Transportation Service Agreement Applicable to Firm Transportation Service Under Rate Schedule FTS, Contract No. EQTR 20242-852, dated as of September 24, 2014 as amended December 6, 2021 by and between Equitrans L.P and EQT Energy, LLC

Contract Categories: Business Operations - Services Agreements
EX-10.10(C) 7 etrn12312021ex1010c.htm EX-10.10(C) Document

Exhibit 10.10(c)
EQUITRANS, L.P.
TRANSPORTATION SERVICE AGREEMENT
APPLICABLE TO FIRM TRANSPORTATION
SERVICE UNDER RATE SCHEDULE FTS
Contract No. EQTR20242-852
Dated September 24, 2014

This Agreement is entered into by and between Equitrans, L.P. (“Equitrans”) and EQT ENERGY, LLC (“Customer”).
1. Agreement (CHECK ONE)
___ This is a new Agreement.
_X_ This Agreement supersedes, terminates, and cancels Contract No. EQTR18679-852, dated December 20, 2013. The superseded contract is no longer in effect.

2. Service under this Agreement is provided pursuant to Subpart B or Subpart G of Part 284, Title 18, of the Code of Federal Regulations. Service under this Agreement is in all respects subject to and governed by the applicable Rate Schedule and the General Terms and Conditions of the Equitrans FERC Gas Tariff (“Tariff”) as they may be modified from time to time, and such are incorporated by reference. In the event that language of this Agreement or any Exhibit conflicts with Equitrans’ Tariff, the language of the Tariff will control.

3. Equitrans shall have the unilateral right to file with the Commission or other appropriate regulatory authority, in accordance with Section 4 of the Natural Gas Act, changes in Equitrans’ Tariff, including both the level and design of rates, charges, Retainage Factors and services, and the General Terms and Conditions.

4. Customer’s Maximum Daily Quantity (“MDQ”) of natural gas transported under this Agreement shall be the MDQ stated in Exhibit A to this Agreement. If service under this Agreement is associated with a firm storage agreement, Customer's Base MDQ and Winter MDQ are stated in Alternative Exhibit A.

5. The effective date, term and associated notice and renewal provisions of this Agreement are stated in Exhibit A to this Agreement.

6. The Receipt and Delivery Points are stated in Exhibit A to this Agreement.

7. Customer shall pay Equitrans the maximum applicable rate (including all other applicable charges and Retainage Factors authorized pursuant to Rate Schedule FTS and the Tariff) for services rendered under this Agreement, unless Customer and Equitrans execute Optional Exhibit B (Discounted Rate Agreement) or Optional Exhibit C (Negotiated Rate Agreement).

8. Exhibits are incorporated by reference into this Agreement upon their execution. Customer and Equitrans may amend any attached Exhibit by mutual agreement, which amendments shall be reflected in a revised Exhibit, and shall be incorporated by reference as part of this Agreement.


        Contract #EQTR20242
        Page1 of 10

IN WITNESS WHEREOF, Customer and Equitrans have executed this Agreement by their duly authorized officers, effective as of the date indicated above.


CUSTOMER:EQUITRANS, L.P.:

By /s/ Paul Kress 9-30-2014
By /s/ Andrew Murphy 9-30-2014
(Date)(Date)

Title VP    

Title Vice President    
        Contract #EQTR20242
        Page2 of 10


EXHIBIT A
to the
TRANSPORTATION SERVICE AGREEMENT
between EQUITRANS, L.P.
and
EQT ENERGY, LLC,
pursuant to Rate Schedule FTS
Contract No. 852 Dated 09/24/2014

Date of this Exhibit A: 12/ 6 /2021
Effective Date of this Exhibit A: OVCX In-Service Date (as defined below)
Supersedes Exhibit A Dated: 12/6/2021 (effective 1/1/2022)

1. Notices and Correspondence shall be sent to:
Equitrans, L.P.

2200 Energy Drive
Canonsburg, PA 15317
Attn: Gas Transportation Dept.
Phone: (412) 395-3230
E-mail Address: TransportationServices@equitransmidstream.com


EQT ENERGY, LLC

Address:
625 Liberty Avenue Suite 1700
        Pittsburgh, PA 152222

Representative: EQT Energy Scheduling
Phone: 412 ###-###-####
E-mail Address: EEScheduling@eqt.com
DUNS: 03 ###-###-####
Federal Tax I.D. No.: 02-0750473
Other contact information if applicable:

2. Service Under this Agreement is provided on:
XMainline System (includes the Sunrise Transmission System and the Ohio Valley Connector)
Allegheny Valley Connector



3. Maximum Daily Quantity (MDQ):


Base MDQ (Dth)Winter MDQ (Dth)Effective Date
1,035,0001,035,000OVCX In-Service Date (as defined below)

4. Primary Receipt and Delivery Point(s)
Primary Receipt Point(s)**BaseWinterEffective
(Meter No. and/or Meter Name)MDQ AllocationMDQ AllocationDate
###-###-#### – McIntosh
100,000 dth100,000 dthOVCX In-Service Date (as defined below)
17172 – Hopewell Ridge125,000 dth125,000 dthOVCX In-Service Date (as defined below)
17112 – Callisto300,000 dth300,000 dthOVCX In-Service Date (as defined below)
###-###-#### – Aurora110,000 dth110,000 dthOVCX In-Service Date (as defined below)
TBD – Beacon H-111 (LP)50,000 dth50,000 dthOVCX In-Service Date (as defined below)
TBD – Beacon H-302 (HP)250,000 dth250,000 dthOVCX In-Service Date (as defined below)
###-###-#### – Flower (Polecat)
50,000 dth50,000 dthOVCX In-Service Date (as defined below)
###-###-#### – Bowlby (Drift Ridge)
50,000 dth50,000 dthOVCX In-Service Date (as defined below)
** Receipt point MDQs do not include quantities required for retainage.

Primary Delivery Point(s)BaseWinterEffective
(Meter No. and/or Meter Name)MDQ AllocationMDQ AllocationDate
11027 – Pratt to DTI285,000 dth285,000 dthOVCX In-Service Date (as defined below)
73705 – Morris 2425,000 dth425,000 dthOVCX In-Service Date (as defined below)
73713 – Jefferson275,000 dth275,000 dthOVCX In-Service Date (as defined below)

11169 – Rhinehart (To TCO)50,000 dth50,000 dthOVCX In-Service Date (as defined below)

5. Effective Date and Term: This Exhibit A is effective the first day of the month immediately following the date on which Equitrans, L.P. is authorized by FERC to commence service on the OVCX Project (“OVCX In-Service Date”), which is anticipated to be October 1, 2023, and continues in full force and effect through 12/31/2030.* For agreements twelve (12) months or longer, Customer and/or Equitrans may terminate the agreement at the end of the primary term by providing at least six (6) months prior written notice of such intent to terminate.

At the expiration of the primary term, this Exhibit A has the following renewal term
(choose one):
__X_ no renewal term
____ through _______________ *
____ for a period of _______________ *
___ year to year* (subject to termination on six (6) months prior written notice)
____ month to month (subject to termination by either party upon ___ days written notice prior to contract expiration)
____ other (described in section 6 below)

* In accordance with Section 6.28 of the General Terms and Conditions, a right of first refusal may apply; any contractual right of first refusal will be set forth in Section 6 of this Exhibit A.


6. Other Special Provisions:
None.


IN WITNESS WHEREOF, Customer and Equitrans have executed this Exhibit A by their duly authorized officers, effective as of the date indicated above.


CUSTOMER:EQUITRANS, L.P.:

By /s/ Keith Shoemaker 12/4/2021
By /s/ Diana M. Charletta 12/6/2021
Keith Shoemaker (Date)Diana M. Charletta    (Date)

Title: Senior Vice President, Commercial
          EQT Energy, LLC

Title: President and Chief Operating
Officer
852(2)

OPTIONAL EXHIBIT C
to the
TRANSPORTATION SERVICE AGREEMENT
between EQUITRANS, L.P.
and EQT ENERGY, LLC,
pursuant to Rate Schedule FTS
Contract No. 852 Dated 9/24/2014

Date of this Exhibit C: 12/ 6 /2021
Effective Date of this Exhibit C: OVCX In-Service Date (as defined below)
Supersedes Exhibit C Dated: 12/6/2021 (effective 1/1/2022)

Negotiated Rate Agreement
1. In accordance with Section 6.30 of the General Terms and Conditions of Equitrans’ Tariff, Equitrans and Customer agree that the following negotiated rate provisions will apply under the Agreement:

Monthly Reservation Rate9.133 per Dth
Commodity Rate$0.00 per Dth
Authorized Overrun Rate$0.25 per Dth
Customer shall pay the applicable FERC ACA surcharge.

In addition, Customer shall pay the fuel usage, lost and unaccounted for gas percentage retainage factor to recover actual fuel usage, lost and unaccounted for gas based on the following calculation. Equitrans will initially retain 0.53522% of Customer’s nominated receipts volumes to recover fuel, lost and unaccounted for gas. Equitrans will track the actual experienced fuel and lost and unaccounted for gas experienced to provide transportation service on the Mainline System. Equitrans will account for the under or over recovered fuel and lost and unaccounted for gas associated with this Agreement in FERC Account 186. Beginning with the Effective Date, Equitrans shall adjust the Retainage Factor from time to time, but at least on an annual basis, to more accurately reflect actual experienced fuel and lost and unaccounted for gas; however, in no event will the Retainage Factor be less than zero. Equitrans shall file with the Commission for approval to adjust the Retainage Factor to reflect changes in the actual experienced fuel and unaccounted for gas on the Mainline System. The resulting Retainage Factor shall be effective until the effective date of Equitrans’ next succeeding filing to update the Retainage Factor for this Agreement.

The Rates and Retainage Factor will be considered negotiated rates, subject to FERC’s negotiated rate policies, and will only apply to nominations on Equitrans’ System from Aurora Receipt Point (Meter# ###-###-####), Beacon H-111 (LP) Receipt Point (Meter# TBD), Beacon H-302 (HP) Receipt Point (Meter# TBD), Callisto Receipt Point (Meter# 17112), McIntosh Receipt Point (Meter# ###-###-####), Hopewell Ridge (Meter# 17172), Flower (Polecat) Receipt Point (Meter# ###-###-####), Bowlby (Drift Ridge) Receipt Point (Meter# ###-###-####) to Pratt to DTI Delivery Point (Meter# 11027), Rhinehart to TCO Delivery Point (Meter# 11169), Jefferson Delivery Point (Meter# 73713) or Morris 2 Delivery Point(Meter# 73705).
Shipper shall also be subject to any FERC mandated surcharges, imposed by FERC on an industry wide and generally applicable basis to shippers on interstate pipelines. Transporter
852(2)

shall assess the impact of any such FERC proposed surcharge on its Shippers and use commercially reasonable efforts to minimize the application or impact of such surcharge on Transporter’s Shippers, provided that such efforts by Transporter shall not include any obligation on or risk to Transporter of cost responsibility for such surcharge.
Except as expressly stated herein, Equitrans’ applicable maximum rates and charges set forth in the Statement of Rates of its Tariff continue to apply.

2. Customer acknowledges that it is electing Negotiated Rates as an alternative to the rates and charges set forth in the Statement of Rates of Equitrans’ Tariff applicable to Rate Schedule FTS, as revised from time to time.

3. This Exhibit C is effective the first day of the month immediately following the date on which Equitrans, L.P. is authorized by FERC to commence service on the OVCX Project (“OVCX In-Service Date”) , which is anticipated to be October 1, 2023, and continues in effect through 12/31/2030.

4. In the event any provision of this Exhibit C is held to be invalid, illegal or unenforceable by any court, regulatory agency, or tribunal of competent jurisdiction, the validity, legality, and enforceability of the remaining provisions, terms or conditions shall not in any way be affected or impaired thereby, and the term, condition, or provision which is held illegal or invalid shall be deemed modified to conform to such rule of law, but only for the period of time such order, rule, regulation, or law is in effect.
5. Other Special Provisions:

None.
IN WITNESS WHEREOF, Customer and Equitrans have executed this Exhibit C by their duly authorized officers, effective as of the date indicated above.

CUSTOMER:EQUITRANS, L.P.:

By /s/ Keith Shoemaker 12/4/2021
By /s/ Diana M. Charletta 12/6/2021
Keith Shoemaker (Date)Diana M. Charletta (Date)

Title: Senior Vice President, Commercial
          EQT Energy, LLC

Title: President and Chief Operating
Officer

852(2)