Rate Schedule TF-1 Service Agreement

Contract No. 100049

 

THIS SERVICE AGREEMENT (Agreement) by and between Northwest Pipeline LLC (Transporter) and Southwest Gas Corporation (Shipper) is made and entered into on June 25, 2019 and restates the Service Agreement made and entered into on February 12, 2008.

 

WHEREAS:
  1. Shipper entered into Contract No. 100049 as part of Paiute Pipeline Company's upstream transportation rights approved in the settlement of Paiute's rate case in Docket No. RP 88-227.
  2. Significant events and amendments of this Agreement include:

    1. By Amendment dated October 7, 1993, Shipper was provided seasonal transportation Contract Demand mitigation, effective April 1, 1993, as authorized in Docket No. RP93-5-012.

    2. By Amendment dated March 1, 1998, the previously authorized transportation Contract Demand mitigation was reduced, effective March 1, 1998, to conform with the approved settlement of Transporter's rate proceedings in Docket No. RP96-367-000.

    3. By restatement dated February 12, 2008, Transporter and Shipper made the following modifications:

      a. removed the non-conforming provisions related to the seasonal contract mitigation that expired due to the new rates that were effective January 1, 2007, under Docket No. RP06-416;

      b.  removed the non-conforming provisions related to the primary delivery point's maximum pressure;

      c. extended the Primary Term End Date associated with 2,197 Dth/d of Contract Demand along with the MDQs at the Sumas receipt point and the associated MDDOs at the Reno Lateral delivery point from June 30, 2008, to September 30, 2044.  This contract term extension was made pursuant to Shipper's Right-of-First-Refusal decision to match the highest competing bid for capacity posted for competitive bid on January 22, 2008 in the All Shipper's Notices No. 08-022 and No. 08-023;

      d. extended the Primary Term End Date associated with the remaining 43,629 Dth/d of Contract Demand along with the MDQs at the Ignacio Plant (13,699), Opal Plant (5,132), Sumas (24,382) and Westgas Arkansas (416) receipt points and the associated MDDOs at the Reno Lateral delivery point from June 30, 2008, to June 30, 2024; and

      e. added a non-conforming provision that reflects the new Primary Term End Dates associated with the capacity Shipper matched by exercising its Right-of-First-Refusal and the remaining capacity Shipper agreed to extend. 

    4. Pursuant to Offer No. 36782 dated March 20, 2019, Shipper permanently released to IGI Resources, Inc. 4,291 Dth/d of Contract Demand; along with the MDQs at the Opal Plant (1,802) and Sumas (2,489) receipt points and the associated MDDOs at the Reno Lateral delivery point effective November 1, 2020.

    5. Transporter and Shipper further agree to amend the Agreement to modify the existing non-conforming provisions located on Exhibit B to reflect a reduction of the Contract Demand (4,291) due to the permanent release dated March 20, 2019 and to extend the Primary Term End Date associated with the remaining 39,338 Dth/d of Contract Demand along with the MDQs at the Ignacio Plant (13,699), Opal Plant (3,330), Sumas (21,893) and Westgas Arkansas (416) receipt points and the associated MDDOs at the Reno Lateral delivery point from June 30, 2024, to March 31, 2032. The 2,197 Dth/d of Contract Demand with a Primary End Date of September 30, 2044 remains unchanged.

 

 

THEREFORE, in consideration of the premises and mutual covenants set forth herein, Transporter and Shipper agree as follows:

  1. Tariff Incorporation. Rate Schedule TF-1 and the General Terms and Conditions (GT&C) that apply to Rate Schedule TF-1, as such may be revised from time to time in Transporter's FERC Gas Tariff (Tariff), are incorporated by reference as part of this Agreement, except to the extent that any provisions thereof may be modified by non-conforming provisions herein.
  2. Transportation Service. Subject to the terms and conditions that apply to service under this Agreement, Transporter agrees to receive, transport and deliver natural gas for Shipper, on a firm basis. The Transportation Contract Demand, the Maximum Daily Quantity at each Primary Receipt Point, and the Maximum Daily Delivery Obligation at each Primary Delivery Point are set forth on Exhibit A. If contract-specific OFO parameters are set forth on Exhibit A, whenever Transporter requests during the specified time period, Shipper agrees to flow gas as requested by Transporter, up to the specified volume through the specified transportation corridor.
  3. Transportation Rates. Shipper agrees to pay Transporter for all services rendered under this Agreement at the rates set forth or referenced herein. Reservation charges apply to the Transportation Contract Demand set forth on Exhibit A. The Maximum Base Tariff Rates (Recourse Rates) set forth in the Statement of Rates in the Tariff, as revised from time to time, that apply to the Rate Schedule TF-1 customer category identified on Exhibit A, will apply to service hereunder unless and to the extent that discounted Recourse Rates or awarded capacity release rates apply as set forth on Exhibit A or negotiated rates apply as set forth on Exhibit D. Additionally, if applicable under Section 21 or 29 of the GT&C, Shipper agrees to pay Transporter a facilities charge as set forth on Exhibit C.
  4. Transportation Term. This Agreement becomes effective on the effective date set forth on Exhibit A. The primary term begin date for the transportation service hereunder is set forth on Exhibit A. This Agreement will remain in full force and effect through the primary term end date set forth on Exhibit A and, if Exhibit A indicates that an evergreen provision applies, through the established evergreen rollover periods thereafter until terminated in accordance with the notice requirements under the applicable evergreen provision.
  5. Non-Conforming Provisions. All aspects in which this Agreement deviates from the Tariff, if any, are set forth as non-conforming provisions on Exhibit B. If Exhibit B includes any material non-conforming provisions, Transporter will file the Agreement with the Federal Energy Regulatory Commission (Commission) and the effectiveness of such non-conforming provisions will be subject to the Commission acceptance of Transporter's filing of the non-conforming Agreement.
  6. Capacity Release. If Shipper is a temporary capacity release Replacement Shipper, any capacity release conditions, including recall rights, are set forth on Exhibit A.
  7. Exhibit / Addendum to Service Agreement Incorporation. Exhibit A is attached hereto and incorporated as part of this Agreement. If any other Exhibits apply, as noted on Exhibit A to this Agreement, then such Exhibits also are attached hereto and incorporated as part of this Agreement. If an Addendum to Service Agreement has been generated pursuant to Sections 11.5 or 22.12 of the GT&C of the Tariff, it also is attached hereto and incorporated as part of this Agreement.
  8. Regulatory Authorization. Transportation service under this Agreement is authorized pursuant to the Commission regulations set forth on Exhibit A.
  9. Superseded Agreements. When this Agreement takes effect, it supersedes, cancels and terminates the following agreement(s): Service Agreement dated February 12, 2008, but the following Amendments and/or Addendum to Service Agreement which have been executed but are not yet effective are not superseded and are added to and become an Amendment and/or Addendum to this agreement: Addendum dated March 20, 2019, and effective November 1, 2020.
IN WITNESS WHEREOF, Transporter and Shipper have executed this Agreement as of the date first set forth above.
  
Southwest Gas Corporation Northwest Pipeline LLC
By: /S/ By: /S/
Name: CHRIS BROWN Name: MIKE RASMUSON
Title: MANAGER, GAS PURCH & TRANS Title: DIRECTOR, MARKETING SERVICES

 

EXHIBIT A

Dated and Effective June 25, 2019

to the

Rate Schedule TF-1 Service Agreement

(Contract No. 100049)

between Northwest Pipeline LLC

and Southwest Gas Corporation

SERVICE DETAILS

  1. Transportation Contract Demand (CD): 45,826 Dth per day
  2. Primary Receipt Point(s):
      Point ID Name Maximum Daily Quantities (Dth)    
      4 IGNACIO PLANT 13,699    
      297 SUMAS RECEIPT 26,579    
      543 OPAL PLANT 5,132    
      552 WESTGAS ARKANSAS 416    
      Total45,826
  3. Primary Delivery Point(s):
      Point ID Name Maximum Daily Delivery Obligation (Dth)   Delivery Pressure (psig)  
      459 RENO LATERAL (TO PAIUTE)45,826 0    
      Total45,826  
    Specified conditions for Delivery Pressure, pursuant to Section 2.4 of the General Terms and Conditions: None
  4. Customer Category:
    1. Large Customer
    2. Incremental Expansion Customer: No
  5. Recourse, Discounted Recourse, or Negotiated Rate Transportation Rates:

    (Negotiated Rates are on Exhibit D if attached.)

    1. Reservation Charge (per Dth of CD): Maximum Base Tariff Rate, plus applicable surcharges
    2. Volumetric Charge (per Dth): Maximum Base Tariff Rate, plus applicable surcharges
    3. Additional Facility Reservation Surcharge Pursuant to Section 3.4 of Rate Schedule TF-1 (per Dth of CD): None
    4. Rate Discount Conditions Consistent with Section 3.5 of Rate Schedule TF-1: Not Applicable
    5. Negotiated Rate Conditions Consistent with Section 3.7 of Rate Schedule TF-1: Not Applicable
  6. Transportation Term:
    1. Primary Term Begin Date: June 01, 1991
    2. Primary Term End Date: September 30, 2044

      Specified conditional service agreement extensions pursuant to Section 11.9 of the General Terms and Conditions of the Tariff: None

    3. Evergreen Provision: Yes, standard bi-lateral evergreen under Section 12.2 (a)(iii) and (b)(iii) of Rate Schedule TF-1
  7. Contract-Specific OFO Parameters: None

    Specified contract-specific OFO conditions or alternative actions: None

  8. Regulatory Authorization: 18 CFR 284.223
  9. Additional Exhibits:

    Exhibit B Yes

    Exhibit C No

    Exhibit D No

    Exhibit E No

EXHIBIT B

Dated and Effective June 25, 2019,

(subject to Commission acceptance)

to the

Rate Schedule TF-1 Service Agreement

(Contract No. 100049)

between Northwest Pipeline LLC

and Southwest Gas Corporation

 

NON-CONFORMING PROVISIONS

1. Transportation Term - Primary Term End Dates

The Primary Term End Date associated with 4,291 Dth/d of Contract Demand including the associated MDQs at the Opal Plant and Sumas receipt points for 1,802 Dth/d and 2,489 Dth/d respectively, and the MDDOs at the Reno Lateral delivery point is October 31, 2020, as the result of a permanent release of capacity pursuant to Offer No. 36782.

 

The Primary Term End Date associated with 2,197 Dth/d of Contract Demand along with the associated MDQ's at the Sumas receipt point and MDDOs at the Reno Lateral delivery point is September 30, 2044.

 

The Primary Term End Date associated with the remaining Contract Demand along with the associated MDQ's at the Ignacio Plant, Opal Plant, Sumas, and Westgas Arkansas receipt points and MDDOs at the Reno Lateral delivery point is March 31, 2032.