2001-251 Om)IN'CE NO
AN ORDNANCE ESTABLISHING MAXIMUM PERMITTED RATES AND CHARGES
THAT TI .TI GAS DISTRIBUTION MAY ASSESS RESIDENTIAL AND COMMERCIAL
CUSTOM ERS IN THE CITY OF DENTON, APPROVING RATES FOR INDUSTRIAL
CUSTOM ERS IN THE CITY OF DENTON ESTABLISHED BY CONTRACT BETWEEN
TXU G.~S DISTRIBUTION AND SUCH INDUSTRIAL CUSTOMERS, ADOPTING
DECLAR kTIONS AND FINDINGS RELATED TO RATES AND CHARGES ASSESSED TO
RESIDEIq TIAL, COMMERCIAL AND INDUSTRIAL CUSTOMERS IN THE CITY OF
DENTON PROVIDING FOR RECOVERY OF RATE CASE EXPENSES, REPEALING
ORDINAl 'CE NO 99-059, PROVIDING A SEVERABILITY CLAUSE, AND PROVIDING
AN EFFE ~.TIVE DATE
V~ tEREAS, on or about February 26, 2001, TXU Gas D~smbutlon ("TXU Gas"), a
dlwslon o !TXU Gas Company (formerly Lone Star Gas Company), filed with the C~ty Secretary
a "Statem, ~nt of Intent to Change Ratos",under whtch higher rates charged by TXU Gas would go
rote effect m the City of Danton (Denton) effective March 23, 2001, and
'W -IEREAS, pursuant to Section 104 107 of the Texas Utilities Code, on March 6, 2001,
the City l.~ouncll passed Resolution No 2001-010 suspending implementation of TXU Gas's
proposed: 'ate schedule from March 23, 2001 until June 21, 2001, and
W ~IEREAS, the City Council anthonzed Denton to join the Northwest Metro M~d-Cltles
D~stnbutl, m System Coahtion of C~tias (C~t~es) and authorized the hmng of rate consultants and
an attom¢ ~, and further authonzed the r~tantlon of D~versffied Utility Consultants, Inc to assist
Denton m ~ts review of the TXU Gas's proposed rate schedule, and
W ~-IEREAS, on April 3, 2001, TXU Gas filed an updated rate filing ("Rate Filing") with
the C~taes and Denton, incorporated heroin by reference for all purposes, and
WHEREAS, TXU Gas agreed ,to extend the date for ~mplementatlon of TXU Gas's
updated n itc schedule from June 21, 2001 to July 21, 2001, and
W MEREAS, pursuant to Chapters 103 and 104 of the Texas Utlhtles Code, the Cities and
Denton ~ 'e reqmred to 0) analyze TXU Gas's Rate Filing, as updated, (n!, conduct a pub?
heanng n order to determine the propnety of the proposed rate ~ncrease (the Pubhc Heanng ),
and (n0 r xake a reasonable determmatton of TXU Gas's rate base, expenses, mvastment and rate
of return ! n Denton, and
V/HEREAS, the Pubhc Hearmg~was conducted on July 17, 2001 before the enactment of
th~s ordlr ance at winch all interested parties were gxven a full opportumty to comment on the
Rate F~I~ g, NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION 1 FINDINGS That the City Council, pursuant to ~ts exclusive original
jurisdictional authority over the rates, operations and service of TXU Gas w~thm Denton and an
the exercise of ~ts sound leg~slatlve d~scretxon, after reasonable notice and heanng, makes the
following finchngs of fact
1 1 TXU Gas filed with Denton's City Council a Statement of Intent to change residential,
commercial and mdustnal rates charged to consumers within Denton and also filed the Tariff for
Gas Service m the Northwest Metro Mid-Cities D~stnbutlon System ("Tariff for Gas Serwce')
and the supporting cost of Service Schedules ("Schedules") TXU Gas has agreed to an overall
Northwest Metro M~d-Clt~es D~stnbutlon System Rate Settlement The agreed res~dentml
customer class annual increase is $2,511,718 and the commercial customer class annual increase
of $1,034,951 throughout the System That TXU Gas has agreed that the maximum general
serwce revenues for sales of natural gas rendered to resldentml customers (w~thout the cost of
gas included) will be $2,327,483 and for commercial customers will be $902,589 (w~thout the
cost of gas included) wlttun the c~ty hunts of Denton, Texas, m annual revenue for service
charges to customers The Gas Cost Adjustment clause, Weather Normahzatlon Adjustment
Clause, Tax Adjustment Clause, Miscellaneous Service Charges Clause required by TXU Gas as
more fully set forth m Section 2 ofth~s Ordinance are found to bejust and reasonable
1 2 Denton does not have evidence of any unfair advantage by e~ther TXU Gas or its
industrial customers in Denton with regard to contract negotiations for industrial gas rates, and
therefore, m accordance with Section 104 003(b) of the Texas Utilities Code, contractual
industrial gas rates are considered to be just and reasonable
1 3 Based on the above facts, the City Council finds that rates for residential customers m
Denton, as requested by TXU Gas m its Rate Filing, are unreasonable and shall be changed as
hereafter ordered
1 4 Based on the above facts, the City Council ftnds that rates for commercial customers m
Denton, as requested by TXU Gas m its Rate Filing, are unreasonable and shall be changed as
hereafter ordered
I 5 Based on the above facts and m accordance with the mandates of Section 104 003(b) of
the Texas Utilities Code, the City Council approves rates for industrial customers in Denton
established by contract between TXU Gas and such industrial customers Therefore, Denton
declines to establish rates for ~ndustnal customers ~n the City as requested by TXU Gas ~n ~ts
Rate Filing
1 6 Based on the above facts, the C~ty Council finds that the changed rates for residential and
commercial customers determined as a result of TXU Gas and the Cities' Settlement are just
and reasonable
Page 2 of 9
SECTION 2 RATES AND CHARGES ORDERED That based on the finding of fact
set forth m Section 1 of this Ordinance and in accordance with the schedules set forth in th~s
Section 2, TXU Gas is hereby anthonzed to assess the following maximum permitted rates and
charges for customers m Denton, whmh rates and charges the C~ty Council hereby determines to
be fmr, just and reasonable on all consumption of gas on and after July 21, 2001
2 1 Re~adentml Gas Rates
The following rates are the maxmmm permitted rates and charges appheable to residential
customers per meter per month or for any part of a month for which gas service ~s available to
the same location
Customer Charge $7 00
All Consumption ~ $0 8335
If the servme period is less than twenty-eight (28) days in a given month, the customer charge
shall be $0 25 t~mes the number of days' service
2 2 C0mmereml Gas Rates
The following rates are the maximum permitted rates and charges apphcable to eommercml
customers per meter per month or for any part of a month for which gas service is available at
the same loeatmn
Customer Charge $12 00
First20Mef~ $ 1 1371perMef
Next 30 Mcf~ $ 8371 per Mcf
Over 50Mcf~ $ 6871 perMcf
If the service period is less than twenty-e~ght (28) days in a given month, the customer charge
shall be $0 4286 times the number of days' service
2 3 Gas Cost Admstment
Each monthly bill at the rates and charges set forth in Sections 2 1 and 2 2 shall be adjusted for
gas cost as follows
2 3 1 The City gate rate increase or decrease applicable to current bflhng month
residential and commercial sales shall be estimated to the nearest $0 0001 per Mcfbased
upon
(a) The C~ty gate rate estimated to be apphcable to volumes purchased dunng
the current calendar month, expressed to the nearest $0 0001 per Mcf ("Re" in the
summary below), less
Page 3 of 9
(b) The base City gate rate of $0 00 per Mef, mult~phed by
(c) A volume factor of 1 0117 detenmned in estabhsh~ng the above rates for
the d~stnbutlon system
2 3 2 Correction of the estimated adjustment determined by Section 2 3 1 shall be
included as part of the adjustment for the second following billing month The correcting
factor ("C" m the summary below) shall be expressed to the nearest $0 0001 per Mcr
based upon
(a) The corrected adjustment amount based on the actual C~ty gate rate, less
(b) The estimated adjustment amount billed under Section 2 3 l, divided by
(e) Distribution system res~dentlal and commercial sales Mef recorded on
TXU Gas's books dunng the prior year for the month that the correction ~s
maluded as part of the adjustment
In summary, the gas cost adjustment ("GCA" in the summary below) shall be determined
to the nearest $0 0001 per Mefby Section 2 3 1 plus SecUon 2 3 2 as follows
G-CA -- [(1 0117) (Re - $0 00) + C]
2 4 Weather Nonnahzatlon Adjustment
Effective w~th bills rendered dunng the October 2001 through May 2002 bflhng months, and
annually thereafter for the October through May billing months, the residential and commercial
consumption rates for gas service, as adjusted, shall be subject to a weather normalization
adjustment each bflhng cycle to reflect the ~mpact of variations in the actual heating degree days
dunng the period included in the blllang cycle from the normal level of heating degree days
dunng the period included m the billing cycle The weather normahzatlon adjustment will be
implemented on a per Mcf bas~s and will be apphcable to the heating load of each customer
dunng the period included m the bllhng cycle It will be determaned separately for residential
and commercial customers based on the heaUng degree data recorded by the DFW Airport
weather station The adjustment to be made for each bllhng cycle will be calculated a¢corrhng to
the following formula
NDD - ADD
WNA = ADD x M x AHL
Where WNA = Weather normalization adjustment
NDD = Normal heating degree days dunng the period covered by
the bflhng cycle
ADD = Actual heating degree days dunng the period covered by
the billing cycle
Page 4 of 9
M-- Weighted average margin per Mcf ~ncluded In the
commodity port,on
AHL = Actual heating load per customer
The heating load to which the weather normallzatmn adjustment ~s to be apphed for resldentml
and commercml customers ~s determined by subtracting the base load for the customer from the
total volume bmng balled to the customer The base load of a customer is the average level of
non-heating consumption
The weather normallZatmn adjustment ~s subject to a 50% hmitat~on factor based on
temperatures being fifty percent warmer or colder than normal The weather normahzatlon
adjustment will be calculated to the nearest $0 0001 per Mcf
2 5 Tax Adlustment
Each monthly ball, as adjusted above, shall be adjusted for municipal franchxse fees (street and
alley rental taxes) and the state gross receipts taxes xmposed by Sectmn 182 021 - 182 025 of the
Texas Tax Code Mumclpal franchise fees are determined by each c~ty's t~anchxse ordinance
Each monthly bill, as adjusted above shall also be adjusted by an amount eqmvalent to the
proportmnate part of any new tax, or an tax increase or decrease, or any increase or decrease of
any other governmental ~mposltxon, rental fee, or charge (except state, county, c~ty and specml
district ad valorem taxes and taxes on net income) levied, assessed or imposed subsequent to
September 30, 2001, upon or allocated to the Company's dmtnbutzon operations, by any new or
amended law, ordxnance or contract
Mumclpal franclnse fees (street and alley rental taxes) and the state gross receipts taxes ~mposed
by Sectmns 182 021 - 182 025 of the Texas Tax Code shall continue to be collected pursuant to
mdxwdual industrial contracts
2 6 Rate Case Exoanses
TXU Gas's untlal "Statement of Intent to Change Rates", filed with Denton on February 26,
2001, and the subsequent Rate Fthng, constatute a ratemakmg proceeding Pursuant to Sectxon
103 002(a) of the Texas Utd~t~es Code, the Northwest Metro M~d-Cmes Dxstnbutmn System
was auth0nzed to hxre rate case consultants and an experienced utdlty attorney and Denton was
authorized to engage Dlversffied Utthty Consultants, Inc to assist Denton m ~ts analysis of this
ratemal~ng proceeding Pursuant to Sectmn 103 022(b) of the Texas Utd~tles Code, the Crees
rate case, expenses are found to be reasonable and TXU Gas shall reimburse the Crees the
reasonable cost of servxces of the rate case consultants and utthty attorney (Geoffrey Gay) and
Denton's l rate case expenses are found to be reasonable and TXU Gas shall reimburse Denton the
addxt~onal sum of $12,500 00, which ~s the actual and reasonable cost of services rendered by
D~versfficd Utflxty Consultants, Inc on behalf of Denton dunng the course of this ratemakmg
proceeding ("Rate Case Expenses") TXU Gas shall make such reimbursement m full to the
Page 5 of 9
C~tles and Denton wlthm thirty (30) calendar days following receipt of an ~temized statement
from the Cities and Denton
TXU Gas is anthonzed to recover rate case expenses reimbursed to Denton and the C~tleS and
also may recover TXU's rate case expenses (at an amount not to exceed $85,000 for all the Cities
~ncluchng Denton) through a per MCF surcharge based upon total system sales as set forth ~n
Rader 4106 as a part of their rewsed Tariff for Gas Service to be attached and made a part ofth~s
ordinance
It is hereby ordered that if TXU Gas elects to recover, ~n whole or ~n part, the costs of this
reimbursement (including D~versffied Utlhty Consultants, Inc's rate case expenses, Denton's
portion of the Cities and TXU's rate case expenses as set forth above) through a surcharge to ~ts
customers m Denton, it shall do so through a surcharge designed for a slx (6) month nominal
recovery period The surcharge per Mcf shall be calculated by d~vldmg the Rate Case Expenses
to be recovered by one-half of the adjusted annual sales volume to residential and commermal
customers When a surcharge ~s applicable, monthly status reports wall be provided to Denton to
account for the collections TXU Gas shall refund to its customers any over collection of rate
case expenses that may occur
2 7 Miscellaneous Service Charges
2 7 1 Connection Charge (Residential & Commercml)
The following connectxon charges apply
Schedule Charge
Business Hours $35 00
After Hours $52 50
For each reconnectlon of gas service where serwce has been thscont~nued at the same
premises for any reason, for the m~tml inauguration of service, and for each ~naugurat~on
of service when the billable party has changed, with the following exceptions
(a) For a bmlder who uses gas temporarily dunng construction or for display
purposes
(b) Whenever gas service has been temporarily interrupted because of system
outage or service work done by Company, or
(c) For any reason deemed necessary for company operations
2 7 2 Read For Change Charge (Residential & Commercial)
Page 6 of 9
A read for change charge of $12 00 is made when at ~s necessary for a company employee
to read the meter at a currently served location because of a change m the billable party
2 7 3 Returned Check Charges (Residential & Commercial)
A returned cheek handlmg charge of $16 25 is made for each check returned to the
Company for any reason
2 7 4 Delinquent Notification Charge (Residential, Commercial, & Industrial)
A charge of $4 75 shall be made for each trip by a Company employee to a customer's
residence or place of busmess when there as an amount owed to the Company that ,s past
due This charge shall not be made when the trip as required for safety investigations or
when gas service has been temporarily interrupted because of system outage or service
work done by Company
2 7 5 Mare Lme Extension Rate
The charge for extending mares beyond the free limit established by Franchise for
residential, commercial, and industrial customers shall be based on the actual costs per
foot of the extansaon
2 7 6 Charge for Instalhng and Ma~ntammg and Excess Flow Valve (Residential)
A lcustomer may request the mstallat, on of an excess flow valve on a new service line or
on a serwce lme being replaced provided that the service hne wall serve a single
residence and operate continuously throughout the year at a pressure of not less than 10
pslg The customer will pay the actual costs mcurred to mstall the excess flow valve
That cost will include the costs of the excess flow valve, the labor costs required to install
the excess flow valve and other associated costs The estimated total costs to install an
excess flow valve is $50 00 This cost is based on installing the excess flow valve at the
same time a service lme ,s installed or replaced The excess flow valve will be installed
or~ the servxce lane upstream of the customer's meter and as near as practical to the mam
AIcustomer requmng maintenance, repair, or replacement of an excess flow valve will be
reqtured to pay the actual cost of locating and repamng or replacing the excess flow
valve The cost to perform flus service will normally range from $200 00 to $2,000 00,
d~penchng on the amount of work required Tlus cost will be determined on an mdlvldual
proJect basis
Th~s tariff is being filed m accordance with the U S Department of Transportation rule
r~qmnng the installation of an excess flow valve, if requested by a customer, on new or
replaced serwce lines that operate continuously throughout the year at a pressure of not
less than 10 ps~g and that service a smgle residence The rule further states that the
ctlstomer will bear all costs of mstalhng and malntalmng the excess flow valve
Page 7 of 9
2 7 7 Recovery of Connection Costs Associated with Certmn Stand-By Gas Generators
(Commercial)
Commemlal customers installing stand-by gas generators to provide service in the event
of an interruption in electric service in facilities where gas service is not otherwise
prowded will reimburse TXI. J Gas Distribution for the actual cost of acqmnng and
installing the regulator, service line, and meter reqmred to provide gas service for the
stand-by generators Gas service provided for the stand-by generators will be billed at
the applicable commercial rate
2 8 Filing of Rates TXU Gas shall file with Denton within ten days of the effective date of
this ordinance tariffs consistent with the rates authorized by this ordinance, which tariffs shall be
attached to and made a part of this ordinance for all purposes The rates established thereby shall
be those under which TXU Gas shall be authorized to render gas services and collect charges
from its customers on and after July 21, 2001 All other rate rehef requested by the Company is
hereby denied
SECTION 3 RESERVATION OF RIGHTS In order to ensure that rates and charges
assessed by TXU Gas in Denton are just and reasonable to both TXU Gas and 1ts customers,
Denton reserves the right and pnwlege at any tune to increase, decrease, alter change or amend
this Orthnance or the rates established hereto or to enact any ordinance or adopt any rates and
charges wi'ach would effectuate that purpose In this connection, Denton further reserves the
right and privilege to exercise any authority and power granted to it under any applicable law,
ordinance or administrative rule or regulation
SECTION 4 REHEARING BY CITY COUNCIL If TXU Gas disputes all or any
portion of tlus Orchnance, prior to filing an appeal with the Railroad Commission of Texas, TXU
Gas shall' file with the City Secretary a request for reheanng on the merits by the City Council
and shall comply with the procedures established for such a reheanng as set forth tin this Section
4 Upon receipt of a request for reheanng, the City Conncll will promptly provide a forum
dunng a public heanng on an open meeting in order for TXU Gas to set forth the aspects of this
Ordinance which TXU disputes The City Council shall have sixty (60) calendar days following
the date of such rehearing to render a final decision Action of the City Council shall not be
considered final for purposes of appeal to the Rmlroad Commission of Texas until a final
declmon on nay motion for rehearing has been rendered The provisions of this Ordinance shall
remain in full force and effect from and after its adoption unless modified by a subsequent
ordinance adopted by the City Council as a result of a final decision following a reheanng
SECTION 5 SEVERABILITY If any port~on, section or part of a section of this
Ordinance is subsequently declared invalid, inoperative or void for any reason by a court of
competent jurisdiction, the remaining portions, sections or parts of sections of this ordinance
shall be and remain m full force and effect and shall not in any way be impaired or affected by
such decision, opnnon or judgment
Page 8 of 9
SECTION 6 REPEALER That all conflmting sentences, clauses, paragraphs and
sections o~' Ordinance No 99-059 passed and approved by the City Council on February 23,
1999, and any other conflmtmg ordinances and resolutions are hereby repealed to the extent of
that conflmt
SECTION 7 Unless otherwise noted herein, other than TXU Gas (a named party), no
person or entity has been admitted as a party to tins rate proceeding
SECTION 8 It as hereby found and determined that the meeting at which this ordinance
was passed was open to the pubhc, as required by Texas law, and that advance public notme of
the time, place and purpose of the meeting was given
SECTION 9 EFFECTIVE DATE This ordinance shall take effect and be in full force
and effect from and after the date of its adoption The City Secretary is hereby directed to
deliver a certified copy of this Ordinance to TXU Gas by sending the ordinance by U S Mad to
the Company's anthonzed representative, Autrey Warren, Regulatory Financial Manager, TXU
Business Services, 1601 Bryan Street, Dallas, Texas 75201-3411
PASSED AND APPROVED thls the /7~ dayof ~(~.(,~ ,2001
RONI BEASLE~, ~VI'AYO(R PRO TEM
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
Page 9 of 9
O TXU
TXU Electric & Gas Steve Taylor
100 Wes! Mulberry Street Area Manager
Denton TX 76201
TeJ 940 320 6501
Fe× 94o 32o65o3 August 2, 2001
Honorable Mayor Euhne Brock
City of Denton
215 East McKmney St
Denton, Texas 76201
Re TXU Gas D~smbution - Tariff for Gas Servtce ~n the Northwest Metro/Mid-
C~tles D~stnbut~on System -
Dear Mayor Brock
Enclosed please find the compliance tariffs recently approved for ~mplementation ~n the
City of Denton
Sincerely,
Steve Taylor
Area Manager
Enclosures
Receipt Ackno~f/d, ged by
Name /
Date
TXU
TARIFF FOR GAS SERVICE
IN THE
NORTHWEST METRO/MID CITIES
DISTRIBUTION SYSTEM
TXU GAS DISTRIBUTION
Tariff for Gas Berries TXU Gas Distribution
RATE I~CHEDULE: Index of Rates & List of Cities I No 4100
APPLICABLE TO NW Metro/Mid Cities DIstrlbuiton REVISION 0
System DATE 07120101
EFFECTIVE DATE: 07126101 PAGE I of 2
4100 Inriex of Rates end List of NW Metro/Mid Cities Distribution System Cities
4101 Residential Sewlce
4102 Commerolal Service
4104 Industrial Transportation
4109 Commercial Service - Csrrollton
41t0 Commercial Servlus - Farmers Branch
4121-4123 Industrial Sales
4t3t Industrial 8ales and Transportation
RATE ADJUSTMENT PROVISIONS'
4108-4 Oas Coat Adjustment
4108.6 Tax & Frsnchlee Fee Adjustment
4108-6 Weather Normalization Adjustment
MISCELLANEOUS SERVICE CHARGES'
0001 Con. action Charge
9002 Reed for Change Charge
9003 Returned Check Charges
9004 Delinquent Notification Charge
9006 Main Une Extension Rate
9006 Ext.,ess Flow Valve Charge
900? Certain 8tend.by Gas Generators
4116 8uraherga Rider
Tariff for Gee Service TXU Gas Distribution
RATE ~CHEDULE' Index of Rates & List of Cities Ho 4100
APPLICABLE TO NW Metro/Mid Cities Distribution REVISION 0
System DATE 07120/01
EFFEC'rlVE DATE: 07120/01 PACE 2 OF 2
LIST OF NW METRO/MID CITIES DISTRIBUTION SYSTEM CITIES.
Addison, Texas
Argyle, Texas
Arlington, Texas
Aubrey, Texas
Bedford, ,Texas
Carrollton, Texas
Colleyville, Texas
Coppell, Texas
Copper Canyon, Texas
Cross Roads, Texas
Dalworthlngfon Gardens, Texas
Denton, Texas
Double Oak, Texas
Eulass, Texas
Farmers iBranch, Texas
Flower Mound, Texas
Grapevine, Texas
Hickory Creek, Texas
Highland Village, Texas
Hurst, Texas
Irving, Taxes
Justin, Texas
Keller, Texas
Krum, Texas
Lake Dallas, Texas
Lewlsvill~. Texas
Mansfield. Texas
Marshall~ Creek, Texas
Northlaka, Texas
Pantego~ Texas
Pilot Point, Texas
Ponder, Texas
Roanoke, Texas
Sanger, ,Texas
Shady Shores, Texas
Southlal<e, Texas
Trophy Club. Texas
Westlske, Texas
Tariff for Gsa 8ervlse TXU Gas Distribution
RATE SCHEDULE. ReMdentlsl 8ervloe I No 4101
APPLICABLE TO NW Metro/Mid Cities Distribution REVISION 0
System DATE 07120101
EFFEC~'IVE DATE 07/20/01 PAGE 1 OF 1
RESIDENTIAL SERVICE
Monthly ,Rate
Subject to applicable adjustments, the following rates are the maximum applicable to residential
consumers per meter per month or for any part of a month for which gas service is available at the same
location
Customer Charge $ 7 0000
All Consumption (~ 0 8335 Per Mcr
If the service period ~s less than 28 days in a month the customer charge Is $0 25 times the number of
days service If the consumption contains a portion of an Mcf, a prorata port,on of the per Mcf charge will
be made
Bills am due and payable when rendered and must be paid within fifteen days from monthly billing date
APPLICABLE RATE SCHEDULES/RIDERS
Rate Adjustment Provisions
4108-4 Gas Cost Adjustment
4108-5 Tax & Franohise Fee Adjustment
4108-6 Weather Nermalizabon Adjustment
Mteoelleneou~/Serviem Charles
9001 Connection Charge
9002 Read for Change Chsrge
9003 Returned Check Charges
9004 Delinquent Notification Charge
9005 Main Line Extension Rate
9006 Excess Flow Valve Charge
8umhsrgse
4116 Surcharge Rider
Tariff for Gee Service TXU Gas Distribution
RATE ~CHEDULE. Commercial Service No 4102
APPLICABLE TO NW Metro/Mid Cities Distribution REVISION 0
System* DATE 0712010t
EFFECTIVE DATE 07120/01 PAGE t OF 1
(~OMMERCIAL SERVICE
Monthly Rate
Customer Charge $ 12 0000
First 20 Mcr Q 1 1371 Per Mcf
Next 30 Mci' Q 0 8371 Per Mcf
Over 50 Mcr ~ 0 6871 Per Mcf
If the service period is less than 28 days ;n a month the customer charge is $ 4286 times the number of
days service if the consumpben contelns a porbon of an Mcf, a prorate port~on of the per Mcf charge will
be made
B~lls ere due and payable when rendered and must be pa~d w~th~n fifteen days from monthly b~lhng date
APPLICABLE RATE SCHEDULES/RIDERS
Rate AdJuetment Provtelone'
4108-4 Gas Ccet Adjustmer~t
4108-5 Tax & Franchise Fee Adjustment
4108-5 Weather Normalization Adjustment
Mlecellaneoue/$ervlce Chargee
9001 Connection Charge
9002 Read for Change Charge
9003 Relumed Check Charges
9004 Delinquent Notification Charge
9005 Main Line Extension Rate
9006 Excess Flow VaNe Charge
9007 Certain Stand-By Gas Generators
8umhargee
4116 Sumherge Rider
* Not Applicable in Carrollton and Farmers Branch See Rate Schedule Nos 4109 & 4110
Tariff for Gan Service TXU Gas Distribution
RATE ~CHEDULE. Induatrtal Transportation No 4104
APPLICABLE TO' NW MetrolMId Cltlee Distribution REVISION 0
8yetern DATE 07120/01
EFFECTIVE DATE: 07/20/01 PAGE I OF 1
INDUSTRIAL TRANSPORTATION
Monthly Rate~
The maximum fee for industrial transportation service on the NW Metro/Mid Cities Distribution System
is $1 255t per MMBTU delivered plus applicable taxes exclusive of the backup fee
The above transportation fees include both the fees Incurred to move the gas from the receipt point on
the tranam~smon system to the city gate and the fee incurred to move the gas from the city gate to the
custOmer's facility
If the fees for transportation service on the transmission system change, the revised fees wdl be included
in the overall transportation rate charged to customers
100% of the ~ncrease in transportation fees Incunad to move the gas from the c~ty gate to the customer's
facility ia fo acorue to the benefit of TXU Gas Distribution
Rate Schedule No 4104 ~s closed fo new customers aa of the effective date of this tariff Currant
cuatemera taking service pursuant to this tariff will no tonger be eligible for this service upon contract
termination Current customers may convert their existing contract to new Rate Schedule No 4131
When the final contract subject to Rate Schedule No 4104 expires or ~s terminated, Rate Schedule No
4104 will be cancelled
APPLICAR£~: RATE SCHEDULES/RIDERS
Rata AdJuntment Provlalona
4108-5 Tax & Franchise Fee Adjustment
8umhargea
4116 Surcheq]e Rider
Tariff for Gas 8arvlea TXU Gas Distribution
RATE ~CHEDULE: Commercial Service - Carrollton No 4109
APPLICABLE TO Carrollton REVIEION 0
DATE' 07/20101
EFFECTIVE DATE' 07/2010t PAGE' 1 OF 1
COMMI;RCIAL SERVICE - CARROLLTON
Monthly~Rete'
Customer Charge $ 12 0000
F~mt 20 Mcf ~ 1 1552 Per Mcf
Next 30 Mcr ~ 0 8552 Per Mcr
Over 50 Mcf ~ 0 7052 Per Mcf
If the service period ia Iaaa than 28 days in a month the customer charge ~s $ 4286 hmea the number of
day,=service if the ~onsumpflon contains a portion of an Mcf, a prorata portton of the per Mcr charge will
be made
Bills are due and payable when rendered and must be paid w~th~n filteen days from monffily bdhng date
APPLICAr~LI; RATE SCHEDULES/RIDERS
Rate Adjustment Provielona'
4108-4 Gas Cost Adjustment
4108-5 Tax & Franchise Fee Adjuatment
4108-6 Weather Normalization Adjustment
Mieceltanec, ue/Bewloe Charge~'
9001 Connection Charge
9002 Read for Change Charge
9003 Returned Check Charges
9004 Delinquent Notification Charge
9005 Main Line Extension Rate
9005 Excess Flow Valve Charge
9007 Certain Stand-By Gaa Generators
8urehargae
4116 Surcharge Rider
Tariff for {lee 8ervlae TXU Gee Distribution
RATE SCHEDULE Commercial Service - Farmers Branch No 4110
APPLICABLE TO' Farmers Brsn=h REVIglON 0
DATE' 0712010t
EFFECTIVE DATE, 07/20101 PAGE 1 OF 1
COMMI;RCIAL SERVICE - FARMERS BRANCH
Monthly Rate'
Customer Charge $ 12 0000
First 20 Mcr ~ I 1393 Per MOf
Next 30 Mae @ 0 8393 Per Mcf
Over 50 Mcf ~ 0 6893 Per Mcr
If the servl=e period ~s less then 28 days m · month the customer charge ~s $ 4285 times the number of
days service lethe consumption contains a portion of an Mcr, a prorate portion of the per Mcf charge will
be m~de
Bills ~re due end payeble when rendered end must be pe~d within flftaen deys from monthly billing data
APPLICABLE RATE SCHEDULES/RIDERS
Rate Adjustment Provisions
4108-4 Gee Cost Adjustment
4108-5 Tax & Franchise Fee Adjustment
4108-6 Weather Normalization Adjustment
Mlseelleneou-qBewles Charges
9001 Conflecbon Charge
9002 Read for Change Charge
9003 Returned Che~k Charges
9004 Delinquent Notlflr, ahon Charge
9005 Main Line Extension Rate
9008 Excess Flow Valve Charge
9007 Certain Stand-By Gas Generators
8urchergse'
4116 Sumharge R~der
Tariff for Gas 8arvloa TXU Gas Distribution
RATE SCHEDULE Industrial Sales No 4121.4123
APPLI(}ABLE TO: NW MatrolMId Cities Distribution REVI81ON 0
System DATE' 07120101
EFFECTIVE DATE, 07120101 PAGE I OF t
Monthly Rate~.
Industrial Rates-N m hereby amended and revised as follows
Subject to Company's limitations on the availabd~ty of each rate, Customer shall receive service under ~ts
cholOe of one of the following rates m accordance w~th the rate selected by Customer as prowded ~n the
contract
RATE 4121
All over 125 Mcf ~ $ 1 864 per Mol
RATE 4~22
Ail over 600 Mcf ~ $ 1 718 per Mcf
RATE 4123
Flret 1,2 0 M~f or les $ 2,062 78
All over I 1,250 Mcf ~I $ 1 658 per Mcf
In all other reepec~ta, Industnal Rates-N shell remain in effect as filed w~th the C~fles tn the NW Metro/Mid
Cltlea Distribution System 100% of the increase in ~ndustrial margin ~s to accrue to the benefit of TXU
Gas Distribution
Industrial Rate N ~8 closed to new customers as of the effective date of this tariff Current customers
teking service pursuant to this tariff wdl no longer be ehg~ble for this service upon contract termination
Current ouetomere may convert their existing contract to new Rate Schedule No 4131 When the final
ccntre~ subject to Industrial Rate N expires or is terminated, Industrial Rate N schedule will be cancelled
APPLICABLE RATE SCHEDULES/RIDERS:
Rate AdJtmtmnnt Provisions
4105-5 Tax & Franchise Fee Adjustment
Surchargee:
411e 8umharge Rider
Tariff for Ges 8ervtoe TXU Gee Distribution
RATE qCHEDULE' Industrial Sales & Trana~)ortetton No 4131
APPLICABLE TO NW Metro/Mid Cities Distribution REVISION 0
gystem DATE' 07;20/0t
EFFECTIVE DATE. 07/2010t PAGE I OF t
INDUSTRIAL SALES AND TRANSPORTATION
MonthlylRate~
Customer Chorge (Minimum Bill) $200 00 per meter
Btu tranaported per month RatelMMBtu
First 600 MMBtu $0 5476
Next 6~0 MMBtu $0 4051
Next 48,750 MMBtu $0 3466
Over 50,000 MMBtu $0 2647
Avellablllty
These rates era ovailable to gas customers who elect to take service under the terms and conditions of
this Optional Industrial Ges Sales or Gas Transportation Contract end all schedules applicable to the service
selected, attached os Optional Industrial Gas Bales or Gas Transportation Contract and Schedules A, B, C,
and D
Adjustment for Ge-, Coat
Eaoh industrial sales customer's monthly b~ll shall be adjusted for gas cost as follows
The city gate rate referenced in Rate Schedule 4108-.4 less all approved charges in excess of the
commodity cost of gas, es adjusted from time to t;me
APPLICABLE RATE SCHEDULES:
Rote Adjustment Provisions
4108-4 Gas Cost Adjustment
4108-5 Tax & Franchise Fee Adjustment
Surchorges
4116 Suroharge Rider
I ~I~ONAL INDUSTRIAL GAS S~Lg-q OR GAS TRANSPORTATION CONTRACT
L~-M~/~ (For Cer~n lnd~tr~l Cu~tomer~ $~wd ln~d~ a Chy Through D~tr~but~on System Only)
~ "(~stomer:" TXU Gas Distribution, fa division of
s~s~ ~OT~CaS TO TXU Gas Company, "TXUGD:"
A~td~'ees SEND NOTICHS TO
301 S Hat~ Street, Suite 4~0 South
Attmliou Dalles, Texas 75201
Fax eMall. Aim ~ontmet Administration
SRND INVOICIBS TO Fax (214) 87~.3584
AAdreas eMail
i SBND PAYMI~ITS TO
Attention I eMaiI. P O Box 9102~5
Dallas, Tex~ 7'~391
8BRVI(~ OI~ON, l~r the tint Con, act Year O~mmm' may choose, subject to TXUOD's a~asmant,
sm~ine
with
plant
protection supply sm~tou or ffouspottetinn sorviou with Or without plant IxoteetJon supply asia'ion, and the quantities of ~ts to be pu~cbesed or
~esls~d canb .levant period,, set out in th* Selmlou of sorvlon I~m a~bed h~to as Scbednie "**%~'.s~bJ~ ~the te~m~ ~
bea'etn Ranb ~,-**! ~d,,~i,m of Sorvlou Form Mroud upon by Customm* and TXUGD will b~onme part o! tnls ~
on ~ first daylof the mmtth al'tm' Initini deliveries of~lm to ~latome~ arc mmmungd thron~h TXUOD'S memurement thc~flties and will e~d at
900AM coul[ni cine. k ltnm ou the same moutit and day ouo yem' thm'gaf~or, or at 9'00 A.M coumd clock time on the dayof
i ,20 , whtchevor Is intor ]~,tch Couttac¢ yesr niler tbs first Con!rant Yesr will onnsist of twnive (12)
blllJnS *v~_~!l~,,L
SALI~q SBRV~(~ RATi3. Cuatome~ will pay TXUOD for the voluM of fas pul*ch~ and received by Custom and sold and dniiveted by
'rXUOD -, th*lDellvery Point et ~ lato~ off, lye Sebedule of O~anni ~.dastfl.1 Rates for S" ,"'es se~ico .mb!l?~,..for. ~ c~.i. which,
tho Delivery P~int ia located as they may be chonBed from time ro time. In addlilou Customer will pay TXUCID the Moumiy Me~r ~.nm'go ono
tax mjmh,,*,.,.-4--~* as fi~h,*fl ~n ~"b"~*le "B '
TRANsPORTaTioN SHRV1CB RArE Customer wilt pay TXUGD for ~as delivered at the I~tvery Pmnt cech I~lllnB ,,,,-,;,% at the latest
effective Schedule of Optiouni ImiastflM Rates for ps transpoflmion se~ou established for the city in which the Dniive~ Point ia located as
they may be .clmnsed from time to time In addMou Customer will pay TXUOD the Monthly Meter ~, eotoutJo~ of n p~ronntaSe of the
~res reenived f~ M ,t~fl,~, as dasc~bed below, and Mx rnimbu.~m,~* as described in S~h~d.le 'B ~ ..
PLANT PR_ _O'I~'"TI. ON SUPPLY RATE Castom~ will pny TXUOD for !be Plant Protection Supply Volume of ~as et tho in!as! m~uw
Scbedute of G tioanl [ndustfln~ Rates for ps sales sm'~lce established for the city in which tho Dell'~rYP°lnt is !~-~''4 as th°y nmy be
P'~".'~ from ! mo to tim0, whetbe~ ~-,~--,~--.-* takes sudl wl.rr~ ofl~es Or not
MoN'rHLY PI .ANT PR~ON SUPPLY CHAROn. Cnstomm' wili pay TXUOD for Plant Protection Sul2ply Se~,Jce a monthly
cnicuinted by n oltiplylnn tho Plant Protoc4ton Supply Vniunm times the numbe~ of days in tho billing month times the diffetm~e between the
masstn in tho tint block of the Commeschd RMe and tho mars4n in tho first block of the Optional Inc~ustflal Rate for ps snle~ sesvlou
--*-t,'.hed for IIm nit}'tn wMoh tho DeHve~ Pnint is !_n~!~ es such dl~,~ ma}' ehnn? f~om limo to time.
RETENTION ~I'XUOD nmy rein a pereentqo of dm Sas reenived for transport (~,0 "Retention Volume") and wtil take title, to. meh vo. lu .me.
of ps es a pan[of tho Transpo~affon Service Rate Suoh percoutaSe wili be TXUOD s nmst roumtly established Oumpanywine otstrJbutlon tom
mid uoncouunt~d for ps p~*eantase calculated as provided in 16 TAC Sec#an 7 $2(3)(B) ~mng all TXUOD chsmbmiou systems as one
MONTHLY lVm-sl~3. CHARGE, Oanorrgr will pay TXUOD $200 00 per meter pcr month as s pm of the Soles Se~4ce Ram and
~POI~4T(S) The Re~edpt Pnint for ps mmopomdon as~ine will be et tbe Raneip~PotntasdeflnedinparaS~aphSoFScheduloD.
for the City of, . Texas. located at nna
at an~, active ei}, ~ on ~udl distrlhmion i~,Mem heveaflm- mutanll~, a[irced to in wntin~ b~ TXUOD and Customer
DELIVERY P~ tINT' Tho Dnilvery Point for ~ta sold m' transposed will be inside the City of
on TXU(]D's ¢ latribofloa 6y~tont do~nlstfeam from tim above nity ~ at the point of lntm'onnnanllon betw~n TXUClD'a nleasuromont
fanlittlas and C tstomet's innilitaas et Customer's Facility located at
COST OF NEW FAC. H~FII~ Customer will pay TXUGD $
for any l~uimd new or additional fanltilias prior to onmmoncemani of an}' service undes this Couttaet
~ TXU Giro Distribution, a division of
[Cuatmr~'s Comply Name] TXU Oas Company
By, By
S~natote
Ti*lo
Signature Paso
REVIST. ON: 5/25/01 ATTACI-R*IENT TO RATE SCHEDULE 4131
SCHEDULE "A" TO
OPTIONAL INDUSTRIAL aA~ SALE,q OR GAS TRANSPORTATION CONTRACT
Selec~on of Service Form
I Custon~r. gives nollc~ to TXU Oas Distribution ("TXUOD") that Custom~, dunnn the ConUnet Year be~nnlng at 9 00 A M
central cl~k time on tl~__ day of~, 20_, nnd endthg at 9 00A.M cenmd nlock time on the_ duyof ,
20__, under the_tram of that ~aln Opll.o_ ,~ lndustflnl Oas Snlus or .Gan.~Tn~s~.. ~.~n ..Co~n.~u'~. dated the _ day of ,
20_, be~v,q~an ~.'uaton~' end TXUOD (the 'Con~t"}, eluc~ to re~ t~a uw~, ~ws~t
[ ] ~dsuSerdeewithomPlantProtaniionSupi~ysur~ee. Cu~on~ragteestoporcimse, n~:e~veandpayfor.gasdu~.ngthe
Contra~t Year In m~dan~e with TXUOD'a latest effe~vu Suhedule of Up,anal Imlus~al Rates for gas sases servtoe m
tim city in which the DMIvery Pcint Is lo. Red (which schedule I.s lneo~_ r .~ by..rof ,~n~e.and ~ apan. he~e~,~.f), .
t0gathes with nil addillon,d fees, charges and ~ providad for m this ~zontrant ltavmg anteutan sases as~vwe w~mout prom
pro~on supply sorvlee, Customer a~rees that the ~u auld and the r~m:l ~ sales as~vi~e provided under ~t~t~a~tf~
this C.~lm:t will bo subjeot to thu priority of sundae for ~m~ilnm~t provided in thu Schedule of Optional ludu __
and that TXUOD will have no duty or obllll~on to providu plant pro2~on supply SaS or standby gas supply for O~stomer
[ ] 8alan Sun, lan with l~lant l~toeflon Surely ~rvice. Custom~ agrees to pumhme receive and pay for nas during the
Comrnet Yeas in ~mdanoe with TXUOD'a latest effesllve Suhedulu of Ol~onnl Indest~l Rates for gas sales servlon ir,
the city in which lbo Dell.?7~Pcint is lo.tod (which. schedule_is m .~. _~.by_~f .~an.~. and ma~_u Pm..h~mo0., to pay
the Monthly Plant Pestesflon ~uppl~ Charge, to pay me Plant Pro~e~on ~.Ul~.]y 1~ mr me Plant l~oteetton ~uppty...
Volume and to pay all ~ ndthtionas related 6tan, char. gas and costs provided for in this Contract. Customer n~gre~, mat.mu
ips acid end the minted gas sules servian p~_ vldad under the team of this Conunct will bo subJeot to thu priority or
lot aunnllmant provided in the Schednlu of Optional Industrial Rates, except that Plant P~otoedon Supply Voinn~ mix oe
subject to annatlmant only for ~asons of force maJem~
[ ] Tronqmtmflonsut~ieewithontlqantProtoeflonSup~yServlee, Custo,_m~,.~ee~s. to ?e_tv.e and. pay. f~or.~u.
mmspartatlun m'~tan during the Cuntmot Year In n~aman~e with TXUOD s tme~ en~uve ~anontuu o! o~, o,nm
lmius~nl Rates for gas Iraoepoflaflon sorvlue in the ~ in wluch the l~llvev7 Point is located (which scoeamu
lm~pommd by mferanc~ and nmdu a past hemo0, and to pay all additional fees, cherts, tax ~mbursemant ann
[ ] TruanportatlonsurvicewlthPlantProteellonSupplysufl4ce* Customeragreestoreceiveandp. a. yforgasmmspo, flation
m~luo during the ConU~ct Year Jn a~ordunce withTXUGD's later effantive Schedulu of Optional ludus~al Rates ~or.ges
trmupom~on ravine in the c~ty in which the DeltvnT Point is I_,~_ _t_~ (wbinh schedule is incorporated b~ reference eno the
mab a puff hereof), to pay all additional, fee~ char~s, tax mimbummeot and costs provided for in this (~ontrant,~o~
Monthly Phmt protantion Supply Cbor~, to pay tho plunt protantion Sup. p. ly..P~,te, for the Plant ~tton Supply
and to pay ali ednlttonal fesu, chasgaa, lox retmouranmant and c(~s provmon for in this Contract Customer a~ans mat me
Pleat Protection Supply Volumes wilt be subject to c~allmant for reasons of fume ranjeum.
'~ ~ undemigaed Costumes does hereby propose, subject to tho asreemant of TXUOD exprcned by its execution of this Seinc~on
of Service Ponn, ~he followtn~ contract
Minimum MontNy Quantity (MInMQ) = 125 dm~rms.
Minimum Annual Quantity [Per Conum:t Y~] (MAQ} = doealherms,
Maximum Dally Quantity (MI)Q) = da~ti~,i~,
Maximum Hourly Quantity (MHQ) ~ decathenm, and
Plant Pmtec-flon Supply Volume ~ decatherms per day
3 Custom~ undetalandu, an~nowiedgas and agrees that TXUGD cannot and does not gaarantoe a ~onstant dahvezy of sales gas
under this Comrne~
4 Thu ~ Quti~nl Industrial Ram for gas ~nlan sendoe is $0~=._ f___ ¢) per dacatherm for lbo tint 600 ~_~___~_ ~, $0
f ~) lm __,Je,~_ _~m for the next 650 danathenm, $0 (___ f) per danathenn for th~ next ~8,750 d~nthorms, $0.
¢) p~r ~ for gm ~ramponed In ez, c~ss of ~0,000 danatbonm, plus adjusted gas costs es dasc~tbed therein, plus tho charge to
5 The pr~sant Optionnl Industrial Rate for mmsponatton surwce is $0 ( ¢) per dacathenn for tho first 600 dacnth~ms,
$0 ( ¢) por daanthesm for the next 6S0 daanthenm, $0 (~ ¢) pet dacatherm for the oext 48,7S0 dacatherms,
$0, (_.__ ~) por dueathenn for nas tmesl~ned In excess of 50,000 daeathenm
6 The preanot dlfferonce botwann thu margin in tho flrat bluch of the Conune~isl Rate and the margin In the first block of the
Indus~al I~ used in the cnlanlallon of the Monthly Plant Proteotian Supply C~arga as such th ffesanan may change from time to
time The present dlff-~an In such margtm is
i
? RBT~NTION TXUOD may retain n pc~osnmse of thc gas received for transport (the "Retention Volume") and will toke title to
such volume of gms a~ a part of the Transpol~atlon Se~ice Rate Such perc~ will be TXUGD's most ~nfly astabhshed
companywidu distribution lost Ired mmacuuoted for gas pmmmmge calculated as i~ovlded in 16 TAC Section 7 520)(!{) tzeatin{ all
TXUOD dis~ibution syatonm as One system Tbu presantly asmblished pescontaSe is
8 if Customer einct~ transpo~on me~vton h~, Customer aStues (a) that TXU(]D's nmcetpt and delivery of transport
under the te~ma and pmvisiom of this ~oatntct is subject to limitation, inteffuption or discontinuation and TXUOD ~11 never be
linblc in dameSas or otherwise on accoum of huvin8 an inl~'n~pted or disc~ltinucd much um~olpts or deliveries of {as, (b) t.o assume
any and all ri{ks, tanluthn{, but not lirmted to, lost p~oiits, d~mmsed o~ destroyed fa~'ht~as, lost or damasud production, danmsed or
deat~oyed ~nachine~y and/or equipment, and the falinm of Customm*m faclhty and/or business due to an intmTuption or discontinuance
of Customm*'m t~mspo~ Sas suppty or of the tran~pol~atlon of such Bas under this Cant~acl, and (c) to indemnify and hold
harmless fl~om and a{ainst any and mit dmz, costs, losses and expenses (includin~ sanso~mble attorneys' fees) that may be
sumta~ bY TXUOD du~ to any ~aim, dmmnd, suit or action brouSht asatnst TXUOD (whether or not th~ claim, demand, suit or
acfton is f~ului to be valid) by any perann or antity eriaing out of, resullin{ from or cuanected, In whole or to pm't, vdth an
i n~uptlmt or discontinuation of tho supply of transport Sas or me U~msportmion of such Sas
9 TXU(]D' s latast ~*fan~l~ 9t'.tmdo]m of Opt{olut{ {t~lu~ll~al lltmtan to thc city in which the l)eltvem~Y Point is locuted, mcindiogthc
antis of tim ai~ pa{e, ~ulm't&,** {~{~ {'B*' mid I~hmlulu ~'~" for {as sales se~cu, and {he M~tatore pa~e,
Subedul~ #&," S,~m~htlm #B'* ami Selmduie "fY' for Sas Uanslx~taUon serv~cu, are hon~y inco~ed by fore,once and n~de a
part of this ~on~'act
TXU Gas Disidlm{ion, it dlvimon of
[C~!_,~,~_ s Cm~umy Nm] TXU Oas Company
By By
Pdn~d Nam~ Pdn2d Nmnu
*** END OF SCHEDULE "A" ***
SCI~DULE "B" TO
OPTIONAL INDUSTRIAL GAS K~f.~-q OR GAS TRANSPORTATION CONTRACT
GENERAL TERMS AND CONDITIONS APPLICABLE TO BOTH SALES SERVICE
AND TRANSPORTATION SERVICE
I ouaimcat~ou
(a) In order to qtmi~fy as a C'~ustome4* and receive service under this Con,'act a customer must (i) be served f~m a
connactlon to a TxuroD dismbutlon system downstrcem from a city gate and tnstda tim boundaries of a city, (it) be
served without ex~ding tho capacity of TX/.JOD's existmg fucdllms, and (111) qumllf~ to receive service ns tm
mdustr~ customer aider TXLIt3D's Rata Schedule No 200 xssued m April of 1999, however, such customer may
not be an oluctrio genarimou customer, and must consume at least 1500 decatborms as an annual average instead of
not lose*than 19~ mol per month of its Coatract Ysar
(b) A mlatomar, othar fium a rasidenflal contemns, that Is otharwzse qushfind, but does not beve a mimmum ges
usage of 1~00 dacatberm{ as an annual average, may choose commeseial class gas sales service
(c) Set, vice under this Contract will not be available to a customar that has tmothar existmg ges salas or
Iratmpot~tflon conf..ct or agrt~meat relatad to thom facilities dascnbod on the signature page of this Contract for
gas serwco from TXLIGD*s dismbution facilities Natural gas transportation or sales service under tins Contract
will only be available to such customers upon tho termination of such other con,acts
(d) Customar must have entered a v,,rtttan a~reomtmt ruth TXUOD in tho form of the Contract that is a pm of the
npprovod tsrtff applleable hereto
(e) CuStomer moat bevo salectad one of tho sarvme options ced other venable terms tad provisloce that me
agreeable to TXUOD, as pl~vtdnd on tho signature page of this Contract and on the Selucuon of Service From,
which tS Inoludod as Schedule "A ' Such u mgnature page and such Selection of Service Form will, when a~reod to
by TXUOD, become a part of this Contract and incorporated herein
(f) This Conic-act* Inolodiltg all applleable Sobodtdes and tariffs, censtitutes the entire contract between Customer
and TX'O'OD v~th resp~ot to Customer's fucllillu$ described on the al~ature page for the purposes hesem
designated
(g) Service under this Contract will only bo available wbore Optional Indusuml Rates are m effect
(a) "~l~omont*' or "mutual a~ment" as tlsad Jn this Coat,'act in regard to an a$~ment of tho partlas on a
vartabltt term or provision of tho Contract, at inception or in tho future, moan an agreement that will not bo
umma~tbly withhald by aithor party, however, the a~rement of TXUOD will necessarily bo dependent upon the
reluvtmt distrlSution aystem operating conditions, which TXUOD will not be required to change, and TXUOD will
not be required to chan~ tim capacity Of its systam or add new facilities
(b) "Bilimg month'* means that period of time bogtnnmg at 9 00 A IV~ ccetml clock time on the fi~st calendar day
of u us]el~tr month alKI unclog at 9 00 A M con,l'al clock Uae, on the first calendar day of tho followmg calendar
month for which TXI./O~) subrmts a statament to Customer for the services, fees, tax rmmbursemtmt, costs, charges
and compeasauon dna to TXUOl) under the provisions of this Contx~acL
(C) "C~oatract¥cer"metmstimperlodofttmebo$inomgatg00A.M ceatz~lctocktimaontbofirstdayofthe
month ul%or initial deliveries of Sas to Customar are moamwed through TXUOD's measurement facllmas and ceding
at 9 00 A M coutrai olock time on the same day and month one (1) year thereafter, or as otherwise set forth on the
signature page of this Contract
(d) "E)ay"mcetlgthopartocloft~mebegmmngatg00Ai[v~ cenWal clock time on one calendar duy and eudma at
9 00 A M central aiock Uae on tho following calendar day
(e) ~l~acatberm" has tho meanmll sat forth tn para~zph 8(a) of tlus Schedule 'B"
(f) *Delivery Point~ has the meaning set forth on tho si~tmtore page of th~s Contract
(8) 'Oas' means nazural gas produced f~om ps wells, vaporized natural gas hqmds, gas produced tn asanotoUon
with od (cemnshead ps) and/or the resulce sas rusul~ns from procenmg cesm~ gas nd/or gas well gas
(h) "Hour" means a s~xty-rmnuto period of time "Hourly" wall men Mthm an hour or over the period of an hour,
as may be apln~priato tn tho context
(I) "Incorporated kerom by ~foronce," "mad~ a pan of gus Contract" and other wo~ds to the sn',c effect mcan
incorporated within and made a pan of this Contract.
(j) "Mar~n" means the per unit charge in the first step or block of TXUOD's effacuve Commercial Rate for gas
sulas or in the fl~t stop or block of TXUOD'a Optional ludmu~al Rate for ps sales, exclusive of any gas cos~s
(k) "Manunum Dally (l~uautity' has the mcening sat forth m the effecuve Sclecti°n °f Sarwce F°rm'
(l) 'Mol' has the meamn$ set forth in paragraph 8(f) of this Schedule '*B '
(m) "Month" moans the period of nme besinning at 9 00 A M canmd clock ume on tho first day of a calendar
month and eodm$ ol 9 00 A M central clock Ume off the fi~t day of the succeeding calendar month
(n) "Monthly Plant Protection Supply Chs~e" has tho meaning set forth on the stgantere page of this Contract
(o) "Plant Pro~ciion Supply Volumes" means the qnanlity of Sas agreed upon In the applicable Selection of
Service Norm
(p) 'Plant Prot~uon Supply Rate' Im the meaning set forth on the signature pa~e of thts Contract
(q) 'Retention Volume" has tim meaning set forth on file signature pa/c of this Conlracl.
(r) "Taxes" has the meaning set forth in paragraph I l (b) of tins Schedule 'B"
(s) "Variable terms and pmvimous" means those terms and provtslons of tlus Contract upend upon by TXUGD
and an indivtduul Customer, nmi may be uulquo to flint Customer. m order to complete tho blnks in the form of the
stinatere pnga or a Selection of Sm'vice Piton, attached as Schedule "A." that becomes a part of this Contract
(0 ~yusr' means the period of time be$inulng at 9'00 A M central clock ttm¢ on any day of a calendar month and
ending at 9 00 A M nentrul clock gum on the san~ day of the succeeding calendar year
3 notion
CustOM will have gm option for the flrsi Contract Yem~ and each Conuact Year thereafter, subject te the osrusmant
of TXUOD, to choose betv~een sales service with or without plant protectton supply service nd uansportetion
service with or without plant protectton supply service subj~ to the terms of this Connect. as provided in the
Selacuon of Service Form tn the form set out in Schedule "A." at least nicety (90) days prior to the beSlumn$ of
such nbsaqceur Contract Ycer If Customer falls te mahe such a selection, or hlls to make a timely selection for
such a subsequent Contract Year, the typo of service provided by TXUOD during the nb~quent Connect Year will.
subJeCt to the agreomeut of TXUOD, remain the same as rite service provided during the pnor Contract Year
4 Plant Protection Stmolv Service
(a) A Cntomer selecting plent protecUon npply asrwce, as may bo mutually earned to by TXUGD m Schedule
"A.' may take up to tho Plant Protection Supply Volume as purchased plant protection supply gas each day dunng
the term of this Contract, except to the extant tha~ TXUGD is unable to deliver such gas fur reasons of fume
m~euro, however, Custom will pay TXUOD for a volume of plant protacuou supply Sas equal to the Plant
Protection Supply Vuluma ag/~d to tn Schedule "AN for each day dufln~ the term of this Contract whether such
volume of gas is antusliy Lskea by Customer or not. The volume of plant proMcUon supply gas actually taken by
Custem(~r may be Iaaa gum, but may not em:~d the Pint Protection Supply Volume mutually a~rced upon by
TXUOD and Custemer in Schedule "A"
(b) Customer will pay for plent protecuon supply ps at a rate equsl te the per unit charge in the lnMst nffacuve
Schedule of Opttoani Indna~rial RaMs for Sas supply service established for the city in which the Dehvery Faint is
located as they may change from time to nme
2
Tho term "pla~t protecllon' m~ans ~hc prelect, on of CusM~r's P~ll~t~ de~rt~ on
~n~t ~ ~ ~du~ ~d p~s in ~Mm~'s F~iht~, d~ns ~c ~nod ~ ny c~l~nt of sales
~t~ ~ m~on of ~sp~on s~, to ~ ox~nt n~s~ ~ avoid ~ to ( 1 ) Cu~r's F~flJty,
(2) ~ p~t d~g ~o ~mfln~ ~, (3) or ~ ~ u~ to ~u~
m~ ~s '~uf~," '~t~ng," ~d '~ucUon" ~y :~ludo pr~ mvol~ng
Cus~'s ~s of ~ ~ ~ld ~ ~ ~t ~ a p~t sut~le f~ s~e or u~ ~d ~y not
~po~gon ~ ~sJo~ of ~lS ~o~ p~ng d~ c~sJd~atton ia ~ Re~flon Vol~e, fo~ a
~ansp~on ~r~ C~r ~ d~ ~ ~ ~s sold ~ dehverod u~er ~
ConU~l f~ a si~ s~rvt~ Cus~M
(e) ~ dgiv~ ~ ~e of pl~t ~flon s~ply S~ Mil only ~ ~1~ Ia 1~ ~u ~o Pl~t ~tt°n
S~ply Volu~ by ~OD for M~ns off~ ~ ~ ~v~ m Sch~ule '~," ~a~h
(~ Dmns ~s m ~h a o~nt of ps ~os ~ic~ or m~gon of in ~s~Uon ~r~c° is m
~ a ~sm~ ~i~ng plant ~cfl~ supply ~ ~at ~ smndby ~1 m~t u~ ~ s~dby ~1 ~[ess by
~ns of ~ ~e~ s~h CUSMM ~ ~ ~ do m ~n~ s~h a ~od, m which 8~h a ~to~r is
~te M ~ IM s~by f~l f~ ~ of f~ ~o~ ~OD ~11 ~v~dc
mpply ~i~ S~ ~ M ~ eX.hi ~UGD is u~ble M do ~ for ~ of f~
(S) Not~n~ ~y o~ ~mon of ~ Con~ to ~e ex.at a ~m~r ~n~ pint P~h°n s~lY
~m~ ~s I~ ~ ~ ~nt ~ Su~ly Vol~ dufln~ a ~nod of c~lm~l ofs~ ~J~ ~Jce, a
~n~ ~ m~on of ~ ~uon ~ or a ~J~ m which TXUOD
~ly ~ ~r ~ of fo~ ~e~, ~s~ ~11 not be ~ to pay f~
Su~ly V~u~ ~ ~OD did n~ ~11~ ~ ~o C~sM~ d~d not ~
(h) C~lo~r MIl not ha~ a nsht M ~o ~ ~h~ plant ~o~llon supply S~ m
S~Jy Volu~ d~n~ ny day
If ~slo~ s~uld ~ ~ in ~x~n of ~ ~t P~Uon Su~ly Volume d~ns a ~y m a ~fl~ when
~UOD ~ no ~ ~e~ In ~ b~ h~ pl~d a o~Jl~nt ~ to ~ ~low p~t ~tion Ioveb In
e~t f~ o~ ~ns, Cusm~ will ~y ~OD for s~h vol~s m e~ss of ~ Pl~t ~01ion Su~ly
Volu~ at a ~ ~1 to ~ ~ of I~ ~ ~ ~ f~ ~ by T~GD d~ng iht monthly ~n~ or
2~ of ~ ~ dgly Ho~n Sh~ Chan~l ~ d~ ~i ~n~ly ~fl~. ~ ~d m ~ D~ly
0) H b ~Mns of fo~ ~e~ ~ p~nt ~e ~o ~ dehve~ of pl~t ~o~Uon su~ly ~ to a ~tton
~ Cusm~ by ~OD ~ mob ~t~GD ~ns c~ablc ~ng
S~ ~ ~ ~ipt PoJn~s) m ~o ~very PoJn~ ~OD MIl ~ansp~ ~h
~ivmg duo ~8~d ~ ~ b~U~ Volu~
(k) p~t ~ ~ly ~ ~[ly ~n ~d ~ p~t ~t~t~on S~p[y Volu~ wall not ~ ~sld~ m
ny c~l~on of an im~ m ~mpo~ velum e~pt m ~or m excl~ s~h p~ ~1~ ~m
havins n o~a u~n s~h ~6on imams
(1) Bi~n~ f~ ~ ~ nd p~s of plant ~on s~ply ~ will ~ m ~o ~r ~fl~ m Sc~ule
'~," ~ph 12
5 ~ws. R~lsflons ~ W~v
(a) ~s ~n~t Mil ~ s~j~t to gl appll~le smM ~ f~o~ la~ ~m, d~uves, ml~ ~ ~l~ons of
any ~ov~fl~ ~y, o~l~ ~ qoncy ~wns~Jcflon o~ ~ sublet ~r hemal, ~f~, ~UOD's
ob~uons ~ l~flld~ ~un~ ~ ~ I~
(b) TXUOD's So~al~ of Op~onl ~i hms uy ~ ~vised or Mp~ ~m tt~ to U~ In &e ~ by a
~iulai~ au~ty ~ i~icuon ~y s~h ~vl~ ~ new ~h~ulo of ~on~ ~dus~ ~Ms, when la~ully
~bl~, will i~ly ~o~ off. five ~d ~ apph~ble m ~ ~os se~, g~ ~tlon ~ a~
pl~t ~flon supply ~ ~d~ this ~n~ ~ncin~ M& ~s ~li~ ~ ~e eff~uv~ ~ of such
chn~ Should new ~ ~nl ~s, ~ ~ nd ~lUo~ of ~v~co, ~ ~mbhs~ f~ ny ~J~ und~ ~s
Contracl by a r~sulam~/authoflty with jumdIGuon, ~uch rate(s) OF m~s and couthuons of service will supersede
copy of the revised Schedul~ of Optional louanmm Rates, 'me nunc~ ne, rem pro,fl~ zor Wltl u~ uc~ Lo imv~
b~n pvon when forwarcbd by the party siring tho san~ midressed to Customer at the add.as shown m this
Contra~t by first cluss mini, postase pmpmd, separately or m Customer's bdhng statement.
(c) Cu0tomer walTante to TXUGD that im or its nsent*s famhUes atthznd for the acccptauce, recmpt, uauslxxtation
or delivery of gns he~.eouder ~re out subjeot to the Natural Oas Act nj* 19380 as au~nded, (the "NOA') Ass
mat~'~al i~ntation, without whiub TXUOD would not have been wtllinS to execute tills Contract, Customer
wammts to TXUOD that Customer and its u~nte Mil take no acUon nor commit any act of omiaston that will
subject this transaction, the factlitlus of TXUOD, or ~us that TXUGD has title to or poasusston of to the jurisdiction
of the l~ederal I~ucrBb, RagulatoFy CommlmsJon ('FBRC") or its successor sovernmentel agency under the terms of
the NOA, the Natuntl (3us Pohcy Act of 19'/8, us anmndnd (thc "NGtPA"), or any other law The gas accepted,
recewnd, tseusported or delivered hereunder shall not have been nor shall he purchased, sold, transposed or
otherwiSe utilized in n manner tlmt wdl subject TXU(]D, tis nus, 1ts facllmes or Sas it has posseaston of, to the terms
of the NOA or tho NOPA or any other act cantons TXUOD, ~ts Sas, its fac~huns or gas it has possession of to
become subject to tho jusmdictton of the i~BRC or a similar federal agency In nddthon to, and vflthont nxclndms
any remedy that TX~GD may have at law or m eqmty, if Customer breaches the above waffaut~as and
representations Customer will he liable to TXUGD for all damages, injury and reasonable expense that TXUOD
may sustain by reason of any breach bet*eof l~urther, ahould Custom or tis agents threuSh any act or ormsslon
cause any Sas or facilttius involved m the l~Onnanne of this Contract to become regulated by or subJeCt to
junsdtcfloucl antho~ty of the pl~ttC, n successor aovernmental authority or the jurtsdtct~ou of any othm- federal
rellulatory agmnay, under tim tonna of ~ NOA or NOPA or any other law affectm8 the bencfits or value of this
Contreot, this Contract will automatically terminate on the day before the date of such occurrence, prowded,
however such termination will never he oonstrned so us to t rP4~ur any nshts of TXUOD with renard to such breach
of onntrect Customer hereby waives any dmfi~use for breach of this paragraph that TXU(]D could avoid NK]A
jurisdiction under the provisions of Section 1(¢) of such Act.
6 Term
(a) Th~s Contract will terumo in full force and effect, subject to the terms ned provisions hereof, for n lmmary term
as specJfind on the si~fla~ pag~ of this Contract, and f~om Contract Year to Contract Year d~er until cenaaled
by mtber patty giving the other party written nonce at least thirty (30) days prior to the end of the pr~reery term or
prior to the end ofucy Contract Year after tim end of the primary term Howorer, any terunauuon, cancellation or
expiration of ibis Contract will Ouver operate to nattngmsh the obhgallon to make payment for nmmcs due
(b) Service will not commence under this Contract until after 9 00 A M on the day of installation of the electronic
measus~ment facilities, related telemetry equipment and an operational telephone line for and compatthle
TXUOD*s elec~'onl~ gus measurement fatalities and related telemeu'y equipment at the ~livery Point
7 Preasores ut Points of Receipt and Delivery
(a) Cuatomer (or its d~stgnee) w~ll dehvar lgus to TXUGI~ at the Recmpt Point(s) at Prasanres sufficlant te enter
TXUGD's pipeline system at such point(s), provided, however, that Customer's dehve~ pressure into TXUCID's
system et the Receipt Point(s) will not ex~d TXUOWs maximum allowable opera**n8 pressure, as such amy vary
from time to time, at any such point(s), or eouse the presstu~ at seeh point(s) to onceed TXU(II)'s maximum
allowable opemun~ prossere
(b) TXUOD will deliver Sas to Customer at TXUGD's operating l~ussum, ns such may vary from time to time, at
the Delivery Point
(n) The unit of mananremont of gas for all purposes Mil be the "decathorm." The term "decatberm' as used in this
ContraCt means u volume of Sas that coniston a sufficient number of British thermal umts (#Bios") per cubic foot of
gus such that the product of the volume multiplied by the number of Bm per noble foot of gus equals one million
(1,000,000) Bm, or oue(1) MMBto, determlMt mt a tempesett~ of sixty (60) deSrees Fahrcnhmt, saturated with water
vapor nm:l under a pmasum eqmvelnnt to that of thirty (30) inches of mercury at tbirty two (32) degrees Fahrenheit
oonvartM to base conditions of sixty (60) dagrnes Fahrenheit and an absolute pressure of fomUmn and s~xty-five one...
bimdredths ( 14 65) pounds per square mub and adjusted to reflect actual water va~or conical Ous meuserements wilt
he computed by the rueusormj pnn'y mtn such units in accordance w~th the Ideal Oas Laws for volume vartattous
4
due to metered pressure and corrected t'or deviation using average values of recorded relative density and flowing
tempera~ore, or by using the calculated relat~v~ density determined by the method menuoned re paragraph (c) below
In no circumsteuee will the average value of flowing temperetoto or relauve density be determined for e pcnnd of
]uss then one day
(b) Tbs facJlstias mstellnd for meesuremant of gas hereunder mllbe tnsialled and operated, and gas measoremeat
computatmns wall be made, m accordance with cun~nt industry sianderds Orifice metanng veil be done tn
accordance Mth the latest vermon el~A O A Report No 3 - ANSI/APl 2550 Paslttve dtsplacemsot and turbine
metering will be done m accordance Mth the latest version of A O A Repo~ No 7 Elccu'omc Oas l~leesurement
(EGM) will be done m accordance Mth ~ latest version of APl Manual of Petroleum Measurement Standards
Chapm~' 21 - Flow Measurement Using Elcc~onic Metering Sysien~
(e) TXUOD nmy at tt~ exp~use properly insiall and opec'ate e dav~e of standard meke to continuously doterrmnc or
record l~ov, qng temperature Tho temperetere values ~aH be used ~n gas measurement computations With respect to
re¼tive doueity (specific ~nwty) of tho gas, scch sh~dl be datarrmnnd by (t) [on-s~te] samphn$ sod Inborntory
annlysi~, or (i0 any other melhod which is of ~tanderd Industry pract~e, (m) provided, however, that either
nmy at it~ own expenas p~operly install and operete a rccording relative density ms~mr~eat of sianderd make ~ m
tl~s ewnt lira rele~ve density us receded shall be used tn the gas measorement compntat~ous
(d) The evera~o Imating vnlue 0n ~tu) and relative daastty of the gas dahvered be~under by either pe~ty nmy be
datarmi~nd by the use of racordln~ tas~umenta of sianda~d type, which may be installed and opeteted by TXUGD at
tho meesurmg point, or at such other point or points us ere mutually egreeebla to both pa~us, provided, however, if
there ~ no ]3te/relativo density ~ustxument nt · pa~¢uler Rocc~pt or Delivery Pornt ~pcclfied berem or agreed upon
hereunder, ~on tho Imatin$ vnlue and relative density of the gas at such pmnt mey be determined by ion-site]
sampling and laboratory analysis
(n) Tbs terms ,,dccath~rm" and "MMBtu" mey be used lntarchangeebly m ~s Contrect as a meesure of vnlume or
heat content under the conditions stated in paragraph 8(.), and may be converted ~rom one to the other m accordance
with tho Ides1 Oas Laws under those conthttoas when ueeessary
(f) Tbs lean "l~cf" rueaan cue thousand (1,000) cubic feet of gas under the conthttcos stated m para~reph
(g) In gas measorement ccmputottons the d~tenmnaticos for the everege values for meter pressers, relative density
and flowing tomp~rem~ values will be daternuued only dunng pertnds of urns when gas ts actually flowing through
the measuring thothtius
9 Measurinn Eamoment and Testinn
(n) The gas dahvernd to TXUOD (or tta designee) et who Roeespt Point(s) for transportation by TXUOD will be
measured by means og gas measuring devices o~ standard type that mil be installed, operated and mmntmned by
TXUGD (or its designee) and gas de1~vered to Customer at the Dehvery Point, wbether sold or uausportad, w~11 be
measured by electromc gas measurement facilities of standard type that will be mstnlled, operated and mmatatned by
TXUKID (or its demgnee) Gas meesurenmnt devtcus end ~utpment roll be tasted and adJusted for accuracy on a
regnler schedule by TXUGD (or ~ts designee)
(b) If adaquato measunng factiiUas m-e alrendy th ex~stecce at the Racetpt Point(s) and edequata elccU'onic
rneasunng n~lUUas e~e already in existence at the Delivery Point bereundar, such exisung meesunng facll~s mil
be used for so lon~ as, in TXUOD's sole opinion, they remain adequate and th~ party having utle te such facthUus
will retain title to such fueihties
(c) It ts a~-eect timt it veil be nacussary for TXUCtD to lnsUdl electronic gas measurement fac~h~tus at the Dehvcry
Point in oeder to comply with the various measurement and momtormg provts~ons of this Contract, ~f, in TXUGD's
sole judsnm~1~ ~n~__ .,'.v~J4tta elac~onlc gas measurement facilities are not sirendy located et the I~hvery Point
(d) If new or ndditionnl facihtscs are required to effcetuata the receipt or dahvory of gas hereunder, Customer
agrees to reimburse TXUGD, witiun they (30) days from the date of recctpt of TX'UGD's invoice, for the cost of
any tap valves, measuring facilities and asscosated equipment and ell labor and overhead expenses (mnludmg
applicable federel income tax smpueed us a result of lusndlnt~on of such facilities), attributable to the mstnllatton of
such equtpn~nt. If the tnvmccd amount is not paid when due, interest on ell unpaid amounts mil accrue at the rate
cf one and cue-hat, ps.net (1-1/'2~,) per month, or the highest rata allowed by law, whtcbev~r ~s less, from the data
such amount ss due TXUGD If TXUGD does eot receive total reimbursement through thc payment of such mvclue
within sixty (60) days from Customers rneetpt of TXUGD's invoice, TXUOD may suspend and/or ternunate Ihts
Conimet
(e) It is agreed that it wtH be necessary for TXUOD In install electwmc gas messurernent fscalittes at the Delivery
Pomt m order to comply with th~ venous measurement and momtonng ptowssuns of this Contract, If, m TXUOD's
solo judgement, adequate olnemmic gas n~esorement facilities ar~ not already located at the Delivery Point.
(0 If TXUOD installs any new electwnte sins mansurement facihues, related communlealtons ~mpment or
telemetry eqttpnmnt, Custom agrees to pay TXUGD the mount specified m the Cost of New Facilities section of
the mgnatiw0 page of thla Contract within ninety (90) days of tho date of lmtmi dehvenes under this Contract, to
cover tim mitmi cuet of all such facilities (mcinthng applicable federal income tax imposed ns a result of tnstallnUon
of such facilities) and sainted set-up expenses miami to all anch cow faciimes Ail soch thctiities will be the nele
properly of TXUOD and will be operated and malntmnnd by TXUGD at TXUGD's expenee If coy mounts due
under this pan~raph ~e not paid when duo, interest on all unpmd mounts will accrue at the rate of one and one-half
percont[(l-1/2~) per month, or the inghest rate allowed by law, whichever ts less, from the date such amount is due
TxuoD If TXUOD mslails new cioctronm ps meesuren~nt lacflitres, TXUOD agrees to prov2de nnd mmntmn a
telephone connection to, and a compatible and opernaonal telephone line for, TXUGD's nlec~omc gas measurement
facdattus
(g) If at any time afrer the date of inital deliveries herconder TXUGD detenmnes that uddinonal facilities are
required to offectuam the receipt or dcilvery of gas hereunder, Customer will reimburse TXUGD, within 30 days
from the date of receipt of TXUGD's Invoice, for the cost of any tap valves, mcoserlng facthties and ascoctsted
equipment and all labor and overhead expenses (including apphcable federal income tax imposed as a result of
mstallntion of such facilities), attflbutable to the installation of such equipment If thc invoiced amount ts not paid
when dm, interest on all unpaid amounts will accrue at the rate of 1-1/2% per month, or tho highest rate allowed by
law, whichever ts lass, from the date such amount is due TXUGD If TXUGD does not receive total reimbursement
through the payment of sneh invoice within 60 dnys from Customer's receapt of TXUGD's invoice, TXUOD amy
suspend and/or terminate this CouUact
(h) it ~s undamtoud and ngrued that although Customer will reunburee TXUGD for any top velves, measuring
facillues and nil ussneiated ousts (including income taxes) incurred by TXUGD m estabheJung any Receipt Point(s)
and/or tho Delivery Point hereunder, Customer nmy, in such event, receive only the ownership of such measuring
facdinus, but TXUGD will rcccive ownerehp of all tap and tap valve mstallatione and all ssseclatud equipment.
TXUOD will bo solely mspoesthle for all activines la connection with smd meesunng facdmes and all tap and tap
valve installations and all associated equipment, including, but not limited to. operation, testing, calibration,
adjustn~, repeh' and replacement (at Customer's expense), and mamteanace, necessery fo~ performance of flus
Contract until TJCtJGD disconnects and removus the measuring faslhnes after ternunatren of tins Contract. After
such thSconnueflon and removal. Customer will have tho right to clmm and take possession of such measuring
facthues (IX'eviously paid for by Customer) from TXUi3D Customer's failure to co cinlm and rste possession of
such n~uoring facilities withn muety (90) days of TXUGD's ouflco of dlseonnecuun and removal thereof, will
constitute n waiver by Customer of any right, Utle or mMmst in and to such mcesunng facthtses and the transit of
all n~ht. rifle and interest therein to TXUOD TXUOD will retain ownership of all equipment associated with tap
and tap valve insmlistoue
(0 Th0 Custonmr will have ecoees to obeerve TXUOD's Delivery Point measunng fecthues nt all times, but all
mamtenauee, calibraton and adjustment of the Delivery Point measunng fecihtes will be done only by
employues or agents of TXUOD Rcoords from nil sanh mcoannng facilities will remmn the property of TXUOD
and will be hept on file by TXUOD for a period of not loss than two (2) years However, upon request of Customer
within such two (2) yesl' penud, TXUOD will make the maasurerannt records from the mesannng families, together
with any calculatione therefrom, aveilabla to Customer for lnspectiun and veriflcauun, subJeCt to return by Customer
to TXUGD within thitly (30) days after receipt thereof
(J) Customer nmy, at its ogden nnd expense, install and operate measurmg fltczhties, cheek meters and related
instruments and eqmpment, in a manner which will not mm'fi~re with TXUOD's eqmpment, to check TXUGD's
Delivery Point mansunng facilities, insmmmnta and eqmpment, but the messm~oment of gus for the purpose of thts
ConU'~ both at the Delivery and Race]pt Points, will be by the feciltoes of TXUGD (oF its designee) only, except
ns heminnfter specifically provided The gas meestunment fan~ililse, check meters, msf~uments, and eqmpment
n',smiled by each psrty at the Delivery Point will be subJeCt at all reasonable times to mspecUon or exammauun by
the other party, but the calibration and ndjunlmant thereof, as well as those at the Receipt Point(s), will be done only
by the Insudilng party
(lc) TxUoD mil, at Cu~omer's wrt~en request, 8ire to Customer anuee of the ume of ail lents of the Receipt Point
or Dehvl~/Point ol~cffomc ~ me~tmng facilities, es nmy be npphcable, sufficiently In advance of such tests so
notice tO Castanet and Customer is not present at the time spec~fleti, then TXU~u amy process w~tn me tests as
thou~hCu~tomor ~ pre~nt TXUOD will ~va sauce to Cus~m~r's l~c~tpt Po.mt or .Doit.v? P.~nt DasISn~,,
(who is ~pousible for th~ physinal receipt or delivery of ~ at tau point), as may ~e upp~came, o! ma t~mo m ~
tests of ~UCh alanltonlc ~us nmasorin~ facilities suffleiandy in advance of such tests so that Customer*s designee may
couvent~ntiy be present, provided, bew~vor, dmt if TXUGD has given such annce to Customer*s designee and
Cuatom~s dustilltao ta ant present at tho tram specified, then TXUOD may proceed with the lust as though
C'mtornar's d~tptan we~ present
O) On~ m~aouren~ute anmputad by TXUOD (or tm doal~) wtil be deemed to be correct except where the gas
measui~nmnt fuctlitms are found to be inaccurate by more than one percent (1%), fast or slow, or to have failed to
re~istor, in eithur of which euse~ TXUGD will repau' or replace the meusucorcent facdtuas The qannuty of gas
dehvored while the measurement fncihtius were inaccurate or failed to register will, at TXUGD's d~sengiou be
de4mmihed by (i) the randinils of Customor*e check mater, if metalled and tn good operating canthtton, 00 by
correctl~ th~ error ff tho percentage of error is ascertainable by cehbretmn or mathcumticel calculation, or (m) by
esunm~n~ tho quantity an u basis of deliveries under similar conditions when the measurement fucilities were
registering accurately
(m) It ts ande~tand and agreed that Customm"e muispottatton gas wifl be part of and wtil be measured as a part of
n commingled streura of Iin* by tim measum~ patty at the Receipt Point(s) such that tho qnantity of Rag delivered by
Cuctomor to TXUOD (or its dusl~nan) at tbe Receipt Point(s) for Irauspotlauon under this Contract amy be
detonnlbed by an allocation methmiolo~y provided for in baloncmil p~ovislous in this ConUuct or tn another
(A) Cuctorae~ and Customor,e tnmsportor that dehvers such gas to the Ruceipt Point(e),
(B) TXUOD and Customer's tnmsporter that delivere anch ilas to the Receipt Point(s), or
(C) TXUOD and Customer
lo ~
Custonmr will provide in accordance with TXUGD*s spantficattous, the uccussery service lines on Customer's
premises to connect with TXUOD's lines and suitable space and an easement for TXUGD s [mas and other equip*
meat, mclndinll, but not limited to, a telephone line and associated equipment related to electronic Sas meastanment
fucdmms and tmlen~try equipment. Customer will use due care to protect TXUOD*s prupmrty that Is located on
Cust_o..~'s pr~ses from damage and will ponmt no person other than an agent of TXU(]D, or a person otherwise
lewfufly anthonzed, to tamper with, mspact m' remove same All proparty belon~m~ to TXUGD and luca~e~ on
Customor*s premises will be removable by TXUOD at any tune during the term of tius Contract and within a
reasonable time nl~0r its tonmontian or at, er reasonable notice of Customer*s desire to have such p~oporty removed,
tide tbetmto tomalninil in TXUGD ut ali times TXUOD will have full and free ingress to and euress from
Cuctomm~s prentiass for the construction, inspec~on, malnteaxnce, repair and removal of TXUOD's property
th~reon[or for any purpose connected with the service prov~led under Um Contract
11 Taxes
(a) Cttston~r agrous to pay TXUOD, by way of rerc~bursemant, all Taxes paid by TXUOD with respect to the sele~
service0[ tim ffnasportation serwce, tbe plant protection supply service and any other commodity or service prowdnd
hereunder, and that may be related m nay associated fscilitius revolved ui the performance of this Couuact Ifany
such Tn~xes paid by TXUOD to any 8ovemmantal authority asa calculated based upon the value of or price paid for
the ilan ~.nmsix~ bereundor, Customer will disclose to TXUGD the purchase price of such gas to enable TXUOD
to calculate and pay all such fees and taxes to appropriate ~ovemmenUti authorities m a tonely manner If Customer
falls or ~fosus to disclose tho purchase price of such ~as within sixty (60) days from the det~ the related
transpoq~on sarv~ ts provided, TXU(3D will have tho right to pay such fees and taxes based upon the htgbest
prices report~_ for the period in Cnu D~lly for Sas pu~ or ~as sold in the State of Texas and to be reimbursed
by co~t(~mor In any revest, Customer t~ to indemnify TXUOD for, and hold TXUGD hasmiess from, any and
all claims, demands, lussos or expenses* including attorneys' fans, wluch TXUGD amy incur as a result of
Custonmr*s fadure or refusal to disclose the purchase price of gas transported hereunder
(b) The term "Taxes" as used herein means all taxes and fees levied upon and/or paid by TXUGD [other than ad
valorem, Oapltal stoGk, income or ex,.ass profit taxes (except es provided herein), general franchise taxes imposed on
corporations on account of their corporate existence or on their right to do bumness within the s~ato as n foreign
corporation and alnulor taxes], mcluding, but not lionted to, ~s utility tax, street and alley rental fees set out in
franchise ordinances, licenses, fees and other ohargas levied, assessed or made by any governmental authority on the
act, rlsi~t or privilege of eellres, Iraeeportins, hendhns or dahvenns Sas, which taxes or fe~ are b .a~ed upon ~e .
volume, heat onntont, value or fmlas/pul~hase pric~ of the gas, or transportation fee payable nc~uoner, any omer tee,
oharge or payment hereunder and apghcable federal income tax imposed as a result of installation of eqmpment et
thc Delivery Point or Reeetpt Point(a) nndar the terms of tins Contrant Any raceme tan ousts of TXU(]D that hove
been reimbursed to TX'UOD by Customer under paragraphs 9(d) and S}(f) will not be rmmberusd to TXUOD by
Customer under this paragraph I 1
1~2 ~t*llln~. Acaunntmu and Reports
(a) On approxlmntaly tho fli~onth (15th) day of eech month, TXU(3D wdi render to Customer n statement for
compensation for ali fees, charges, costs, tax rmmbursement and services payable under tiaa Contract for the
prncadm~ month, showing either thc numb~ of Btu or the number of dacatherms dchvered at the Receipt Point(a)
and Delivery Pout, tho alitoont of colllp~asation due to TXU(3D under this Contract, incledms tax reimbursement*
other reasonable and pertinent m fornmtton that ts necessary to explain and support the same anti any adJUStments
made by TXUOD in datermininf~ the amount billed TXUOD may deliver to Customer such statements of amounts
owed to TXUOD by Ualtod States mml (first class, registered or uerufied), postage prepaid, fax, electronic medium,
emml or delivery service ut the methnft address or electronic tnadium address provided on the signature paso of this
Contract Tho fax, emall, mmllng addre~ and electmnle medium address provided on tho mgusture pa~o of this
Contrnct may be chen~ et any time by either puffy upon thuty (30) days pflor written notice to the other party
Co) Customer will pay TXU(3D withma pertnd of ten (10) days from the date TXUGD*s stetemont snttiflll om the
compensation due under this Conffnct for all fees, charges, costs is deposited prepaid in the United States mall, or as
to poymant which is otherwise due, aeencdtnn to the measurements, compatattoas end rates herein pt'ovlded
TXU(~D hereby agrees, however, that Customer amy pay any such statement by bank wn*e transfer by directinll the
bank wire transfer to TXUGD at Chase Texas Bank, Dallas, Texas, ABA No I 13000609, for dapustt to TXU(~D
Account No 0880~1015795 To assam proper credit, Customer should dasJgaare the company name, invoice number
and amount be~S paid in the Fedwire Text Se~tj. on If tho invoiced amount of any paymant dae is not paid when
due, I ntereat on all onpmd amounts Mil ncc. me at the rate of one and one half percent (1-1 f2v~,) per month, or the
highest rate allowed by law, whtohover is lmm, from tho date such amount ts dee TXU(}D, provided, however no
Interest ,will acorue on unpaid amoonte when failure to make payment ts the result ufa bonn fulu dispute between tho
parties hereto rellerdlng such amounts (and Customer timely pays ali amounts not in dispute), unless and until it ts
ultimately determined that Customer owes such disputed amount, whereupon Customer wit pay TXUOD that
amount, plus total'est onmputed back to tho orlSmal payment due date, immadlatelY uPon such deterralnonon The
designated banks, addresses and accounts for wire transfer may be changed at any time by TXUOD upon thirty (30)
days prior written notice to Customer
(c) NotwlthStandinll any other provision of this Contract, Customer will make payments for all gas service under
this Contract hollmmnll with initial deliveries
(d) if Customer falls to Pay bills for service wlthm twenty (20) days from the date they am rendc~rnd hereunder or
otherwise dafonlte under tine Contntct, Company may suspend service and dahvertss of gas and such suspension
wdi no~ prevent enforcement by Company of any of its lugal rights Wmver by Cumpany of a pamcular dafault
hereunder will not he dosmed it waiver of anheequent defaults whsther sinular or dissinuler
(o) Ea~:h party hereto will beve the right at all reasounbln times to oxanuue the measurement reuerda and cherts °f
the other per~, or its ngano'desillose if any, to the extent necessary to verify the accarncy of any statement, chatge,
computation or demand made u~:ler or puretlant te any of tbe provisions ra this Contract If any such ananuantton
reveals any lueeeur~y iff such previous blllmll, the necessary adjustments in such bllhng and payment will be ronda,
provided, that no adjustments for any blHlnlf or payment will be made for any innceuracy clmmad after rh~ ~dp~# of
twenty five (25) month~ ~rom the r~ud#topt oje th~ Involcz relarin/I rhar~o
(f) If tim m'*edtt worthlanss or financial responclbllity of Customer should, Jn the 8ule opinion of TXUGD, ever
becomeltmsatinfuctory, then upon request by TX-O'OD at any time and from time to nme during the term of tins
Contract, Customer will daposit Mth TXUOD (I) anch mount of money requcsted by TXUGD, or (ii) n latter of
credit lit u form acceptable to TXU(JD from n financml institution acceptable to TXUGD in an amount requested by
TXUOD, to fuerantee the payment of statements and invoices hereunder, as well as any possible imbalances
bo~und~r. Upon th~ tenmuntten of this Contract, any money uc deposited, less any amount due TXUOD by
13 ]Foree Mntaure
(a) in the event e~ther party ~s rendered unable, wholly or in pert, by force majeure to carry out Its obhgaUoes under
thts Contract, except tl~ obligation to pay monies due hereunder, ~t is a~reed that, on such party's ~qvtng nonce and
reasonably full particulars of such force nmjeure, In writing or by fax, cmml, ciectrontc transfer or telecopy, to the
other patty wi~n a reasonable ume after the occurrence of the cause rched on, the obhgat~ons of thc party stying
such notice, to the extent they am affected by such force majeme, will be suspended dunng the cuntmunace of any
mainhty so caused, but for no longer purled, and such cause v,.01, so far ns possible, be remedied with all reasonable
dtspatch innblhty or fnilam of TXUOD to dehver or TXUGD to tucelve ~ns or perform under thts Contract may
not be tim basis of clanms for damages sustained by etther party or for breach of cona'act when duc to force majcm'e
(b) The term "force n~eum," es employed hereto, means acts of Gad, the einments, stokes, lookouts or other labor
m~ubles or iedush'iui disturbances, acts of~be public enemy, wars, bloclmd~, msut'mcaoes, cirri thstisd~ances and
dots, and el~demtes, inndsiidus, lightning, ennhquakes, fires, storms, floods and washouts, acts, arrest~ orders,
directives, resl~uints and reqmr~meuts oftbe government and sovemmuntel a~enctes, whether federal, state, ctvi[ or
md~Uu'y, accidents; explosions, broskase, accident or obstructions invulvtng a ptpehne, macinoory or line~ of pipe.
repuir~ or outages (shutdowns) of power plant equipment or lmee of p~pe for tnspecuon, mnmteesuce, change or
repmr, freezing of hans of pipe, depict:on or ~ilure of TXUGD's sas supply, fluctanaons tn gas pressure, demands
In exces~ of the capacity of TXUGD's equipment, pipehuc~ or TXUGD's sources of gas supply, and any othe~
causes, whether of the kind enumerated or otherwise, cot reasonably witinn the control of the party claiming
suspension it is undemcod and al~veed that th~ handling of liegemen with thtrd Pumas of any fact or muc and the
settlement of smkes or lockouts will bo entirely within tim thscr~tfen and control of the pray mvolvnd, and that the
shovore,anunbindi,pa,h--Iln''qu'roanYpe uiar or theee,ileme :?,--be, or
to thc d~mand of the oppostng papery wbou such course is deemed to be tnadvtssote or muppropr tnte tn me
of the party involved
14 Waiver of I~,~no~,.~. _t'~,ltn or I~tohm_ perf~nmnee dunnn Default
No wuivor by ~itber party berate of any orm or mom breaches, defaults or rtghts under any provtston of tins Contract
will op.'ate or bo construed ns n waiver el~ coy olber breecl~s, defaults or fights, whether of a l~te or of n thffemnt
charect~ By psovtdinn writhe notfee to the other perry, rather party may nssort any right not previneslY essarted
hereunder or mey assert zts right to object to a default not pl'ovinosly protested Except ns spectflcally provulnd
berom, m lira event of ecy dispute under this Conll~t, the purlins will, notwithstanding the pendency of such
disputel thllguntly ImPend with the performance of ~ts Contract without p~jnd~ce to the rights of either party
Except us othetwtee spectflcelly provided bernie, if etthor patty finis to perform any of the covenucts or obhgatinns
imposed upon it in th~s Contract (except wbe~ such failtu'o ts excused under th~ Force MsJeam prowslons heine0,
then tbo other pe~y may. at ils option (without waiving any other remedy for breech bemof), by not,ce m wrinng
speuifylng the facts gtving risc to the defeuit bee o~q~d, [nd[cate such perty's election to terminate thts
due to Such faiinm However, Customer's fminm to pay TXUOD within a period of~n (10) days following
Customer's rec~tpt of va'it ten notice from TXUOD edwsmg of such failure lo mshe payment tn full within tho I~me
spec~fmct previously I~r~ln, will be u default that will g~vo TXUOD the r~ght to tntme, dmtely terminate tins Conlrect.
unless Such fmlam to l~y such amounts is I~e I~s~l of · bonn fide dispute between tho ps. ins hereto tegsrdtng such
amounts bereundor and Customer t[nmly pays uti amunnts not m dtspute With respect to any other matters, the
pray ~t~ defauli will Imvo thirty (30) days from re~ipt of such notmo to remedy s~h ~,ofaalt, nnd upon fmlu~ to do
so, thu parly esnthng tbe notice of default amy terounste this Ccntrect from and citer me expiation ox such thn'ty
(30) duy period by sending the other party a noUce of termmaUon within ilurty (30) days f~om the end of the prior
thirty (30) day pefled ~uch terr~inatio~ will be an eddllioun! remedy and wtH not prejndtee the nghl of the pa~y
not m defanlt to collect any amounts duc hmmmder for any dstmnge or loss suffered by it and w~ll not waive any
other r0vaedy to which the perly not tn defnelt rany be entatind for broach of this Contract
Pu~ua~ ~o ~l~ ~v~al .~bitra~n A~ ~ pa~l~s I~e~by a~r~ ~hae an.y eonO'ov~y, cia. gm or a~g~l
b~a~h~ ~Ine. ludi~ b.~ no~ limited ~o ~or~ a~u~ ~ta.~o~y claims, a~/;n~ ou~ of ~ ~lat~ ~,o t/~ ConWae.~
~hall b~ ~ttl~d by bindln~ arb~os ~mini~r~d by the American Arb~ration Asaoo~ion ("A~A")
Judgm~ upon t~ a~ ~ ~ ~ ~) my be em~d in ~y Co~
c~n o] ~, exce~ ~ w~ be s~Ject to the ~ ~s ~e, Comp~
and de~ ~ ~ ~ of a ~el ~ ~ ~3) neu~ ~o~ In m~e~ng
~'s pipi~ ~d ~t~os downs~ ~ or ~onno~ to ~o D~ltv~ Point ~y ~ subj~t
I~ a~ ~ ~ ~v ~s ~ u~, ~y should ~ ~ly m~ f~ ~zo~ d~ago ff ~y
~lfl~ly, when ~y ex~ava~n work is p~p~, ~1 b~.f~ih~ a~d ~p~g ,n ~ ~ should
~OD, shoed ~ noflfiM ~ ~ p~ ~avaflon ~vtt~os by con.ting ~ Tom '~ ~' ~lc~ at (~)
~3~ If ~ excavation ts ~ ~c vicini~ of any ~ PiPing°r ~dtu~' ~y sh°~d ~ l~a~ ~ ~ ~nmng
wo~ ~ ~vafl~ ~ ~ piping ~ ~B~ sh~d ~ ~o~ by hand dtgg~g Plmb~s a~ ~atmg
~UGD a~ Cusm~ ~ m ~ ~ ~ a~ ~s~ons of ~ Con~t confidontm] ~d m not dt~lo~ the
ms of ~s ~n~ m ~y ~ p~s H d~l~ ~ s~t ~ugh W~s of a co~ a govcm~nt ~ a city,
mm ~lf~ mg~a~ ~y, ~ ~Y ~ whom ~l~m a ~u~t ~11 ~tst d~sclosurc
~UOD ~ Cu~r ~ to ~ ~ ~intMn co~d~nflMIty offs Con~t ~d m o~tn a
pm~w o~ or a~ont to ~n~n ~t co~don~lW und~ cJr~ms~s m which d~los~
n~
19 ~i~lla~
~s Con~ or at ~h ~ m e~h ~ ~y by II~ ~c~ la~ ~vo to ~ o~ Such ~IIM n~ mil
~ m ~ ~n ~n wh~ ~ ~ ~e Uni~ S~s mml (fi~t cl~, ~s~ or ~fi~),
hmm ~ ~ ~ ~h~ doli~u, n~s ~ll ~ d~ ~ have ~n gtvon when delzv~ m a ~nmfive
of m~ ~ by a ~on~tvo of ~ o~ p~
(b) ~ls ~n~t ~mfltu2s t~ enflm a~nt ~wocn ~o pmi~ coving ~c subject m~ hoof,
s~j~ maa~ ~reof ~at m not ~n~ ~zn No ~nmzon ~ s~oment of ~y ~n~vo of T~GD
Conu~t ~y n~ ~ ~n~d ex. pt m ~ng d~y o~d ~ t~
(c) M~ifi~fionsof~mCon~wtmll~or~o~off~Uveonlyu~n~mutu~oxoc~onofa~r~m
su~lo~ml ~n~ or ~en~n~ ~ m ~flng by duly au~on~ ~p~a~ves of
10
(d) Tho captions or hoadmss Prucedtng tho van°us Pntis °f tlus C°nmlct are inserted and included s°lely f°r
convempnce and Mil never be considered oF Siren any effect m consu'umg thru Con~nc~ ot any part of th~s Contract,
or tn connection with the in~ent, duties, obligstions oF bnb~littes of'the pame$ hc~cto
(e) Ttos Conu. act will be bmdms upon nnd inure to tho b~n~fit o~ tbe pm~les he--to and thmr respective suc~no~
and assigns~ pro,adod, however, that this Contract may not be a'ansferred or assigned by Customer w~thout the prior
written Oonsent of TXUGD, and such ~ons~nt may not be unreasonably withheld Any purportod transfer or
msignnl~nt without such consent will be null and void and will not ope, rate to relens~ any obhgetton of Custorr~r
under t~t. ConU'a~t
(0 TXUGD and Customer intend to be legally hound by tho terms and provisions set out in this Contract Both
TXUGD and Customer m~nd, neknowied~e and agree that this Contract ts entered into solely for the respective
benul-it 0f TIi~UOD and Customer No provision of this Contra~t, eiiher express or smphed, will be interpreted or
constnstd as confeffing any x'Jghts, remedies or clmma upon any person or entity not a party to this Contract, except
for a successor or assignee consented to as provided hereto
(g) This C~ntraet is atnde in the State of T.,~,~ smd win be govern~i by the laws o! the State of Tms.
(h) If am), dispute ander ~ Cont~tct is not resulved by arbitration and results in Iltl~tgon in the
nullns County, Trams, will be gte proper venue f~r soeh litigation.
(i) TXIJOD will not be liable fo~ any loss, dama~ or injury resulting from the gas or its use ai~ it flows out of
fa~iht~es or equlpmant owned by TXUGD. or its agent or dess~nee, and into fatalities or equipment owned by
Customer, or its agent or dem~nee, at the Delivery Pmnt, all risks thereof and therefrom hems he.by assumed by
Custonmi*
11
SCHEDULE "C" TO
OPTIONAL INDUSTRIAL GAS t~AI.Rt~ OR GAS TRANSPORT,~,TION CONTRACT
GEI~UAI, T~MS AND CONDITIONS APPLICABLE TO SALE~ SERVICE
I TXUOD agrees to sell and dchver natural gas to Customer and Customer agrees to pu~hase and receive such
gas from TXUOD to n~et Customor's tatutai gas roquiremonts at Customer's prenuses doscnt~ed on the signature
page of this Contract, Customer agrees to pay for such volumes of gas at TXUGD's latest effective Schedule of
Opt~ocal Industrial Rates for gas salas service astabhshud for thc city m winch thc Delivery Point ts located, subJeCt
to and in accordance with all the terms and conditions contained tn this Contr~t
2 This Contract covore Custonmr's entire natural gas requirements at the afuresald premises, sod Customer wdl
not use gas ~ this Contract for service other than that clasmfiod so that Customer is qualified for serwce under
this Contract
3 TXUC]D's Scbeduio of Optional Industrial Rates for gus sales service may be revtsud from t~me to time m the
future and the rates contamud in any such revlusd or new Scbedul~ of Opuonal Indusma[ Rates for gas sales service,
when lawfully astabhshnd, will be applicable to gas purchased and sold under tins Contract commanclng ruth gas
dehver0d after thc effective dote of such change Company will give Custonter written not,ce of any such change,
together ruth a copy of tho rewsed Schedule of Opuonal Indusmal Rates for gas sales service 'tho noUce herein
provided for will be de~ to have been given when sent by Company to Customer at the address shown on the
signature paso of tlds Contract by first c]uss emil, postage prepaid, or included with a monthly statement
4 Customer agrees to kaup ~ts gus-using or bormng equipment and appmtoneecus lucated on the aforusmd premises
m good ucndition and in confureulty with tho requirements of any apphcable city oral,nonce, state or federal law or
rule and any upplicablo order or regulndon of any governmental authority bevmg junsdlc~on. Castomer agrees to
comply with all of Company's reanoanblo tutus and rcgulatwes
5 Title to and owncr~ip of tho gus sold and daliverecl by TXUOD to Customer at the Delivery Point wdl vest in
Custon~r at that point.
6 TXfJOD will have the right at any and all t~mes to immndmtaly discontinue, In whole or in part, tho supply of
gas hereund~', with or without notice, din tim opouon of TXUOD a conunuat~on of the supply under this Contract
would adversely aff~ct, joupardlce or t~n adequate serwce to TXUi]D's domestic or commercial customers or
hazard, adversely alit, jeopanhze or threaten adequate service to othe~ customers hawng Imor~ty of settee under
TXU(]D's latest offecl~v~ Schedule of Optxoanl Industrial Rates, and Customer hereby authorizes TXUOD to do so
Further, Customer agrees that T~OD will never bo hablo in damages or otherwise on account of having exercised
such rights
7 When notified by TXUOD to do so, Customer agrees to cortml or discontinue tho use of gus hereunder tn con-
fonnity with the service priority provided for in this Contract and in the latest offecuvc Schedule of Optmnal
Indaslr~l Rates If CustOlner classtflas itc bualness and uperaUoas us bern8 assented to the pubhc health and safety
and considers continuity of~ts fuel servma ussentxal to tho public welfare, then Customar roll prowde stand-by fuel
nmi erluipmant nd~q~t_~ to meet its fuel rsquiran~nts dunng pennds of mtetrupuon of Sos service under this
Conmmt TXUOD oanuot and duos not gneranme u coastent supply of gus bereander
8 In tho avant denng any day Customer purohusus or takes vuluraas in excess of the Maximum Dmly Quantity, in
addition to all other fees and charges prowded for in this Contract, Customer' will pay TXUC~D $1 00 for each
decathorm recalved by Customer in excess of tho Mantmum Dndy {~ucnt,ty
*** END OF SCHEDULE "C" ***
OPTIONAL INDUSTRIAL GAS S~-~q OR GAS TRANSFOltTATION CONTRACT
GENERAL T~_.~-_q AND CONDITIONS APPLICABLE TO TRANSPORTATION
TXUGD agrees to transport gss ~r Customer and Cmtom~r agrees ~o purchase and ~o~ve gas ~ransporta6on
service from TXUOD to moet Customer's natural gas requirements at Customer's premises descflbed on the
signatu~ page of this Contract. subject to and in accordance ruth till the terms and condtttons contained m this
Conm~ct.
(a) "Coau~t~ n~sns tl~ sjl~Mtur~ paSe of th]~ Co~act, ~he ~ffec~ve S~l~ct~oa of S~rvlcc fol'm ~x¢cllt~d
Custom~ s~d TXUOD. S¢tted~l~ ~B~ of ~b Con~ract and th~s Schedule ~D ~
(b) .Day~t~nsth~p~todoftim~b~nmnSat9OOAM c~n~ralc[o~kumeononecalendatdayandendmsat
9'00 A M c~ttral clock tln~ o~ th~ fo~lowiaS cslend~ da),
(c) 'l~mIhet'm~ has tl~ m~nms set forth l~t parl~aph $(s) of Schedu[c "B # of tb~s
(d) ~I~liv~r~ Point~ has the me~uun~ set forth oa th~ sl~u~ pa~ of thts Conuact
'Gas~ m~ls n~tu~l Sas prod~:i from Sss w~lls, vaporlzed nstur~l Sss liqmds, S~s produced ltl assocmtloa
w~th mi (c~tn~h~d Sas) and/or t[~ ~ldu~ ~as r~ultmS from proc~ssm~ cssml~lead ~as and/or ~as well ~
(0 "Maximum Daily Quaauty' has tl~ i~anln~ set forth m th~ spp[~c~l~ Selcc~on of S~rwc~ Form
(~) ~Mo~h~n~ansth~[~nodoftln~be$1a~ngatg,00AM c~atndclockt~mcoa~i~firstda~of~cal~ndar
moath ~nd ~ndms ~t 9 00 A M ceau'al ~lock ~lm~ oa ~he first da)' of th~ succ~dta~ calends' month
(h) ~P.~eipt Point~ Ires tl~ meantnS s~t fmlb on thc s~n-.~ttu~ pa~ of th~$ Con~t.
0) ~P~mmon ¥olun~~ has t~ me~mtnS s~t fo~ on the s~&,~atu~ pa~ of ~s Coatract.
0) #T~ has the meamn~s~t fmlh m pan-apb I l(b) °f Scll~d~le ''B~ °f ~ls C°nt~act
(k) ~Tra~po~tatlo~" ss used m this Co, lust ~clud~s ~ movem~at of Sas by displ~.~m~at ~d b~kl~ul, and as
such. the t~rm ~ transpom~on~ or ~tnmspolt" as used her~n includes th~ deltwr~ of ~s by TXUOD that ~s aot
~a~ ~ r~c~iv~d by TXUGD
(1) ~¥aml~t ~ n~luls that volum~ of SM r~eived by TXUGD for mmsportatton to Customer [~s
Reteauon
3
Custom~ ~epres~n~ ~hst it ovms ~t controls c~sm 9uanut~es of aat~al Fas, ~md Cuslon~r d~s]~s t~at TXUGD
mca|ye such ~s from Custol~r (or its defiance) at the l~c~lpt Point(s), and dehve~ Fas to ~e Dehv~l~ Point m
9uanttttes ~ ~ to by tl~ p~l~s ~n~m It ~s a~n~d that the quanuty of ~ to be transpo~l u~d~r th~s Contract
wdl not ~xce~d th~ n~x~mum anaual, dlliy or hourly quahaugs spec~ficd o~1 th~ effec~iv~ S~lcctton of S~rvice Fo~m
Custom~ warnmts that at fll~ ~rne of d~l~v~ry of Sas hereunder to TXUGD fo~ tra~spori~on, Customer vt~l! have
$ood titl~ or the ri~t to deliver such Sas, and that such gas wi! be fr~ and clear of all he~s and adv~rs~ clmms
Customer a~r~s ~o Ind~m~ifF TXUGD for, ~nd hold TXUGD h~n..l~s from, all stats, acuoas, d~bts,
dama~s, costs 0ncludms altora~ys' f~s), losses and expenses aristas from or out ofa~y ~dwr~ clam~$ ofaay aad
all pen~ to or n~tn~t ~ld g~s Furtber, noitl~r TXUGD nor Customer vail take any action that changes or
jeopanitze~ Ctntomer's title to the gas t~an~'ted hereunder
~ O~ltv
(n) Th~ natural ~s dolivored by Customer to TXUGD for mmspo~atton under flus Contract will be of
merchantable qual~ aad ~omm~re~ally.~ree ~om water, bazardo~ substances, hydrocarbon liqu~d~, bacteria and
other obJe¢~onable l~lu~, ~ol~d~ or ga~ componoua ~n ~ldiaou, any such gas wtll specifically conga not more
~0 j~v~onehundredthsofaneporcent( O$~)oxygen,
O0 We(S) grau~ of total ~ulphuro c~ons~stlng of no~ mor~ than on~ quarter (1/~) grain of hydrogen
and one(i) lrain of rnercaptan sulphur p~r one hundred ( 100~ cubic feet o£ ~s,
~til~ twoporoent(2~o)byvolumeof~arbandinxtds~
0~) fo#r percent (4~o) by volum~ of total non-hydrocarbon and~ga~ex0ucludmgcarbondlox~d¢,
niaogen, oxygen, helium, etc ), and
~) ~venpound~(7#)ofwatervaporperonemi]~lon(~,OOO,OOO)cublcf~tof~zs
Tbs ~a~ will be ~ ~emporatare~ not In e~e~ of one hundred twenty (120) degrees Fahrenheit nor l~ss than forty
(40) de~r~es Fahrenheit, p~ov~ded that ~h~ ~s ~il have · hydro,urban dew point not to exceed fo~y (#0) de~rees
Fahrenheit ~ ~ d~hv~y pressure, and wll! ha~u a ~at con,eat of not le~s than nin~ hundredf~ (9.~0) or more
~anolevenbandred(~°~Bmp~r~b!~u~der~ee~dia~sofra~as~ren~can~dberem Tx~roD w~il
aot be 0bissell to ~p~ ~ny ~s d~ll~m~d by Cu~omer ~or ~ de~lSnee~ be~eunder ~hat is not law.ben,sable
othar~lnTXUOD'sdis~bu~onsys~mut~app1~ableP~c~o~p~Pomtbereunder TXUOD~sdete,~tuna~lono~.
such ~n(e~abllt~y will be based upon a factor ~hta !s eqm~lent to the quotient oh~un~d by d~mng the ~o~
hea~ug~valu~ of such ~s, expressed m 9m, by fl~e square ~oot of ~h~ spec~Bc ~r~vity of such ~ Such factor mus~
~ ~th~n 7~o of tbs interohange fo~tor estabil~ed by TXUOD for ~s system at ~he applicable Receipt Point
~und~
(b) If = ~y fimo ~ g~ ~ls m ~ ~e quMity s~ifi~ons enu~a~ ~ln, ~GD ~11 notl~ Cusm~,
~ ~tow~ ~11 l~ly c~ s~h fml~ W ~s~ ts ~ble or anwilling m deliver ~ ~ing to
such ~=ifi~i~s, ~OD may ~fu~ to ~t ~hv~ of g~ ~und~ f~ so Io~ ~ s~h con~Uon
(c) N~ng ~y~n~ con~ be~n, ~OD ~ ~ n~t, at ~y ~ ~d ~om ~ m fi~. to
u~ln~ly ~. ~ a nond~r~ b~is, ~ q~ty s~cafions ~t f~ a~ve to ~o~ ~th s~
lndus~y ~ u~n gtwng C~to~ at ~t ~y (30) ~ys ~or ~n noU~ of any s~h ch~ge{s)
6 ~nnibiHtv
~s~r ~ ~'s ~sa~ w~ ~ in ~n~l ~ ~lon of ~ ~ to be ~n~ ~ ~il ~
~on~blo f~ =d will ~ow~fy T~OD ~, ~ ho~ ~OD ~s ~ ~y dam~ ~ inj~ ~
~by[~ m s~h $~ ~i~ ~ilv~ ~ a f~ilty o~ by ~GD at ~ R~tpt Pom~s) ~ ~ such
n~ ~hv~ by ~OD ~ a f~ili~ o~ by ~o~ or C~r's ~sig~ ~ t~ ~Itv~ Pmnt, exit f~
~g~ d~ ~ ~ ~ ~gli~ ~OD ~OD ~11 ~ m ~n~l a~ po~on of~ ~ ~t
=an~s ~m~, ~ ~11 ~ ~onsibl~ ~ ~ will l~mt~ ~sm~r f~, ~d hold Cus~ ~1~
~ ~ d~ ~ ~ ~ ~by ~ ~ipt of ~e ~ by ~OD ~to a f~illty o~d by ~UOD at
· e ~pt ~inKs) ~d until s~ ~ is ~ltv~ into a f~H~ty of ~ C~r or Cmm~'s ~ at ~e
~11~ ~tn~ e~t f~ i~es ~ ~ ca~ by ~e ne~lt~ of ~sto~ or C~m~r's
Hoover, ~ ~H ~ ~l~ by ~GD ~r it ~ ~s~ out of~ ~r at n ~lpt Potnt ~d unOl tt ss
dehv~ by ~UOD to ~sm~ or ~'s de~ ~ ~t ~ p~d om of ~e ~ at a ~hv~ Point
~e ~ ~1 ~ ~ to ~ ~e ~ ~ f~ p~ of ~ prov~non
(=) Co~mg wi~ ~nmM dohv~nes ~ ~n ~r~nder, ~s~ will pay to ~GD ~ch mon~ ~
~r d~g s~h mon~, at ~ ~(s) ~t f~ on ~ ss~y p~e of ~is ~n~ whtch ~11 l~l~o
T~OD's H~t m ~n ~d ~o~ ~e o~r of tho ~nt~on Volum~ nnd ~ f~s, c~es, ~x ~mbur~
and c~ ~vt~ for ~ ~ts Con~L
~) ~to~ ~ to ~mbu~ ~GD for my T~ ~ ~tn defi~
8 Rennin( Points
(a) OaS delivered by Cuatonler (or its desisuae) to TXUGD bereander villi be dehvemd at thc °ugot °f a city F'ate
meter, rofeneed to herein as the "Receipt Point," described on the signature page of this Contract The Receipt Point
vail be at an active city Bate on the TXUGD's distnhotton system, described on the slpmture peBa of this Contract,
provided, thnt if TXUOD owns tho applicable city sate, the Receipt point will he the mint of the city Bate Itts
agreed that Customer and TXU(~D may mutually nsree to additional receipt points under this Contract that wlfl also
be at active ntty fates on such rltstnbubon system
(b) Notwtthstendin8 anythm$ contained in this Contract that might be consti'uad to tho contrary, m the event of
mlfave~thle operating conditions (as daterngacd by TXUGD in tis sole Oplrdon), or a nhuaBa of ownership of a
spuclfit~ P. ecmpt Point or appurtonuat faciht~8, or If. in TXUGD*s sole oplnmn, thc receipt of Sas from a specific
Receipt Point ever becomes uneconomical for any reason whatsoever, then TXUGD Mil have the n~ht (i) to
immediately discontinue the receipt of Bas from any such Receipt Point and/or (ii) upon thu'ty (130) days' prior
written notice to Cogomer, to dalnte any suoh P-uempt Pmnt from this Contruct However. Cuatemor and TXUGD
may ag'Fua to perform this Contract with redaced veinme8, or Costomm' and TXUGD may agree that Cestomer will
pay for tho uecuamr~ increase tn copectty of the facilities Involved
9 Intemmtiblo Service
Customer horchy asknowledBas that TXU(]D's receipt and delivery of gas volumes hereunder will be on e wholly
interruptible basis and subject to (i) the meet efficient and acunormc utilization ofTXUOD's ptpchce capacity as
determined by TXUOD in its sole discretion, (ii) pipeline capacity uecesem'y to serve ematmg or future sales
customers under tnt'life fiind with spphoable reSuintory anthont~as or under angotmted contracts as determined by
TXUGD in its sols diseretion, and (ut) the other terms and condttinus contmned in thru Contract Customer a~eas
that such uunspomtion service may be inteffupted, in whole or in part, from time to time, without notice, however,
TX~OD*s dispatcher will end~vor to advise (by telephone m' olue~romc medmm) Cnstomer's dispetehar or
anthon~md ~ontetive of an mten'uptton as soon as pt-acticable, mtber before or after such inte~up~on, but
TXUOD will beve un liabihty for any fadure to 81ye such nntice In on event will ua interruption of transpertetion
service pursuant to th~ terms, conditions and contiuBancJas of this Contract constitute a breach of this Contract, and
TXUOD will not be habln to Customer or third pa~as in d amp4~ or otherwise because of any intermp*~on of such
serwco Customer agreas to indemnify TXUOD for, and hold TXUOD harmless from, any damages, causes of
actions or nlsima ascerted by any third parties ns a result of any termmatmn, suspension, or interruption of services
hereunder by TXUOD for any reason
10 ~
(a) Cuatomor will provide TXUOD with its first of the month nonunation of volumes for raceq0t and delivery by
TXUOD dormg a month no later than il 30 a,m central clock time on the second hemnass day prior to the first
calandat' day of each nmnth, suvmg due consideration to the Retention Voinme
Co) Bac2t such nominauon by Cuatomer will contain the nomiuated quantmas fur each Receipt Point and tbe
Deliver,/Point, dseisuation of the eppropriate contract(s) covenng such gas, and thn ldnn~ty by name end telephone
anmb~ of thdlwdual(s) who have anthonty to confirm the gas volumes nominated at e~h Racetpt Pmat and the
Delivery Point.
(c) Customer may chanBa nominated volumes for the remamdor of a month on any basmess day, prowded such
non~uation change must ho received by TXUOD prior to l0 00 a.m central clock time of uny business day to be
offuetive tim next btmiceas day
(d) If Customer fstis to nonunete volumes for receipt and dehvery by TXUOD under this ConWsct for any month,
TXUGD may suapend transportetion service under this Con~-ast for sach month Sach Interruption of serwce by
TXUOD wilt not prevent unfure~ment by TX~OD of any of its other legal rights or romedles nor wdl the same be
constnutd as a breach of the obliBations of TXUOD undor flus Contracl
(e) If Cuatomor fulls to nomtnete volumua for mcoipt ned dehvery by TXUOD andor this Contract for thrue(3)
conscontivn months durin~ tho term of flus Contract, TXUOD may upon tlm'ty (30) days prior written notice to
Caswmm' termluate this Contract, l~ovided, th~ obligations to make payment for montes due under this Contract,
including payments for any hnd of tmbeinaces, will not be extinguished
(0 Customer unde~tends and a/p'eus that TXUOD may for operettonel reasons prorate and/or totally refuse to
accnpt new nominatious or honor then oxmtinll nomiuatioua at any exlsung Receipt Points and/or proposed Receipt
Points, at any time ami from ume to time and for any specified or unspecified time period(s) TXUGD will endeavor
to notify Customer or Customer's deslgace of sash refusal to accept or honor any nomination or nonuonttons as
soon as preodoablo, but TXUGD will not bo hablo for any fiuloro to do so
(g) Notwithstanding the foregoing, Customer will not attempt to utilize the nomination process oodor flus Contract
to reacrw or gain additional pipelm~ capacity by over nomination In the event TXUGD, in its sole discretion,
d.eternuhas that Customer has at~mptad to reserve or gain adthuonal pipeline capacity by over nomination,
Custonler agrees that *I"ArLIOD will have tho riehl, with or without prior nohce, to (1) revise the normnatlon, (la)
suspend usry, ica under this Cuntract~ and/or (iii) terminate tim Contract
! 1 ~nbtlances of Nomin~tons and Volumes
(a) It Is recognized and underetomi that
(i) an exact day-to-day ba~ of the volume of gas nominated for receipt and dohvery by TX'UOD and
the volorno of gas delivered to (tekmn or used by) Customer at the Delivery Point amy not he possible due
to the inability of Customer to precil~ly predict or control such receipts or deltvnnes, ami
(ii) an exact day-to.ay balance of tho volume of gas delivered to TXUOD at the Receipt Points for
transportation, loss the Re~ntioo Volume, ami tho quantity of gas delivered to (taken or used by) Customer
at the D~livery Pome by TXUOD may not be pussthle due to thc mabthty of Customer to control precisely
sash receipts or deliveries
However, Customer will oodanv~ to noflunate and deliver to TXUGD at tko Receipt Poet tho volume of gas that is
dalivermi to (taken or used by) Cestomer at the Delivery Point, plus the Retention Volorne, durmg any apphcabln
penod
(b) Custonler wdl he obligated to monitor on both an hourly and a daily bast9 sod, if necessary, adjust, or cause to
bt adjusted
(i) the volume of gas dalivered to TXUOD at the Receipt Points for t~anspormuon, ami
(ii) th~ volume of trausportat~on ~ls taken or received by Customer, or its deslaneo, from TX-LIOD at tho
Delivery Point, in order to maintain both an hourly and a dmly balanne of reseipts and deliveries at
oousmtoat flow rates throughout ~toh day, ~ivin8 due cons~deranue to the related Retention Volume
Customm' will advise TXUOD of any situation wherein any kind of imbalance has occurred or may occur
Cus~?.m~'~ will endeavor to adjust its receipts nod/or deliveries of ;ranspomltion Sas to tho extent necessary to avoid
any kt .NI of imhelance, and proraptly notify TXUOD of such mijastmonts Any ed. lasmlents to resoipts and/or
deliveries by Customer, whether or not pursuant to notifiuation from either party, will he coord unfed with TXLVOD 8
gas con~ol pmnonnnl
(o) "i"~OD will not he obhgatsd to t~ive or deliver qmmtitias of gas on any day an excess of tim lesser of (0
those qdanflliex nomiueted by Customer for ffausportaflon bi,rounder on such day, givmg due consideration to the
Retention Volunm, or (ti) thosu quantities received by TXUOD at ti~ Receipt Points for transportation hereunder on
such day, giving duo consideration to the Retention Volume However, TXUOD, to the extant pt'actioablc, w/Il
endearm' to deliver to Customer eanh day a quantity of 8as equivalent to tho quantity of gas received by TXU(3D
from C~stomer (or its desisuse) at tim Receipt Pomes on such day, less tho Retention Volume
(d) T~UOD will retetn and he~ome the owner of stroh Retonuon Volume m replace tho normal gas lost* gas ured as
fuel anl gas used in its day-to-day plpelthe opurations misted to tho volumes dahvere, d by Customer to TXUOD
(e) Notwithstanding anythin8 contahq~:l herein that might bt coastruad to the coatrerY, TX*0'OD will always have
the total, and unrasmoted right, but with no obligation whatsoever, nt any time and from tmle to time, to restrict,
interrupt or rminoo its reonipt and/or delivery of transport Bas hereunder in order to nmmtmn both an hourly and a
dmly balance of receipts and delivenus at consisteat flow rates throngbout each day or to carrot any imbalance
between reueipts and deliveries hereunder
(f) Othp. r provmions of this Con~ract notwithstsndins, m tho avant the trensportstion of volumes o f gas dalive~T'd to
the Recqipt Point are interrupted by TXUGD during any day for any?aeon, ~e .v. olu .mo into.Rap, ted, up to ~
MaximUm Daily Quantity, will not he considered as a pm of any imomanoe mr met day uaner me terms of ems
Contra~
12 ~mmatlan Imbalunun Payments
(a) A nomtnntion imbldance will ox!at under tlfl~ Contra~t wbun, ducmg ar~y apphc~ble Period of the term bumof.
there Is a numerical difference between
(0 the quanU~y of Sas dehv~'ed by TXUOD ~o Custon~r, and
00 ~bu quanUty of gas nominated for flint panod by Customer
(b) To tho oxt~nt Cuntom~ fmla to avoid a monthly nonuaattun lmbulanco ins do~onb~d m parasreph 12(a) above],
and Customer's nOmllationa for dolivorie~ to TXUOD et ~ Roeolpt Point(a) during such monthly period are in
ox~ of tho tran~poflatlon qunntfl~ aotually, or doom~d by ullocat~on, d~hvered to TXUC~D for tran~portouon to
Customer at tho Delivery Point dunng ~ud monthly parted ("over nonunetlon by Customer")
0 if tho h~oain~o la ~mator than 0~, but $~ or le~a dunng such month, Customer wd! pay to TXUOD
sum of money dntonnlned by ~o profluot of (A) $0 1 ~ (15 cents) par ducathorm multipl~ed by (B) tho
number of d~athorn~ tn such montlfiy tmbuinuco, thereby olumnating such tmbulanco,
(ii) if tbu imbuint~ ia ~ator than $~,, but 10~ or insz dormg such month, Customer wall pay to TXUCID
a sum of money dot. mined by tho pmduot of (A) $0 30 (30 coat~) per doc~herm multlphed by (B) tho
number of ducath~x~ in such monthly lmbuluncx, thereby nhmlunflng such nnbulanoo,
(iii) if tho Lmb4fluuco i$ ~ ~ 10%o but 15~ or leas dunng such month, Customer will pay to
TXUCtD a sum of money d~lormtand by th~ pt~luct of (A) $0 45 (45 ¢ont~) per ducathorm multiplied by
(13) tho numbs' of d~catherm~ in such monthly imbaluno~, the~by ehrmnatm$ such imbulunoo,
(iv) if tho imbulauco Is greater than 15%. but 20~ or Io~s dunng such month, Custon~' vnll pay to
TXUOD a ~m of money tletormu~d by tho product of (A) $0 60 (60 c. enta) per docath~rm multiplied by
03) tbu number of d~oathorn~ m such montldy Imbulungo, tburchy elinuuntmg such imbalauco, or
(v) ff Ibu !mb~lanoo la gr~atnr then 20~ during such month, Customer Mil pay to TXUOD e sum of
money determined by tho prodder of (A) $0 7:5 (75 oontz) per doc~th~rm multiplied by (B) tho numbur of
d~'n~ in such monthly tmbulanoo, tbumby ehnaunting such imbulanco.
(c) To tbu exWnt Cuctomor falls to avoid a monthly nomiant~on imbuinnoo [za dc~or~bed m paral~rsph 12(a) abuve],
and Co,tenor's nominauon for dehv~ to TXUOD at tho l~e. ipt Point(s) dunng such monthly period ~ loss
than tho tran~ortatton quantities aotunlly, or doomed by alin~ation, dohvored to TXUOD for transportation to
Customo~ at tho Delivery Point during said monthly period ("un,or nonunaUon by Cu~tom~"), Coztomor Mil pay
TXUCID a sum of money dotornflu~d by tho product of (A) $0 05 (5 cone) per dooathorm muitiplind by (13) tho
unmb~' of dooalhorma m ~uah monthly imb~_.!~n~o, thorchy nhmmatmg such lmbainuco
(d) TXUCID will bill Customer for any such amount~ owed to TXUGD by Customer under this paragraph 12 by
including anch amount~ in tho monthly stoMmoat(s) t~ndorod to Customer under paragrq~h 12 of Schedule "B" of
flus Contruct. or by n separate s~tomont wbuthor or not flus Contruct haz termiuntod
13 ye!unto Imbu~ Pavmunts
(e) A voiumo imb~lanoo vnll ordst under flus C. ontraot when, dormg uny month of tho term hereof, thoro ~ e
numoneel ditfomnoo butween
(l) tho voiumo of ga~ dohvomd by TXTJC]D to C:uztomer at tho Dohvory Point, end
(ii) tho ye!oran of gas rucoivod by TXTJOD from Customer (or fl~ designee) at tho Receipt Point(a). loss
tbu P~t~nflon Voiumo Volun~s r~oived or dohvored vnll for pmlx~e~ of lifts C. ontrecl iuclude voiumes
that am not ~paratoly motored, bat mo d~omod roootved or dnhvored by allo~etton in situations to winch
C-N~mmor's ga~ ia commingled with ~ owned by others
Co) TotbuextontCuatomorfadstoavoldamo~thlyvoiumolmbulanoo[a~do~onbedmparagraph 13(e)abuve],and
C. ucton~r's dnhverin~ to TXUOD at tho Roootpt Point(s) ducmg such monthly pe~od, in~s tho Rntantzun Voinme~,
am in nJW~s oftbu tra~po~tauon qo~tlti0~ dohvered by 'lg~TJOD to Customer at tho Dohvery Point dormg amd
monthly ported ("over d~hvnrio~ by Customer oroat~ng on ~mbulan~e 'duo' C;ustomor")
$
0 if the imbalance ts greater than 0~. but 5~ or less. of the total gas volumes deiivemd to Customer at the
Delivery Point during such month. Customer wdl sell to TXUGD and TX'UOD wall purchase from
Customer the decathenus of such monthly imbalance for a sam of money deterrmned by the product of (A)
the lesser of the lowest M'lce paid for gas by TXUGD dunng that monthly period er the lowest denny
Houston Slop Channel price during that monthly peflod, as reported in the pubhcetton Gas Dalb.
multiplied by (B) the number of decethenus In such monthly imbelanne, thereby eliminating such monthly
ii) if the imbalance is greater than 5~. but 10~ or less. of thn total gan volumes delivered to Customer at
the Delivery Potnt dunng such month. Customer Mil sell to TXUOD and TXUGD will porchane from
Customer the deontherms of such monetiy unhalance for a sum of money determined by the product of (A)
the lesser of the lowest price pard for gas by TXUGD dunng that monthly period or 80~ of the lowest
daily Houston Ship Channel price during that monthly penod, as repo~ed tn the pobiicauon Gas
muluphod by (B) the numher of deoatharms m such monthly unhalance, thereby nhunneung suchmonthly
imbalance.
iii) if tho irnhalauce is greater than 10~. but 15~ or less. of the total gas volumes deltverod to Customer
at the Dehvory Point during such ntonth. Customer wtll sell to TXUGD and TXUGD will pm'chane from
Custonier ~ha ducathorms of such monthly unbalance for a sum of money determined by tho product of (A)
the lesser of the lowest puce pard for gas by TXU(3D dunng that monthly period or 70~ of'thc lowest
dmly Houston Ship Channel price dunng that monthly period, an reported tn the puhhcet*on (~ Daily.
multiplied by (B) the number of ducatherms m such monthly imbalance, thereby eliminating suchmonthly
lllthelnUce.
iv) tf the imbalance is ~reater than 15~. but 20~ or less. of the total gas volumes deh~.m'ed to Customer at
the Dehvery Point dustnt such month. Customer will sell to TX'UOD and TX'UOD will purchase from
Customer the deoatherms of such monthly unbalance for a sum of money determined by the product of (A)
the lesser of tho lowest puce peld for Sas by TXUOD during that nmnthly pertod er 60~ of the lowest
delly Houston Ship CiMnnel price during that monthly period, ns reported m the pabhcation (~a~
rflultiphed by (B) the number of decatberms In such monthly unbalance, thereby eiimmnt]ng 8uchmonthly
IIIl~q~nn~no uud
v) if the imbalance is steerer than 20~ of the total Sasvolumes dehvered to Customer at the Delivery
Point during such month. Customer will sell to TXUGD and TXUOD will purchase from Customer the
decathernm of such monthly unbalance for u sum of money determined by the product of (A) the lesser
the lowest price paid for gas by TXUKJDdurtng that monthly period er $0~ of the lowest daily Houston
Ship Channel price during that monthly period, an reported in the publication G~.~ Daffy multiplied by (B)
the number of decethm'ms in such monthly imbalance, thereby eliminating such monthly ImhaJance
(c) To the extent Customer dons uct avoid u monthly volurne unhalance las descrtbed In peragreph 13(a) abut].
and CuStomer's deliveries to TXUGD at the Receipt Point(s) during such monthly period ore less than thc
~ansportation qucntitsss dehvoredby TXUOD to Customer at the Deiivery Pmnt during smd monthly period ("under
dehverias by Custonmrerneting an imhalance 'due' TXUGD")
t) if tho imbalance ts greater than 0~. but 5~. or less. of the total sas volumes dehvered Customer at the
Deiiver~ Point during such month. Customer MIl purchase such imbalance gas volumes ~fom TXUGD. and
TXUGD will have the right to collect from Customer. a sum of money deterunned by the product of (A)
the greeter of the highest p~ce paid for Sas by TXUOD during that monthly period or 100~ of the his[hast
dally Houston Ship Channel price dm'Jug that mouth]y period, an reported in the publication G~f~ ~.
multiphed by (19) the number of dceathornm m such monthly imbalance, thereby ehmmatm~ such monthly
fi) if thu imbalance is greater than $~. but 10~ or lmm. of thc totai sas volumes delivered to Customer at
the Dehvery Pmnt dunng such month. Customer Mil purchase such imbalance gas volumes from TXUGD.
and TXUGD will have the right to collect from Customer. a sum of money detenmned by the product of
(A) the 8reator of the hi,host price paid for gas by TXUOD dunng that monthly period or 125~. o~ the
highest dally Houston Ship Channel price during that monthly period, ns ~ported in the pubhcettne
D~fJ~*. nmltipliod by (B) the number of decetharms in such monthly imbalance, thereby ehminatmg such
monthly imbalance.
6
iii) if thc imbalance ts grmter thanlO~, butlSqo or less, of the total gas volumes delivered C~tomer at
tl~ Dehwry Point dtmng anoh month, Customer will purehas~ such imbahnce ~as volumes f~om TXUOD.
and TXUOD will have the ri~in to collect f~om Customer, a sum of money detenmnnd by the product of
(A) the ~eater of the h~gbest prioe paid for ~ by TXUOD dunng that monthly period or 150~, of the
high,st daily Houston Ship Channel pr~ du~in~ ~ monthly p~nnd, as repu~/ed m the pubh~auun O~.~
D~ily, multiplied by (B) the number of decailmrras In such monthly imhalauce, thereby ehnunndng such
monthly ir'~baian~,
iv) d tbe imbalance ts greater ~m. nlS~, but 20~ or les*, of the total gas voinnms delivered to Caston~r at
th~ Dehvety Pmnt during suoh month, Customer will purchase such imbalance ~as volumes fi, om TXUGD,
and TXUOD will have the right to ~oll~t from Customer, a sum of money delenmned by the product of
(A) the ~reator of the in~hest pnee pntd f~r gas by TXUGD dunng that monthly period or 175~, of ibc
highest daily Houston Ship Chann~l price during flint monthly pened, as repurtod In the publi~a~inn G~
D~t/y, multiphnd by (B) tha number of dec. athenus m such monthly lmbelance, thereby ehmmaUng such
monthly imbalance, and
v) if the Inthainnce ts ~'antor than 20~ of the total ~ volumes debvered to CusWmer at the Dulivery
Point dunng sceh month, Custo~mr will purchase such unbalance ~as volumes from TXUGD, and TXUGD
will have the n~ht to ¢olluct from Customer, a sum of money dot, intoned by the product of (A) the ironer
oftbe hi,bust price prod for ~as by TXUGD dunn$ that monthly pennd or 200~ of the hl~he~ daily
Houston Ship Channel pnce durtn~ that monthly pined, as repor~i m the pubbcatton C~ Dully,
molt~phed by (B) the number of daoatherms in such monthly imbalance, thereby aiiunnatren suchmonthly
imhalance
(d) TXUOD yah hill Customer for any sush amoun~ owed to TXUGD by Customer under flus para.apb 13 by
including such amounts in the monthly statanmnt(s) rendered to Customer under para~'aph 12 of Schedule "B" of
this Contra,~t. or by a reperal~ statement whatl~r or not this Contract has terminated TXUGD val h:redit Castomer
for any sanh amounts owed to Custon~r by TXUOD undar this para. apb 13 by crediting such amounts a~a~nst
amounts owed to TXUOD by Customer in any such shatemeot/s) rendered to Customer Otherwise, such nmounts
vail ha paid to Customer within thirty (30) days from the date Contract has terunna~d If the net account balance is
an amount owed to Customer by TXUOD
14 Misuse oflmbatnnce Pl~vtsiiHl~
Caston~r will not at.rapt to utilize Iha imbalance provtslous hareunder to provide standby or backup service or
plant pro.orion supply Nas for its Facility in t~ event its flurd party suppher(s) fail t~ deliver sufficient volumes of
~as to TXUOD for redehvery hareunder to Customer's Fneibty for such ptuposas, with due consideration to thc
Ret~nuOn Voinmo, or for any oth~ purpuze not exprassly contempintnd m tha terms o f gus Contract In tim evant
TXUOl) ever datonnin~ that Customer has attempted to do so, Customer a~rees that TXUGD will have the nght to
suspend and/or terrninnte this Contract.
(a) In the event no ~ D~/~ is published or no "hi,hast daffy price" ~s published in the G~ D~/ly, the price ased
therefor~ will be the hi~hcet price published in I.~ld4~ FK.~ C '~ G~t M~d~t ~rt for gas sold during thc month in
Texas In the ewnt no G~ D~l/y is publishad or no "lowest daily pnze" is pubh~hed in the G~ D~i/y, Ibc im~ used
therefor,will be Ibe lowest price pubhshnd in ~e las~/~ F/~//C's G~ M~t//epo. for gas sold dudnl the month
m Texas
(b) Intheeventno~D~ilyandn~In~ai¢FK~IiC.~Ga~Mod~v~ispub~tshedorn~`~h~hastdailypnce~
is pub~hed m the (~/~,s D~liy or tn th= "lastd~ FF. RC," the price used therefore will be the hihe~t pn~ published by
gte New York Mercantile I/bt~hange (NYMEX) for ~as sold duties the month m Texas In the event no G~s D~ll.~
and no I~/~ F ~,~ C '~//u~ Mun~ ~ is published or no "lowest daffy IMCO" is published tn the G~ D~//y or
in tho "l~s~de FI~RC," the pnce used therefor will be the lowest price published by the New York Mewandle
ltxchan~ (NYMEX) for gus sold during Iha month in Texas
(c) intheeventGosD~tly, l~t~FF, llC.'~G~M~'~il~po, andtbeNewYorkMercantileExchange
(NYMEIO all three tail to report a hi,hast or lowest price for the month for use under ~ha respective provtslons of
~ Contra~t the pamas may mutually a~ee upon the price or prices to be used However, if thc pamas cnnant a~ce
on such n price or prices vathm timly (30) days of ankh an event the appropnat~ price or pnces will be astablisbed
by arbitrndon us provided in this Conlrnet
Tariff for Gas 8ervloe TXU Gas Distribution
RATE SCHEDULE' Ga. Coat Adjustment No 4108-4
APPUCABLE TO: NW Metro / Mid Cities Distribution REVISION 0
8yotom DATE 07/20/01
EFFECTIVE DATE 07/20/01 PAGE I OF 1
GAS COST ADJUSTMENT
4108-4 QA8 COST ADJUSTMENT
Each residential and commemial monthly bill shall be adjusted for gaa cost as follows
(1) The oity gate rate increase or deorease appli~'.able to current billing month raa~dential and commercial
sales shall be calculated to the nearest $0 0001 per Mcf based upon
(a) A volume factor of 1 0117 determtned In aatabheh~ng the above rate for the distribution system
aa the ratio of adjusted purchaaed volumaa divided by adjusted salsa volumes Said factor shall
be adjusted annually following determination of the actual lost and unaccounted for gas
percentage baaed upon year ended June 30
(b) The cltygate rets applicable to volumaa purchaaed durtng the currant calendar month, expraaeed
to the nearest $0 0001 per MOf (shown below as "Re")
(c) A base city gate rate of $0 0000 per Mcf
In summary, the gas cost adjustment (GCA) shall be determined to the nearest $0 0001 per MOf as
follows
GCA = [(1 0117) (Re - $0 0000))
Tariff for Gee Service TXU Gee Dtetrlbutlon
RATE ~IICHEDULE' Tax & Franchise Fee Adjustment I No 4108-6
APPLICABLE TO' NW Metro I Mid Cities Dtatributlon REVISION 0
System DATE 07120101
EFFEOTIVE DATE. 07/~0101 PAGE. 1 OF 1
TAX &FRANCHISE FEE ADJUSTMENT
4t08-5 TAX & FRANCHISE FEE ADJUSTMENT
Each monthly bill, as adjusted above, shall be adJusted for municipal franchise fees (street and alley
rental assessments) and the state gross receipts taxes ~mposed by Sections 182 021 - 182 020 of
the Texas Tax Code Municipal franchise fees are determined by each cdy's franchise ordinance
Each monthly bill, as adjusted above shall also be adjusted by an amount equivalent to the
proportionate part of any new tax, or any tax Increase or decrease, or any ~ncrease or decrease of
any other governmental imposition, rental tee, or charge (except state, county, city and special district
ad valorem taxes and taxes on net ~n~ome) levied, assessed or imposed subsequent to September
$0, 2000, upon or allocated to the Company's distnbution oparabons, by any new or amended law,
ordinance or contract
Municipal franchise fees (street and alley rental assessments) and the state gmse receipts taxes
Imposed by Sections 182 021 - 182 025 of the Texas Tax Code shall continue to be collected
pursuant to ~ndivldual industrial contracts
Tariff for Oas 8ervlca TXU Gas Distribution
RATEiSCHEDULE Weather Normalization Adjustment No 4108-6
APPLICABLE TO' NW Metro / Mid Cltlas Distribution REVISION 0
System DATE 07/20/01
IEFFEI~TIVE DATE. 07/20/01 PAGE 1 OF 1
WEATHER NORMALIZATION ADJUSTMENT
4108-6 WEATHER NORMALIZATION ADJUSTMENT
Effective with bills rendered during the October 2000 through May 2001 b~lhng months, and annually
thereafter for the October through May billing months, the residential and commem~al consumption
rates for gas serv~e, as adjusted, shall be subject to a weather normahzation adjustment each b~lhng
cycle to reflect the impact of vacations in the actual heating degree days during the period included m
the billing cycle from the normal level of heating degree days during the period ~ncluded in the billing
cycle The weather normalization adjustment will be ~mplsmented on a per Mcf bests and will be
applicable to the heating Icad of each customer during the period ~ncluded in the billing cycle It will be
determined separately for residential and commercial customers based on heating degree data
recorded by either the DFW Airport weather station The adjustment to be made for each billing cycle
will be calculated according to the following formula
WNA = ~vo~ ,~:) x M x AHL
Where WNA = Weather normalization adjustment
NDD = Normal heating degree days dunng the period covered by the billing
cycle
ADD = Actual heating degree days dunng the penco covered by the billing
cycle
M = Welghtad average margin per Mcf Included in the commodity portion
of the rates effective during the October through May b~lhng months
AHL = Actual heating Icad per customer
The heating Icad to which the weather normallzst~on adjustment ~a to be apphed for rec~dentlal
and commercial customers is determined by subtracting the base Icad for the customer from the
total volume being billed to the customer The base Icad of a customer ~s the average level of
nonheatlng consumption
The weather normalization adjustment Is subject to a 50% limitation factor based on temperatures
being fifty bement warmer or colder than normal The weather normalization adjustment w~ll be
calculated to the nearest $ 0001 per Mcf
Tariff for Gee Service TXU Gas Distribution
RATE ~CHED~JLE. Mleeelianeeua Service Char~ea Nos 9001 thru 9007
APPLICABLE TO' As Referenced REVISION 0
EFFECTIVE DATE. Aa Referenced PAGE 1 OF 2
MISCELLANEOUS SERVICE CHARGES:
9001 Connection Charge (Residential & Commercial)
The following connection charges apply'
Schedule Chares
Business Hours $ 35 00
After Hours 52 50
For each reeonnect~on of gas service where serwce has been d~scont~nued at the same premises
for any reason, for the in~al inaugurat~on of service, and for each maugurst~on of service when
the billable party has changed, with the following exceptions
(a) For a builder who uses gas temporarily during construction or for display purposes
(b) Whenever gas service has been temporarily Interrupted because of system o~age or
serwce work done by Company, or
(c) For any reason deemed necessary for company operations
9002 Read For Change Charge (Residential & Commercial)
A read for change charge of $12 00 is made when it is necessary for a company employee to read
the meter at a currently served location because of a change in the billable party
9003 Returned Cheek Charges (Realdential & Commercial)
A returned check handling charge of $16 25 is made for each check returned to the Company for
any reason
9004 Dednquent Notification Charge (Realdentlal & Commercial)
A charge of $4 75 shall be made for each trip by a Company employee to a ccetomer's residence
or place of buslnass when there Is an amount owed to the Company that is past due This charge
shall not be made when the trip Is required for safety investigations or when gas saw,ce has been
temporarily interrupted because of system outage or service work done by Company
9005 Main Line Extension Rate (Residential & Commercial)
The charge for extending mains beyond the free I~mit established by Franchise for residential and
commercial customers shall be beead on the actual cost per foot of the extension
Tariff for Gas Service TXU Gas Distribution
RATE ~CHEDULE Mlesallanenue Berries Cher~es Nee. 9001 thru 9007
APPLICABLE TO As Referenced REVISION 0
EFFE(YI'IVE DATE Ae Referenced PAGE 2 OF 2
9006 Charge for Inetalllng and Maintaining
and Exeees Flow Valve (Residential)
A customer may request the installation of an excess flow valve on a new 86rvlc6 line or on a
service line being replaced provided that the service Fine Mil serve · s,ngle residence and operate
continuously throughout the year et · pressure of not lees than 10 psig The customer will pay the
actual cost incurred to ~nstall the excess flow valve That cost will include the cost of the excess
flow valve, the labor ocet required to install the excess flow valve, and other associated costs The
estimated total cost to install an exoess flow valve Js $50 00 This cost ~s based on installing the
excess flow valve at the same time e service line Is installed or replaced The excess flow valve
will be ~netalled on the service line upstream of the customer's meter end es near as prechcal to
the main
A customer requiring maintenance, repair, or replacement of an excess flow valve wdl be required
to pay the actual cost of Iocehng end repelnng or replacing the excess flow valve The cost to
peiform this service will normally range from $200 00 to $2,000 00, depend;ng on the amount of
work required This cost will be determined on an ~ndlvlduel project bes~s
This tardf is being flied ~n accordance with the U S Department of Transportation rule requ~ring
the Installation of en excess flow valve, If requested by a customer, on new or replaced service
lines that operate continuously throughout the year et a pressure of not less than 10 pslg and that
serve a single residence The rule further states that the customer will bear all costs of instalhng
and maintaining the excess flow valve
9007 Recovery of Connection Coats Asenclatad
with Certain Stand-By Gsa Generators (Commercial)
Commemiel customers installing stand-by gas generators to prowde service in the event of an
interruption in electric service ~n feclllhes where gas sewice ;s not otherwise provided will
reimburse TXU Gas Distribution for the actual cost of acquiring and installing the regulator,
service line, and meter required to provide gas esrv~ce for the stand-by generators Gas service
provided for the stand-by generators will be billed et the apphceble commercial rate
Tariff for Gas Service TXU Gas Distribution
I
R!_n;_Rt 8urohar(~(~ .... No 4116
APPLI(~ABLE TO: NW Metro/Mid Cltlas Distribution System REVISION 0
DATE. 07/20/01
EFFECTIVE DATE: 07/20/01 PAGE 1 OF 1
SURCHARGES
Rata Ca~le Expense 8uroharoa Rider
TXU Gas Distribution Is authorized to recover the current rate case expense through a surcharge
designed for a six. month nominal recovery period The surcharge per Mcf will be caiculatod by
dividing the rate case expense to be recovered by one-half of the adjusted annual sales volume to
residential, commemial, Industrial Sales, and Industrial Transportation customers TXU Gas
Distribution will provide monthly statue reports to the City to account for the collechon of rate case
expense The surcharge for the company's rets case expenses shall be pro-rated over the system
as a whole The cities rate case expenses shall be pro-reted among the cities who h~red outside
consultants and/or attorneys to represent them In this case
Other 8urohargas
TXU Gas Distribution will recover other surcharges as authorized by the relevant municipality, the
Railroad Commission of Texas or the Texas Utilities Code