm
capacity requirements. Notwithstanding the foregoing, Marketing agrees that Orwell may on
any day during a minimum period of five months out of each twelve-month period of the
release call upon Marketing to deliver to Orwell one-hundred percent of the daily contract
demand for storage injections or withdrawals. The price of the natural gas so delivered
shall be as specified in the GSA.
	 
	 	6.	 	Appointment of Agent on Columbia. Marketing appoints Orwell to act as Marketing’s
agent for the purpose of communicating this capacity release transaction for timely posting
on Columbia’s internet website in accord with the rules and regulations of the FERC and
Columbia’s tariff. Orwell agrees to act as Marketing’s agent for the purpose of this
capacity release posting.
	 
	 	 	 	Orwell agrees to appoint and/or authorize, and hereby appoints and authorizes, Marketing to
act as Orwell’s Agent on Columbia in order for Marketing to engage in various activities in
accordance with this AMA and the GSA . Specifically, Orwell authorizes Marketing to perform
the following functions and/or access information concerning Marketing’s activity related
to: the submission of nomination and associated activities, including but not limited to
confirmation and scheduling; the submission of bids for released capacity; the offering of
released capacity; invoicing, including but not limited to the receipt and viewing of
invoices and being responsible for payments.
	 
	 	 	 	Further, Marketing agrees to act as Orwell’s Agent on Columbia in order for Marketing, on
Orwell’s behalf, to engage in various activities in accordance with the AMA and the sale of
natural gas pursuant from Marketing to Orwell. Specifically, Marketing is authorized to
perform the following functions and/or access information concerning Orwell’s activities
related to: the submission of nominations and associated activities, including but not
limited to confirmation and scheduled volumes; the receipt of third party imbalance
statements; the execution of imbalance trades; the submission of bids for released capacity;
the offering of released capacity; and invoicing, including but not limited to the receipt
and viewing of invoices and being responsible for payments.

 

 

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ASSET MANAGEMENT AGREEMENT

	 	 	 	Marketing and Orwell each agree to execute the appropriate form(s) and provide the
appropriate notice required by Columbia for the designation of an Agent.

	 	7.	 	Termination of Agency Agreements. Marketing shall act as Orwell’s agent as described
above for Service Agreement #37962 until this AMA is terminated by either party pursuant to
the terms of this AMA. Upon termination, Marketing and Orwell agree to execute the
appropriate form(s) and provide appropriate notice to Columbia to terminate or remove the
agency authorization(s).

          THEREFORE, Marketing agrees to become the Asset Manager and Agent of Orwell as described
above, and Orwell agrees to enter into a pre-arranged capacity release of the interstate pipeline
capacity in #37962, subject to Orwell’s rights of recall as specified above, which are not to be
diminished by any provisions of the GSA.

          IN WITNESS WHEREOF, the Parties have executed this Asset Management Agreement.

     This AMA may be executed in counterparts, an original of each signed AMA to be delivered to
the counterpart.

	 	 	 	 	 
	 	Asset Manager: John D. Oil and Gas Marketing Company, LLC

 	 
	 	/s/ Richard M. Osborne
 	 
	 	Richard M. Osborne 	 
	 	Chief Executive Officer

Date: January 3, 2010 	 
	 

	 	 	 	 	 
	 	Capacity Releaser: Orwell Natural Gas Company

 	 
	 	/s/ Thomas J. Smith
 	 
	 	Thomas J. Smith 	 
	 	President

Date: January 3, 2010exv10w2

EXHIBIT 10.2

Page 1 of 3

ASSET MANAGEMENT AGREEMENT

     This contract is an Asset Management Agreement (“AMA”) by and between Northeast Ohio
Natural Gas Corp. (“NEO”) and John D. Oil and Gas Marketing Company, LLC (“Marketing”). NEO and
Marketing (jointly “The Parties”) expressly agree to use the Gas Sales Agreement dated July 1, 2008
(“GSA”) for such natural gas sales from Marketing to NEO as may occur, from time-to-time, as
evidenced by a valid confirmation agreement. Therefore, this AMA incorporates the provisions of
the GSA unless a specific provision of the AMA expressly contradicts a provision of the GSA.

	 	1.	 	Asset Management Agreement. NEO and Marketing agree that Marketing shall become the
Asset Manager of NEO for gas sales and GTS service related to NEO’s Service Agreement
#37959 with Columbia.

	 	2.	 	Regulatory Compliance. It is the express intention of NEO and of Marketing to comply
with all aspects of the rules, regulations and decisions of the Federal Energy Regulatory
Commission (the “FERC”) regarding Asset Management Agreements that were in effect at the
time of execution of this Addendum, or as such rules, regulations and decisions may be
changed throughout the term of the AMA. Deviations from such rules, regulations and
decisions of the FERC related to AMAs are due to mistake or inadvertence and not to intent.
If an action occurs that results in a material deviation from the rules, regulations or
decisions of the FERC, NEO and Marketing pledge to make a good faith effort to rectify such
deviations, when discovered by either or both of them. Material deviations that result in
harm to competitive markets or harm to competitors will be reported to the Chief Compliance
Officer of NEO.

	 	3.	 	Term of Contract. This AMA shall commence on January 4, 2010. The provisions of the
AMA governing the release to Marketing of NEO’s interstate pipeline Service Agreement
#37959 and all revisions thereto with Columbia Gas Transmission Corporation (“Columbia”)
may be terminated upon the mutual agreement of the Parties.
	 
	 	 	 	NEO agrees to consult in good faith with Marketing prior to the expiration of Service
Agreement #37959 and to exercise NEO’s right to roll over or extend the term of Service
Agreement #37959 in the event that Marketing agrees to extend the term of this AMA for a
period equal to the proposed life extension of Service Agreement #37959.
	 
	 	 	 	At such time as Marketing desires to convert this asset management agreement into a
long-term, permanent capacity release of Service Agreement #37959, NEO agrees to enter into
such long-term capacity release at the maximum rate cap applicable to

 

 

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ASSET MANAGEMENT AGREEMENT

Columbia’s GTS service. NEO further agrees to use its best efforts to cause Columbia to
substitute Marketing for NEO on Service Agreement #37959.

	 	4.	 	Pricing of Released Capacity. Marketing agrees: (1) to assume all the rights and
obligations specified in Service Agreement #37959, including payment of all costs related
to such Service Agreement including but not limited to rates, fuel charges, authorized or
unauthorized over-run charges, penalties or fees as are approved by the FERC for the GTS
service; and (2) to hold NEO harmless from the incurrence of all such Service Agreement
costs. Marketing shall have the absolute right to receive any FERC ordered refunds or
rebates allocated to Service Agreement #37959.

	 	5.	 	Express Conditions — Rights of Recall. NEO shall have the right to inject and withdraw
one hundred percent of its daily contract demand if necessary to meet its firm capacity
requirements. Notwithstanding the foregoing, Marketing agrees that NEO may on any day
during a minimum period of five months out of each twelve-month period of the release call
upon Marketing to deliver to NEO one-hundred percent of the daily contract demand for
storage injections or withdrawals. The price of the natural gas so delivered shall be as
specified in the GSA.

	 	6.	 	Appointment of Agent on Columbia. Marketing appoints NEO to act as Marketing’s agent
for the purpose of communicating this capacity release transaction for timely posting on
Columbia’s internet website in accord with the rules and regulations of the FERC and
Columbia’s tariff. NEO agrees to act as Marketing’s agent for the purpose of this capacity
release posting.
	 
	 	 	 	NEO agrees to appoint and/or authorize, and hereby appoints and authorizes, Marketing to act
as NEO’s Agent on Columbia in order for Marketing to engage in various activities in
accordance with this AMA and the GSA. Specifically, NEO authorizes Marketing to perform the
following functions and/or access information concerning Marketing’s activity related to:
the submission of nomination and associated activities, including but not limited to
confirmation and scheduling; the submission of bids for released capacity; the offering of
released capacity; invoicing, including but not limited to the receipt and viewing of
invoices and being responsible for payments.
	 
	 	 	 	Further, Marketing agrees to act as NEO’s Agent on Columbia in order for Marketing, on NEO’s
behalf, to engage in various activities in accordance with the AMA and the sale of natural
gas pursuant from Marketing to NEO. Specifically, Marketing is authorized to perform the
following functions and/or access information concerning NEO’s activities related to: the
submission of nominations and associated activities, including but not limited to
confirmation and scheduled volumes; the receipt of third party imbalance statements; the
execution of imbalance trades; the submission of bids for released capacity; the offering of
released capacity; and invoicing, including but not limited to the receipt and viewing of
invoices and being responsible for payments.
	 
	 	 	 	Marketing and NEO each agree to execute the appropriate form(s) and provide the appropriate
notice required by Columbia for the designation of an Agent.

 

 

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ASSET MANAGEMENT AGREEMENT

	 	7.	 	Termination of Agency Agreements. Marketing shall act as NEO’s agent as described
above on Columbia until this AMA is terminated by either party pursuant to the terms of
this AMA. Upon termination, Marketing and NEO agree to execute the appropriate form(s) and
provide appropriate notice to Columbia to terminate or remove the agency authorization(s).

          THEREFORE, Marketing agrees to become the Asset Manager and Agent of NEO as described above,
and NEO agrees to enter into a pre-arranged capacity release of the interstate pipeline capacity in
#37959, subject to NEO’s rights of recall as specified above, which are not to be diminished by any
provisions of the GSA.

          IN WITNESS WHEREOF, the Parties have executed this Asset Management Agreement.

     This AMA may be executed in counterparts, an original of each signed AMA to be delivered to
the counterpart.

	 	 	 	 	 
	 	Asset Manager: John D. Oil and 
Gas Marketing Company, LLC

 	 
	 	/s/ Richard M. Osborne
 	 
	 	Richard M. Osborne 	 
	 	Chief Executive Officer 	 
	 	
Date: January 3, 2010 	 
	 
	 	Capacity Releaser: Northeast 
Ohio Natural Gas Corp.

 	 
	 	/s/ Martin Whelan
 	 
	 	Martin Whelan 	 
	 	Vice President
 	 
	 	
Date: January 3, 2010

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