Service Agreement between UGI Development Company and Hunlock Creek Energy Ventures (December 9, 2000)

Summary

UGI Development Company and Hunlock Creek Energy Ventures entered into this agreement on December 9, 2000. Under the agreement, Hunlock Creek Energy Ventures may sell electric energy and/or capacity to UGI Development Company, with payments based on a market rate tariff approved by the Federal Energy Regulatory Commission. The agreement is governed by the tariff and any additional negotiated terms. Either party can terminate the agreement with written notice, and the agreement is subject to regulatory approval. No party is obligated to make any specific purchase or sale under this agreement.

EX-10.1 2 w45264ex10-1.txt SERVICE AGREEMENT, UGI & HUNLOCK CREEK ENERGY 1 EXHIBIT 10.1 SERVICE AGREEMENT This Agreement is entered into as of the 9th day of December, 2000, by and among UGI Development Company ("UGID") and Hunlock Creek Energy Ventures ("Energy Ventures") in consideration of the mutual covenants and agreements herein, UGID and Energy Ventures (the "Party (ies)") hereby agree as follows: ARTICLE 1. SERVICE. 1.1 Energy Ventures agrees, during the term of this Agreement, to sell electric energy and/or capacity to UGID and UGID agrees to pay for such sale in accordance with the Energy Ventures Market Rate Tariff on file with the Federal Energy Regulatory Commission ("FERC"). 1.2 The terms and conditions of such service shall be (1) governed by the Energy Ventures Market Rate Tariff, as it exists at the time of this Agreement or as subsequently amended, and (2) terms and conditions separately negotiated and agreed to by the Parties, with respect to sales of capacity and/or energy to a Buyer under the Energy Ventures Market Rate Tariff. 1.3 In executing this Agreement, neither Energy Ventures nor UGID commits to enter into any individual sales of capacity and/or energy to a Buyer under the Energy Ventures Market Rate Tariff. ARTICLE 2. EFFECTIVE DATE AND TERM OF AGREEMENT. 2.1 This Agreement shall become effective on the date first stated above. However, if the FERC or any reviewing court imposes any condition, limitation, or qualification under any of the provisions of the Federal Power Act which, individually or in the aggregate, Energy Ventures determines to be adverse to Energy Ventures, then Energy Ventures may at its option, terminate or renegotiate the terms of this Agreement in light of such FERC order or court action. Each party will use its best efforts to take, or cause to be taken, all actions requisite to obtain the necessary approvals so that this Agreement shall become effective as provided herein at the earliest practicable date. 2.2 This Agreement shall remain effective until terminated by either Party on written notice. ARTICLE 3. NOTICE. 2 3.1 Any notice given pursuant to this Agreement or the Tariff shall be in writing and delivered or telecopied to the following: If to Energy Ventures: David R. Stettler -------------------------------- Hunlock Creek Energy Ventures 390 Route 11 P.O. Box 224 Hunlock Creek, PA ###-###-#### Phone: 570 ###-###-#### Fax: 570 ###-###-#### If to Buyer: Joe Racho - Manager Power Supply UGI Development Company 400 Stewart Road P.O. Box 3200 Wilkes-Barre, PA ###-###-#### Phone: 570 ###-###-#### Fax: 570 ###-###-#### 3.2 The names and addresses for notice to either Party may be changed at any time by written notice to the other Party. ARTICLE 4. TERMS AND CONDITIONS. 4.1 This Service Agreement is subject to the Market Rate Tariff and any other terms and conditions, agreed to by the parties which are hereby incorporated herein. IN WITNESS WHEREOF, the Parties have caused this Service Agreement to be executed by their respective authorized officials as of the date first above written. UGI DEVELOPMENT HUNLOCK CREEK ENERGY COMPANY VENTURES By: /s/ Mark Dingman By: /s/ David R. Stettler -------------------------- -------------------------------- Name: Mark Dingman Name: David R. Stettler ------------------------ ------------------------------ Title: Vice President Title: Manager - Power Production ----------------------- ------------------------------