Document:

<PAGE>

                                                                   Exhibit 10.36

                                                                           99012

                                SERVICE AGREEMENT
                       (APPLICABLE TO RATE SCHEDULE AFT-1)

This Agreement ("Agreement") is made and entered into this ___ day of October,
1999, by and between Algonquin Gas Transmission Company, a Delaware Corporation
(herein called "Algonquin"), and Boston Gas Company (herein called "Customer"
whether one or more persons).

WHEREAS, Customer desires Algonquin to transport natural gas for Customer's
account on a firm basis pursuant to the terms and conditions of Algonquin's Rate
Schedule AFT-1; and

WHEREAS, Algonquin and Customer desire to enter into this Service Agreement
under Rate Schedule AFT-1;

In consideration of the premises and of the mutual covenants herein contained,
the parties do agree as follows:

                                    ARTICLE I
                               SCOPE OF AGREEMENT

1.1   Subject to the terms, conditions and limitations hereof and of Algonquin's
      Rate Schedule AFT-1, Algonquin agrees to receive from or for the account
      of Customer for transportation on a firm basis quantities of natural gas
      tendered by Customer on any day at the Point(s) of Receipt; provided,
      however, Customer shall not tender without the prior consent of Algonquin,
      at any Point of Receipt on any day a quantity of natural gas in excess of
      the applicable Maximum Daily Receipt Obligation for such Point of Receipt
      plus the applicable Fuel Reimbursement Quantity; and provided further that
      Customer shall not tender at all Point(s) of Receipt on any day or in any
      year a cumulative quantity of natural gas, without the prior consent of
      Algonquin, in excess of the following quantities of natural gas plus the
      applicable Fuel Reimbursement Quantities:

      For the period November 16 through the following March 15 of each year (or
      March 14 in case of a leap year) during the term of this Agreement:

             Maximum Daily Transportation Quantity    35,000 MMBtu; and

      For the period March 16 (or March 15 in case of a leap year) through
      November 15 of each year during the term of this Agreement:

             Maximum Daily Transportation Quantity         0 MMBtu
<PAGE>

                                                                           99012

                                SERVICE AGREEMENT
                       (APPLICABLE TO RATE SCHEDULE AFT-1)

1.2   Algonquin agrees to transport and deliver to or for the account of
      Customer at the Point(s) of Delivery and Customer agrees to accept or
      cause acceptance of delivery of the quantity received by Algonquin on any
      day, less the Fuel Reimbursement Quantities; provided, however, Algonquin
      shall not be obligated to deliver at any Point of Delivery on any day a
      quantity of natural gas in excess of the applicable Maximum Daily Delivery
      Obligation.

                                   ARTICLE II
                                TERM OF AGREEMENT

2.1   This Agreement shall become effective on the later of November 1, 1999, or
      the in-service date of the facilities authorized by the Commission in
      Docket No. CP99-113-000, and shall continue in effect for a term of ten
      (10) years ("Primary Term") and shall remain in force from year to year
      thereafter unless terminated by either party by written notice one year or
      more prior to the end of the Primary Term or any successive term
      thereafter. However, Customer shall have the right to terminate such
      agreement subject to twelve months prior written notice, on and after
      October 31, 2007, or eight (8) complete service years, whichever is later.
      Algonquin's right to cancel this Agreement upon the expiration of the
      Primary Term hereof or any succeeding term shall be subject to Customer's
      rights pursuant to Sections 8 and 9 of the General Terms and Conditions.

2.2   This Agreement may be terminated at any time by Algonquin in the event
      Customer fails to pay part or all of the amount of any bill for service
      hereunder and such failure continues for thirty days after payment is due;
      provided Algonquin gives ten days prior written notice to Customer of such
      termination and provided further such termination shall not be effective
      if, prior to the date of termination, Customer either pays such
      outstanding bill or furnishes a good and sufficient surety bond
      guaranteeing payment to Algonquin of such outstanding bill; provided that
      Algonquin shall not be entitled to terminate service pending the
      resolution of a disputed bill if Customer complies with the billing
      dispute procedure currently on file in Algonquin's tariff.
<PAGE>

                                                                           99012

                                SERVICE AGREEMENT
                       (APPLICABLE TO RATE SCHEDULE AFT-1)

                                   ARTICLE II
                                  RATE SCHEDULE

3.1   Customer shall pay Algonquin for all services rendered hereunder and for
      the availability of such service under Algonquin's Rate Schedule AFT-1 as
      filed with the Federal Energy Regulatory Commission and as the same may be
      hereafter revised or changed. The rate to be charged Customer for
      transportation hereunder shall not be more than the maximum rate under
      Rate Schedule AFT-1, nor less than the minimum rate under Rate Schedule
      AFT-1.

3.2   This Agreement and all terms and provisions contained or incorporated
      herein are subject to the provisions of Algonquin's applicable rate
      schedules and of Algonquin's General Terms and Conditions on file with the
      Federal Energy Regulatory Commission, or other duly constituted
      authorities having jurisdiction, and as the same may be legally amended or
      superseded, which rate schedules and General Terms and Conditions are by
      this reference made a part hereof.

3.3   Customer agrees that Algonquin shall have the unilateral right to file
      with the appropriate regulatory authority and make changes effective in
      (a) the rates and charges applicable to service pursuant to Algonquin's
      Rate Schedule AFT-1, (b) Algonquin's Rate Schedule AFT-1, pursuant to
      which service hereunder is rendered or (c) any provision of the General
      Terms and Conditions applicable to Rate Schedule AFT-1. Algonquin agrees
      that Customer may protest or contest the aforementioned filings, or may
      seek authorization from duly constituted regulatory authorities for such
      adjustment of Algonquin's existing FERC Gas Tariff as may be found
      necessary to assure that the provisions in (a), (b), or (c) above are just
      and reasonable.

                                   ARTICLE IV
                               POINT(S) OF RECEIPT

Natural gas to be received by Algonquin for the account of Customer hereunder
shall be received at the outlet side of the measuring station(s) at or near the
Primary Point(s) of Receipt set forth in Exhibit A of the service agreement,
with the Maximum Daily Receipt Obligation and the receipt pressure obligation
indicated for each such Primary Point of Receipt. Natural gas to be received by
Algonquin for the account of Customer hereunder may also be received at the
outlet side of any other measuring station on the Algonquin system, subject to
reduction pursuant to Section 6.2 of Rate Schedule AFT-1.
<PAGE>

                                                                           99012

                                SERVICE AGREEMENT
                       (APPLICABLE TO RATE SCHEDULE AFT-1)

                                    ARTICLE V
                              POINT(S) OF DELIVERY

Natural gas to be delivered by Algonquin for the account of Customer hereunder
shall be delivered on the outlet side of the measuring station(s) at or near the
Primary Point(s) of Delivery set forth in Exhibit B of the service agreement,
with the Maximum Daily Delivery Obligation and the delivery pressure obligation
indicated for each such Primary Point of Delivery. Natural gas to be delivered
by Algonquin for the account of Customer hereunder may also be delivered at the
outlet side of any other measuring station on the Algonquin system, subject to
reduction pursuant to Section 6.4 of Rate Schedule AFT-1.

                                   ARTICLE VI
                                    ADDRESSES

Except as herein otherwise provided or as provided in the General Terms and
Conditions of Algonquin's FERC Gas Tariff, any notice, request, demand,
statement, bill or payment provided for in this Agreement, or any notice which
any party may desire to give to the other, shall be in writing and shall be
considered as duly delivered when mailed by registered, certified, or first
class mail to the post office address of the parties hereto, as the case may be,
as follows:

      (a) Algonquin: Algonquin Gas Transmission Company
                     5400 Westheimer Court
                     Houston, TX 77056

      (b) Customer:  Boston Gas Company
                     One Beacon Street
                     Boston, MA 02108

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

                                   ARTICLE VII
                                 INTERPRETATION

The interpretation and performance of the Agreement shall be in accordance with
the laws of the Commonwealth of Massachusetts, excluding conflicts of law
principles that would require the application of the laws of a different
jurisdiction.
<PAGE>

                                                                           99012

                                SERVICE AGREEMENT
                       (APPLICABLE TO RATE SCHEDULE AFT-1)

                                  ARTICLE VIII
                           AGREEMENTS BEING SUPERSEDED

When this Agreement becomes effective, it shall supersede the following
agreements between the parties hereto, except that in the case of conversions
from former Rate Schedules F-2 and F-3, the parties' obligations under Article
II of the service agreements pertaining to such rate schedules shall continue in
effect.

                              None
<PAGE>

                                                                           99012

                                SERVICE AGREEMENT
                       (APPLICABLE TO RATE SCHEDULE AFT-1)

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed
by their respective agents thereunto duly authorized, the day and year first
above written.

                                              ALGONQUIN GAS TRANSMISSION COMPANY

                                              By: ______________________________
                                                                         /s/ PMT

                                              Title: ___________________________

                                              BOSTON GAS COMPANY

                                              By: /s/ William R. Luthern
                                                  ------------------------------
                                                                 /s/ [ILLEGIBLE]

                                              Title: Vice President
                                                     ---------------------------
<PAGE>

                                                                           99012

                                SERVICE AGREEMENT
                       (APPLICABLE TO RATE SCHEDULE AFT-1)

                                    Exhibit A
                               Point(s) of Receipt

                       Dated: _____________________, 1999

           To the service agreement under Rate Schedule AFT-1 between
               Algonquin Gas Transmission Company (Algonquin) and
                          Boston Gas Company (Customer)
                         concerning Point(s) of Receipt

       Primary                Maximum Daily               Maximum
       Point of             Receipt Obligation        Receipt Pressure
       Receipt                  (MMBtu)                    (Psig)
       --------             ------------------        ----------------

Dey Street                        35,000              Algonquin's line pressure
Interconnect between           11/16 - 3/15           as may exist from time to
Algonquin and                        0                time
Providence Gas Company         3/16 - 11/15
(by displacement only)

* In case of a leap year, the period during which the 35,000 MMBtu per day will
be in effect shall be reduced by one day to March 14, and the period during
which 0 MMBtu per day will be in effect shall be increased by one day so that
the specified period begins on March 15, 1999.

Signed for Identification

Algonquin: _________________________
                                    /s/ JMM

Customer: /s/ W. R. Luthern
          --------------------------
                                    /s/ [ILLEGIBLE]
<PAGE>

                                                                           99012

                                SERVICE AGREEMENT
                       (APPLICABLE TO RATE SCHEDULE AFT-1)

                                    Exhibit B
                              Point(s) of Delivery

                           Dated: _______________,1999

           To the service agreement under Rate Schedule AFT-1 between
               Algonquin Gas Transmission Company (Algonquin) and
                          Boston Gas Company (Customer)
                         concerning Point(s) of Delivery

       Primary                    Maximum Daily             Minimum
       Point of                Delivery Obligation     Delivery Pressure
       Delivery                      (MMBtu)                (Psig)
       --------                -------------------     -----------------

At Customer's reduction             12,961                    75
valves located at:
Everett, MA

At the property line on the outlet   5,272                   125
side of meter stations located at:
Waltham, MA

East Braintree, MA                   6,738                   125

Weston, MA                             718                   100

Wellesley, MA                        8,914                    60

Ponkapoag, MA                       11,836                   200

Norwood, MA                          1,165                    75

Potter Street                        5,218             Algonquin's line
East Braintree, MA                                     pressure
                                                       as may exist from
                                                       time to time

Algonquin's Maximum Daily Delivery Obligations for the East Braintree and Potter
Street Points of Delivery under Contract Nos. 93002CR, 93002ER and 99012 shall
not exceed a combined daily total equal to the aggregate of the former Maximum
Daily Delivery Obligations at the East Braintree Point of Delivery under Rate
Schedules AFT-1 (F-1) and AFT-E (F-1) in the amounts of 16,948 MMBtu and 5,238
MMBtu, respectively.
<PAGE>

                                                                           99012

                                SERVICE AGREEMENT
                       (APPLICABLE TO RATE SCHEDULE AFT-l)
                              EXHIBIT B (continued)

Signed for Identification:

Algonquin: _________________________
                                    /s/ JMM

Customer: /s/ W. R. Luthern
          --------------------------
                                    /s/ [ILLEGIBLE]<PAGE>

                                                                   Exhibit 10.37

                       [Tennessee Gas Pipeline Letterhead]

                                 August 2, 1999

Boston Gas Company
One Beacon St.
Boston, Ma 02108

Attention: Mr. William R. Luthern via facsimile: (617) 742-0041

RE: CONTRACT RESTRUCTURING LETTER AGREEMENT

Dear Bill:

      This Contract Restructuring Letter Agreement ("Letter Agreement") is
entered into by and between Tennessee Gas Pipeline Company ("Tennessee"), Boston
Gas Company ("Boston Gas") and Essex County Gas ("Essex") (Boston Gas and Essex
are referred to collectively as "Shippers"). Whereas, Tennessee, Boston Gas and
Essex (being hereinafter referred to as a "Party" and collectively referred to
as the "Parties"), have agreed upon the terms and conditions under which to
extend and amend certain Firm Transportation and Storage Service Agreements
("Firm Agreements") to restructure the firm services received by Shippers from
Tennessee (hereinafter referred to as "Contract Restructuring"). The Parties
wish to proceed with the Contract Restructuring based on the following terms and
principles subject to the execution and regulatory approval of final agreements
effectuating the provisions described herein.

1.    Primary Point Amendment

      Subject to Shippers' participation in an open season to change primary
      points in accordance with Article XXVIII, Section 5.7 of the General Terms
      and Conditions of Tennessee's FERC Gas Tariff, Tennessee shall allow
      Shippers to amend the Firm Agreements identified below to effectuate a
      change in primary receipt points from meters located in Zones 00, 0L, and
      01 to meter number 07-0018, Tennessee's Northern Storage Withdrawal
      (located in Tennessee's Zone 4) to be effective in accordance with the
      quantity limitations detailed in Appendix A attached hereto. The reduction
      of primary firm receipt meter TQ by the applicable percentages and
      resulting quantities from the current primary receipt points in Zones 00,
      0L, and 01 shall be implemented pro-rata across the Firm Agreements
      identified below at all affected meters. Thus, the currently existing
      Zones 00, 0L, and 01 primary receipt points by Firm Agreement shall each
      be reduced individually by the applicable amendment percentage and meter
      number 07-0018
<PAGE>

Contract Restructuring Letter Agreement
August 2, 1999
Page 2

      shall be increased by the like quantity so that the receipt quantity of
      each Firm Agreement is thereby preserved.

      As detailed below, Essex' decision regarding renewal of 100% of the
      current MDQ on Essex' FT-A Agreement No. 8518 for a period of three years
      impacts the allowable amendment percentage available to Shippers. The
      table below briefly outlines the allowable amendment percentages by Firm
      Agreement number:

                                                      K#            10/31/2003
                                                      --            ----------

      Retain 100% of Firm Agreements                 2062               15%
      (Identified in Item 2 below)
      Inclusive of FT-A Agreement 8518               8518               15%

      Retain 100% of Firm Agreements                 2062               15%
      (Identified in Item 2 below)
      Exclusive of FT-A Agreement 8518               8518               N/A

      Appendix A also details the associated buyout amounts by Firm Agreement.
      The buyout amounts outlined in Appendix A are equivalent to 60% of the
      effective upstream (Zones 00/01 to Zone 04) annual demand charge
      multiplied by the applicable amendment quantity. The buyout payment will
      be due to Tennessee prior to October 31, 1999.

2.    Term

      Subject to Shipper's amendment of the Firm Agreements as described in Item
      1 above, Shippers shall elect to extend 100% of the currently existing
      Transportation Quantity ("TQ") or Maximum Storage Quantity ("MSQ"), as
      applicable, of each of the following Firm Agreements pursuant to Article
      III, Section 10.5 of the General Terms and Conditions of Tennessee's FERC
      Gas Tariff for a period of three years, such that the subsequent
      expiration date of each of the Firm Agreements is October 31, 2003: Boston
      Firm Agreement Nos. 20241, 623, 2062, and 527; Essex Firm Agreement Nos.
      577 and 2272. Each extension shall continue the Primary Extended Term as
      outlined in Section 10.5. Unless otherwise expressly agreed by Tennessee,
      as applicable, Shippers currently existing Maximum Daily Injection
      Quantity, Maximum Daily Withdrawal Quantity and ratchet levels shall
      remain in effect through the Primary Extended Term in each applicable Firm
      Agreement.
<PAGE>

Contract Restructuring Letter Agreement
August 2, 1999
Page 3

      At Essex' option, on or before September 30, 1999, Essex will submit a
      rollover election pursuant to Article III, Section 10.5 of the General
      Terms and Conditions of Tennessee's FERC Gas Tariff to extend up to 100%
      of the current MDQ of Essex' FT-A Agreement 8518 for a period of three
      years, such that the subsequent expiration date of the FT-A Agreement is
      October 31, 2003. This extension shall constitute the Primary Extended
      Term as outlined in Section 10.5.

      In the event Essex elects by September 30, 1999 to extend 100% of the
      current MDQ of the FT-A Agreement, Tennessee agrees to allow Essex to
      amend its primary receipt zone in accordance with Tennessee's FERC Gas
      Tariff as described in Item 1 above.

3.    Rate

      Subject to Shipper's amendment of the Firm Agreement as described in Item
      1 above and to Shipper's extension of the FT-A Agreements as described in
      Item 2 above and for the period commencing November 1, 1999 and extending
      through the Primary Extended Term, Shippers shall pay a negotiated rate
      for service comprised of the following: (1) Tennessee's Base Reservation
      Rate effective as of November 1, 1999; and (2) Tennessee's Base Commodity
      Rate effective as of November 1, 1999. In addition, Shippers shall pay all
      then-effective surcharges and applicable fuel. (The rates are therefore
      fixed, but the surcharges and fuel charges are not).

      Subject to Shipper's amendment of the Firm Agreements as described in Item
      1 above and to Shipper's extension of the FS-MA Agreements as described in
      Item 2 above and for the period commencing November 1, 1999 and extending
      through the Primary Extended Term, Shippers shall pay a negotiated rate
      for service comprised of the following: Tennessee's Tariff Rate effective
      as of November 1, 1999 for deliverability, space, injection, withdrawal
      and overrun. In addition, Shippers shall pay all then-effective surcharges
      and applicable fuel. (The rates are therefore fixed, but the surcharges
      and fuel charges are not).

      During the period defined above, this Letter Agreement shall be the sole
      agreement between the Parties affecting the rates.

4.    National Fuel/Tennessee Northern Storage Receipt Point Amendment

      Pursuant to the NPV open season process outlined in Section 5.7 of Article
      XXVIII of Tennessee's FERC Gas Tariff on or before August 31, 1999,
      Shippers will submit an amendment request effective April 1, 2000 or
      November 1, 2000 to amend approximately 5,945 Dth/d of receipt point
      capacity on Boston Gas' FT-A Agreement No. 20241 and 807 Dth/d of receipt
      point capacity on Essex's FTA Agreement No. 10788 from the National Fuel
      Andrews Settlement receipt point (meter number 1-1693) to Tennessee
      Northern Storage (meter number 7-0018).
<PAGE>

Contract Restructuring Letter Agreement
August 2, 1999
Page 4

5.    Letter Agreement

      This Letter Agreement shall be treated as confidential and the Parties
      agree not to disclose any information concerning this Letter Agreement
      including, without limitation, the existence of this letter Agreement
      without the prior written consent of the other Party except to employees,
      consultants, agents and advisors who must be aware of the Letter Agreement
      to perform the Party's obligations hereunder if these persons have agreed
      to be bound by the parties' confidentiality obligations; provided,
      however, either Party may disclose the terms of this letter Agreement if:
      one, such disclosure is required in a judicial or administrative process
      in connection with any action, suit, proceeding, investigation, audit or
      claim or otherwise by applicable law and two, the Party requests
      confidential treatment of the disclosure in the judicial or administrative
      process.

      Notwithstanding anything herein to the contrary, this Letter Agreement and
      the execution of any agreements to effectuate the arrangements proposed in
      this Letter Agreement shall be in accordance with and subject to the terms
      of Tennessee's FERC Gas Tariff and to all valid laws, orders, rules and
      regulations of duly constituted authorities having jurisdiction as amended
      from time to time and to the receipt and acceptance of all regulatory
      authorizations necessary on terms acceptable to Tennessee; provided
      further, if the regulatory authorizations are not received in time to
      implement all of the terms of this Letter Agreement by November 1, 1999,
      Tennessee shall have the right to terminate this Letter Agreement at any
      time prior to November 1, 1999.

      Shippers and Tennessee agree to cooperate in the preparation and filing of
      all necessary applications for authorizations and to support such filings
      in their entirety to effectuate the arrangements proposed in this Letter
      Agreement.

      If this Letter Agreement accurately represents your understanding of the
agreement among Tennessee and Shippers, please have the appropriate party
execute the facsimile copy of this Letter Agreement and return same to the
undersigned. Upon execution by Tennessee, I will fax two (2) fully executed
originals of the Letter Agreement for your retention. If you have any questions,
please do not hesitate to contact me at (713) 420-3627.

                                          Sincerely

                                          /s/ James R. Eckert

                                          James R. Eckert
                                          Account Manager
                                          Marketing Northern Accounts
<PAGE>

Contract Restructuring Letter Agreement
August 2, 1999
Page 5

AGREED TO AND ACCEPTED                      AGREED TO AND ACCEPTED
THIS 19TH DAY OF AUGUST, 1999,              THIS 18TH DAY OF AUGUST, 1999,
TENNESSEE GAS PIPELINE                      BOSTON GAS COMPANY
COMPANY

By:   /s/ Mary M. Melendez                   By:   /s/ William R. Luthern
      --------------------------------            ------------------------------

Name: Mary M. Melendez                       Name: William R. Luthern
      --------------------------------            ------------------------------

Its:  Agent and Attorney-in-Fact            Its:  Vice President
      --------------------------------            ------------------------------

AGREED TO AND ACCEPTED
THIS 18TH DAY OF AUGUST, 1999,
ESSEX COUNTY GAS
COMPANY

By:   /s/ William R. Luthern
      --------------------------------

Name: William R. Luthern
      --------------------------------

Its:  Vice President
      --------------------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}]]