SERVICE AGREEMENT FOR PREFERRED SERVICE
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SERVICE AGREEMENT
FOR PREFERRED SERVICE
THIS AGREEMENT entered into this 1st day of November, 1989,
by and between Florida Gas Transmission Company, a corporation of
the State of Delaware (herein called "Seller") and The City of
Clearwater (herein called "Buyer").
WIT N E SSE T H :
WHEREAS, Buyer wishes to purchase natural gas, on a pre-
ferred basis, from Seller, and
WHEREAS, Seller is willing to sell and deliver natural gas
to Buyer,
NOW, THEREFORE, Seller and Buyer agree as follows:
ARTICLE I
Quantities
1. The Maximum Daily Quantity ("MDQ") shall be the maximum
quantity of natural gas, expressed in therms, that Seller is
physically capable of delivering, subject to Sections 9, 9A and
9B of the General Terms and Conditions of Seller's FERC Gas
Tariff, at the Point(s) of Delivery set forth in Article IV of
this Agreement.
2. The Annual Volumetric Entitlement shall be set forth in
Exhibit A.
This Annual Volumetric Entitlement shall be the
largest quantity of gas which may be sold and delivered to Buyer
during any Service Year under the terms and conditions of this
Rate Schedule I at the Point(s) of Delivery set forth in Article
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IV of this Agreement, sUbject to the availability of adequate gas
supplies and pipeline capacity to enable Seller to deliver such
quantities in accordance with Sections 9, 9A and 9B of the
General Terms and Conditions of Seller's FERC Gas Tariff.
3. Buyer shall on request furnish Seller estimates of
daily, monthly and annual gas requirements as far as advance as
reasonably possible.
ARTICLE II
Rate Schedule
1. Buyer shall pay Seller, for all service rendered
hereunder, the prices established under Seller's Rate Schedule I
as filed with the Federal Energy Regulatory Commission and as
said Rate Schedule may hereafter be legally amended or supersed-
ed.
2. This Agreement in all respects shall be and remain
subject to the applicable provisions of said Rate Schedule and of
the General Terms and Conditions of Seller on file with the
Federal Energy Regulatory Commission (as the same may hereafter
be legally amended or superseded), all of which are made a part
hereof by this reference.
ARTICLE III
Term of Aqreement
1. This Agreement shall be effective on the Effective Date
defined in Section 2 below and shall continue in effect for a
primary term of five (5) years and thereafter from year to year
unless and until terminated either by Seller or by Buyer upon one
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hundred eighty (180) days' prior written notice to the other
specifying a termination date at the end of such period or any
yearly period thereafter. It is understood that Seller does not
have and, notwithstanding Seller's good faith efforts, may not
have in the future, sufficient gas supplies to supply Buyer with
the quantities of gas specified to supply Buyer with the quanti-
ties of gas specified in the service agreement for the term of
such agreement. Buyer shall not hold Seller liable in damages or
otherwise for extending the term of any agreement, or for any
volumes of gas which customer is not permitted to receive as a
result of curtailment of deliveries by Seller pursuant to Section
9, 9A or 9B of the General Terms and Conditions, except to the
extent that such extension or curtailment is shown to be the
result of Seller's negligence, bad faith, fault or willful
misconduct.
2. This Agreement is expressly subject to (i) the approval
by the Federal Energy Regulatory Commission of the Stipulation
and Agreement filed by Seller on October 16, 1989 in Docket Nos.
RP89-50, et al., (Stipulation and Agreement), and (ii) receipt by
Seller of all other approvals required to effectuate the proposed
service hereunder, including all necessary authorizations from
federal, state, local or municipal agencies, or other
governmental authorities. It is expressly understood that all
such approvals shall be in form and substance satisfactory to
both Seller and Buyer in the exercise of their reasonable, good
faith judgment, and shall be final and no longer subject to
appeal; provided, however, that Seller at its option may elect to
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waive the conditions that such approvals be final and/or no
longer subject to appeal.
Upon satisfaction of the above
conditions, this Agreement shall be effective and service shall
commence on the Effective Date of the stipulation and Agreement
as it is defined in Article XXI of the Stipulation and Agreement.
ARTICLE IV
pointCs) of Deliverv
1. The Point(s) of Delivery for all natural gas purchased
under this Agreement shall be at the Point(s) of Delivery set
forth in Exhibit B to the currently effective Service Agreement
between Buyer and Seller under Seller's Rate Schedule G as it may
be revised from time to time. Such Exhibit B is incorporated
herein by reference as is fully set forth in this Agreement.
2. The Maximum Daily Quantity at any Point of Delivery
shall be the maximum quantity that Seller is physically capable
of delivering on any day through its metering facilities at such
point, subject to Sections 9, 9A and 9B of the General Terms and
Conditions of Seller's FERC Gas Tariff.
3. The Maximum Hourly Quantity at any point of delivery
shall be the maximum quantity that Seller is physically capable
of delivering during any hour through its metering facilities at
such point, subject to Sections 9, 9A and 9B of the General Terms
and Conditions.
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ARTICLE V
Notices
All notices and communications with respect to this Agree-
ment shall be in writing and sent by prepaid mail to the address-
es stated below or at such other address as may hereafter be
designated in writing.
ADMINISTRATIVE MATTERS:
Seller: Florida Gas Transmission Company
P. O. Box 1188
Houston, Texas 77251-1188
Attention: Contract Management Department
Buyer:
The City of Clearwater
P. O. Box 4749
Clearwater, Florida 34618
Attention: Gas Superintendent
PAYMENT BY WIRE TRANSFER:
Seller: Florida Gas Transmission Company
NCNB National Bank
Account No. 001658806
Charlotte, North Carolina
ARTICLE VI
Miscellaneous
1. THE INTERPRETATION AND PERFORMANCE OF THIS SERVICE
AGREEMENT SHALL BE IN ACCORDANCE WITH THE LAWS OF THE STATE OF
TEXAS.
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2. Seller shall have the unilateral right to file with the
appropriate regulatory authority and make changes authorized by
such authority in (a) the rates and charges applicable to this
Rate Schedule, (b) the Rate Schedule pursuant to which this
service is rendered; provided, however, that the preferred
character of service shall not be subject the change hereunder,
or (c) any provisions of the General Terms and Conditions
applicable to this Rate Schedule. Seller agrees that Buyer may
protest or contest the aforementioned filings, or seek
authorization from duly constituted regulatory authorities for
such adjustment of Seller's existing FERC Gas Tariff as may be
found necessary in order to assure that the provisions in (a),
(b) or (c) above are just and reasonable.
3. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and
assigns.
4. This Agreement cancels and supersedes, as of its
effective date, the existing agreement relating to the sale of
gas by Seller to Buyer as follows: All existing agreements for
service under Seller's Rate Schedule I between Seller and Buyer,
Buyer's predecessors in interest and all of its divisions,
whether or not the same have been approved by the Federal Energy
Regulatory Commission.
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IN WITNESS WHEREOF, the parties hereto have executed this
forth below.
Agreement by their duly authorized officials on the dates set
FLORIDA GAS TRANSMISSION COMPANY
By: j/f)~ /Y7 . ~ -i
Title: Vice President. Marketinq
A'l'TEST:
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Title: Assistant Secretary
Date: //. 2;1'- cf9
THE CITY OF CLEARWATER
By: R~Z~ 0iL
Title: Ci ty Manaqer
ATTEST:
By: ~~k~-~--" J3.-L~
. cyntV-#::3. ~ ._:v(n~g.E7.~U:-.==
T1tle: C1t~~lerk _ ~
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Date:
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ita Garvey
Mayor-Commissioner
Approved as to form a correctness:
J/L~ '
M. A. Galbraith,
City Attorney
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Exhibit A
Preferred Service Agreement
Between
Florida Gas Transmission Company
and
The City of Clearwater
Dated
November 1, 1989
Annual Volumetric Entitlement: 1,000,000 (therms)
Notwithstanding the foregoing, this Exhibit A and the AVE
set forth above shall be superseded in its entirety upon the
"in-service date of the Phase II Facilities," as that term is
defined in the Stipulation and Agreement filed by Seller on
October 16, 1989, in Docket Nos. RP89-50, et al., by First
Revised Exhibit A, which is attached hereto, and the AVE set
forth in First Revised Exhibit A.
Date of this Exhibit A: November 1, 1989
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First Revised Exhibit A
to
Preferred Service Agreement
Between
Florida Gas Transmission Company
and
The City of Clearwater
Dated
November 1, 1989
Annual Volumetric Entitlement:* 2,000,000 (therms)
This First Revised Exhibit A shall supersede original
Exhibit A attached hereto in its entirety on the "in-service date
of the Phase II Facilities," as that term is defined in the
Stipulation and Agreement filed by Seller on October 16, 1989, in
Docket Nos. RP89-50, et ale
*Buyer and Seller agree to amend this First Revised Exhibit
A to be effective concurrently with the "in-service date of the
Phase II Facilities" to reflect any conversions to preferred
transportation service exercised by Buyer subsequent to the date
of this Exhibit.
Date of this Exhibit A: November 1, 1989
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Florida Gas Transmission Company
Wiley M. Cauthen
i iSiC:"lat1 I 0
DEe 2 6 '999
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P, O. Box 5100
Maitland, Florida 32751
(.407) 875,5800
December 21, 1989
Mr. Bob Brumback
city of Clearwater
P. O. Box 4749
Clearwater, FL 33518
Dear Bob:
Enclosed for your files are the fully executed
originals of the following Service Agreements dated
November 1, 1989, between Florida Gas Transmission
Company (FGT) and The city of Clearwater: winter
Period Peaking Service, Preferred Service and General
Service.
Thank you for your cooperation in helping us meet
our deadlines in this project.
Very truly yours,
j1)~m.~
WMC:ben
Enclosures
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(-11,/ CltJlK
An ENRON/MHAT Affiliate
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TO:
FROM:
COPIES:
CGS
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Cynthia Goudeau, City Clerk
J. Terry Neenan, Gas Superintendent
File
SUBJECT: FOT SECOND REVISED EXHIBIT A
DATE: October 14, 1992
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CITY OF CLEARWATER
Interoffice Correspondence Sheet
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Attached is an updated Second Revised Exhibit A for the City of Clearwater;s FTS Contract
#20336. Please attach it to the original contract.
Thank you.
JTN/ sh
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CiTY CLERK DEP1:
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Florida Gas Transmission Company
P. O. Box 1188 Houston, Texas 77251.1188 (713) 853-6161
October 6, 1992
Mr. Terry Neenan
City of Clearwater
400 North Myrtle Avenue
Clearwater, FL 34615
RECEIVED
OCT 1 3 1992
Clearwater Gas System
Dear Terry:
Per our telephone conversation, I am enclosing an updated form
showing City of Clearwater's approved levels of receipt point
capacity through 50% conversion level for each POI in FGT's three
Production Zones. I have corrected the Zone Three point to reflect
POI #10258 (Tenn stone Carnes) as you requested.
I am also enclosing an updated Second Revised Exhibit A for
City of Clearwater's FTS contract #20336. This updated Exhibit A
also reflects the change in Zone Three receipt point and supersedes
the Second Revised Exhibit A originally generated on August 1,
1992.
Thank you for your patience in this matter. Please give me a
call at (713) 853-6188 if you have any further questions.
Sincerely,
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Tracey L. Prothro
Sr. Contract Administrator
Enclosures
cc: Nancy Bastida
FGT Gas Management
File 20336
An ENRON/SMA' Affiliate
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Second Revised Exhibit A
to
Firm Gas Transportation Service Agreement
Between
Florida Gas Transmission Company
and
City of Clearwater
Dated
October 1, 1991
Description of Maximum Daily Ouantities*
Point(s) of (MMBtu)
Receipt POI Oct Nov-March April MaY-Sept
FGT MOPS REFUGIO 611 1,389 1,524 1,895 863
SNG/NNG
FGT SABINE 23062 1,660 1,820 2,263 1,031
KAPLAN
FGT TENN 10258 811 889 1,105 503
STONE CARNES
*Inclusive of 3.0% for Fuel
Date of this Second Revised Exhibit A superseding Second Revised Exhibit
A dated August 1, 1992: August 1, 1992
20336.Frs
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flORIDA GAS TRANSMISSION COMPANY
PREUMINARY PHASE II FIRM REC8PT POINT ALLOCATIONS BY CUSTOMER THROUGH 50% CONVERSION LEVEL (ALL VOLUMES INCLUSIVE OF 3% FUEl)
AllOCATED VOLUMES (MMMBTU):
COMPRESSOR POI
STATION # RECEIPT POINT SHIPPER OCTOBER NOV-MAR APRIL MAY-SEPT
--------- ------- ------------------. ------------------------- -------- -------- -------- --------
3 611 SNG/NNG MOPS REFUGIO CITY OF CLEARWATER 1,369 1.524 1.695 0.663
6 23062 SABINE KAPLAN CITY OF CLEARWATER 1.660 1.820 2.263 1.030
10 10258 TENN STONE CARNES CITY OF CLEARWATER 0,811 0.889 1.105 0.503