ATMOS ENERGY CORP
10-K405, EX-10.20(G), 2000-11-15
NATURAL GAS DISTRIBUTION
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                                                                EXHIBIT 10.20(g)


                                                       SERVICE PACKAGE NO. 34538
                                                                 AMENDMENT NO. 0


                          GAS TRANSPORTATION AGREEMENT
                 (For Use Under Rate Schedules FT-A and FT-GS)


       THIS AGREEMENT is made, entered into and effective as of this 1st day of
       November 2000, by and between EAST TENNESSEE NATURAL GAS COMPANY, a
       Tennessee Corporation, hereinafter referred to as "Transporter" and
       UNITED CITIES GAS COMPANY, an Illinois Corporation, hereinafter referred
       to as "Shipper." Transporter and Shipper shall be referred to herein
       individually as the "Party" and collectively as "Parties."

                             ARTICLE I - DEFINITIONS

       The definitions found in Section 1 of Transporter's General Terms and
       Conditions are incorporated herein by reference.

                         ARTICLE II - SCOPE OF AGREEMENT

       Transporter agrees to accept and receive daily, on a firm basis, at the
       Receipt Point(s) listed on Exhibit A attached hereto, from Shipper such
       quantity of gas as Shipper makes available up to the applicable
       Transportation Quantity stated on Exhibit A attached hereto and deliver
       for Shipper to the Delivery Point(s) listed on Exhibit A attached hereto
       an Equivalent Quantity of gas. The Rate Schedule applicable to this
       Agreement shall be stated on Exhibit A.

                  ARTICLE III - RECEIPT AND DELIVERY PRESSURES

       Shipper shall deliver, or cause to be delivered, to Transporter the gas
       to be transported hereunder at pressures sufficient to deliver such gas
       into Transporter's system at the Receipt Point(s). Transporter shall
       deliver the gas to be transported hereunder to or for the account of
       Shipper at the pressures existing in Transporter's system at the Delivery
       Point(s) unless otherwise specified on Exhibit A.


       ARTICLE IV - QUALITY SPECIFICATIONS AND STANDARDS FOR MEASUREMENTS

For all gas received, transported, and delivered hereunder, the Parties agree to
the quality specifications and standards for measurement as provided for in
Transporter's General Terms and Conditions. Transporter shall be responsible for
the operation of measurement facilities at the Delivery Point(s) and Receipt
Point(s). In the event that measurement facilities are not operated by Trans-
porter, the responsibility for operations shall be deemed to be Shipper's.



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<PAGE>   2

                                                       SERVICE PACKAGE NO. 34538
                                                                 AMENDMENT NO. 0


                          GAS TRANSPORTATION AGREEMENT
                 (For Use Under Rate Schedules FT-A and FT-GS)


                             ARTICLE V - FACILITIES

The facilities necessary to receive, transport, and deliver gas as described
herein are in place and no new facilities are anticipated to be required.

                                   ARTICLE VI

                    RATES AND CHARGES FOR GAS TRANSPORTATION

         6.1      Rates and Charges - Commencing on the date of implementation
                  of this Agreement under Section 10.1, the compensation to be
                  paid by Shipper to Transporter shall be in accordance with
                  Transporter's effective Rate Schedule FT-A or FT-GS, as
                  specified on Exhibit A. Where applicable, Shipper shall also
                  pay the Gas Research Institute surcharge and Annual Charge
                  Adjustment surcharge as such rates may change from time to
                  time.

         6.2      Changes in Rates and Charges - Shipper agrees that Transporter
                  shall have the unilateral right to file with the appropriate
                  regulatory authority and make changes effective in (a) the
                  rates and charges stated in this Article, (b) the rates and
                  charges applicable to service pursuant to the Rate Schedule
                  under which this service is rendered and (c) any provisions of
                  Transporter's General Terms and Conditions as they may be
                  revised or replaced from time to time. Without prejudice to
                  Shipper's right to contest such changes, Shipper agrees to pay
                  the effective rates and charges for service rendered pursuant
                  to this Agreement. Transporter agrees that Shipper may protest
                  or contest the aforementioned filings, or may seek
                  authorization from duly constituted regulatory authorities for
                  adjustment of Transporter's existing FERC Gas Tariff as may be
                  found necessary to assure Transporter just and reasonable
                  rates.

               ARTICLE VII - RESPONSIBILITY DURING TRANSPORTATION

As between the Parties hereto, it is agreed that from the time gas is delivered
by Shipper to Transporter at the Receipt Point(s) and prior to delivery of such
gas to or for the account of Shipper at the Delivery Point(s), Transporter shall
be responsible for such gas and shall have the unqualified right to commingle
such gas with other gas in its system and shall have the unqualified right to
handle and treat such gas as its own. Prior to receipt of gas at



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<PAGE>   3

                                                       SERVICE PACKAGE NO. 34538
                                                                 AMENDMENT NO. 0


                          GAS TRANSPORTATION AGREEMENT
                 (For Use Under Rate Schedules FT-A and FT-GS)


Shipper's Receipt Point(s) and after delivery of gas at Shipper's Delivery
Point(s), Shipper shall have sole responsibility for such gas.

                      ARTICLE VIII - BILLINGS AND PAYMENTS

Billings and payments under this Agreement shall be in accordance with Section
16 of Transporter's General Terms and Conditions as they may be revised or
replaced from time to time.

                         ARTICLE IX - RATE SCHEDULES AND
                          GENERAL TERMS AND CONDITIONS

  This Agreement is subject to the effective provisions of Transporter's FT-A or
  FT-GS Rate Schedule, as specified in Exhibit A, or any succeeding rate
  schedule and Transporter's General Terms and Conditions on file with the FERC,
  or other duly constituted authorities having jurisdiction, as the same may be
  changed or superseded from time to time in accordance with the rules and
  regulations of the FERC, which Rate Schedule and General Terms and Conditions
  are incorporated by reference and made a part hereof for all purposes.

                          ARTICLE X - TERM OF CONTRACT

      10.1       This Agreement shall be effective as of the 1st day of
                 November, 2000, and shall remain in force and effect until 31st
                 day of October, 2010 ("Primary Term"), provided, however, that
                 if the Primary Term is one year or more, then the contract
                 shall remain in force and effect and the contract term will
                 automatically roll-over for additional five year increments
                 ("Secondary Term") unless Shipper, one year prior to the
                 expiration of the Primary Term or a Secondary Term, provides
                 written notice to Transporter of either (1) its intent to
                 terminate the contract upon expiration of the then current term
                 or (2) its desire to exercise its right-of-first-refusal in
                 accord with Section 7.3 of Transporter's General Terms and
                 Conditions. Provided further, if the FERC or other governmental
                 body having jurisdiction over the service rendered pursuant to
                 this Agreement authorizes abandonment of such service, this
                 Agreement shall terminate on the abandonment date permitted by
                 the FERC or such other governmental body.



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<PAGE>   4

                                                       SERVICE PACKAGE NO. 34538
                                                                 AMENDMENT NO. 0


                          GAS TRANSPORTATION AGREEMENT
                 (For Use Under Rate Schedules FT-A and FT-GS)


      10.2       In addition to any other remedy Transporter may have,
                 Transporter shall have the right to terminate this Agreement in
                 the event Shipper fails to pay all of the amount of any bill
                 for service rendered by Transporter hereunder when that amount
                 is due, provided Transporter shall give Shipper and the FERC
                 thirty days notice prior to any termination of service. Service
                 may continue hereunder if within the thirty day notice period
                 satisfactory assurance of payment is made in accord with
                 Section 16 of Transporter's General Terms and Conditions.

                             ARTICLE XI - REGULATION

      11.1       This Agreement shall be subject to all applicable governmental
                 statutes, orders, rules, and regulations and is contingent upon
                 the receipt and continuation of all necessary regulatory
                 approvals or authorizations upon terms acceptable to
                 Transporter and Shipper. This Agreement shall be void and of no
                 force and effect if any necessary regulatory approval or
                 authorization is not so obtained or continued. All Parties
                 hereto shall cooperate to obtain or continue all necessary
                 approvals or authorizations, but no Party shall be liable to
                 any other Party for failure to obtain or continue such
                 approvals or authorizations.

      11.2       Promptly following the execution of this Agreement, the Parties
                 will file, or cause to be filed, and diligently prosecute, any
                 necessary applications or notices with all necessary regulatory
                 bodies for approval of the service provided for herein.

      11.3       In the event the Parties are unable to obtain all necessary and
                 satisfactory regulatory approvals for service prior to the
                 expiration of two (2) years from the effective date hereof,
                 then, prior to receipt of such regulatory approvals, either
                 Party may terminate this Agreement by giving the other Party at
                 least thirty (30) days prior written notice, and the respective
                 obligations hereunder, except for the reimbursement of filing
                 fees herein, shall be of no force and effect from and after the
                 effective date of such termination.

      11.4       The transportation service described herein shall be provided
                 subject to the provisions of the FERC Regulations shown by
                 Shipper on Exhibit A hereto.



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<PAGE>   5

                                                       SERVICE PACKAGE NO. 34538
                                                                 AMENDMENT NO. 0


                          GAS TRANSPORTATION AGREEMENT
                 (For Use Under Rate Schedules FT-A and FT-GS)


                            ARTICLE XII - ASSIGNMENTS

      12.1       Either Party may assign or pledge this Agreement and all rights
                 and obligations hereunder under the provisions of any mortgage,
                 deed of trust, indenture or other instrument that it has
                 executed or may execute hereafter as security for indebtedness;
                 otherwise, Shipper shall not assign this Agreement or any of
                 its rights and obligations hereunder, except as set forth in
                 Section 17 of Transporter's General Terms and Conditions.

      12.2       Any person or entity that shall succeed by purchase, transfer,
                 merger, or consolidation to the properties, substantially or as
                 an entirety, of either Party hereto shall be entitled to the
                 rights and shall be subject to the obligations of its
                 predecessor in interest under this Agreement.

                            ARTICLE XIII - WARRANTIES

In addition to the warranties set forth in Section 22 of Transporter's General
Terms and Conditions, Shipper warrants the following:

      13.1       Shipper warrants that all upstream and downstream
                 transportation arrangements are in place, or will be in place,
                 as of the requested effective date of service, and that it has
                 advised the upstream and downstream transporters of the receipt
                 and delivery points under this Agreement and any quantity
                 limitations for each point as specified on Exhibit A attached
                 hereto. Shipper agrees to indemnify and hold Transporter
                 harmless for refusal to transport gas hereunder in the event
                 any upstream or downstream transporter fails to receive or
                 deliver gas as contemplated by this Agreement.

      13.2       Shipper agrees to indemnify and hold Transporter harmless from
                 all suit actions, debts, accounts, damages, costs, losses, and
                 expenses (including reasonable attorneys fees) arising from or
                 out of breach of any warranty, by the Shipper herein.

      13.3       Shipper warrants that it will have title or the right to
                 acquire title to the gas delivered to Transporter under this
                 Agreement.

      13.4       Transporter shall not be obligated to provide or continue
                 service hereunder in the event of any breach of warranty;
                 provided, Transporter shall give Shipper and the FERC thirty
                 days notice prior to any termination of service. Service will
                 continue if, within the thirty day notice period, Shipper cures
                 the breach of warranty.



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<PAGE>   6

                                                       SERVICE PACKAGE NO. 34538
                                                                 AMENDMENT NO. 0


                          GAS TRANSPORTATION AGREEMENT
                 (For Use Under Rate Schedules FT-A and FT-GS)


                           ARTICLE XIV - MISCELLANEOUS

      14.1       Except for changes specifically authorized pursuant to this
                 Agreement, no modification of or supplement to the terms and
                 conditions hereof shall be or become effective until Shipper
                 has submitted a request for change through Transporter's
                 Electronic Bulletin Board and Shipper has been notified through
                 Transporter's Electronic Bulletin Board of Transporter's
                 agreement to such change.

      14.2       No waiver by any Party of any one or more defaults by the other
                 in the performance of any provision of this Agreement shall
                 operate or be construed as a waiver of any future default or
                 defaults, whether of a like or of a different character.

      14.3       Except when notice is required through Transporter's Electronic
                 Bulletin Board, pursuant to Transporter's FT-A or FT-GS Rate
                 Schedule, as applicable, or pursuant to Transporter's General
                 Terms and Conditions, any notice, request, demand, statement or
                 bill provided for in this Agreement or any notice that either
                 Party may desire to give to the other shall be in writing and
                 mailed by registered mail to the post office address of the
                 Party intended to receive the same, as the case may be, to the
                 Party's address shown on Exhibit A hereto or to such other
                 address as either Party shall designate by formal written
                 notice to the other. Routine communications, including monthly
                 statements and payments, may be mailed by either registered or
                 ordinary mail. Notice shall be deemed given when sent.

      14.4       THE INTERPRETATION AND PERFORMANCE OF THIS AGREEMENT SHALL BE
                 IN ACCORDANCE WITH AND CONTROLLED BY THE LAWS OF THE STATE OF
                 TENNESSEE, WITHOUT REGARD TO CHOICE OF LAW DOCTRINE THAT REFERS
                 TO THE LAWS OF ANOTHER JURISDICTION.

      14.5       The Exhibit(s) attached hereto is/are incorporated herein by
                 reference and made a part of this Agreement for all purposes.

      14.6       If any provision of this Agreement is declared null and void,
                 or voidable, by a court of competent jurisdiction, then that
                 provision will be considered severable at Transporter's
                 options; and if the severability option is exercised, the
                 remaining provisions of the Agreement shall remain in full
                 force and effect.



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<PAGE>   7

                                                       SERVICE PACKAGE NO. 34538
                                                                 AMENDMENT NO. 0


                          GAS TRANSPORTATION AGREEMENT
                 (For Use Under Rate Schedules FT-A and FT-GS)


      14.7       This Agreement supersedes and cancels the Gas Sales and
                 Transportation Agreement(s) between Shipper and Transporter
                 dated (not applicable) and (not applicable) respectively.

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly
executed as of the date first hereinabove written.


EAST TENNESSEE NATURAL GAS COMPANY



BY: L. Gregory Harper
   -------------------------------

TITLE: Vice President,
       East Tennessee Natural Gas
       ----------------------------

DATE: August 25, 2000
      ----------------------------


UNITED CITIES GAS COMPANY
A DIVISION OF ATMOS ENERGY CORPORATION



BY: Gordon J. Roy
   -------------------------------

TITLE: Vice President
       ----------------------------

DATE: August 23, 2000
      ----------------------------



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