Rate Schedule TF-1 Service Agreement

Contract No. 143165

 

THIS SERVICE AGREEMENT (Agreement) by and between Northwest Pipeline LLC (Transporter) and Castleton Commodities Merchant Trading L.P. (Shipper) is made and entered into on October 30, 2019.

 

WHEREAS:
  1. Pursuant to the procedures set forth in Section 22 of the General Terms and Conditions of Transporter's FERC Gas Tariff, Shipper acquired certain transportation capacity that was temporarily released by Atmos Energy Corporation from contract 140188.

 

 

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): None, 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: None
IN WITNESS WHEREOF, Transporter and Shipper have executed this Agreement as of the date first set forth above.
  
Castleton Commodities Merchant Trading L.P. Northwest Pipeline LLC
By: /S/ By: /S/
Name: CRAIG DUKE Name: GARY VENZ
Title: V.P GAS TRADING Title: MANAGER MARKETING SERVICES

 

EXHIBIT A

Dated October 30, 2019, Effective November 01, 2019

to the

Rate Schedule TF-1 Service Agreement

(Contract No. 143165)

between Northwest Pipeline LLC

and Castleton Commodities Merchant Trading L.P.

 

(Releasing Shipper/Contract No. : Atmos Energy Corporation/140188)

 

SERVICE DETAILS

  1. Transportation Contract Demand (CD): 7,000 Dth per day
  2. Primary Receipt Point(s):
      Point ID Name Maximum Daily Quantities (Dth)    
      543 OPAL PLANT 7,000    
      Total7,000
  3. Primary Delivery Point(s):
      Point ID Name Maximum Daily Delivery Obligation (Dth)   Delivery Pressure (psig)  
      550 LAPLATA-TW7,000    
      Total7,000  
    Specified conditions for Delivery Pressure, pursuant to Section 2.4 of the General Terms and Conditions: Any scheduled deliveries to the Wild Horse - White River Hub interconnect will be subject to either: 1) equivalent scheduled quantities flowing from the Wild Horse - White River Hub interconnect to Transporter's mainline; or 2) prevailing line pressures on the White River Hub's system, being low enough to accept scheduled deliveries from Transporter's system.
  4. Customer Category:
    1. Large Customer
    2. Incremental Expansion Customer: No
  5. Transportation Rates:
    1. Awarded Reservation Charge (per Dth of CD): $0.00, plus applicable surcharges
    2. Volumetric Charge (per Dth): Maximum Base Tariff Rate, plus applicable surcharges
    3. Awarded 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
  6. Transportation Term: Begin Date: November 01, 2019

    Nomination Cycle: Timely

    End Date: March 31, 2020

  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

  10. Standard Capacity Release Conditions:
    1. Releasing Shipper's recall rights:
      1. Released capacity may be recalled prior to the Intraday 3 nomination cycle applicable to the initial day of the capacity recall.
      2. Recall notification: Allowed on any day
      3. Recall provisions in Section 22.2(a)(2) of the General Terms and Conditions of Transporter's Tariff also apply: Yes
      4. Recall provisions in Section 22.2(a)(3) of the General Terms and Conditions of Transporter's Tariff also apply: No
    2. Reput rights: Yes
    3. Primary Receipt Point may be changed through amendment: No
    4. Primary Delivery Point may be changed through amendment: No
    5. Re-releasable: Yes
    6. Asset Management Arrangement ("AMA"): Yes,

      The capacity released hereunder is being released pursuant to an asset management arrangement. Please note that the capacity release rate posted is not reflective of the actual asset management compensation arrangements between the releasing shipper and the replacement shipper. The actual compensation paid or other consideration provided to the releasing shipper by the replacement shipper for this prearranged capacity release and as part of the asset management arrangement constitutes financially sensitive information that will be made confidentially available to and upon request from the Federal Energy Regulatory Commission pursuant to FERC Order No. 712.

      The replacement shipper, upon notification from the releasing shipper, is obligated to deliver quantities equal to the releasing shipper s full requirements up to the capacity hereby released to replacement shipper on each and every day during the release term.

  11. Additional Capacity Release Conditions pursuant to Section 22.7(k) of the GT&C: Rather than recalling the released capacity in the event of a Transporter notification of an imminent general OFO, Releasing Shipper may require Replacement Shipper to realign supply to the opposite side of the constraint point, reduce nomination through the constraint point, flow displacement gas through the constraint point or take other action mutually agreeable to Transporter to satisfy its share of the Releasing Shipper's OFO obligation. Releasing Shipper will immediately communicate to Replacement Shipper any notification Releasing Shipper receives from Transporter pursuant to Section 14.15d(iii) of Transporter's Tariff and will request Replacement Shipper to take the necessary actions to help comply with the OFO obligations imposed by Transporter upon the Releasing Shipper. Further, Releasing Shipper conditions its capacity release upon Replacement Shipper bearing the financial responsibility for any penalties assessed against Releasing Shipper as a result of any failure by Replacement Shipper to take the required actions to help satisfy Releasing Shipper's OFO obligations with respect to the released capacity.

    If Transporter issues a Must Flow OFO to Releasing Shipper, Releasing Shipper agrees that it will not recall the Replacement Shipper's capacity, and the Replacement Shipper agrees that it will flow gas to satisfy that portion of Releasing Shipper's OFO obligation that is attributable to the Replacement Shipper's capacity ("Replacement Shipper's OFO Obligation"). No later than 45 minutes prior to the Evening Nomination cycle, Releasing Shipper will provide to Replacement Shipper's OFO Obligation. Replacement Shipper's OFO Obligation will be calculated as follows: (1) the total nomination requirement as shown in transporter's OFO notice issued to Releasing Shipper will be divided by the South Flow Primary Rights as shown in the same notice to arrive at a percentage ("Flow Percentage") (2) then, if the Replacement Shipper's South Flow Nominations are less than the Flow Percentage multiplied by the Replacement Shipper's Primary Rights, the Replacement Shipper's Must-Flow OFO obligation will equal the difference between the Flow Percentage multiplied by the Replacement Shipper's Primary Rights minus the Replacement Shipper's South Flow Nominations. Replacement Shipper agrees that it will be liable to Releasing Shipper for any penalty issued to Releasing Shipper that is attributable to Replacement Shipper's failure to comply with Replacement Shipper's OFO Obligation. If Transporter is ever required to change the nomination time lines as they currently exist in its Tariff and such change will impact the agreement between the Parties herein, the Parties agree to work together in good faith to revise this capacity release in order to allow the purposes of this agreement to continue to be fulfilled.

    The capacity is being released on a recallable basis, with the ability to recall being based upon (i) replacement shipper s failure to perform, (ii) the termination of the AMA transaction, or (iii) the mutual written agreement of the Parties.

  12. Index-Based Rate Unique Formula specified by Releasing Shipper: None

EXHIBIT B

Dated October 30, 2019, Effective November 01, 2019,

 

(subject to Commission acceptance)

to the

Rate Schedule TF-1 Service Agreement

(Contract No. 143165)

between Northwest Pipeline LLC

and Castleton Commodities Merchant Trading L.P.

 

NON-CONFORMING PROVISIONS

The following provision was originally accepted as non-conforming by the Commission on October 29, 2009, in Docket No. RP09-1089.

Pursuant to Transporter's posted open season for the CHC Project wherein Transporter offered all potential shippers segmentation rights on the constructed facilities associated with the CHC Project at the Meeker/White River Hub as an inducement to participate in the CHC Project, Transporter herein agrees to provide Shipper with segmentation rights at the Wild Horse receipt/delivery points (White River Hub interconnect), effective upon the in-service date of the CHC Project for the duration of this Agreement pursuant to Section 13, "Segmentation", of Rate Schedule TF-1 Transporter's FERC Gas Tariff.