Supplemental Gas Contract be modified and amended in order to remove that possibility; and the parties are willing to modify and amend the above-mentioned contracts accordingly. Now, therefore, in consideration of the mutual covenants and agreements of the parties as herein set forth, the parties hereto covenant and agree as follows: ARTICLE I It is understood that under the terms and provisions of the Gas Contract, Seller is obligated to sell and deliver to Buyer the natural gas requirements of Buyer, but not in excess of ninety million (90,000,000) cubic feet or its assumed equivalent of nine hundred twelve thousand six hundred (912,600) therms per day, which constitutes Seller's maximum obligation under said contract. It is agreed that said maximum obligation under said Gas Contract may be increased in multiples of five million (5,000,000) cubic feet, or its assumed equivalent of fifty thousand seven hundred (50,700) therms, at the option of Buyer, to an aggregate total amount of one hundred million (100,000,000) cubic feet, or its assumed equivalent of one million fourteen thousand (1,014,000) therms per day. In the event Buyer desires to exercise said option, it shall do so by giving to Seller notice in writing at least six (6) months prior to the end of any calendar year, except with respect to the year 1939, in which year such notice shall be given at least three (3) months prior to the end of the calendar year, and thereupon effective on the first day of the next succeeding calendar year, Seller's maximum obligation shall be increased by the amount designated in said notice. Under the terms of the Gas Contract. Buyer is obligated to take and pay for not less than certain annual amounts of natural gas specified therein. In lieu of said provision, commencing with the calendar year 1940, Buyer shall take and pay for annually, at the prices provided for in said contract, not less than one hundred fifty-two million one hundred thousand (152,100,000) therms, which amount shall be increased by eight million four hundred fifty thousand (8,450,000) therms per year for each five million (5,000,000) cubic feet per day increase in Seller's maximum obligation if, as, and when Seller's maximum obligation is increased as hereinabove provided. ARTICLE II The second paragraph of Section 8 of Article I of the Supplemental Gas Contract, as amended by the Second Supplemental Gas Contract, is hereby modified and amended so that the same shall hereafter read as follows: "In order to limit the extent of the application of the special rate for Househeating Purposes herein provided for, it is agreed that the Average Number of Househeating Customers used as a factor for the purpose of the computations to be made under this Section shall never exceed twenty five thousand (25,000), even if the actual Average Number of Househeating Customers in any month is greater than twenty five thousand (25,000).” ARTICLE III Section 10 of Article I of the Supplemental Gas Contract is hereby modified and amended so that said Section shall hereafter read as follows: "The term 'Average Househeating Daily Delivery of Seller for the current billing month' shall mean the number of therms, if any, resulting from the following calculation: where (a)+(b) - (c) (a) = the total number of therms for said month of 'Househeating Daily Delivery of Buyer,' (b) the total number of therms for said month of "Total Measured Deliveries,' (c) = the total number of therms for said month of gas sent out into its distribution system by Buyer, and (d) = the number of days in said month." Except as modified and amended by Articles I, II, and III hereof, the terms and provisions of the Gas Contract and Supplemental Gas Contract as amended by the Second Supplemental Gas Contract shall remain in full force and effect. In witness whereof, the parties hereto have caused this agreement to be signed by their respective officers thereunto duly authorized and their respective corporate seals to be hereto affixed the day and year first above written. Commissioners: Clyde L. Seavey, Chairman; Claude L. Draper, Basil Manly, Leland Olds, John W. Scott. DECEMBER 22, 1939. In the Matter of PANHANDLE EASTERN PIPE LINE COMPANY ORDER ALLOWING SUPPLEMENTAL RATE SCHEDULE TO TAKE EFFECT WITHOUT REQUIRING THIRTY DAYS' NOTICE It appearing to the Commission that: (a) On October 12, 1939, the Panhandle Eastern Pipe Line Company filed with the Federal Power Commission its supplemental agreement, dated September 29, 1939, with the Michigan Consolidated Gas Company, designated in the files of the Commission as Supplement No. 3 to Panhandle Eastern Pipe Line Company Rate Schedule FPC No. 12, providing that the Michigan Consolidated Gas Company shall have the option of purchasing an increased daily maximum volume of natural gas from the Panhandle Eastern Pipe Line Company, and also increasing the annual minimum amount of gas to be purchased, and increasing the number of house-heating customers for which gas may be purchased, as set forth in said Supplement No. 3; (b) Panhandle Eastern Pipe Line Company has requested that said supplemental agreement of September 29, 1939, be allowed to take effect as of September 29, 1939; (c) Good cause has been shown for allowing said Supplement No. 3 to Panhandle Eastern Pipe Line Company Rate Schedule FPC No. 12 to take effect as of September 29, 1939; The Commision orders that: (A) The rate schedule contained in said supplemental agreement of September 29, 1939, between the Panhandle Eastern Pipe Line Company and the Michigan Consolidated Gas Company, as filed with the Commission on October 12, 1939, designated in the files of the Commission as Supplement No. 3 to Panhandle Eastern Pipe Line Company Rate Schedule FPC No. 12, be and it is hereby allowed to take effect as of September 29, 1939; (B) Said rate schedule contained in said supplemental agreement shall be deemed to have been filed and published in compliance with the Natural Gas Act; (C) Nothing contained in this order shall be construed to waiver of the requirements of Section 7 (b) of the Natural Gas Act. By the Commission. [SEAL] (Signed) J. B. Williamson, FOURTH SUPPLEMENTAL CONTRACT DATED JUNE 29, 1940 Agreement made this 29th day of June 1940, by and between Panhandle Eastern Pipe Line Company, a Delaware Corporation, hereinafter called "Seller," and Michigan Consolidated Gas Company (formerly Detroit City Gas Company), hereinafter called "Buyer." Under date of August 31, 1935, the parties entered into a contract, hereinafter called "Gas Contract," whereby, among other things, Seller agreed to sell and deliver to Buyer and Buyer agreed to purchase and receive from Seller all of the natural gas requirements of Buyer within the limits therein specified. Under date of June 2, 1936, the parties entered into a supplemental gas contract, hereinafter called "Supplemental Gas Contract," providing, among other things, for certain modifications of the Gas Contract with respect to natural gas for resale to househeating customers. Under date of December 30, 1936, the parties entered into a contract, hereinafter called "Second Supplental Gas Contract," which modified and amended certain provisions of the Supplemental Gas Contract. Under date of September 29, 1939, the parties entered into a contract, hereinafter called "Third Supplemental Contract," which also modified and amended certain provisions of the Gas Contract, the Supplemental Gas Contract, and the Second Supplemental Gas Contract. Buyer represents that: (a) Since the effective date of the Gas Contract and since the date of the execution and delivery of the Third Supplemental Contract, its business of distributing and selling natural gas in and adjacent to the City of Detroit, Michigan, has increased to such an extent as to make it necessary and desirable that the maximum amount of natural gas available to it under the Gas Contract, as heretofore modified and amended, be increased; (b) According to its best judgment and upon estimates which it has made based upon its experience in furnishing natural gas to its customers in and adjacent to the City of Detroit, Michigan, Buyer will require on its maximum day during the ensuring winter of 1940-1941 a maximum of one hundred twenty-five million (125,000,000) cubic feet of natural gas to meet the requirements of its customers; (c) It is expending during the current year a sum of money in excess of one million dollars ($1,000,000) in additional lines and other facilities in its gas distribution system in the City of Detroit, Michigan, in order adequately to meet the growing demands of its customers and to service additional customers attached or to be attached to its distribution system, and (d) It is desirous that the Gas Contract, as heretofore supplemented and amended, be further modified and amended to the end that the maximum amount of natural gas available to it thereunder be increased to an aggregate total amount of one hundred twenty-five million (125,000,000) cubic feet per day.. Seller represents that in order to make such additional natural gas available to Buyer, it will be required to construct and install certain additional facilities to its pipe-line system and that under present conditions, it is estimated that such facilities cannot be completed in less than six (6) months from the date hereof, but is willing to proceed with all due diligence and dispatch with the construction and installation thereof to the end that such additional gas may be made available to Buyer at the earliest practicable date. The parties are willing to modify the above-mentioned contracts accordingly. Now, therefore, in consideration of the mutual covenants and agreements of the parties as herein set forth, the parties hereto covenant and agree as follows: ARTICLE I It is understood that under the terms and provisions of the Gas Contract and the Third Supplemental Contract, Seller is obligated to sell and deliver to Buyer, the natural gas requirements of Buyer but not in excess of one hundred million (100,000,000) cubic feet or its assumed equivalent of one million fourteen thousand (1,014,000) therms per day which constitute Seller's maximum obligation under said contract. Promptly upon execution and delivery hereof, Seller agrees to commence the construction and installation of such additions to its pipe-line system as may be necessary to enable it to deliver such natural gas as Buyer may require up to but not in excess of one hundred twenty-five million (125,000,000) cubic feet or its assumed equivalent of one million two hundred sixty-seven thousand five hundred (1,267,500) therms per day and complete the same with due diligence. Effective upon the date of the completion of such additions to Seller's pipe-line system or on December 15, 1940, whichever shall first occur, Seller's said maximum obligation under said Gas Contract and Third Supplemental Contract shall be and the same is increased to an aggregate total amount of one hundred twenty-five million (125,000,000) cubic feet or its assumed equivalent of one million two hundred sixty-seven thousand five hundred (1,267,500) therms per day. 71869-48-pt. 1-43 ARTICLE II Except as modified and amended by Article I hereof, the terms and provisions of the Gas Contract and Supplemental Gas Contract, as heretofore amended by the Second Supplemental Gas Contract and the Third Supplemental Contract, shall remain in full force and effect. In witness whereof, the parties hereto have caused this agreement to be signed by their respective officers thereunto duly authorized and their respective corporate seals to be hereto affixed the day and year first above written. PANHANDLE EASTERN PIPE LINE COMPANY, By G. J. NEUNER, Vice President. SUPPLEMENT NO. 5 TO RATE SCHEDULE 12-SPECIAL AGREEMENT NOTE. This rate schedule and all prior supplements thereto are superseded or amended only to the extent provided in this supplement, which is composed of seller's schedules Gd-1 and Rd-2 and paragraphs 3 and 4 of the applicable general terms and conditions. Issued in compliance with an order of the Federal Power Commission, Docket Nos. G-200 and G-207 entered 23rd day of September 1942. Available RATE SCHEDULE GD-1 Deliveries to Utilities-Firm, Resale This rate schedule is available, with respect to sales of gas subject to the jurisdiction of Federal Power Commission, to any properly qualified utility (hereinafter referred to as the Utility) in any of the States of Indiana, Ohio, or Michigan having the necessary franchises, permits, grants and rights requisite to the distribution and sale of natural gas, having a pipe line connection for delivery of the gas purchased hereunder with the pipe line system of Panhandle Eastern Pipe Line Company (hereinafter referred to as the Company) and agreeing to purchase from the Company is natural gas requirements to the extent provided in any existing rate schedule or contract effective as between the Company and the Utility. Applicable (a) This rate schedule shall apply to all natural gas purchased on a firm basis by the Utility for resale to domestic and other customers, except such natural gas as the Utility shall purchase, under any other rate schedule of the Company available to the Utility. (b) Subsequent to October 1, 1945, the Utility, at its option, may purchase gas under this rate schedule for resale to any individual customer whose present, or estimated, annual use of gas is less than one million two hundred thousand (1,200,000) therms and whose gas requirements were purchased by the Utility from the Company on an interruptible basis prior to October 1, 1945. (c) This rate schedule shall not apply to gas purchased by the Utility from the Company for resale to any individual customer whose present, or estimated, annual use of gas exceeds one million two hundred thousand (1,200,000) therms, unless such gas requirements were purchased by the Utility from the Company on a firm basis prior to October 1, 1945. Character of service Deliveries hereunder shall take preference over all direct industrial sales and deliveries made for resale on an interruptible basis. Rate (a) For all gas delivered hereunder, each month, in Indiana, Ohio, and Michigan: for that number of therms herein defined as "base load" one and eighty-five hundredths (1.85) cents per therm. for that number of therms in excess of "base load" two and six tenths (2.6) cents per therm. (b) Determination of "base load" for each billing month. (1) The "daily base load" applicable to each period of twelve (12) billing months shall be the average number of therms delivered per day during the four (4) consecutive months of June to September, both inclusive, immediately preceding such period. (2) The daily base load shall be determined once each year as soon after October 1st as practicable, and the daily base load so determined shall be effective for the immediately succeeding twelve (12) months' period, beginning with the October billing month. (3) The "base load" shall be the daily base load multiplied by the number of days in the billing month or shall be the total number of therms delivered, whichever is less. Interim rate In the event deliveries of gas hereunder are commenced subsequent to June first (1st) the "base load" rate as set forth above shall apply to all deliveries from the date of initial delivery to the expiration of the period of the first full four (4) consecutive months of June to September, both inclusive. Minimum bill None. Delayed payment penalty Refer to Paragraph 6 of the General Terms and Conditions applicable to this rate schedule. Determination of deliveries The deliveries hereunder to any Utility shall be determined by properly deducting the quantity of gas, if any, delivered to the Utility under all other rate schedules and contracts, from the total of all gas delivered to the Utility. Metering base Refer to Paragraph 3 of the General Terms and Conditions applicable to this rate schedule. Special provisions (a) All of the General Terms and Conditions set forth on Sheets numbered 10 to 16, inclusive, are applicable to this rate schedule and are hereby made a part hereof, except where paragraph (b) following applies. (b) Any contract existing between the Company and the Utility with respect to natural gas service on file with the Federal Power Commission shall be deemed to be supplemented and amended by this rate schedule, except that only Paragraph 3, entitled "Measurements" and Paragraph 4, entitled "Measuring Equipment" of the General Terms and Conditions shall supersede and amend existing contract provisions. Available RATE SCHEDULE RD-2 Deliveries to Utilities-Interruptible, Resale This rate schedule is available to any utility (hereinafter referred to as the Utility) in the State of Indiana, in the State of Ŏhio, or in the State of Michigan, which purchases natural gas from Panhandle Eastern Pipe Line Company (hereinafter referred to as the Company) under Rate Schedule Gd-1 of the Company. Applicable (a) Prior to October 1, 1945, this rate schedule applies to all natural gas purchased by the Utility from the Company on an interruptible basis for resale to individual customers. (b) Subsequent to October 1, 1945, this rate schedule shall apply to natural gas purchased by the Utility for resale to any individual customer whose present, or estimated, annual use of gas exceeds one million two hundred thousand (1,200,000) therms unless Utility has purchased such customer's requirements on a firm |