NATURAL GAS AGREEMENTS (028)
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Florida Gas Transmission Company
p, O. Box 44 Winler Pork, Florida 32790 (305) 646-1100
August 31, 1987
Mr. Cecil Henderson, Jr.
City of Clearwater
p. O. Box 4749
Clearwater, FL 33518
Gentlemen:
This letter agreement evidences the agreement of Florida Gas
Transmission Company (FGT) and the City of Clearwater (Buyer),
upon fulfillment of the conditions precedent set forth herein, to
enter into a Service Agreement, containing terms and conditions
mutually acceptable to FGT and-Buyer, a pro forma copy of which
is attached hereto. Such Service Agreement, as attached, sets
forth the terms and conditions of a preferred interruptible sales
service which FGT proposes to render on behalf of Buyer under a
revised Rate Schedule I, also attached hereto. FGT proposes to
provide Buyer preferred interruptible sales service under Rate
Schedule I of up to an Annual Volumetric Entitlement of 8,000,000
therms. The initial term of such Service Agreement shall extend
through September 30, 2003, and shall extend year to year
thereafter unless terminated by either party upon one hundred and
eighty (180) days' written notice.
This letter agreement obligating FGT and Buyer to enter into
the above-described Service Agreement and obligating FGT to
render the proposed service is expressly subject to:
(i) the approval of the Federal Energy Regulatory
Commission of the Stipulation and Agreement to be filed
on or before October 31, 1987 in Florida Gas
Transmission Company, Docket Nos. CP68-179-006, et al.
(Stipulation and Agreement); and
(ii) receipt by FGT 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 FGT and Buyer, and
shall be final and no longer subject to appeal; provided,
however, that FGT at its option may elect to waive the condition
that the approvals be no longer subject to appeal.
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City of Clearwater
August 31, 1987
Page 2
Upon satisfaction of the above conditions, FGT and Buyer
hereby agree to terminate all existing Service Agreements under
Rate Schedule I and to execute, within one hundred and twenty
(120) days of the effective date of the Stipulation and
Agreement, a mutually agreeable new Service Agreement, in the
form attached hereto, under revised Rate Schedule I, as attached
hereto, for the level of preferred interruptible service
described above.
In the event that all requisite approvals which may be
necessary to effectuate the proposed service pursuant to this
letter agreement are not granted in satisfactory form on or
before December 31, 1988, then at such time or at any time
thereafter prior to the receipt of such requisite approvals, FGT
or Buyer may cancel this letter agreement by giving the other
party ten (10) days' prior written notice thereof.
If the foregoing sets forth our
indicate your acceptance and agreement
returning two (2) executed copies of this
understanding, please
hereto by signing and
letter agreement to us.
Very truly yours,
FLORIDA GAS TRANSMISSION COMPANY
WILEY M. CAUTHEN
Vice President, Marketing
Attachment
ACCEPTED AND AGREED TO
this day of
, 1987
CITY OF CLEARWATER
By:
Title:
01:26
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Countersigned:
Approved as to
form and correctness:
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City Attorney
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CITY OF CLEARWATER, FLORIDA
Attest:
~'-\k~. ,J:.t ,0, '"
City Clerk
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FLORIDA GAS TRANSMISSION COMFANY
F.E.R.C. GAS TARIFF
FIRST REVISED VOLUME NO. 1
Proforma Sheet No. 12
RATE SCHEDULE I
PREFERRED INTERRUPTIBLE SERVICE
1. AVAILABILITY:
This Rate Schedule is available for the purchase from Florida Gas Transmission
Company (hereinafter called "Seller") of natural gas by any gas distributing agency
(hereinafter called "Buyertl):
(a) which purchases natural gas under contract from Seller under Rate Schedule G;
and
(b) which has an executed Service Agreement with Seller for service under this
Rate Schedule.
2. APPLICABILITY AND CHARACTER OF SERVICE:
This Rate Schedule shall apply to gas delivered under the executed Service
Agreement for service under this Rate Schedule.
Deliveries hereunder are of qas for resale to qualified individual commercial
or industrial consumers as specified in Section 8 of this Rate Schedule.
Service rendered under this Rate Schedule shall be subject to curtailment or
interruption at any time in accordance with Priority of Service provisions con-
tained In Section 8 (Force Majeure), Section 9 (Priority of Service--Gas Supply),
and Section 9A (Priority of Service--Pipellne Capacity) of the General Terms and
Conditions.
3. RATE:
3.1 Rate: The unit rate is the charge per therm of natural gas delivered during
the month.
The applicable unit rate is set forth in the currently effective Sheet No. 8
of this Tariff, First Revised Volume No.1 and is hereby incorporated herein.
Purchased Gas Cost Adjustment: The unit rate 1s subject to adjustment for the
cost of purchased gas pursuant to Section 15 of the General Terms and Con-
ditions of 'this Tariff, First Revised Volume No. 1.
4. MINIMUM BILL:
None.
Issued by:
Effective:
Issued on:
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FLORIDA GAS TRANSMISSION COMPANY
F.E.R.C. GAS TARIFF
FIRST REVISED VOLUME NO. 1
Proforma Sheet No. 13
RATE SCHEDULE I (Continued)
5, MAXIMUM DAILY QUANTITY:
(a) The Maximum Oa11y Quantity (IIMDQ") shall be the maximum quantity of
natural gas, expressed in therma, that Seller is physically capable of delivering
during anyone day, subject to Sections 9 and 9A of the General Ierms and Condi-
tions J through its metering facilities to Buyer for resale and that Buyer is
entitled to receive at the Point(s) of Delivery set forth in the executed Service
Agreement for service under this foregoing- Rate Schedule.
(b) In addition to the limitation imposed by paragraph (8) of this Section 5,
the maximum quantity of gas, expressed 1n therms, that Seller shall deliver to
Buyer under this Rate Schedule I on any day 151 further limited to the quantity of
gas received by Buyer for resale to qualified commercial and industrial consumers,
defined below, as determined in accordance with Section 18 of the General Terms and
Conditions.
6. ANNUAL VOLUMETRIC ENTITLEflENT:
(8) The Annual Volumetric Entitlement shall be the largest quantity of gas,
expressed in therms, which may. be delivered to Buyer under the terms and conditions
of this Rate Schedule during anyone Service Year, subject to the availability of
adequate gas supplies and pipeline capacity to enable Seller to deliver such
quantities in accordance with Sections 9 and 9A of the General Terms and
Conditions. The Annual Volumelric Entitlement for each Buyer shall be set forth in
the executed Service Agreement for this Rate Schedule.
(b) In addition to the limitation imposed by paragrsph (a) of this Section 6,
the maximum quantity of gas, expressed. in therms, that may be delivered to Buyer
under the terms and conditions of this Rate Schedule I during anyone Service Year
is further limited to the quantity of gas received by Buyer for resale to qualified
commercial and industrial consumers, defined below, as determined in accordance
with Section 18 of the General Terms and Conditions.
7, REDUCTION AND CONVERSION OF SERVICE:
Refer to Section 13.4 and Section 16A of the General Terms and Conditions.
8. QUALIFIED COMMERCIAL AND INDUSTRIAL CONSUMERS:
A commercial or industrial consumer to be served by Buyer with gas purchased
under this rate schedule shall meet the fOllOWing qualifications:
Issued by:
Effective:
Issued on:
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FLORIDA GAS TRANSMISSION COMPANY
F.E.R.C. GAS,TARIFF
FIRST REVISED VOLUME NO. 1
Proforma Sheet No. 13A
RATE SCHEDULE I (Continued)
(al The individual commercial or industrial consumer shall use gas 1n volumes of
100 therms or more per day; its usage shall be suitable for the interruption
of the gas supply when necessary or the customer shall provide adequate
standby alternate fuel facilities.
(bJ For the purpose of this rate schedule, the term "Industrial Consumerl' shall
mean a consumer who uses gas for any purpose in an establishment whose major
function 1s to create or change raw or unfinished material into another form
or product, or such otber definition as the Federal Energy Regulatory Commis-
sion or successor thereto may specify in conformance with the provisions of
the Natural Gas' Actw Such establishments shall, among others, specifically
include, but not be limited to, electric generating plants, packing plants,
cement plants, dehydration plants, factories, brick kilns, breweries, malting
plants, distilleries, paper plants, building material plants, creamery and
food processing plants, sugar, flour and cereal mills, glass plants, smelters,
citrus and chemical plants, and refineriesw
(c) For the purpose of this rate schedule, the term "Commercial Consumer II shall be
a consumer who is engaged primarily in the sale of goods or services including
institutions and local, state and federal government agencies for uses other
than those inVOlVing manufacturing or electric power generation or such other
definition as may be established by the FERC or successor thereto. For the
purpose of this rate schedule only, the term "Commercial Consumer" specifi-
cally excludes apar~ents, condominia, nursing homes, restaurants, cafeterias,
direct-fired space beating equipment and direct-fired COOking equipment.
Issued by: Effective:
Issued on:
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FLORIDA GAS TRANSMISSION COMPANY
F.E.R.C. GAS TARIFF
FIRST REVISED VOLUME NO. 1
Proforma Sheet No. 14
RATE SCHEDULE I (Continued)
9. NOTICE BY BUYER TO SELLER OF CERTAIN CONSUMERS:
Nithin thirty (30) days of the initial effective date of this tariff sheet,
Buyer shall supply to Seller and keep current a list of consumers with total gas
requirements in excess of five hundred (500) therms per day whom it serves with gas
purchased under this Rate Schedule. Buyer shall advise Seller of any changes in
customers or customers' requirements contained on the above referenced list. Such
list shall identify for each such consumer: (1) the name and location; (11) the
priority classification as determined under Section 9 of the General Terms and
Conditions and approved by the FERC; (iii) the purpose or purposes for which the
gas 1s to be used; (Iv) estimates of requirements by peak hour, maximum daily,
monthly and annual; and (v) a deScription of standby facilities to be used during
interruptions or curtailments of gas deliveries.
10. DETERMINAT ION OF DELIVERIES:
Refer to Section 18 of the General Terms and Conditionsw
n. CURTAILMENT NOTICES:
Whenever curtailment of gas delivered hereunder is required, Seller shall
issue a curtailment order to Buyer in accordance with the procedures set forth in
Section 9 and/or Section 9A, as applicable, of the General Terms and Conditions.
To the extent possible a curtailment order with respect to customers under
this Rate Schedule shall be issued at least two hours in advance of its effective
time, provided however, that if curtailment or interruption is occasioned by an
event of force. majeure affecting the Seller's system (as provided in Section 8 of
the General Terms and Conditions), Seller shall give only such notice as is practi-
cable in the circumstances.
12. AUTHORIZED OVER~RUN GAS:
Any quantities of gas delivered to Buyer under this Rate Schedule during any
Service Year In excess of Buyer's Annual Volumetric Entitlement, less any cumula-
tive curtailments ordered under this Rate Schedule by Seller for such Service Year,
shall be considered over-run gas.
(a) Buyer may without penalty purchase over-run gas during any Service Year;
prOVided, that total deliveries to Buyer, including deliveries of over-run
,
.
Issued by:
Effective:
Issued on:
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FLORIDA GAS TRANSMISSION COMPANY
F.E.R.C. GAS TARIFF
FIRST REVISED VOLUME NO. 1
Proforma Sheet No. 14A
RATE SCHEDULE I (Continued)
gas, under Rate Schedule G and this Rate Schedule do not exceed 105\ of
Buyer's Total Resale Annual Entitlement. For purposes hereof, Buyer's Total
Resale Annual Entitlement equ,als the sum of Buyer's Maximum Annual Contract
Quantity under Rate Schedule G, plus Buyerl s Annual Volumetric Entitlement
under this Rate Schedulee
(b) Any over-run gas delivered 1n excess of the quantities described 1n {al above,
shall be considered unauthorized over-run gas subject to Section 13 below.
(c) Over-run gas shall he curtailed 1n accordance with the provisions of Section 9
(Priority of Service--Gas Supply) and Section 9A (Priority of
Servlce--Plpel1ne Capacity).
13. UNAlJTIIORIZED OVER-RUN GAS:
Refer to Section 17 of the General Terms and Conditions.
14. MEASUREMENT BASE:
See Section 4 of the General Terms and Conditions.
15. GENERAL TERMS AND CONDITIONS:
All of the General Terms and Conditions are applicable to this Rate Schedule
and are hereby made a part hereof.
Issued by:
Effective:
Issued on:
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FLORIDA GAS TRANSMISSION COMPANY
F.E.R.C. GAS TARIFF
FIRST REVISED VOLUME NO. 1
Proforma Sheet No. 62
FORI! OF SERVICE AGREEMENT
FOR
PREFERRED LNTERRUPTIBLE SERVICE
THIS AGREEMENT entered into this _____ day of
, 19___, by and between
Florida Gas Transmission Company, a corporation of the State of Delaware (herein called
"Seller") and
(herein called "Buyer")
HIT N E SSE T H :
WHEREAS, Buyer has certain individual commercial and industrial customers within its
service area who desire to ~btaln gas from Buyer for their own use, and Buyer desires to
purchase such gas from Seller for resale to such commercial or industrial customers, and
WHEREAS, Seller 1s willing to sell and ,deliver natural gas to Buyer,
NOW, THEREFORE, Seller and Buyer agree as follows:
ARTICLE 1
Quanti ties
1~ The Maximum Daily Quantity ("MDQI') shall be the maximum quantity of natural
gas, expressed in therms, that Seller is physically capable of delivering, subject to
Sections 9 and 9A of the General Terms and Conditions of Seller's F~E~R~C~ Tariff, at the
Issued by:
Effective:
Issued on:
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FLORIDA GAS TRJu1SMISSION COMPANY
F.E.R.C. GAS TARIFF
FIRST REVISED VOLUME NO. 1
Proforma Sheet No. 62A
point(s) of delivery set forth In Article IV.of this Agreement. The MDQ under this Rate
Schedule I shall be further limited as provided in Section 5(b) of Rate Schedule t.
2.
The Annual Volumetric Entitlement shall be
Thems per Service Year.
This Annual Volumetric Entitlement shall be the largest quantity of gas that may be sold
and delivered to Buyer for resale and use in its gas distribution business in the
communities and areas supplied by Buyer during any Service Year under the terms and
conditions of this Rate Schedule 1 at the point(s) of delivery set forth in Article 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 and JA
of the General Terms and Conditions of Seller's F.E.R.C. Tariff. Buyer's right to the
Annual Volumetric Entitlement under this Rate Schedule 1 shall be further limited as
proyided in Section 6(b) of Rate Schedule I.
3. The Maximum Hourly Quantity shall be the maximum quantity that Seller is
capable of delivering through its metering facilities at the delivery point/s set out in
the Service Agreement/s between Buyer and Seller in anyone hour period, subject to the
limitation set forth in Section 4.3 of this Agreement.
Issued by:
Effective:
Issued on:
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FLORIDA GAS TRANSMISSION COMPANY
F,E.R.C. GAS TARIFF
FIRST REVISED VOLUME NO. 1
Proforma Sheet No. 63
4. Buyer shall on request furnish Seller estimates of daily, monthly and annual
gas requirements as far in advance as reasonably possible.
ARTICLE II
Rate Schedule
1. Buyer shall pay Seller, for all service rendered hereunder, the prices .estab-
11shed under Seller's Rate Schedule I as filed with the Federal Energy Regulatory Commis-
slon ,and as said Rate Schedule may hereafter be legally amended or superseded.
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 o~
file with the Federal Energy Regulatory Commission (as the same may hereafter be legally
amended or superseded) I all of which are made a part hereof by this reference.
ARTICLE III
Term of Agreement
This Agreement shall be effective on
and shall continue in effect
until
and thereafter from year to year unless and until terminated either
by Seller or by Buyer upon twelve (12) month's prior written notice to the other speci-
fying a termination date at the end of such period or any yearly period thereafter. It
1s 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
.
Issued by:
Effective:
Issued on:
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FLORIDA GAS TRANSMISSION COMPANY
F.E.R.C. GAS TARIFF
FIRST REVISED VOLUME NO. 1
Proforma Sheet No. 64
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 or 9A of the General Terms and
Conditions, except to the extent that such extension,or curtailment 1s shown to be the
result of negligence or misfeasance by Seller.
ARTICLE IV
Point of Delivery
1. The Point(s) of Delivery for all natural gas purchased under this agreemen~
shall be at the PoiDt(S) of Delivery set forth in Exhibit A attached hereto.
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 and 9A of the General Terms and Condi-
tions of Seller's F.E.R.C. Tariff.
3. The Maximum Hourly Quantity at Bny point of delivery shall be the maximum
quantity that Seller is physically capable of delivering during any h~r ~hrough its
metering facili~ies at such point, subject to Sections 9 and 9A of the General Terms and
Conditions, provided that such quantity shall not exceed six percent of the maximum daily
quantity for such point as set forth in Exhibit A attached hereto. No more than the
Maximum.Hourly Quantity may be delivered to Buyer during any hour.
Issued by:
Effective:
Issued on:
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FLORIDA GAS TRANSMISSION COMPANY
F.E.R.C. GAS TARIFF
FIRST REVISED VOLUME NO. 1
Proforma Sheet No. 64A
ARTICLE V
Notices
All notices and communications with respect to this Agreement shall be in writing
and sent by prepaid mail to the addresses stated below or at such other address as may
hereafter be designated in writing.
ADMINISTRATIVE MATTERS:
Seller: Florida Gas Transmission Company
P. O. Box 44
Winter Park, Florida 32790
Attention: Vice-President, Marketing
Buyer:
PAYMEIIr BY WIRE TRANSFER:
Seller: Florida Gas Transmission Company
NCNB National Bank
Account No. 001658806
Charlotte, North Carolina
Buyer:
.
Issued by:
Effective:
Issued on:
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FLORIDA GAS TRANSMISSION COMPANY
F.E.R.C. GAS TARIFF
FIRST REVISED VOLUME NO. 1
Proforma Sheet No. 65
ARneLE VI
Miscellaneous
1. Seller shall have the unilateral right to file with the appropriate regulatory
authority and make changes effective in (a) the rates and charges applicable to this Rate
Schedule, (b) the Rate Schedule pursuant to which service is provided, or (c) any
provisions of the General Terms and Conditions applicable to this Rate Schedule. Seller
agre~s that Buyer may protest or contest the aforementioned filings, or may seek authori-
zation from duly ,constituted regulatory authorities for such adjustment of Seller's
existing FERC Gas Tariff as may be found necessary to assure that the provisions in (a~J
(b) or (c) above are just and reasonable.
2. This Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns.
3. No waiver by either party of anyone or more defaults by the other in the
performance of any provision of this Agreement shall operate or be construed as a waiver
of any future default or defaults of a like or a different character.
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:
Issued by:
Effective:
Issued on:
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FLORIDA GAS TRANSMISSION COMPANY
F.E.R.C. GAS TARIFF
FIRST REVISED VOLUME NO. 1
Proforma Sheet No. 6SA
IN WITNESS WHEREOF the parties hereto have executed this Agreement by their duly
authorized officials on the dates set forth below.
FLORIDA GAS TRANSMISSION COMPANY
BUYER:
By
By
Title
Title
ATTEST:
ATTEST:
Assistant Secretary
Secretary
Date
.
Issued by:
Effective:
Issued on:
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FLORIDA GAS TRANSMISSION COMPANY
F.E.R.C. GAS TARIFF
FIRST REVISED VOLUME NO. 1
Proforma Sheet No. 65B
Exhibit A
Preferred Interruptible Service Agreement
Between
Florida Gas Transmission Company
and
Dated
, 19_
Points of Delivery
Description of Point of Delivery
Issued by:
Effective:
Issued on: