Gas Transportation and Extended Service Agreement between NorthWestern Public Service and Northern Lights Ethanol, LLC

Summary

NorthWestern Public Service and Northern Lights Ethanol, LLC have entered into an agreement for the transportation and supply of natural gas to the customer's facility in Big Stone, South Dakota. The agreement sets out the terms for gas delivery, pricing, and service qualifications, including risks associated with gas transportation. The initial term is 10 years, with automatic yearly renewals unless terminated with six months' notice. Rates and charges may change subject to approval by the South Dakota Public Utilities Commission. An extended service agreement provides for discounted rates based on contract duration.

EX-10.17 21 a2083436zex-10_17.txt EXHIBIT 10.17 EXHIBIT 10.17 NORTHWESTERN PUBLIC SERVICE - SOUTH DAKOTA SERVICE REQUEST FORM This form shall constitute the Customer's Agreement to the terms of the Gas Transportation Tariff. The Company shall have the right, to file for, and seek approval by the South Dakota Public Utilities Commission of, changes in rates, charges or other tariff provisions applicable to service hereunder and to place such changes in effect in accordance with applicable law; and this Agreement shall be deemed to have been amended to include such changes and any other changes which become effective by operation of law or by order of any governmental body with jurisdiction. This agreement shall become effective as of INITIAL START-UP PLANT, and shall be in effect for a primary term of 10 year(s) from such date, and from year to year thereafter, unless and until terminated by either party upon six (6) months' written notice. CUSTOMER NAME: NORTHERN LIGHTS ETHANOL - LLC CUSTOMER ACCOUNT NUMBER: ___________________________ SIC CODE: 2869 NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM CODE: 325193 CUSTOMER ADDRESS - GAS DELIVERY POINT: BIG STONE, SD CUSTOMER ADDRESS - NOTICES: BIG STONE, SD CUSTOMER ADDRESS - INVOICES: BIG STONE, SD CUSTOMER CONTACT: CASEY WHELAN TITLE: AGENT FOR CUSTOMER PHONE: 952 ###-###-#### FAX: 952 ###-###-#### RECEIPT POINT (NWPS TBS): MILBANK LATERAL DELIVERY POINT: NORTHERN LIGHTS ETHANOL METER NUMBER(S): PREVIOUS RATE DESIGNATION(S): N/A SERVICE QUANTITY: THERMS/DAY 17,000 - DRYER AND 25,000 - BOILERS WHEN PLANT REQUIRES REPLACEMENT FOR STEAM HEAT FIRM TRANSPORTATION: THERMS/DAY DAILY BALANCING: THERMS/DAY STANDBY SUPPLY THERMS/DAY NORTHWESTERN PUBLIC SERVICE - SOUTH DAKOTA SERVICE REQUEST FORM PRICING: From time to time, Customer and Company shall negotiate a rate and term of transportation which shall be by purchase nomination order in the form which is attached as Exhibit A and incorporated by reference in this Agreement. SERVICE QUALIFICATIONS: The Company is notifying Customers who have elected Gas Transportation Service of the risks of transportation reasonably known at the time the Customer begins transporting gas. The Customer hereby understands it may be subject to risks which include, but may not be limited to, the following: 1) The Company may not have firm or interruptible gas sales service available if the Customer seeks to purchase gas from the Company; 2) The Customer may be subject to pipeline penalties assessed to the Company which are caused by the Customer consuming the Company's gas with no authority to do so; and 3) If the Customer elects to discontinue transporting gas and if the Company is able to secure a source of gas supply and transportation for the Customer, the cost of such gas and transportation may exceed the cost of gas being purchased by the Company's other Customers. IN WITNESS WHEREOF, the Parties hereto have executed this Service Request Form as of the day and year set forth below. Company Customer Northwestern Public Service NORTHERN LIGHTS ETHANOL - LLC By: /s/ Curt Pohl By: /s/ Delton Strasser --------------------------------- --------------------------------- Title: VP Energy Engineering Title: President ------------------------------- ------------------------------- Date: 3-13-02 Date: 3-5-02 NORTHWESTERN PUBLIC SERVICE - SOUTH DAKOTA SERVICE REQUEST FORM EXHIBIT "A" GAS TRANSPORTATION TARIFF PURCHASE NOMINATION ORDER This Purchase Nomination Order ("PNO") is made and entered into by and between Customer and Company. This PNO is pursuant to and in accordance with the provisions of the Agreement for Gas Transportation Tariff executed between the Parties and Company's Gas Transportation Tariff as on file with and made effective by the South Dakota Public Utilities Commission. TELECOPY TO: Northern Lights Ethanol ATTENTION: Casey Whelan, Agent for Customer Telephone: 952 ###-###-#### Telecopier: 952 ###-###-#### RATES: Service shall be rendered under Company's Gas Transportation Tariffs on file with the South Dakota Public Utilities Commission: RATE NO. 87 TRANSPORTATION SERVICE MONTHLY CHARGES: Customer Charge per Meter: $330.00 Sheet No. 6.1 Option B 1/ Commodity Charge, all use, per therm: $0.0204 Sheet No. 6.1 Option B 1/ Ad Valorem Taxes Paid Adjustment Clause Commodity Charge, all use, per therm: $0.0041 Sheet No. 9b Option B 2/ 1/ - Subject to change upon approval by PUC of new base rates. 2/ - Subject to change in monthly surcharge filing with PUC. Others: One-time Telemarketing Charge - $2,100 per unit installed Please acknowledge the terms outlined above by signing below, and return via facsimile to ###-###-####. NorthWestern Public Service NORTHERN LIGHTS ETHANOL -LLC "Company" "Customer" /s/ Clyde J. Gross 3/19/02 /s/ Delton Strasser 3/5/02 - ------------------------------------- ------------------------------------- Name Date Name Date EXTENDED SERVICE AGREEMENT NAME(S) Northern Lights Ethanol - LLC DATE: December 4, 2001 SERVICE ADDRESS________________________________________ CITY Big Stone, SD ACCOUNT NO.__________________________RATE NO.____________BILLING CYCLE__________ The undersigned Customer and NorthWestern Public Service ("NPS") agree that natural gas will be provided by Company to Customer as follows: (1) Customer has natural gas requirements of at least 2,000 therms per day and is receiving natural gas service from NPS under the rate listed above. (2) During the term of this Agreement, the rate per therm of natural gas delivered by NPS to Customer will be subject to the discounts on the non-gas portion of the commodity rate in accordance with the following: YEARS REMAINING IN CONTRACT TERM DISCOUNT More than four 8 percent Four 4 percent Three 3 percent Two 2 percent One 1 percent (3) The term of this Agreement shall be five years, beginning with the execution of this Agreement. (4) All provisions of NPS' filed tariff listed above, including NPS' General Terms and Conditions, all as amended from time to time and filed with the South Dakota Public Utilities Commission, not specifically changed by this Agreement shall apply. Accepted and approved this ___ day of _____________________, 200__. NORTHWESTERN PUBLIC SERVICE, NORTHERN LIGHTS ETHANOL - LLC a DIVISION OF NORTHWESTERN CORPORATION By /s/ Curt Pohl By /s/ Delton Strasser ------------------------------------ --------------------------------- Title VP Energy Operations Title President --------------------------------- ------------------------------