Exhibit 10(b):
Service Agreement No.
FSNG1
FIRM TRANSPORTATION SERVICE
AGREEMENT
UNDER RATE SCHEDULE FT AND/OR RATE SCHEDULE
FT-NN
THIS AGREEMENT, made and entered
into as of this 1st day of September, 2005, by and between Southern
Natural Gas Company, a Delaware corporation, hereinafter referred
to as “Company”, and Alabama Gas Corporation, an
Alabama corporation, hereinafter referred to as
“Shipper”.
WITNESSETH
WHEREAS, Company is an interstate
pipeline, as defined in Section 2(15) of the Natural Gas
Policy Act of 1978 (NGPA); and
WHEREAS, Shipper has requested firm
transportation pursuant to Rate Schedule FT and/or FT-NN of various
supplies of gas for redelivery for Shipper’s account and has
submitted to Company a request for such transportation service in
compliance with Section 2 of the General Terms and Conditions
applicable to such Rate Schedules; and/or
WHEREAS, Shipper may acquire, from
time to time, released firm transportation capacity under
Section 22 of the General Terms and Conditions of
Company’s FERC Gas Tariff; and
WHEREAS, Company has agreed to
provide Shipper with transportation service of such gas supplies or
through such acquired capacity release in accordance with the terms
and conditions of this Agreement.
NOW, THEREFORE, the parties hereto
agree as follows:
ARTICLE I
TRANSPORTATION QUANTITY
1.1 Subject to the terms and
provisions of this Agreement, Rate Schedule FT and/or FT-NN, as
applicable, and the General Terms and Conditions thereto, Shipper
agrees to deliver or cause to be delivered to Company at the
Receipt Point(s) described in Exhibit A and Exhibit A-1 to this
Agreement, and Company agrees to accept at such point(s) for
transportation under this Agreement, an aggregate quantity of
natural gas per day up to the total Transportation Demand set forth
on Exhibit B hereto. Company’s obligation to accept gas on a
firm basis at any Receipt Point is limited to the Receipt Points
set out on Exhibit A and to the Maximum Daily Receipt Quantity
(MDRQ) stated for each such Receipt Point. The sum of the
MDRQ’s for the Receipt Points on Exhibit A shall not exceed
the Transportation Demand.
Transportation Demand Service Agreement No.
FSNG1
1.2 Subject to the terms and
provisions of this Agreement, Rate Schedule FT and/or FT-NN, as a
applicable, and the General Terms and Conditions thereto, Company
shall deliver a thermally equivalent quantity of gas, less the
applicable fuel charge as set forth in the applicable FT or FT-NN
Rate Schedule, to Shipper at the Delivery Point(s) described in
Exhibit B and Exhibit B-1 hereto. Company’s obligation to
redeliver gas at any Delivery Point on a firm basis is limited to
the Delivery Points specified on Exhibit B and to the Maximum Daily
Delivery Quantity (MDDQ) stated for each such Delivery Point and in
no event shall Shipper be entitled to deliveries in excess of the
MDDQ such that if Shipper elects to take gas at an Exhibit B-1
Delivery Point then the MDDQ at its Exhibit B Delivery Points will
be reduced proportionately. The sum of the MDDQ’s for the
Delivery Points on Exhibit B shall equal the Transportation
Demand.
1.3 In the event Shipper is the
successful bidder on released firm transportation capacity under
Section 22 of the Company’s General Terms and
Conditions, Company will promptly email to Shipper the terms of the
Capacity Release Transaction. Upon the issuance of the email,
subject to the terms, conditions and limitations hereof and of
Company’s Rate Schedules FT and FT-NN, Company agrees to
provide the released firm transportation service to Shipper under
Rate Schedule FT or FT-NN, the General Terms and Conditions
thereto, and this Agreement.
ARTICLE II
CONDITIONS OF SERVICE
2.1 It is recognized that the
transportation service hereunder is provided on a firm basis
pursuant to, in accordance with and subject to the provisions of
Company’s Rate Schedule FT and/or FT-NN, and the General
Terms and Conditions thereto, which are contained in
Company’s FERC Gas Tariff, as in effect from time to time,
and which are hereby incorporated by reference. In the event of any
conflict between this Agreement and the terms of the applicable
Rate Schedule, the terms of the Rate Schedule shall govern as to
the point of conflict. Any limitation of transportation service
hereunder shall be in accordance with the priorities set out in
Rate Schedule FT and/or FT-NN, as applicable, and the General Terms
and Conditions thereto.
2.2 This Agreement shall be subject
to all provisions of the General Terms and Conditions applicable to
Company’s Rate Schedule FT and/or FT-NN as such conditions
may be revised from time to time. Unless Shipper requests
otherwise, Company shall provide to Shipper the filings Company
makes at the Federal Energy Regulatory Commission
(“Commission”) of such provisions of the General Terms
and Conditions or other matters relating to Rate Schedule FT or
FT-NN.
2.3 Company shall have the right to
discontinue service under this Agreement in accordance with
Section 15.3 of the General Terms and Conditions
hereto.
2.4 The parties hereto agree that
neither party shall be liab