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[KinderMorgan logo]

Natural Gas Pipeline Company of America
A Subsidiary of Kinder Morgan, Inc.

FIRM TRANSPORTATION
RATE DISCOUNT AGREEMENT

Agreement No. 133736

     This Firm Transportation Rate Discount Agreement (“Agreement”) is made and entered into effective this 20 th day of November, 2006, by and between Natural Gas Pipeline Company of America (“Natural”) and E Energy Adams LLC (“Shipper”).

ARTICLE 1
DISCOUNT PARAMETERS

 

 

 

1.1

 

Discount Term : From September 1, 2007 through August 31, 2017.

 

 

 

1.2

 

Transportation Agreement : Rate Schedule FTS, Agreement No. 133719, dated November 20, 2006, with a Contract MDQ of Forty Four Hundred (4,400) Dth/day.

 

 

 

 

1.3

 

Discounted Monthly Base Reservation Rate :

 

 

 

 

 

 

 

 

 

 

 

Peak Period

 

Off-Peak Period

 

 

 

 

 

 

 

 

 

09/1/2007 — 08/31/2010

 

$

3.0417

 

 

$

3.0417

 

09/1/2010 — 08/31/2011

 

$

3.1177

 

 

$

3.1177

 

09/1/2011 — 08/31/2012

 

$

3.1956

 

 

$

3.1956

 

09/1/2012 — 08/31/2013

 

$

3.2755

 

 

$

3.2755

 

09/1/2013 — 08/31/2014

 

$

3.3574

 

 

$

3.3574

 

09/1/2014 — 08/31/2015

 

$

3.4413

 

 

$

3.4413

 

09/1/2015 — 08/31/2016

 

$

3.5273

 

 

$

3.5273

 

09/1/2016 — 08/31/2017

 

$

3.6155

 

 

$

3.6155

 

 

 

 

 

1.4

 

Discounted Firm Transportation Quantity : Forty Four Hundred (4,400) Dth/day.

 

 

 

1.5

 

Discounted Primary Receipt Points :

 

 

 

 

 

 

 

 

 

 

 

 

DISCOUNTED POINT

 

NAME

 

PIN

 

MDQ (Dth/d.)

 

 

 

 

 

 

 

Trailblazer Gage

 

902900

 

4,400

 

 

 

 

 

1.6

 

Discounted Secondary Receipt Points : Amarillo Mainline Pooling Point (Pin Number 10566)

 


 

 

 

 

1.7

 

Discounted Primary Delivery Points :
E ENERGY/NGPL ADAMS GAGE (Pin Number 43169)

 

 

 

1.8

 

Discounted Secondary Delivery Points : None

ARTICLE 2
DISCOUNT TERMS AND CONDITIONS; OTHER CHARGES

2.1 General Discount Limitations . The Discounted Monthly Base Reservation Rate shall apply only to: (i) service provided to Shipper by Natural under the Transportation Agreement from the Discounted Receipt Points to the Discounted Delivery Points during the Discount Term; and (ii) a maximum daily firm transportation quantity equal to the Discounted Firm Transportation Quantity set forth in Section 1.4 above, for all quantities transported on a firm basis under the Transportation Agreement and any associated capacity release replacement agreements. Shipper shall be charged all applicable maximum rates, charges, and surcharges set forth in Natural’s FERC Gas Tariff, as may be revised from time to time, for any aggregate quantities transported a firm basis for Shipper and any associated capacity release replacement shippers which: (i) are in excess of the Discounted Firm Transportation Quantity, or (ii) involve any receipt or delivery points which are not Discounted Receipt or Delivery Points.

2.2 Discountable Third Party Surcharges . From time to time, certain reservation and/or commodity surcharges may be approved by the FERC for inclusion in Natural’s FERC Gas Tariff which Natural is: (i) required to collect from Shipper and remit to the FERC or to another third party; and (ii) permitted to discount the amount of such surcharge from the applicable maximum rate set forth in Natural’s FERC Gas Tariff (“Discountable Third Party Surcharges”). Natural shall discount any particular Discountable Third Party Surcharge to the maximum extent permitted under the provisions of Natural’s FERC Gas Tariff. Shipper shall only be responsible for payment to Natural of any portion of such Discountable Third Party Surcharge which Natural is not permitted to discount and for which Natural bills Shipper.

2.3 Applicable Maximum Rates, Charges and Surcharges . Unless otherwise expressly provided in this Agreement or agreed to in writing by Natural, all applicable maximum rates, charges, surcharges, and penalties of any nature set forth in Natural’s FERC Gas Tariff, as may be revised from time to time, shall apply to service provided to Shipper under the Transportation Agreement, including without limitation all applicable: (i) Fuel and Gas Lost and Unaccounted For charges; (ii) authorized and unauthorized overrun charges; (iii) reservation surcharges; (iv) commodity rates, charges and surcharges; (v) ACA surcharges; and (vi) gathering charges, offshore charges, and lateral line charges.

ARTICLE 3
MISCELLANEOUS PROVISIONS

3.1 Applicable Maximum and Minimum Tariff Rates . Notwithstanding any other provision of this Agreement, in no event shall the discounted rates billed by Natural be less than the applicable minimum rate or more than the applicable maximum rate set forth in Natural’s FERC Gas Tariff, as may be revised fro


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