Common use of Reservation Charge Clause in Contracts

Reservation Charge. Regardless of the amount of gas actually taken by Buyer in any month, Buyer agrees to pay Mobil the Reservation Charge indicated on Appendix A in consideration for Mobil's agreement to make a quantity of gas, up to the MCQ, available each day. This Letter Agreement, and Appendices A, B, C, and D constitute the parties' entire agreement as to the matters covered hereby. If the foregoing correctly reflects your understanding of our agreement, please execute both of the enclosed originals of this Letter Agreement and return one fully executed original to the undersigned. Very truly yours, MOBIL NATURAL GAS INC. /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇ Area Sales Manager ACCEPTED AND AGREED TO This 14th day of September 1995 BUYER: MOBILE GAS SERVICE CORPORATION By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇ Name (Printed): ▇▇▇▇▇▇ ▇. ▇▇▇▇ Title: Vice President APPENDIX A WARRANTY LETTER AGREEMENT Attached to and forming part of the Letter Agreement dated November 1, 1991 between Mobil Natural Gas Inc. and Mobile Gas Service Corporation. PART I MCQ SALES POINT(S) ------------------------------- EFFECTIVE PERIOD (MMBtu/D) Location Meter No. --------------------- ------- -------- ---------- *** *** Mobil Mobile Bay Alternate: ▇▇▇▇ Gateway 2460 Pipeline Co. At Whistler PART II COMMODITY CHARGE MMBtu (Dry)1 RESERVATION CHARGE ------------------------------- --------------------- Arithmetic Average of Calculated monthly, according to the Inside FERC Indexes 2 formula R = *** , where P equals the commodity Charge; MCQ ***3 equals the Maximum Contract Quantity ( *** MMBTU/D); and D equals the number of gas days in the month. AGREED AND ACCEPTED this 14th day of September, 1995. BUYER: SELLER: MOBILE GAS SERVICES CORPORATION MOBIL NATURAL GAS INC. By: /S/ ▇▇▇▇▇▇ ▇. ▇▇▇▇ By: /S/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇ 1 The Commodity charge includes all taxes, transportation charges, and other add-ons, aftributable to the gas prior to delivery, excluding only sales, use, and gross receipts taxes arising at the time of delivery and/or title passage. Buyer shall pay all sales, use, and gross receipts taxes unless Buyer is exempt, by law, from such taxes. Buyer agrees to provide Seller copies of any applicable exemption certificates. 2 The Inside FERC Index shall be determined monthly by calculating the arithmetic average of the 30 day spot prices for gas delivered into the following pipeline systems at the identified supply areas: *** , as reported in the publication "Inside FERC's Gas Market Report (McGraw Hill) under the heading of "Index", for the first Day of the Month or the earliest Day in that Month for which such prices are reported. 3 Should implications of FERC Order 636 change the value of the commodity, both parties agree to attempt to renegotiate said commodity for the remaining term of the contract.

Reservation Charge. Regardless of the amount of gas actually taken by Buyer in any month, Buyer agrees to pay Mobil the Reservation Charge indicated on Appendix A in consideration for Mobil's agreement to make a quantity of gas, up to the MCQ, available each day. This Letter Agreement, and Appendices A, B, C, and D constitute the parties' entire agreement as to the matters covered hereby. If the foregoing correctly reflects your understanding of our agreement, please execute both of the enclosed originals of this Letter Agreement and return one fully executed original to the undersigned. Very truly yours, MOBIL NATURAL GAS INC. /s/ ▇▇▇▇Dary▇ ▇. ▇▇▇▇▇▇ ▇▇▇▇Dary▇ ▇. ▇▇▇▇▇▇ Area Sales Manager ACCEPTED AND AGREED TO This 14th day of September 1995 BUYER: MOBILE GAS SERVICE CORPORATION By: /s/ ▇▇▇▇Gera▇▇ ▇. ▇▇▇▇ Name ▇▇▇e (Printed): ▇▇▇▇Gera▇▇ ▇. ▇▇▇▇ Title▇▇▇le: Vice President 4 APPENDIX A WARRANTY LETTER AGREEMENT Attached to and forming part of the Letter Agreement dated November 1, 1991 between Mobil Natural Gas Inc. and Mobile Gas Service Corporation. PART I MCQ SALES POINT(S) ------------------------------- EFFECTIVE PERIOD (MMBtu/D) Location Meter No. --------------------- ------- ---------------- --------- -------- ---------- --------- [*** *proprietary information omitted*** *] Mobil Mobile Bay 2460 Alternate: Koch ▇▇▇▇ Gateway 2460 eway Pipeline Co. At Whistler PART II COMMODITY CHARGE MMBtu (Dry)1 RESERVATION CHARGE ------------------------------- --------------------- Arithmetic Average of ---------------------------- ------------------ [***proprietary information omitted***] Calculated monthly, according to the Inside FERC Indexes 2 formula R = =[*** *proprietary information omitted***], where P equals the commodity Charge; MCQ ***3 equals the Maximum Contract Quantity ( ([*** *proprietary information omitted***] MMBTU/D); and D equals the number of gas days in the month. AGREED AND ACCEPTED this 14th day of September, 1995. BUYER: SELLER: MOBILE GAS SERVICES CORPORATION MOBIL NATURAL GAS INC. By: /S/ ▇▇▇▇Gera▇▇ ▇. ▇▇▇▇ By: /S/ ▇▇▇▇Dary▇ ▇. ▇▇▇▇▇▇ 1 The Commodity charge includes all taxes, transportation charges, and other add-ons, aftributable to the gas prior to delivery, excluding only sales, use, and gross receipts taxes arising at the time of delivery and/or title passage. Buyer shall pay all sales, use, and gross receipts taxes unless Buyer is exempt, by law, from such taxes. Buyer agrees to provide Seller copies of any applicable exemption certificates. 2 The Inside FERC Index shall be determined monthly by calculating the arithmetic average of the 30 day spot prices for gas delivered into the following pipeline systems at the identified supply areas: *** , as reported in the publication "Inside FERC's Gas Market Report (McGraw Hill) under the heading of "Index", for the first Day of the Month or the earliest Day in that Month for which such prices are reported. 3 Should implications of FERC Order 636 change the value of the commodity, both parties agree to attempt to renegotiate said commodity for the remaining term of the contract.