PRECEDENT AGREEMENTS REGARDING ANR SOUTHERN PIPE COMPANY
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-l
C I T Y
OF
CLEARWATER
POST OFFICE BOX 4748
C LEA R W ATE R, F LOR I D A 3 4 6 1 8 - 4 7 4 8
April 26, 1993
RECEIVED
MAY 2 0 1993
City Manager
Mr. E. J. Burgin
ANR Southern Pipeline Company
Nine Greenway Plaza
Houston, Texas 77046-0995
Re: ANR Southern Pipeline Company Precedent Agreements
Dear Mr. Burgin:
ANR Southern Pipeline Company ("ANRS") and the City of Clearwater, Florida/Clearwater Gas
System ("City") have been engaged in discussions regarding ANRS' effort to develop and
construct new natural gas pipeline systems that would substantially increase natural gas
transmission capacity to gas consuming markets in the State of Florida. ANRS has advised the
City that it has recently formed two general partnerships with separate special purpose
subsidiaries of Florida Power Corporation for this purpose. SunShine Pipeline Partners, a
Florida general partnership between ANRS and Power Energy Services Corporation, plans to
construct, own and operate an intrastate natural gas pipeline known as SunShine Pipeline
Company ("SunShine"). SunShine Interstate Pipeline Partners, a Texas general partnership
between ANRS and Power Interstate Energy Service Corporation, plans to construct, own and
operate an interstate pipeline known as SunShine Interstate Transmission Company ("SITCD").
The purpose of this letter is to express the City of Clearwater's intentions regarding the
SunShine and SITCD pipeline projects'.
ANRS has presented Precedent Agreements to the City providing for firm transportation service
across both the SunShine and SITCD systems for a maximum daily quantity ("MDQ") of 1500
MMBTU s on SITCD and 1500 MMBTU s on SunShine. ANRS has asked the City to affirm our
intentions for these projects so that the Clearwater Gas System can appear on an exhibit
supporting SunShine Pipeline Partners' Application for Determination of Need before the Florida
Public Service Commission ("FPSC") which lists SunShine's contracted shippers, volumes,
locations and in-service date. The City herein expresses our intent to execute the Precedent
Agreements with SunShine and SITCD, but is unable to finalize these Agreements at this time
pending final resolution of certain contract issues which the Clearwater Gas System is concerned
with and then pending final authorization by our City Commission. The parties believe that the
matters which currently preclude the City's immediate execution of the Precedent Agreements
can be resolved within sixty (60) days from the date of this letter.
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"Equal Employment and Affirmative Action Employer"
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Mr. E. J. Burgin
Page 2
April 26, 1993
Accordingly, the parties agree to, within sixty (60) days from the date of this letter, use their
best efforts to successfully resolve the matters which preclude their ability to execute the
Precedent Agreements. In the event such matters are successfully resolved within such time
period, the City will so notify ANR Southern and proceed to request formal City Commission
authorization to execute the Precedent Agreements providing an MDQ of 1500 MMBTU s on
SITCO and 1500 MMBTUs on SunShine. In the event that City is unable to successfully resolve
the matters which preclude its ability to execute said Precedent Agreements within sixty (60)
days of the date of this letter, then this agreement will expire.
If you are in agreement with the foregoing, please indicate your acceptance by executing the
duplicate originals in the space provided below and returning one (1) executed copy for our files.
Sincerely,
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Michael J. Wrigll
City Manager
MIW/sh
Accepted and Agreed to this .jJ!;. day of /JJ /) C/
for ANR Southern Pipeline Company: I
, 1993
Signed By:
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Print Name:
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Title: /J /}To "eNL y ./ r1 ./- /7 c -r