Exhibit 10.3
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AGREEMENT
ID
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FTNN CONTRACT NO.
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532
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100112
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SERVICE AGREEMENT
APPLICABLE TO TRANSPORTATION OF NATURAL GAS
UNDER RATE SCHEDULES FTNN
AGREEMENT made as
of this 26 day of November, 2003, by and between DOMINION
TRANSMISSION, INC., a Delaware corporation, hereinafter called
“Pipeline,” and WASHINGTON GAS LIGHT COMPANY, a
District of Columbia and Virginia corporation, hereinafter called
“Customer.”
WHEREAS, by Order
issued by the Federal Energy Regulatory Commission
(“FERC”) on September 11, 2003 in Docket Nos.
CP03-41-000 and CP03-43-000, Pipeline was issued a certificate of
public convenience and necessity pursuant to Section 7 of the
Natural Gas Act and Part 157 of the Commission’s
Regulations authorizing Pipeline to construct, own, and operate
facilities providing a total of 223,000 Dekatherms (Dt) per day of
firm transportation service and a total of 5.6 Bcf of firm storage
capacity (the “Mid-Atlantic Project”);
WHEREAS, Pipeline
has accepted the certificate issued by the FERC in Docket Nos.
CP03-41-000 and CP03-43-000;
WHEREAS, Customer
has requested that Pipeline transport natural gas for it as part of
the Mid-Atlantic Project; and
WHEREAS, Pipeline
is willing to provide transportation service for Customer as part
of the Mid-Atlantic Project commencing on November 1, 2004, or
as soon as any additional necessary rights and regulatory approvals
are received and accepted by Pipeline and as the necessary
facilities are constructed and ready for service.
WITNESSETH: That,
in consideration of the mutual covenants herein contained, the
parties hereto agree as follows:
ARTICLE I
Quantities
A. During the
term of this Agreement, Pipeline will transport for Customer, on a
firm basis, and Customer may furnish, or cause to be furnished, to
Pipeline natural gas for such transportation, and Customer will
accept, or cause to be accepted, delivery from Pipeline of the
quantities Customer has tendered for transportation.
B. The
maximum quantities of gas which Pipeline shall deliver and which
Customer may tender shall be as set forth on Exhibit A,
attached hereto.
ARTICLE II
Rate
A. Unless
otherwise mutually agreed in a written amendment to this Agreement,
Customer shall pay Pipeline for transportation services rendered
pursuant to this Agreement, the maximum rates and charges provided
under Rate Schedule FTNN for the Mid-Atlantic Project set
forth in the “Summary of Incremental Rates” in
Pipeline’s effective FERC Gas Tariff, including applicable
surcharges and the Fuel Retention Percentage. Upon the beginning of
the term of this Agreement, that rate shall be consistent with the
FERC’s order granting Pipeline its certificate in Docket Nos.
CP03-41-000 and CP03-43-000 (as modified upon rehearing, if
applicable).
B. Pipeline
shall have the right to propose, file and make effective with the
FERC or any other body having jurisdiction, revisions to any
applicable rate sched