HomeMy WebLinkAbout0312.094June 9, 1994
Honorable City CouncH
Palo Alto, Cal ifor-nia
17
Il'an!Jportatiojt_~_'t..l$;.~L.Ag~TtQ'nt wi t1L.tM...liQJll~_ Pipel it1f! Company
Memb-e:ra of the CQuoci 1 i
The attached document -is n 'ir.lnopo:rtat ion Service Agreement with
the ""..ojave Plp-<>lillC CQ:r.p<lI\Y W.oiave) to pl"o'lide t.he City of Palo
Alto W'ith natuutl gllo tr.an6portation from the Arizona/California
border to the City. This repot"t. with the rccommendiltion of the
Utilitie~ Advisory Corr'Mi~si~")rl WAC}, cequcot.'3 approval of the
Bojave T:ransportatioll Service l.greet:vent.
!tackgrQUD~
Prior to 1986, Palo,Alto purchased all of its natural gas needs
from pacific o.a.s lind Rlectric fPG&8' ~ t ... hich has exclusive
oWi\erohip of the 938 tranepol."tation syst.em surroufiding Palo Alto.
In 1986, tho California Public Utilities Commission (CPUC) began
the proceeo of re8tl'uct~ld,n9 the n;;l:tllral gao industry in
Calif.o..rnia. 'rhe CPUC :lntendod to allow the ultimate consumers to
select th.eil-own g80 suppli-er and obligated the investor-owned
utilities to ~ieH,ver th,1.t supply via thoir transportation
systems.
Palo Alto'" s in.itial response was to purchase 90 pel"Cent of its
needs from PG&E and purchase the remaining 10 percent monthly
~n tho o~n market.
In 1990, all of the City's gas supply was purchased from
suppliers othor thtm PO'S, at prices ranging from 3 to 8 percent
le8& than PO&S~ B average coat. That supply was moved to the
California border using PG&E's interstate pipeline, then
transported to the City bordcl.·s via PG&E's intrastate pipelines,
While Palo Alto t"!&d a pool of service 'providcrn from which it
could choose ito gas supply, the chotec to obtain int.rastate
transpok:tRtion was limited only to PG&~;. the monopolist'.ic owner
of tho surrounding gaB pipelines network.
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In 1~90, the Mojave pipeline Company announced its intention to
expand its interstate line into northc"l:n California. Presently
Mojave terminates near Bakersfield. During the 8am~ year, ~~jave
approach(Jd st-.aff to solicit palo Alto~ a interest in becoming a
shipper on their northward expanoio!l.
Diacu!3aioD
At first glance, Mojave made "'n ~conomically o\J:pcl'ior of((t'C" to
the current serviC(I that the City receives from PO&R. Ho~·ever.
prior to making a decision. st .. ff had to c)(ltmine factors in
addition to the econorr,ic one. Thes.e were:
1. Reliability of service
2. Access to supply basins and supply COflt6.
3. Initial capital expenditure.
To examine these issues staff simultaneously engclged lO a
detailed study of gas reaoun;:e options to ,oxarnino mor-l'l closely
the economic advantage of the Mojave option and initiated
negotiations with both partiC!o to of fel" th'€!l". the 0ppol:tUlIlt}' to
compete. Throughout these lle90tiation9~ staff updated the
Utilities Advisory Corn:nission on a regular basis.
The study concluded tha.t the clear-economic adv~ntag(: otfc["€d by
the Mojave option. which offe1'.'o aCCeEHJ: only to the. ,couth .... P.8t.
could be negated if the Canadian ouppliers heavilr discount theil'
gas eupply. The study stated thi'lt the d(!cision depe:nds on tl\oj
outcome of the negotiations with both P<'Ht(CS, "detailed
examination of these iS8ueo was presented 10 a report to the lJAC
in May 1994 (attached).
The goal of negotiating with PO&E WBi.9 to obta in a reasonable
discount on the cost of sen'ice and to obtain 9\1aranteea for
fixed future escalations. The goal ot negotiating with Mojave
was to allow for. examination of tho ma:rkat to enoure tha.t the
price differential between Canadian and southwest .ouppl hn:o is
negligible.
Negotiations with PG&E did not result in an acceptable
compromise. Furthermore, concessions from PG&:f..: "'ould' have been
vulnerable to moditications or disallowance by the CPUC. I'!oj.ove
worked diligently with City staff to resolve all contl-act issueo
in a: manner acceptable to the City.
Mojave Agreement Key PXQ~ll§
1. The Agreement term is lS }learB, at a starting cost of ".7
cents per therm ($1-S million annually) escalated by 1
percent annually, no'c_ subject to regulatory modifications.
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Current, .coots for PG&E are $.064 per theri"r'l,
2. The agreement guarantees that the City's initial c~pital
invcstt'1lent to connect to the pipeline will not exceed $2 million.
3. The agreement provides the City with the option to
terminate t.he agreement by November 1994, in the event that.:
staff J,nvestigation of the market proves that the Canadian
supply is clearly morc economical than the southwest supply.
Utilities AdyisQry CornmisstoD Action
The Mojave Transportation Service Agreement was presented to the
UAC all May 4 J 1994. The CO[llmission voted to recommend that the
agreement be approved by the City Council.
Recommendation
Staff recommends that the City Council authorize the Mayor to
exec:ute the attached Nstural Gas Transportation Agreement between
the City of Palo Alto and the f>!ojave Pipeline Company.
Respect~uIIY submitted,
~\v-~\_j?,,<;L, /c,~
TOr,1 IiABASH I MaL/o;;;::;;rPlanning
~~::~o;'O~m~ti~itie8
_PLBMI~~~
~i y Manager
Attachments~ Proposal to Utilities Advisory Commission
Natural Gas Service Agreement
cc: Utilities Advisory i:onmission
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May 4,1994
Utilities Advisory Commission
Palo Alto, California
!lloiave DamIP:UfaDQV SelYict Agmmenl
Membrn; of the Commission:
Betl!rt III Brier
The attoched document is a Transportation Service Agreement "'th the Mojave
Pipeline C<llllpany (Mojave) to provide the City of Palo Alto \vith natural gas
!r<ll1SpOI1ation from the Arizona border to the City. This report requests that the
Utilities Advisory Commission (UAC) <IXXl=d Council approval of the Mojave
TnlIl..<per1al ion Selvice AgreemenL
Baokgmund
During the past rnu years, staff has engaged in a detai led study of gas mlOUlCC
options. The n:port, titled "Januruy 1994 Gas Integrated Resource Plan," was
presented to the UAC in its completed form in Janu31Y. The plal1 evaluated a
multitude of gas transpcrtalioo and supply options and re<ommended that the City
pursue Mo plans of OOlrly equcl C<OI1OmiC value. These mu plans are:
• Purchase gas from Canada, to be transported to the California border via
Pacific Gas Transmission (PG1) pipeline and .via Pacific Gas and Electric's
(PG&E) intraslale system to the City.
• Purchase gas from the Southwest U.S., to be transpO!1ed via tlte EI Pao;o
Natural Gas pipeline to the California border and via the Mojave pipe:;ne
to the City.
Parallel to the development of the Gas IRP, staffhas pursued negotiations with both
PG&£, the traditional California intr<lSlale transportC1; and Mojave "ilO has proposed
a northward expansiO/1 of its existing facility.
rn Febl1uaJ)', Palo Alto rejected a PG&E propo.<al that re;ted, for the most part, on
their existing tariff On M"lfCh 16, PG&E issued another letter of intent for
transportation of gas from the Southwestem U.S. only. Palo Alto responded by
revising the letter of intent to include provisions necessary for PG&E to. compete
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PJJoATt<.),cA 94303
\lith 1 ... loj.ve. 1hese revisions includOO: (I) 1% rather than 2% annual =lation rote, (2) the
dWlunted mi. cftlx:\il'e In 1994 instead of 1997, and (3) protection from surcharges. On April
14, PG&E oonflJmro that t~ were \lJl\\illing to negotiate /inther. In addition, any staff
~siro> from PG&E "wid be vulnmble to modification or disallm"",,,,, by the CPUC.
On the cther hand, Moja\'C has \l'orked diligently with City staff 10 resolve all contract issues in
a n\lMef ..:.-.pWblelo the City. The Mlj'l'e agreemenl will be backed by a corporate guarantee
and \\111. no! be Sllbject (0 future regulator), dl3Jl!,':S.
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The iJltrasjille ~tion savice oflCted by the t\\'o competing provickrs, PG&E and Mojave,
"'" be COOlf'mI in roo,. d,{fcmlt areas:
L Reliability of sm'ioe
2. Cost of ~ tn\I1Sjl"lation
3. A,-= 10 supply basins and gas oosts
4. Initial "'Pita! cxprodiNJC
RdlabWty or Servl«: Gi\''''' that PG&E o\lnS and opcrntes rul extoos,vc pipeline network in the
Ila)' Area and thai. PG&E is linked to s<l'era! gas supply regions, I'(',&E is perceived 10 be the
"tore reli ob1e altcrroative. To elect the Mojave opt ion, the City must be =rred of the physical
r.liability of the proposed Mojo\'C pipelill<'. In addition, the agreement with Mojave must include
prO\isions to sc-."\Jre system reliability til" <:quais, if no! exeoeds, thai of the PG&E system.
SIafl's =-11 >00\" that gas pipeline reliobility I"" historically no! bee" • ploblem for
mUllicipal utilities. l'u:tIiem1ore, Mojo\'C has provided lechnkal wformation about the integrity
of the projlOI«I pipeline 'ystem, and language in the. Agreemenl provides for the possibilil)' of
sel'crnl mearu of bockup sen;oe for the City. In addition, Mojave ha, provided contract
~ thai the City can rtceil" gas supplies up to the City's historic peak day demand
(28,000 MMB'/U). This equals PG&E Aboormal Peak Day protection.
Cbsl of a.. '/)'amportation: The initial transponation rate oll'enxl by Mojave is lower than that
offered by PG&R Moreovcr, the escalation of the Mojave rate is limited to 1% annually for the
Jle.\t Moen years. Mojave a/fords Palo Alto the oppo<IW1ity to save a minimum of 3% of its
10la1 gas CO$! ),early. 1ms is over $4,000,000 for the IS-),ear contract tenn. Figure I is a
gr"f<tical rcpmentations of Ute savings the Majo',e .ltenl.live \\ill provide given die nominal
PG&E tariff and PO&Es disoounled offer. The potential savings could amOWlI 10 much more
because of the regulatory \I.r1Certainl)' associated \\;th PG&E's rates.
A~ to Suwty &,1", an1 Ga. OlSl'l: Mojave ofters access 10 the Southwest U.S. producing
ba.-<\ru \\hile PG&E oft'els """""" to both Southwest U.S. and Canadian gas supplies. Some
t\]X'1ts prc>dicllllJlt Canadian suppli"":lfC likely to after their gas supply at a discount from the
Southwesl U.s. suppliers. However, a popJI .. theory holds thai gas prices will equalize.1 the
California border. To .I<XI the Maj.l'e option, the City must be assured that the Southwest
suppli<.TS will offer, in the short and the IOJl8 term, C<lmparnble gas prices 10 the Canadian
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suppli<ls.
The Agretm<'nt pmvi"'" a means of rCWJJSe for Palo AJto if !he Cit)" is lU",ble to s<xure
'"'tisf.dOl)· Sooll","'t IJ3S supply (OOUaclS. Table I is • srositivity a.,alysis thai sho", Ihe
required discounl for C""a&ll1 gas for a rang< ,,(pos,ible fi,hOI< PG&E =,Iati{)j) ral<:S. AI the
Califomia border, lhe I'rkc of Canadi.-l gJ.S "rol, 10 be ap!,wxioldld)" SO. I 4'p<f MMBTU less
than !he price of Soothwesl U.S. 10 gain p,uit)' I\\th the Moj"" "11<mali,. .... lhis is based 00 •
PG&E es«Jlation rate of 3% per )"tM. Using. !""nin;)1 bonhpri« of S2.30 "",l"cd at
inflatioo O\'er the IS-ycar tcrm. this ""luin.'d Ca.,adian dis,,,,,,!! h3l"1'1",, 10 approximalely S%
below Soothwcsl U.S. bo«kr prie("$.
Initial CaplIa! E'<perdilure, The Mojave OpIion \liII require new "-,,.>«tioo reinl< 10 the Cit)'s
gas distribulion S)"SIem. While this inwstmrnl ""Y be ll<'gligiblo in !he IOil8tef1i~ ~Ie g"" utHit),
must be in BOOd f .... anei.1 hea\h 10 nJlQnllhe in">«lime im"fSI0l<"!11 r",-d<d to establish !he
OOMection to \he ,,"lej.ve pipeline. Cit)' L~iliti.~ Engioo.'ring "'xl Moj"" haw Oe..-elopcda
preliminary design of I\1l oc..-")Xable p;p<luy. "wipl ".,r.S","llion 'n", A~'.'nl<"!11 limits !he
City's cost for L~ C3pital c.xpendittlre ~l1JifCJ to C(rutnJo.:( '3cilitiei 10 inlttI.'OH!'F:\.'t \~ilh lvloj(ivC'.
'VlUle distussions \\ith ft--pf"c:;rotaliws [1\:)111 PG&E h .. we (01)" ,((,".5uhcd in a IYXtCompctitive
p<oposal by PG&E,!he development of 01' .gr«01""t \\ilh Moja,e has i'C0gn'SSed fom-acd to !he
satisfactioo of boIh "",iics. At this lime, the I\!oja,e <Y,>Iion is 1,"11 developed and is
e.:onornkall)' superior to PG&J~s der.ult altrmati\"~ St.'.lI-"'qUCSlS that !he UAC "'roInm<"rod
Councilappm,,"J of die Mojave Tr""'PO't3tk>nSm'ice Agn.'<m .... nl.
AtC3cnmcnCs: MOj,wc TransJXll1alion St:f\i(~ Agr~"X:menl
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NA TURAl GAS TRANSPORTATION
SERVICE AGREEMENT
BETWEEN
THE CITY OF PALO ALTO
I AND
THE MOJAVE PIPELINE COMPANY
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SERVICE AGREEMENT FORM E
(APPLICABLE TO TRANSPORTATION SERVICE UNDER RATE SCHEDULE FT-21
THIS SERVICE AGREEMENT, dated this 19th day 01 May, 1994, i •• ntered into byand
between MOJAVE PIPELINE COMPANY I"Tlansp.,te,"1 .nd THE CtTY OF PALO ALTO
("Shipper"l.
WHEREAS, Transporter oporat~s en interstate natural gas pfpeline from TOpock,
Arfzona to terminal poims in Kern County, California under authority of certiricates of pubtic
convenience and necessity issued by the Fadelsl Energy Regu'atOfY Commission I"FEAC");
and
WHEREAS, Transporter is currently planning andlor constructing an exparlsion of tis
natural gas pipeline system for the purpose of providing firm and interruptible transportation
services in areas not served by its existing system; and
WHEREAS. Shipper desires Transporter to transport quantitles of gas fa: it through
Transportar's expanded natural gas pipenne systerfl in accordance With Transporter's proposed
FE'RC Rate Schedules lor transportation service through such expanded system, and
Transporter is willing to do so:
NOW, THEREFORE', in consideration of the mutual covenants and a~rt!ements ash~3(ein
set forth, the parties hereto agree 8S ~ollows:
1. ~OBLIGATIONS AND CONDITIONS
1 .1. IIansPQrter's Facilities: Transporter presontly ope/ates an inte/state n;]tural gas
pipeline extending trom interconnections in Arizona with tac"itfes of EI Paso
Natural Gas Company ("EI Paso") and rranswestern Piperine Company
'''Transwestern''} to terminar points located in central Kern CourHy, California.
It is ant'lcipated that the transportation servicos contemplated herein shall be
plOvided by Transporter to Shipper by means of ail expansion of the capacitY'
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of its e)(isting facilities end the 9)(tension of such existing facililies into new
arees r"Expsnsion facilities"); T/ansportor's obligation to construct soch
Expansion Facilities or any portion Ihefeof 8nd to provide the contemplated
selvices. 10 'Shipper is con<fitioned tlpon end subject to the receipt of
satisfactory regulatory authorizations for any such Expansion Facilities deemed
necessary by Tr6nsporter, the sacuring 0' financing arrangements for such
Expansion Facilities .satisfactory to Transporter. end the execution of contracts
whh vl1'iOO5 shippers, including Ship/Jer, for 8 total throughput Which, in
Transporter's sale judgement, makes tl'\e construction and operation 0' such
Expansion Facililies or any portion thereof economically feasible. T,ansporter
shaH hav8 no obligation to consttuC~ Exparlsion Facilities which, in whole or in
pan, w~1I ronde, Tr.anspcrler's expansion project uneconomic in light of the
regulatory authorizalions, financing arraoiJements or ma,ket commitments
obtained for SUi:h project Transportal's Expansion Facilities s~atl be placed
into service as Qxpedi(iouSIV as possible aHer acceptance by Transporter of a
conific6le of public conve",iance and ",ecassiIY from the FERC rolating to such
ElCpansioo Facilities.
1.2 ~lLaa Eaciljtie$: Shipper sha'I, at no expense to Transporter, construct
and maintain~ or cause to be constructed and maintained, such lateral pipeline
facilitias 8S may be nocessary to uan!po,t natural gas from mutually a9r~eabie
points on Transporter's Expansion FaCHilies to the gas receipt or consumjng
facilities designated by Shipper. The rroposed latera' pipeline and gas ,ecaipt
facilities of Shipper are sel forth in Exhibit C attached herelo, and hereinaflel
shall be refeuo'd 10 as ·Shippel's Facilities", Transporter shall, 8t its own
expanse, consUuct, operate and maintain (a) such interconnection facWties as
ere necess81V to connect Transporter's Expansion Facilities to Shippe,'s
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Fadlities and Ib} :such rn.atorrng facilities necesss(y to msssure the volumes and
1(&nsrer custO<fy of gas lfansported for Shipper.
1,3 AU1h..ofiuui2lr It is: lacogniz.e.d 1hal Tmnsp.oJter shall olJtain ali pormits,
certificates. ar.J otOoc .authorizo\i\ioos necessary for the constcuction and
oJ)lnaooa of Ttansp0t(o,'s Expansion facilities. end for the ffansportation
$i)lvices to be petfOftned lMreb'(.
1.4 Iraru~~W&J.:· 'f',.ansporte, agfees to receive, transpolt. 8n~ deli .... or
daily quantrties .of l1aos: 101 Shipper in aCCOldanc8 with Articfe 2; provided,
howev&r. that lfansp-oner .s~311 rior be obligated to deliver a tot<lr quantity of
9 3 $ 00 lIny day which is gre-stct than th~ Qusl1city 01 gas feceived from Shipper
les:!'; If'-o$ qUaMities of gas furnished by Shipper for fuel and line joss.
business judgement 50 8S to mainta~n the cost oOf consttucting Transporter's
hpansioo f-acilities as (lMrly as feasible at the level stat4;!d in .any HAC
epp!icat ioo5 .. .end sh811 COf"l$ult with and otherwise keep Shipper advised of any
COs.[ changes. In an ... Ovonl, the (:tt&S to be paid by Shippar for film
lfall$poItoti oo selVic~ .schall flOl t))(c6ed the fates set tanh in Article 4. Shipper
.aOHUHI 10 pay T(ansp~te, in ~ccordal')C8 with Anicla 4.
1.6 rrn:QfQQ'1tic:mJI.¥..B.olt~: This SaMee Ag,eement in all respecls shall be
$Ubf:ect t~ the ptovi$ioos of 1M Rate ScheduleCs) proposad by Transporter to
govern t~e prolfi$ior. 01 film .Iransportation services through Transporter's
hpansion faci~tios. Of such aquivalent or superseding Rate Schedule's) as rna)'
be 3!>Pfoved by FEAC. theleinafter rererc&d to as -Rate Schedule FT.2"
a pj}li<: a bl'e to rilm transportation servico} and 10 the applicabte provisions of the
Gsneral Terms and Ccodirions of T,anspoltcr's HRC Gas Tariff ("Tariff") filed
with (he FERC. aU of which are by ,efer~nce made a part hereof.
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2. QUANTITY OF %li
.'2:.1 Mwnroym Qaily Oemaod; Subject to the lerm:9. condHions lind lirnita1rons set
torth herein, Tnmsportar ~g'ees to Pfovide (0 SJ'Sppe-f finn transport3tiQ(l
!XIrvice of up to the Maximum Daily Demand Quantity l!l~ :$ot forth in Exhibit A
attached hereto. On the fifth aM teoth 8nniven.affeS ofthelo·Se,,';te: 03108 (I~
defin9d in Paragrtlph 7.1 her9rn. $hj~,per shall h30va tM option ~o U"lCHI8SO Of
decrease th6 average Ma,.-imvOl Daily Dem!!oo QUantity tor each mooth 8S $6t
forth in Exhibit A; p!ovid'ed. hO\'16VJ1(. that any .!ouch tflC.fel!lSO or docrease shall
be limited to live percent (5%) of ~ho then' app/ltebfe: aVe(ltg8 M3ximvm Oally
Demand quan!ity for that month 'and any such iilCrease smrt b~ subjeci to the
availability of uncommltted flJm capacity 00 TraospOfler's system. 1M
increase or dec(eas'S in the ave'ago t~t~xlmum o.s~ry Demand Q'J3nriiy for 8~ch
month shalt be delerminad by Shipper and bBed sorer.,. upon Shi.p.PiU'S
IO(OCast9a rtlQuuerncnts 'Of natU(al gas. II. lIP<>O sixty -:60) days p.l'i{}f w,juan
nOlice. Shipper exercises the oplion griJ,n!ed herein, Tr8JlSporter and Shiyper
shan agr68 on 1M increaso or decrease and timing of th& firm HtlllSPOftatiOn
sorvice aSSOCiated wlth such if't("reaso or dec/e&:SI}. Any incremental service
which TranspOiter pro'Vides 10 Shipper as a tosvlt .of StuPPGI oJeerclSiflg its
option h~rein. sh.all be subjoct to the terms ~M coodilioos 01 this SerlJice
Agreement. Transponol shall not bet obliQ8led!o deliver at lhe dijliv8ry points
a quantity which. on 8ny daY' during env month, exceeds the peak Malximuol
Daily Demand quantify for such month. Excopt &S Olh-'!rwif)6 providod herein,
no adjustment in the Maximum Deily Demand Quamii'v shall be made except by
mutualaQroemenl and ~y a superseding Exhibit A which may be filed \\'ith and ""'i
mado effoctive by the FcRC.
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2.2 Eyer and Lio.U.9SS Quantitias: All quantities uanspo(ted hereunder shall be
subject to provision of compressor fuel and line loss quantitres in· kind by
Shipper andlor Shipper'S reimbwsomeol 0' the cost 01 power purchased in the
a'vent T,ansporter erects to use electric motor-driven compressors.
3. RECEIPT AND DELIVERY POINTS
3.1 Reef-iot Points; The Primary Recelpt Points for gas to be tfans~orted hereundor
.are as d,esignated in Exhibit A 8t1achad hSIfHO. Shipper s-hall have the righi,
wi~h thfl consent of Transporter, 10 designate addilional Primary Receipt Points
trom time to tim&. but no such designation shari btlccme elfcctfo"o e)(cepi by;:,
superseding Exhiblt A. Secondary Receipt Parms shall be available to ShiPPtH
8S provided in Transporter's Tariff.
3.2 Q.elivery Points: Shipper shall make known to Ttansporter the Primary D~!ivcry
POints thai Shipper requires, along with their respective capacities. Such
Primary Delivery Points shaH be dosignated in Exhibit A 8ttached heuno, and
the barometric pressure at each po~nt shall be that which is dosignated on said
Exhibit A. SeCOnd~H'f Derivery Points sha't be ava'~lable to Shipper as providOld
in Transporto,'s Tariff.
3.3 ~ Delivery PQinu: Subject 10 tho provisions of Transporte;l's ranff.
ShipP{lr may designate in writin~ additiona' existing Primary OeHvcry Points Qf
new Primary Delivery Points on Transporter's Expansion Facilities 'Of
transportation service provided hereunder. Shipper shall spoci~V in its written
designation th9 location and the capacity of the additional or new delive(y point
and when Shipper requires the new delivery point to be placed in service. In
such e ..... ent, Transporter, subject ~o obtaining all necessa,y environmental OJ
other authorizations, and subject, further, to the ope,ational limitations of
Tfansporter's system, incllJdinQ its Expansion facilities, shall constwct the
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deriverv point facilities required by Sh!pp9l, including taps. valves and other
nflCessefY moasuring equipment. Transporter ~hall 1Il00ujre Shipper to bear the
cost of any such facilities. Exhibit A shall be revised to reflect the edditionsl
P,kriary De'fiv{lry Points,
3.4 Mexinwm Daily ReceiPt and Delivery QYa.illi!.Iu: The Maximum DaJly R~caipt
Ouantitv for 9ach receipt point and thil Maximum Daily Delivery Quanti~y for
each detivary point shall be 601 forth in Exhibit A attached hereto, as fevised
trom time 10 time, No adjustmant in anV Maximum Daily Receipt Quantity 01
Maximum Daily Delivery Quantity shan be made except by mutual agreement,
not unleasonably withheld. and by a supe,soding Exhibit A.
3,5 M..Qitional Receipt and Qelivery...ouBntities: Shipper may request Transporter
to accept quantities jn excess of the M3ximum Daily Receipt Quantity at a
specific receipt point or to detiver quantities in oxcess of the Maximum Daily
Delivery Quentity et ~ specific delivery point, and iranspurler shaH grant such
request. subject to the 3vailabitity of adoQuato capacity at the time tha request
fS made and pursuant to the terms and conditions 0' Transporter's Tariff.
BfflJCA8LE RAHS
4.1 ~t8S for Firm TraDs()I)oatipn Service: EJ(cepl as provi'ded in Paragraph 4.6,
Shipper shall each month pay T/ansporter a Resarvation Chi'lrga and a
Transpon8tion Charge tor firm trans,ortation service provided hareunder. The
monthlv Reservation Charge .shall btl determined by multiplying Shipper's
Maximum Daily Demand by the number 0' days in the biUing month and then
multiplving 1he resu1ting pmdllct by the Res9rvation Fae set forth in Sheet No.
12 in Transporter's TS/ifi. as revised from time to timo. The T/ansport8tion
Charge shall be paid fOI each MMBtu scheduled by Shipper up to the Maximum
Daily Domand q,U.9ntity. Th€l Ae.t;ervation Fee and the Transportation Charge are
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collectively tne '"Aggregate R9tO'". Unrsss otherwise a greed 10 by Transporter
and Shrpp~H·. the TrsnsPQ!tatiOfl Chaf03 shall be 8<l,URI to Tr6osporter's
Mttximum Agg(egate Rate stated in the Statement ot Aetes set forth in Shoat
No. 12 in Transportal's TadU, as revised from time to limit. loss tho
Reserv8tLoo Fee. The Aggregate Rate to be paid by Shipper hereund&r for firm
lran~portation -servito shall nOt ex<:eed the lesser of W the Maximum Aggregate
Rare set fOfth in Sheet No. 12 in Transporter's TarHf as revised ftom time to
tim. and 0PPlovod by lhe FERC. 01 WI $0.47 po, MMBIU •• 5 oscalalod allho
rate 01 ooe piJfCent t1 %) per annum during the tetm of this Se,vlce Agreement.
4.2 ~trJQ1..i.l~ Overryn Charll~: The Au[horized Overrun Charge fer ALJthorized
Overwo GO$ shalf bo the A99r8!}lJte Rate, For purposes 01 thfs Ser\lice
Ag(eement~Authorized Ove'lUn Gas shall be the amount bV wnich the delivery
QU1Hllily 8uthor,,zed and scheduled by Transporter on any day 10r film
~(anspi>f!atioll service to Sh'pper ul'lder Rato Sctledule FT·2 exceeds Shipper's
Maximum Daily Oemand QU8nlity.
4.3 .!.mh.ala.nW: Transporter and Shipper adcnowled.ge Shipp8t's dally scheduled
qvantitJe~ will ba an ostimate by Shipper of its o.><pected receipts and delive,ies.
To Ihe extent that TfanspOfter can do so without cost or jcopardy to
Transporter or its other shippers, Transpotter will cooperate to df3li ..... er to
Stupper quantities of natural ,gas that Shipper desires detivered each day. An
Imbal8rlC8 wjff QC\!ur to the extant ~h8t Shippot has taken more or less gas from
nansporter's facilities than Iha volumes of gas which were scheduled by
Shipper. Ttansponer wm maintain an accounting of such imbalances.
Notwithstanding any provision of this SOlYice Agreemont to the COr1trary,
Ttansporte,'s delivery of any quantities to Shiflper in ex<:ess of the quantities
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dElllv~(ed to TtMSportaf bv Shipper shall be based upon Shippsr's
c:redilworthines.s establ'ished at the 'commoncemont of this Seryjco Agreement.
4.4 (mb§lsrn;Q FaMily: No pe:nafly will b4 4s$f'.$sed '.or any daity imbalance whi<:h
t3 lass than 1.000 MMBtu Of within to% Q1 Shippe,'s senedulad volumos.
furth$i'~ no pefl8lly wiR be aS$6:s~d' fot any mootJ\ly ,Imbalance wh1<:h is ress.
than 7 1500 M~'8Iu ('( withJo 2.5r;6. of Sllipper',s 8gg:,egale votumo$ scheduled
scheduled and &uthOlizt<1 win l>c:t 3s.$.tSs..ed a p.enslty oS loilows: $0.05 per
MMBtu fOf imbalar.ces be\ .... '410~ 2,1)C;(.. .anod 5%; -$0.10 par MMBtu (or
imtalance.s botWGlln 5~1;. lind 10':4; and 00.15 per M,\~81U (('!r imbaranc:es
greater Ihsn 10%. At tile coo of e1lchcal{md31 \"41a, TnlnSp(lflOr wi!1 rebate to
shippers recoi ... ir19 selvice Ur)cj'Cf Rat€! Schedulo fT·2, 50~(, 01 any fmhalance
penalties coil occed, Srlipper Wrlllcce:v.a "'0 amount S)(op(lJtional to ils Maximum
D8ilV Demaoo Ouanti!V" divided by Ttao!>poH6"S F£RC certilic-,ted capacity.
4.5 Statement of RalM: T~ rates for uanSPOrtiHiofl seNice he,eunder as
determ'~nl:d tn aCCOI'der'iC'& wil~ this Aniclo 4"shall bEt as listod on bhibit 8.
whJ:ch Is attached he(610 end m.ad~ a part h61f10(.
4.6 ~Mas jn R8fes end T.t!!!U; T'8ns,P<lrte! shall have the ti~ht to fila with FERC
or othaf appropri8!e feguialOly authority 600 to mako dlang:9s effeclive in {eJ
the fetes tmd CMfQO$ applicabla to Rate Schedule FT·2. under which sel\,ice
hereunder Is Pfovidil:d. (ogtlt~r wilh Ihe Genlusl.T6rms and Conditions
incorpOJt:lted by reference thorei!); pro .... idod, h(Wio .... er. that the firm characUH
of service pro.,ded undO( Rate Schedu!e F-T·2 shall (lot be subject to change.
Tr.snsp~t&r .9.grees. that Shipp.er may protesl Of contesf the aiotemontioned
filings. or $eok any autholi;r;afion 'rom duly constituted regulatory authorjties 10r
such adjustment 01 Transpone,'s existing FERC Gas Tariff 8$ may be found
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necessary to assu(o that the provisions ar& ~1.I5! and reasonable. IrH'ddition. if
th9 FERC orders B changa in Transponor's HRC Gas iariH or this Service
Ag:reement pursuant to Section 6 of tho NaW(81 G&S ACI. than Tr8nspon&r s.h&1I
have the right 10 immediately r0119(:1 any necessary changes in the Service
Agr80mont including, end without limitafion (O. sny reelfoct:ltio.n 01 costs in.
reapons'9 10 !uch changes o(de,ed bV the FERC.
5. APJUSTMENTS TO GENERAL TEBMS ANI) CQilllJJ:t.ONS:
There 8r8 no adjustments to tho Genersl Tefms artd Conditions.
6. HAMS OF SEAV'!(;f
6.1 ~'r' Pressure: Shippar a.greos to deli .. 'e, Of cause 10 bo dali .. ·cr6,(j g~s to
Transporter at not fess than the pressure sp€:cified f01 each receipt point in
E.xhibit A. Transportel agJefs to de live' ~as at flot less than thf! p:es!;wEl set
forth for each detivery point specilied in fxt-,ibil A.
6.2 ~ring EQuipmenl: Transponer shall use ils be!.! efforts (0 plovido Ship~,
with the most eCC~)fate meter ,eadings that a ra practicable. gillen the design of
Transporter'~ pipeline system and the aCCl!rtICY of natural gas morIHb'.
6.3 NQtj{;9 qf CUctallmelH: Tr.anS,P(Hter shall provide Shipper with at iailst {i)irty
(30) days prior written nolice of any scheduled (non·emo.gcnc,1 cu.uailm&f1t.
of which Transporter has at I&ast Ihilly l301 days notice. Transpo·ner shall
provide Shipper with notic~ of ~ny other curlailm6nt as qukkly 8S is reasonllbty
possible. Transportal shall COflsult with each of its Shippers in schedl.'iing
maintenance so that scheduled reductions in CDpacity on Transporter's system
(including the Expansion FacHitiesJ. if any, and scheduled redu<:lioo.s in demend
for gas on Shippers' facitities. it ally, shall coincide as much as possible. within
operational constraints.
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6,4 Foret Majeure: Sxcept as otherwise pro',{jded in this Service Agreement, in the
8veM T,.anspot:tol's FacHities are render~d unab~e by force majeure to -cerry out,
Bny of its obligations under this Service Agreement. wholiV or in part.
Transporter's obligations undeI this Service Agroement shall be suspended
without liability tor breach of contract during the continuance of any inab'llity
so caused, Transporter shall exerc1se ils best efforts to remedy the situation
causing the 'force mBjaure e .... ont.
7. TERM OF AGREEMENT
7.1 Effectiye pate: Tl1is Service Agreement shall become eHeclive on the data til'st
set 'forth herernabova, The term of this Service Agreement shall comlncnce on
the dato specifiel1 by ilensporter as thDdate that Transporter is toady and ab~9
to provido Transportation Service to Shipper til rough such Expansion Facilities
pursuant to the terms and conditions of this SS(VIc& Agmement (the -In-Service
Date"'. iransportor agrees to provide Shipper wah at least ninety (90) days
prior written notice of its estimated In-Service Date.
7.2 Termination Date: QptiQnJQ Extend: This Service Agreement shall cPntinu'9 io
futl 'force and effect tor .a term ot fjfteen (15) yeals following Ih{J In·Service
Oate. Shipper shall have the continuing option to extend the term tor three (3)
successive three-year periods by providing at tea~t twelve f12} months. w,itten
notice prior to 1he commencoment of each such additional peliod. If Shipper
fails to give such noti<:e, 1his Service Agreom81H will terminate according to its.
terms. H Shippel gives such notice. Transporter shall cOlltinue to provide
transportation service in accordance with the terms and conditions of this
Service Agreement, except 0$ to {ates.
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1.3 Ie,minatioo Qbtigalioos: Termination of this Service Agtoement shall not
relieve either Party of tho oblig.ation to pay monily due, or 10 couect any
imbalances hereunder.
8. TITI.f.. PLEDGE AND ASSIG~ENT
Title to all naturel gas tfansported pursuant to 1hl$ S61Vic9 Agfeement shall be held by
Shll:lper. tit the time such natural g9S is detivetod to T,ansporter's Facilities, ShiPtlor
may engage in any sale of such natural gas to aoy third party; provided that title to
SU(lh na!ural gas shall not pass to such th~'rd puty before :such natural gas has been
deliv6fao' from Transportc,'s Facilities to such third party. Shipper may at any time
and from time to tim a release fill or any part of its right to firm tr.ansportation sBrvict',
01 may assign same to any ottler party. subject to the terms and condaions. of
TraM-pOIter's Tariff, pro\lided that Shipper shall guarantee the ~erformanca and
obligarions of any such assignee: pursuant to this Service Agreement and Transporter's
Tariff. Any Cl')mpany which shall succoed by purchase, merger or consolidation to the
properties. substantially as an entity, of Shipper or of Transporter. as the case may be.
shall be entitled to the rights and shall be subject to the obligations of its predecessor
in title under this Ser\licG Agreement: and either the Shipper or Transporter ma'y assign
Of pledge this Service Agreement under the provisions of any mortgege, deed OflfUSI.
indent tJr8, bank credit sgroement. assignment, or similar instrument which that party
has executed or may execute hereafter. In the event Transporter aSSigns or pladges
this Service Agreement under the pro\lisions of anI{ such bank credit agreement {H
similar instrument for tlurposes of obtaining financing for Transpolle,'s Expansion
Facilities. Shipper shall cooperate with Transporter in providing such const!nts to
&ssignment and/or slJch other documentations andlor representations as may be
reasonably required to close or complete such financing.
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9. ENTiRE AG6HMEIU
This Service Agreement. including tho exhibits. hereto and the addilionar materials
itlCorpQn.~tlJd bV raforor.c8 herein, com"ins the entire agreEHnenl between the parties
Mf1JtO with ,es~<.:t 10 tho t/3fl.$.<)ctioo.s comempfsled herein and all prior and/c.1
cootampo.-,ar-..eovs understandinG:!; and agreements shall merge herein. Thore are no
eddittonal (e(ms~ whetnel cOf\Si$tent Of inconsistent. oral or wriHen~ that ala intended
10'1>6 part or the pa(tie5~ ur.dltr8ttmdir.gS'which ha .... e not beon incorporal6d into this
1(). NQTi!&S
£lft!fY h,quest, lWticiJ, statement and bill p.l'ovided 10t in this Ser .... ice Agree-men[ shari
be in w/itifl{J aM &.!>all bit comidered as having btl en given if delivered personally. tv
conft.fmcd rac$.ift1ils. Q,' bv mair with ~ll f1()stilge and charges pfopaid to either Shi~per
Of 'ffll.Osporl-.!t IU tha ~ac9 d'ilsign.ated below. Aoulins communications shall be
cons!darcd AS duly delivaltd wMn rn~iled t.'f ordinary mall. Norma~ ope,ating
jrutructions cell be made by Mlephooe, efacuonic madia. or confilmod facsimilEt. tach
'~QUG't. ootiC1l'. statement, bnd btll end IJvely payment provided 'or herein shall be
directed to the party to whom given. made Of deliver&d at such party's address as
TRANSPORTER:
SHjf>PEIl:
MOJAVE PIPELINE OPERATING COMPANY
fOSI OHie. Box 10269
Bakersfield. CA 93389·0269
Telephone; 18051861·7300
fax; (8051861·7377
TKE CITY OF PAlO ALTO
POSI Olliee Box 10250
PalO Alto. CA 94303
Attention: Manage" Resourca Planning
Telephone; (415) 329·2494
Fax; 1415) 32$·1507
Pefsooal dcli .... ery ma,,· be made to TranspOfter at 5001 E. Commercsl1lel' Drive, Suite
300. 8ak.'Sneld. Califomi. 93309 and to Shipp., at 250 Hamillon Street. Palo Allo.
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Cetifornis. Either party may change iu .address by giving wrinen notice to tho othor
party.' Any no~ice h&reunder shall bo deem.ad tG have been g~\len at tho Il'M of the
third wor~ing dav after the day .such notice has beeodeposited at a United St31U Post
Office with reqol-sits postage lhareoo.
11. tERMINATION
On the terms and conditions set fOllh fn Ihis ani-c-r.e. and no~withstaodling any othel"
provisions con~aiMd Mlfin, tNs ~lyice: Ag:eemollt may 00 (E-Uf'!ina~od {lltor the
Effective 081& upon written nOlic& ~s followS;'
11.1 Shlpper .shall obt.am 01 cause to bo oblainad • .11 nO Cv,St to TII'lO:SP<>fter. an
necessary authorizatioo$.. inch.x,lj!lQ, wilhout limitatt~. anv environmental
sulhori~ations, for the CCt1sl(vctioo end nH!.lnlena:nCtt of Shipper's Facilities
,equired fer the ,sceipt of MIura' gas by Shipper, In the event that ShipPE'r is
unable to (lbtail1 such aUlhOlirations in a tllne!y Olt)Mef. then ShippeJ shc;ll havo
th& Ijght to tarminate thl!i SO/vice Agre.ement; llro ... i<1ed that vuillCIl notice of
taJ(l1inalion isgiv.on to Trans-poner on or boloro the tal{l( 01 November 1, 199.1,
or sixty (60) days following feRe is:SUMCO of a C{!((ificst{l to Trar'i.s'porte-, in
Docket No. C"93·268·000. Such termination $Mil be elfecti\>fI,upof'l lhe data
specified the'eln. Notwithstartdifl1J anythlng .cor.tained in Paf8:grsph 1 .2 to the
contrary, in the event that Shipper, in its sofe opinion. makl)s a dete,mination
that the costs of Shipper's FaCinties exc:eed $2 miJJioo, thcn Shipper shet! notify
Transporter in writing or .such dete~natioo on Of' befoul NO ..... ijmber 1. 1994.
and Transporter sh!!l!lf have the optioo to (8) compensate Shipper (01 those costs.
in excess 0' $2 million prio, to coostwction of Shippo,'s Facili~ies end corHinue
Ihis Service Agreemen( or. Ib) terroinate Ihis Sel~C8' Agreement upon thirty
(30) days priOf' w{iltef1 no!ice to Shipper.
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11,2 In the event FE"RC fails to issue 8 certificate to Transporter in Docket NQ,
CP93~2.fl8·OOO by November 1. 1994~ f.h.an eilher party shall have toe right to
termlnille this SaNies A9r~mQnt, provided that written notice (If 19fminativn
is give'n to the other party within ninety (90) days of such date. Such
tenllinstion shallb-a effective I)pon the date specified th61eln.
11.3 I.n the Bvent Transporte,'s Expansion Facititis$ are not in service by
January 1, 1996. then Shipper shall have the rjght to terminate this Se'V}C8
AgJ6ement. provided that writtenllotice of termination is givon to TransPOftel
within ninety {gO} days. (If such date. Such termiMtion shall be eUective upon
the date specified therein.
11.4 Shipper may contract (or supprementa! Hansponation service in addition to the
transportation service hereunder including. blJt not limited to, srandby ser .... ice.
If Shipper. in its sole opinion, ma~es a detarmin.stion that the cost 01
.supplemental gas transportation ser .... ice is vneconomrcal or othan'wise cost , ,
prohibilive. then Shipper shall give written notice to Transporter 01 such f· . ,
determination within sixty (60) days 1oHowing HRC is!luance of a certilicato I'
to Tr<lnsportel in Docket No. CP93.·258.QOO, (If NQvember 1. 1994, whlchevN
is later. Transporter shalJ rrnJet with Shipper to resolve such ,"u(t to. tM
mutual satisfaction of Shipper and Tfansporter within sixty 160l days of the
date of ShIpper's notice to T,t:nspOfter. Both parties shall use rea-sonable
efforts to find a mutuar resolution to the issue. Jf such issue cannot be so then
resolved to Shi,:lper's satisfaction, Shipper ma)! term;l1a~e this $ervico
Agreemeht :.J,:Ion ten (10) days prior written notic6.
11.5 If Shipper ~ in its. sols opinlon, makes a dete,mination that it is unable tQ obtain
gas supply arrangemenls satisfactory 10 Sh,pper, then Sh,pp~, shall haVE!" (he
right tQ t.erminat& this Service Agree mont; ,:IlOvided that written notice of
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termination m'I'Jst bit given to Transporter with1n thirty (30) days following FcRC
~ssuance of 8 certificate to Transporter in Decket No. CP,C)3-25S-000 OI
NO\'embar 1. 1994, whichever is rater. Such te,mfnatfon shalt be effective
upon the date specified therein.
12. MISCELLANEOUS
12.1 Q.t!i~; Terms which are used herein and not defined herein shall have the
meanings 3sc,ibad to them in th3 Genaral Terms and Conditions,
12.2 MQ.2ili~: This Service Agleement, including Exhibil A attached hereto,
shell nDt be modified except by an instrument in writing Signed by or on behalf
of both of the parties.
12.3 Y..Qyernin~: This Servicl;} Agreement shall be governed by and construed
and enforced in accQrdanco with the laws of California, without regard to
principles of conflict of laws.
12,4 ,SQverabWt v : If r.:ny term, provision. covenant, or rastriction of this Service
Agreement is held by a court of competent jur,sfjiction to bo invalid, void, or
unenforceable .. the remainder of tne terms, provisions, covenants, and
restrictions set forth herein shall remain in futl force and effect.
12.5 ~Jl!: No waiver by any party tHueto, whether express or impljed. of any
(ight under any provision of this Service Ag(eemant shalf constitute I'll waiver
of such party's rights at arw otner time or a waivel of such party's fights. under
any other provision 0' this Service A{)reemBnt. No failure by eirher party hereto
to take any action V'Jith respect to any bri!ach of this SeNice Agreement or
defa;ult by the othor party shall consti~ute s waiver of the 'Of mer party's right
to enforce any provision of this Se,fvice Agreement or to take action with
respect to su{;h breach ('Jf default or any subsequent breach or default by such
other party.
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12.6 Compliengo with law$~ In pertormancl) of this Service Agreement. Shipper and
Tran.sponer sM11 comply with all applicable laws, statutes, ordinfl'nces, safety
C6dO$ end 'uru end regulations of government.aI authorities having jurisdiction.
12.1 Rc.~: Shipper agrses to limit its right to compnnsation for any claim it
might have .against Transporter 8rising (rom this Service Agreement with
YraMpOlter or fr()fn the transportation service provided (or failed to be
ptovided) by TrenSp.Ql1er. solely to Transporter's 8S$otS.
12.8 transporter.shall Pfowde fa) written n<ltic9 to Shipper that fERC issued a
c-erttficate 10 TranspOfter in Docket No. CP93·258·000 within thfrty (30) days
of slKh Jssunnce. (b) written notice to Ship par that FE"RC issued a tinal
environmental jmpact study pert8,ning to tho construction of Tral1spofter's
EXPjHlSitWI F.acillties within len 110) days of suet' issuance. and Ie) written
notice(sllO Shipper that slate (iI thB dato construction on the mainline portion
or th& Expansion Facilitia$ commt!'flced. (ii) tho date construction on ttle lateral
pipelina facilities connecting Shipper's F~cilities to the mainline ponion of the
Ex~nsio(l Facitities commonced and, (iii) the comptet'lon date of Transportal's
fxpanMoo FaciUttes within tOll (10) days of sach such date(s).
12.9 In the event Shipper makes a determination that. during periods of poak gas
demand. it tequilas firm transportation service in excess of tho transportation
sorlltce provided under this Service Agreement. Transportal shafl use its best
efforts to aSS'SI Shipp&r 10 the oxterlt permitted bV its Tariff in securing
additional firm lfansjJortation service by means of capacity reallocation from
othel' Shipper.s~ or by means 01 some altemative arrangements acceptable to
Shipper.
T2.10 Ona daily basis during any month, Shipper shall be allowt'ld to s<:hedule a daily
delivery quantity up to, but not in excess of the peak Maximum Daily Demand
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Q.uemlity for so<:h month, pl'Qvided thai rho 6vefsge MaKimum DaHy Oemand
quantity '(If :such month is not exceedod 00 e monthr.,. aggregate basis.
Shippel's Meldf(luf'l'I Oaily Dem~rvj during any mooth. 'cx billing pu,pos'Ss. will
be lha 8Vtlf8ge Mbxjmum 08ity Oemand S6t tOlth in fxhibit A ro, such month.
MOJAVE PlPHINE COMPANY, 'r/'r
by ~. Piper . Opereli"il C. oml'Ony (Trans
By ~:.._ .. ~ e::<Z.-
0010 ______ _
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HIE CITY OF PALO ALTO
8. __ _
MavOt 01 the CilY of Paro Alto
eXHIBIT A
To Service Agreement
8etwsen
MOJAVE PIPELINE COMPANY
(Transponer)
and
THE CITY OF PALO ALTO
IS hipper)
Dale: May 19, 1994
Maximum Daily Dem"D:dJfl.r.roJ..;
Mgnth _ Ayo MM8tyldt Psak MMa.wlL
Jar,lJ.8ty 1a.l5oo 28,000
February U5,400 17,000
March 12.400 13,600
April 10,100 11.110
M8V 8.700 9.500
Jufie 6,800 7.500
......M2illL
M
AWV$I
Stp{effiW
<ktotw
No\"wl::.f''(
OeCl!mt.el
~Mruufa' __
MOO
5.800
6.300
7.900
13,000
16,800
._ew.M~_
~,500
6.400
6.000
e:.l00
16.~OO
.1I.(l<Xl
Pursv.ant to ParilgrapJ) 4.1 ~nd 12.10 h!rt~in. Sfljpp.e,'s ffi\)(,lhI', RP"1.erw-ar",, (f..UgH $~1 t.t .jll~(ffl·i'>f":5 v~
thEse ligures,
Maximum Da'ly ••
___ -.e.~Rec81m __ ~Qu.a __ OJ!_lY_ _E..rIil SUlC
El Paso Interconnect
Transweslern Interconnect
•• Maximum Deily Receipt Ouantity is 8)(clusive of in.·kind fuel.
Points Qf Paliv{H't
Intercon nactions between:
Transporter and Shipper, Sectirm 12.
TSS, R3W, Sanla Clera Co., CA
StBtion 2
Stoll lion 4
Station 6
Station 7
Maximum Oailv
Deliyory CuantilY
18500 MMOtu
-.-l.J!.f~ MMBtu
18500 MMSlu
18,500 MMBlu
Minimum
....fr=rO_
100 o.SUL,:
.....1QO~
100 PSI!l
lOP psi9~
MOJAVE PIPEUNE COMPANY, .~
by MOj(l,V8 Pipeline Operating Company-I),
THE CITY OF PALO ALTO
(Transport# ..... -:7 ~Shippaf}
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Date Oat.
18
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Jr>to'eO/'lfloCtlon b,nwoen teclhti ••
of T,.an.~er <!1M €I Peeo NlJtoJr<lll
C:;Q CO., SKtion 35, THiN, R2:1W,
MohovlI Counl,.., Arizona
InletCOt'lnoct,on ~Iweon '.c'lftl"
01 T,t'lUlpon., end Tt.n,weUot(l
Pipeline Coo, Soetoon 11, "f'BN,
R~IW, MOhave County, Arizona
Il'lt01eonnocuon b"lw ... n:
OIlI;ve,'1 Point
(b)
'r>tereMn.Ction 'between t<!leWtr ••
of ~fon.p::>n.r an(! Shipp •••
Seotion 12:. T08, RaW, So ... to
C:""I> CoU"'1,.., CoIifo,ni.
EXHIBIT B
To SOrvH;ft Agreemol'lt
8totW'l ....
MOJAVE ?IPfUNE COMPANY
(Tron.oorcer) ....
':"HE City O~ PAl.O ALTO
(Shipper)
Oot.: Mfty 1',1994
Rltll,,,vfttlor'l
,,' ,,'
• $.46$S
po, MM6tu
TtO"'IIPOftll'lio'1
C"OriJt. ,.,
• $.0012
pl>t MMBIU
A"grogato
R.t~ ,.,
• $ .... 700
per MMBtu
T.~
-----Ji'tR!t.
(f)
I.
V_
Autho!'lzlI(II
Owr .... ~ CM
(.'
• 6.4700
p.r MIllION
60..· ,;;J
o
The "p..cil,c R/illlO/II,lIot'on FH. Ttenaponolion Cher-oo, Authorired Ovetttun ChergO f-~ Un",,(hotil6(i' OIlN.,.r. ell.fgll "I:)1'1.cat>,. 10 Si'lilX)er will 1)0 _lab/I,hood in K~e'1ee with r> ..... F~ral
.... tho'jl.l;on •• rod !.n • ...cine ,rreno-ment. !ot 1M eo", .. t'uttl'Jn of T •• n,po.t.,'. ':O .. c'h! ..... AM 1I'lt .ub,....t to filII"", fhodjhcono" .. pu, .... ..,t Ie. ,~. ~ -ooJoIW. by T, .... IIpCW"C.r una., Article
4.6 ""',oo! 6nd' 'Ulr.or,zed by ti'to FERC ... nd .. , S.CtlOn 4 olt"" N.NtOl (i .. Att. ~"O.:ICIII,O" to III. Qh40ro •• ".1 !~h ~Q"", lho! cU"."(ly .. «aCtive Al'lN"laI CIwrgo AdNotmol'lf (ACA).nd tt.
G",. ~., ... ,~'" 'n"titUlo (GR,) unit oh.,ge. ,,",o<:tOCl on Sh",1 No_ 12 of Tr.n.porttlr'. Tor." ., ... "'110 appli<:.,l .. to .001'1 MMStv of 0'" dofiYltO"«f lilt n. Poil\t of Oehvo"Y.
19
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