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Gas Transportation Agreement

This is an actual contract by Cascade Natural Gas.

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Sectors: Energy
Effective Date: April 30, 1997
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EXHIBIT 10.11


GAS TRANSPORTATION AGREEMENT


THIS AGREEMENT is made and entered into this 30th day of April, 1997, by and between PACIFIC GAS TRANSMISSION COMPANY, a California Corporation (hereinafter referred to as "PGT"),


and


CASCADE NATURAL GAS CORPORATION, a corporation existing under the laws of the State of Washington (hereinafter referred to as "Shipper").


WHEREAS, PGT owns and operates a natural gas pipeline transmission system which extends from a point of interconnection with the pipeline facilities of Alberta Natural Gas Company Ltd. (ANG) at the International Boundary near Kingsgate, British Columbia, through the states of Idaho, Washington and Oregon to a point of interconnection with Pacific Gas and Electric Company at the Oregon-California border near Malin, Oregon; and


WHEREAS, Shipper desires PGT, on an interruptible basis, to transport certain quantities of natural gas as indicated in Exhibit A and


WHEREAS, PGT is willing to transport certain quantities of natural gas for Shipper, on an interruptible basis,


NOW, THEREFORE, the parties agree as follows:


I
GOVERNMENTAL AUTHORITY


1.1 This Interruptible Transportation Agreement ("Agreement") is made pursuant to the regulations of the Federal Energy Regulatory Commission (FERC) contained in 18 CFR Part 284, Subpart G, as amended from time to time.


1.2 This Agreement is subject to all valid legislation with respect to the subject matters hereof, either state or federal, and to all valid present and future decisions, orders, rules, regulations and ordinances of all duly constituted governmental authorities


having jurisdiction.


1.3 Shipper shall reimburse PGT for any and all filing fees incurred by PGT in seeking governmental authorization for the initiation, extension, or termination of service under this Agreement and Rate Schedule ITS-1. Shipper shall reimburse PGT for such fees at PGT's designated office within ten (10) days of receipt of notice from PGT that such fees are due and payable. Additionally, Shipper shall reimburse PGT for any and all penalty fees or fines assessed PGT caused by the negligence of Shipper in not obtaining all proper Canadian and domestic import/export licenses, surety bonds or any other documents and approvals related to the Canadian exportation and subsequent domestic importation of natural gas transported by PGT hereunder.


II
QUANTITY OF GAS AND PRIORITY OF SERVICE


2.1 Subject to the terms and provisions of this Agreement and PGT's Transportation General Terms and Conditions applicable to Rate Schedule ITS-1, daily receipts of gas by PGT from Shipper at the point(s) of receipt shall be equal to daily deliveries of gas by PGT to Shipper at the point(s) of delivery; provided, however, Shipper shall deliver to PGT an additional quantity of natural gas at the point(s) of receipt as compressor station fuel, line loss and unaccounted for gas as specified in the Exhibit A attached hereto. Any limitations of the quantities to be received from each point of receipt and/or delivered to each point of delivery shall be as specified on the Exhibit A attached hereto. The service under this Agreement shall be conditioned upon the availability of capacity sufficient to provide the service without detriment or disadvantage to those customers of PGT that have a higher priority of service.


2.2 The maximum quantities of gas to be received for Shipper's account at the point(s) of receipt and to be delivered by PGT to the point(s) of delivery are set forth in Exhibit A.


2.3 In providing service to its existing or new customers, PGT will use the priorities of service specified in Paragraph 18 of PGT's Transportation General Terms and Conditions on file with the FERC.


2.4 Prior to initiation of service, Shipper shall provide PGT
with any information required by the FERC, as well as all information
identified in PGT's Transportation General Terms and Conditions applicable
to Rate Schedule ITS-1.


III
TERM OF AGREEMENT


3.1 This Agreement shall become effective May 1, 1997, and shall continue in full force and effect until May 1, 2007, and year to year thereafter until canceled by ninety (90) day prior written notice given by either party to the other.


IV
POINTS OF RECEIPT AND DELIVERY


4.1 The point(s) of receipt of gas deliveries to PGT is as designated in Exhibit A, attached hereto.


4.2 The point(s) of delivery of gas to Shipper is as designated in Exhibit A, attached hereto.


4.3 Shipper shall deliver or cause to be delivered to PGT the gas to be transported hereunder at pressures sufficient to deliver such gas into PGT's system at the point(s) of receipt. PGT shall deliver the gas to be transported hereunder to or for the account of Shipper at the pressures existing in PGT's system at the point(s) of delivery.


V
OPERATING PROCEDURES


5.1 Shipper shall conform to the operating procedures set forth in PGT's Transportation General Terms and Conditions.


5.2 Nothing in Section 5.1 shall compel PGT to transport gas
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