Rate Schedule TF-1 Service Agreement

Contract No. 143255

 

THIS SERVICE AGREEMENT (Agreement) by and between Northwest Pipeline LLC (Transporter) and Citadel Energy Marketing LLC (Shipper) is made and entered into on December 05, 2019 and restates the Service Agreement made and entered into on December 05, 2019.

 

WHEREAS:
  1. Pursuant to the procedures set forth in Section 25 of the General Terms and Conditions of Transporter's FERC Gas Tariff, Shipper acquired certain transportation capacity that was posted by Transporter as available capacity. Shipper was the successful bidder in the open bid process under All Shippers Letter 19-181 and has the option to extend the Primary Term End Date to October 31, 2022, in exchange for segmentation rights at the Kern River Muddy Creek Delivery Point, the Opal Receipt Point, the Clay Basin Delivery Point and the Clay Basin Receipt Point.
  2. Transporter and Shipper desire to extend the Primary Term End Date to October 31, 2022 in exchange for the opportunity to acquire segmentation rights, pursuant to Section 25.5(c) of the General Terms and Conditions of Transporter's Tariff, at the Kern River Muddy Creek Delivery Point, the Opal Receipt Point, the Clay Basin Delivery Point and the Clay Basin Receipt Point..

 

 

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 December 05, 2019, 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.
  
Citadel Energy Marketing LLC Northwest Pipeline LLC
By: /S/ By: /S/
Name: DAMON SUTER Name: GARY VENZ
Title: HEAD OF PHYSICAL GAS Title: MANAGER MARKETING SERVICES

 

EXHIBIT A

Dated December 05, 2019, Effective November 01, 2020

to the

Rate Schedule TF-1 Service Agreement

(Contract No. 143255)

between Northwest Pipeline LLC

and Citadel Energy Marketing LLC

SERVICE DETAILS
  1. Transportation Contract Demand (CD): 45,000 Dth per day
  2. Primary Receipt Point(s):
      Point ID Name Maximum Daily Quantities (Dth)    
      187 STANFIELD RECEIPT 45,000    
      Total45,000
  3. Primary Delivery Point(s):
      Point ID Name Maximum Daily Delivery Obligation (Dth)   Delivery Pressure (psig)  
      3 IGNACIO DELIVERY25,000 450    
      550 LAPLATA-TW20,000 570    
      Total45,000  
    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): 25% of 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: The Reservation Charge will increase by an additional $0.05 for each additional segment Shipper or any Replacement Shipper is awarded, other than the following segments: Stanfield to Kern River Muddy Creek, Opal to Clay Basin, Clay Basin to Ignacio/La Plata-TW. However, such increases will cease to apply once the Reservation Charge has reached the Maximum Base Tariff Rate. In no event will the Reservation Charge exceed the Maximum Base Tariff Rate.
    5. Negotiated Rate Conditions Consistent with Section 3.7 of Rate Schedule TF-1: Not Applicable
  6. Transportation Term:
    1. Primary Term Begin Date: November 01, 2020
    2. Primary Term End Date: October 31, 2022

      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 December 05, 2019, Effective November 01, 2020,

 

(subject to Commission acceptance)

to the

Rate Schedule TF-1 Service Agreement

(Contract No. 143255)

between Northwest Pipeline LLC

and Citadel Energy Marketing LLC

 

NON-CONFORMING PROVISIONS

In the event of a challenge by another party regarding the rates provided under this Agreement, and upon written request from Transporter, Shipper will file in support of the discount under the Agreement in Transporter's subsequent rate cases filed under either Section 4 or 5 of the Natural Gas Act during the term that the discount provided under the Agreement applies, excluding any rate cases that involve a pre-filed settlement. For rate cases that involve a pre-filed settlement, Shipper agrees to support the discount provided to shipper under the Agreement during the pre-settlement process and not to protest Transporter’s subsequent rate cases filed under either Section 4 or 5 of the Natural Gas Act during the term that the discount provided under the Agreement applies.