LETTER AGREEMENT RE RATE SCHEDULE
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Florida Gas Transmission Company
P. O. Box 1188 Houston, Texas 77251-1188 (713) 853-6161
September 26, 1990
city of Clearwater
Gas Division
P.O. Box 4749
401 N. Myrtle
Clearwater, Florida 34618
Gentlemen:
This letter agreement sets forth the understanding between
Florida Gas Transmission Company (FGT) and City of Clearwater
(Clearwater) with respect to the term of any service agreement
under FGT's Rate Schedule FTS-1 which may be entered between FGT
and Clearwater as a result of Clearwater's conversion from firm
sales service to firm transportation service under the terms of the
Stipulation and Agreement filed by FGT on October 17, 1989 in
Docket Nos. RP89-50, et al., (October 17th Settlement) and approved
by order of the Federal Energy Regulatory Commission dated June 15,
1990 (June 15th Order).
In consideration of the mutual promises
and concessions of the parties with respect to the October 17th
Settlement, FGT agrees that, notwithstanding any provision of the
October 17th Settlement or June 15th Order, at Clearwater's
election, the term of any such service agreement under FGT's Rate
Schedule FTS-1 shall: (1) provide for a term of fixed duration with
a year-to-year evergreen thereafter, but FGT's right to terminate
upon six-months notice to Clearwater shall be contingent on FGT
An ENRON/_' Affiliate
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City of Clearwater
September 26, 1990
Page 2
filing for and receiving specific abandonment authorization under
Section 7(b) of the Natural Gas Act prior to termination of the
service, or (2) provide that Clearwater shall have one or more
unilateral options to extend the primary term of the contract, for
additional terms which in the aggregate shall not exceed twenty
(20) years, with a year-to-year evergreen clause thereafter which
permits FGT or Clearwater the option to terminate upon six-months
written notice to the other party.
If the foregoing accurately represents your understanding of
our agreement concerning this matter, please so indicate by
executing both originals of this agreement in the space provided
below and returning one executed original to the undersigned.
FLORIDA GAS TRANSMISSION COMPANY
By: W~ffl.~ pYI1
Vice res1dent, Marketing
Accepted and Agreed to this
~~ day Of~ , 1990
CITY
OF CLEARWATER
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By:
Title:
City Manager
Date:
November 2, 1990