Natural Gas Supply ITB No. 26-83101601-ITB Page 1 of 11

ATTACHMENT A

SCOPE OF WORK

1 PURPOSE

To provide Customers with Natural Gas Supply on a statewide basis, pursuant to the terms set forth in this Scope of Work.

2 DEFINITIONS

Definitions contained in section 287.012, Florida Statutes (F.S.); Rule 60A-1.001, Florida Administrative Code (F.A.C.); and Attachment D, Enterprise Standard Terms and Conditions; are incorporated by reference. In the event of a conflict, the definitions listed in this section supersede the incorporated definitions for the purposes of this Scope of Work. All definitions apply in both their singular and plural sense.

Baseload – The volume of Natural Gas requested for purchase at least six (6) business days prior to the start of each month, a portion of which may include fixed price volumes for such month.

This volume will be divided equally among all the days in a month.

British Thermal Unit (Btu) – A traditional unit of heat; it is defined as the amount of heat required to raise the temperature of one pound of water by one degree Fahrenheit.

Business Day – Monday through Friday, inclusive, except for those holidays specified in section 110.117, F.S., from 8:00 a.m. to 5:00 p.m. at the Customer’s location.

Commodity Code – The State’s numeric code for classifying commodities and contractual services which meet specific requirements, specifications, terms, and conditions herein. Florida has adopted the United Nations Standard Products and Services Code (UNSPSC) for classifying commodities and services.

Confirmation – The process of verifying or confirming the status of a Nomination.

Contract Manager – The representative designated by the Department who will oversee all aspects of the Term Contract, monitor performance expectations, and serve as the primary point of contact for the Contractor.

Contractor – A Marketer of Natural Gas that enters into a Term Contract with the Department.

Customer – A State agency or Eligible User.

Customer’s Location – The site where the Contractor delivers the Natural Gas, as designated by the Customer.

Dekatherm (DTH) – A unit of energy used primarily to measure Natural Gas; equal to 10 Therms or one million British Thermal Units (MMBtu).

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Department – The Department of Management Services, a State agency.

Designee – A Marketer for Natural Gas that acts on behalf of the Department to perform the duties of capacity release, invoice/payment obligations, Nominations, Confirmations, and Imbalance resolutions in accordance with the terms and conditions of the FTS Agreements.

Federal Energy Regulatory Commission (FERC) – Federal agency that monitors prices for and regulates the interstate transmission of Natural Gas.

Firm Markup – The dollar amount shown on Attachment C, Firm Markup Sheet, to be added to the cost of Natural Gas (as described in section 3.4.1 Firm Markup of this Scope of Work) to fully satisfy Contractor’s obligations under the Term Contract, inclusive of overhead, delivery, profit, and any other fees and charges not passed through to Customer under section 3.4.4 Fuel Fees, Usage Fees, Taxes, and Other Costs of this Scope of Work. Except as expressly set forth in the Term Contract, no additional compensation will be due to Contractor in addition to the Firm Markup.

Florida Gas Transmission Company (FGT) – The Company that uses the Natural Gas interstate pipeline network to transport Natural Gas to Florida.

Firm Transportation Service (FTS) Agreements – The following two firm transportation service agreements between FGT and the Department and any amendments thereto: Contract No. 5085, and Contract No. 5626.

Gas Day – The twenty-four hour period beginning at 9:00 a.m. central time and ending at 9:00 a.m. central time on the following day, or such other period as may be established from time to time by applicable North American Energy Standards Board (NAESB) standards or the applicable FGT tariff.

Imbalance – The difference between Customer requested volumes of Natural Gas and volumes of Natural Gas consumed by Customer.

Index Price – The index price published in the first-of-each-month issue of the "S&P Global Platts Inside FERC Gas Market Report First of the Month," under the applicable FGT Zones 1, 2, or 3 depending on the Customer’s location.

In-Day Gas – Any volume of Natural Gas requested between 09:30 a.m. Eastern Time, and 04:00 p.m. Eastern Time on the Business Day of Natural Gas flow. Availability of the purchase or sale of In-Day Gas is not assured and must be confirmed before availability is guaranteed.

Local Distribution Company (LDC) – A regulated Natural Gas utility which owns or operates the Natural Gas lines and equipment necessary to deliver Natural Gas to the Customer.

Marketer of Natural Gas – A commercial entity authorized to buy, sell, and manage Natural Gas on behalf of a Customer that is responsible for managing supply, transportation, and risk to ensure delivery to end-users. A Marketer is able to procure Natural Gas, manage a Customer’s capacity, schedule Natural Gas pipeline Nominations, and manage Imbalances.

MMBtu – One million British thermal units.

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Natural Gas – A fossil energy source that formed deep beneath the earth’s surface. Natural Gas is made up of a mixture of primarily four naturally occurring gases: methane, which makes up 70- 90% of Natural Gas, along with ethane, butane, and propane. Natural Gas is also referred to in this Scope of Work as the “Commodity.”

Nomination – A request for a physical quantity of Natural Gas under a specific purchase, sale or transportation agreement or for all contracts at a specific point.

Purchase Order – A written offer/request made by a Customer to purchase a specific volume of Natural Gas.

Swing Natural Gas – Volume of the Natural Gas above the Baseload volume of Natural Gas on any day that Customer(s) request delivery of by 9:30 a.m. Eastern Time on the Business Day immediately before the requested Natural Gas is to flow.

Term Contract – The legally enforceable State Term Contract, as defined in section 287.012, F.S., between the Department and the Contractor. Term Contract is also referred to in this Scope of Work as the “Contract.”

Therm – A unit of heat equal to 100,000 Btu.

Turnback Natural Gas – Volume of Natural Gas that the Customer elects to turn back to the Contractor.

3 SCOPE OF WORK

3.1 Description of Scope

The Contractor shall supply Natural Gas as described herein.

3.2 General Requirements

3.2.1 Quantity, Quality, and Regulatory Compliance

3.2.1.1 The measurement, testing, heating value, delivery pressure and quality of the Natural Gas delivered shall be in accordance with all applicable laws, the terms and conditions of the delivery specifications of the applicable FGT tariffs, and in accordance with the Department’s FTS Agreements with FGT.

3.2.1.2 The Contractor must have a minimum current capacity of the Maximum Daily Quantities listed in the FTS Agreements for the applicable month(s) and must make such capacity available during the initial and any renewal terms. The Contractor will make this volume available on a firm basis pursuant to the Department’s

FTS Agreements with FGT.

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3.2.1.3 The Contractor shall f ile and pay for any filings covering this Contract with the applicable federal, state, or local regulatory authority, and shall prosecute diligently all application, notices, or reports required to be filed on behalf of the state and itself to comply with all legal requirements to purchase and deliver Natural

Gas to all Customers that request Natural Gas during the Contract term.

3.2.1.4 Contractor shall maintain access to the “S&P Global Platts Inside FERC Gas Market Report First of the Month”, and the “Platts Gas

Daily” (or any successor publications thereto) throughout the term of this Contract. Contractor shall retain records sufficient to verify all monthly index and daily midpoint prices and calculations used in determining charges under this Contract for at least two years following expiration or termination of the Contract and shall provide such records to Customer upon written request.

3.3 Delivery Requirements

3.3.1 The Contractor shall be responsible for the scheduling and delivery of Natural Gas, including completing all arrangements for transportation services for the delivery of the Natural Gas to the Customer’s location.

Delivery shall be F.O.B. destination and freight included and unloaded to the Customer’s Location. Contractor shall bear all risk of loss until the Natural Gas reaches the Customer’s Location.

3.3.2 The Contractor warrants that it has or will secure good and marketable title to the Natural Gas being provided under this Contract, that it has or will have the right without restriction to sell such Natural Gas, and that such Natural Gas is free from liens and adverse claims of any kind.

3.3.3 The Contractor shall be in exclusive control and possession of Natural Gas prior to the delivery thereof to the Customer. The Department or the Customer will not be responsible for the damages occurring during control and possession by the Contractor. The Contractor will be responsible for making any and all claims against carriers for missing or damaged items.

3.3.4 The Contractor shall serve as the Department ’s Designee to perform the duties of capacity release, invoice/payment obligations, Nominations, Confirmations, and Imbalance resolutions in accordance with the terms and conditions of the FTS Agreements. To fulfil this duty, the Contractor shall sign and deliver to the Department the form titled “Designee Request Form” (and any successor thereto) where the Department as the shipper assigns to the Contractor its responsibilities for the shipping of Natural Gas under the FTS Agreements with FGT. This Form can be found at:

https://pipelines.energytransfer.com/ipost/forms/general-forms?asset=FGT

3.4 Pricing

https://pipelines.energytransfer.com/ipost/forms/general-forms?asset=FGT https://pipelines.energytransfer.com/ipost/forms/general-forms?asset=FGT

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3.4.1 Firm Markup

The Firm Markup is the dollar amount to be added to the cost of Natural Gas (per DTH), consisting of all charges necessary for the Contractor to fully complete and invoice the business transaction, inclusive of overhead, delivery, profit, and any other fees and costs not passed through to Customer under section 3.4.4 Fuel Fees, Usage Fees, Taxes, and Other Costs of this Scope of Work. The Firm Markup, as shown on Attachment C, Firm Markup Sheet, shall not increase during the term of the Contract.

The Firm Markup will be applied only to the cost of Natural Gas (as described in section 3.4.2 Cost of Natural Gas of this Scope of Work) delivered to Customer and not to any other amounts that may be charged to or owed by Customer.

The Contractor shall adhere to the Firm Markup submitted in Attachment C, Firm Markup Sheet, which is incorporated into the Term Contract. The Contractor may decrease the Firm Markup but shall not increase the Firm Markup submitted in Attachment C, Firm Markup Sheet.

3.4.2 Cost of Natural Gas

The cost of Natural Gas to be paid by the Customer for each month in which deliveries occur shall be fixed by the index price published in the first-of-each-month issue of the "S&P Global Platts Inside FERC Gas Market Report First of the Month," under the applicable FGT Zones 1, 2, or 3 depending on the Customer’s location.

For payments and settlements between the Contractor and Customer outside of the monthly purchase of Natural Gas (e.g. Imbalances, Turn Back Natural Gas, Swing Natural Gas), the cost of Natural Gas shall be fixed by the midpoint price published in the “Platt’s Gas Daily” under the applicable FGT Zones 1, 2, or 3 depending on the Customer’s location for the applicable Gas Day.

3.4.3 Unit of Measurement at Metering Base

The unit of measurement for billing purposes shall be per MMBtu for each Customer as provided to the Contractor by the applicable LDC or transportation pipeline owner/operator.

3.4.4 Fuel Fees, Usage Fees, Taxes, and Other Costs

Fuel fees (e.g. pipeline and LDC fuel fees), usage fees, reservation/demand/capacity fees, transportation fees (e.g. pipeline transportation demand charges, pipeline transportation volumetric charges), LDC charges (e.g. LDC monthly charges per meter, LDC start-up fees per meter), and permitted taxes applicable to the Customer’s receipt of Natural Gas hereunder and incurred by Contractor will be passed through to the Customer without markup or adjustment by the Contractor.

Any other costs incurred by Contractor on account of Customer’s receipt of

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Natural Gas hereunder may be passed through to the Customer only with Customer’s prior written consent and in no event will a markup or adjustment by Contractor be permitted.

3.4.5 Conversion Fees

Conversion fees are the cost associated with converting an existing facility from other sources of energy to Natural Gas. These changes may include installation of pipe or other plumbing fixtures to facilitate the delivery of Natural Gas to the Customer’s final location. The amount and extent of any such charges shall be determined through a mutual agreement of the Customer and the Contractor at the time the individual Customer order is placed and shall not be included in the Firm Markup.

3.4.6 Balancing of Quantities

The Customer shall be allowed a +/-10% Imbalance tolerance. All volumes consumed with a +/- 10% of volumes requested by Purchase Order will be billed at the Contract price for the volumes requested in the Purchase Order. Customer(s) will be responsible for paying for any Imbalance cost if their consumption falls outside of the +/-10% Imbalance tolerance between requested and consumed volumes. The Contractor will reimburse Customer(s) for any Imbalance cost and/or penalties that may be charged to Customer(s) or Contractor due solely to the Contractor’s failure to schedule volumes requested by Purchase Order.

In the event that an LDC maintains a lower Imbalance tolerance than the Customer allowed +/-10% Imbalance tolerance, the Contractor shall pay for the fees and costs that result from the Customer’s consumption exceeding the LDC’s Imbalance tolerance up to the allowed +/-10%. The Contractor shall only bill the Customer if their consumption falls outside of +/-10% Imbalance tolerance.

The Contractor shall be responsible for and shall submit Nominations for Customer(s) Natural Gas requirements directly to FGT, based upon monthly or daily volume specified in writing by Customer(s).

The Customer may request that Natural Gas be purchased or sold on Customer’s behalf, in order to avoid Imbalance and/or penalties. The Contractor shall use its best efforts to purchase or sell Natural Gas on Customer’s behalf. Any In-Day Gas purchased or sold on behalf of Customer(s) shall be purchased or sold at the then current market price as fixed by the daily mid-point price published in the “Platts Gas Daily” for that Gas Day in the applicable FGT Zones 1, 2, or 3 depending on the Customer’s Location.

3.4.7 Credit for Turnback Natural Gas

For Turnback Natural Gas that the Customer elects to turn back by the deadline for Swing Gas for the same day of flow (i.e. 9:30 AM ET on the Business Day immediately before the requested Natural Gas is to flow), the

ITB No. 26-83101601-ITB Page 7 of 11 amount credited to Customer’s account shall be the daily midpoint price published in “Platts Gas Daily,” for the applicable FGT Zones 1, 2, or 3 depending on the Customer’s location, for the Gas Day the Natural Gas is to be turned back, reduced by an additional $0.50 per MMBtu. This amount is then increased by the pipeline fuel percentage, and any applicable transporter’s usage. (Refer to the FERC Gas tariff for pipeline fuel percentage and applicable transport’s usage:

https://fgttransfer.energytransfer.com/ipost/FGT/tariff/entire-tariff .)

For Turnback Natural Gas that Customer notif ies the Contractor after the deadline for Swing Gas for the same day of flow (i.e. 9:30 AM ET on the Business Day immediately before the requested Natural Gas is to flow), the amount credited to the Customer’s account shall be, at Customer’s election, either (i) the daily midpoint price published in “Platts Gas Daily,” for the applicable FGT Zones 1, 2, or 3 depending on the Customer’s Location, reduced by an additional $0.50 per MMBtu for the Gas Day the Natural Gas is to be turned back or (ii) included on the Customer’s monthly Imbalance. Customer(s) must choose either of these options at the time Turnback Natural Gas is requested.

3.4.8 Charges for Swing Natural Gas

For Swing Natural Gas that the Customer requires, the amount assessed to Customer’s account shall be the daily midpoint price published in “Platts Gas Daily” for FGT Zones 1, 2, or 3 depending on the Customer’s Location for that Gas Day the Swing Natural Gas is purchased.

3.5 Invoice Requirements

3.5.1 The Contractor shall provide and submit timely, monthly invoices to the Customer listed on each Purchase Order issued pursuant to this Contract.

3.5.2 The Contractor shall invoice based on volumes ordered by Customer and delivered. Any Imbalances shall be reconciled monthly (cashed out) and applied to the Customer(s) invoice according to the rules shown in the applicable FGT tariff.

3.5.3 Within three (3) Business Days of the Customer’s or Department’s request, the Contractor shall supply to the requestor all the data, calculations, and documents used in computing all costs associated with the supply and delivery of Natural Gas for any particular Customer ’s invoice.

3.5.4 The Contractor shall attach with each Customer’s invoice a copy of the applicable index price published in the first-of-each-month issue of the “S&P Global Platts Inside FERC Gas Market Report First of the Month,” for FGT Zones 1, 2, or 3 depending on the Customer’s Location.

3.5.5 At minimum the monthly invoices shall provide the following information:

• Customer Name and Location https://fgttransfer.energytransfer.com/ipost/FGT/tariff/entire-tariff

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• Invoice Number, Invoice Date, Meter number, Ship to, Remit to, Bill to, Account number, PO number

• Index Price (per DTH)

• FGT Fuel Fee

• FGT Usage Fee

• Firm Markup (per DTH)

• Total Unit Price (per DTH)

• DTH Supplied

• LDC Passthrough Charge

• Fees and costs passed through to Customer under section 3.4.4 Fuel

Fees, Usage Fees, Taxes, and Other Costs of this Scope of Work.

• All other costs agreed to by Customer not otherwise enumerated in this bulleted list with an explanation of the cost.

• Total invoice price.

Invoices that do not conform to this section may be rejected by the

Customer.

3.6 Customer Service

The Contractor shall designate a Contract Administrator to oversee the Term Contract.

The responsibilities of the Contractor Administrator shall include but are not limited to overseeing the delivery of Natural Gas, scheduling, reporting, record keeping, and billing.

The Contract Administrator shall be the Department’s and Customer’s point of contact for the Contractor. The Contractor shall provide the contact information for the designated Contract Administrator to the Contract Manager within ten Business Days after the Term Contract effective date and update the Contract Manager with any changes within two Business Days. The Contract Administrator shall work with the Customer to resolve any issues or discrepancies and ensure that all Natural Gas deliveries are provided to the Customer in accordance with the Contract and applicable Purchase Order.

3.7 Recalled Commodities

In the event there is a recall of any Commodity offered on the Term Contract, or any part or component of a, or any parts incorporated into the Commodity, the Contractor shall assist the Department and Customers in developing a recall strategy and shall cooperate with the Department and the Customers in monitoring the recall operation and in preparing such reports as may be required. The Contractor shall, at the request of the Department or any Customer, assist the Department and each Customer in locating and obtaining any recalled Commodities. The Contractor shall immediately notify and provide copies to the Department of any communications, whether relating to recalls or otherwise, with any Customer. The Contractor shall ensure recalled Commodities are rectif ied, replaced and destroyed in compliance with all applicable laws, rules or regulations and the Department's instructions. All efforts relating to Recalled Commodities shall be at the Contractor’s expense.

3.8 Compliance and Compatibility

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It is the Contractor’s responsibility to ensure that the Commodities and any services supplied therewith are compliant with the Term Contract requirements, specifications, terms, and conditions. Additionally, the Contractor shall ensure that all Commodities ordered by the Customer are fully compatible with each other and with any associated pre-existing Commodity possessed by the Customer and disclosed to the Contractor by the Customer. The Contractor’s acceptance of the Customer’s order shall indicate that the Contractor agrees to deliver Commodities and services that are fully compliant and compatible with the Customer’s order requirements, specifications, terms, and conditions.

3.9 Reports

3.9.1 Meter Location and Usage Report

The Contractor shall submit a semiannual meter location and usage report to the Department which shall include, at a minimum, the following information:

• A list of all Natural Gas meter locations served within the reporting period with the Customer’s name and address,

• Monthly usage in Dekatherms listed by month for each Natural Gas meter location served within the reporting period,

• The LDC/Pipeline name for each Natural Gas meter location served within the reporting period, and

• The LDC/Transporter Number for each Natural Gas meter location served within the reporting period.

Completed reports are due on or before December 31 and June 30 of every term year.

3.9.2 Capacity Acquisition and Release Report

The Contractor shall submit a semiannual capacity acquisition and release report to the Department which shall include, at a minimum, the following information:

• A list of all capacity acquisitions and releases performed on behalf of the Department during the reporting period,

• The dates of all capacity acquisitions and releases on behalf of the Department during the reporting period, and

• The volume of all capacity acquisitions and releases on behalf of the Department during the reporting period.

Completed reports are due on or before December 31 and June 30 of every term year.

3.10 Financial Consequences

Failure to comply with the requirements of the Term Contract will result in the imposition of financial consequences. The following financial consequences will apply for the Contractor’s failure to meet the performance metric standard and due date corresponding with the deliverables under the Term Contract. The Customer may impose additional Financial Consequences beyond those stated herein to apply to that Customer’s purchase.

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The State of Florida reserves the right to withhold payment or implement other appropriate remedies, such as Term Contract termination, or nonrenewal, when the Contractor has failed to comply with the provisions of the Term Contract.

The financial consequences below will be paid and received by the Department of Management Services within 30 calendar days from the due date specified by the Department. These financial consequences below are individually assessed for failures over each target period beginning with the first full month or quarter of the Term Contract performance and every month or quarter, respectively, thereafter.

Financial Consequences Chart

No favorable action will be considered when Contractor has outstanding Term Contract Quarterly Sales Reports, MFMP Transaction Fee Reports, or any other documentation

Deliverable Performance Metric Performance Due

Date

Financial Consequence for Non-Performance

Contractor will timely submit complete Term Contract Quarterly Sales Reports

All Term Contract Quarterly Sales Reports will be submitted timely with the required information

Completed reports are due 10 calendar days after the close of the quarter

$250 per day late

Contractor will timely submit complete MFMP Transaction Fee Reports

All MFMP Transaction Fee Reports will be submitted timely with the required information

Completed reports are due on or before the 15th calendar day after the close of each month

$100 per day late

Contractor will submit a semiannual meter location and usage report

A semiannual meter location and usage report will be submitted timely with the required information

Completed reports are due on or before December 31 and June 30 of every term year

$250 per day late

Contractor will submit a semiannual capacity acquisition and release report

A semiannual capacity acquisition and release report will be submitted timely with the required information

Completed reports are due on or before December 31 and June 30 of every term year

$250 per day late

Upon the Customer’s or Department’s request, Contractor will submit a breakdown of all costs associated with a particular Customer’s invoice

The breakdown of all costs associated with a particular Customer’s invoice will be submitted timely to the requestor with the required information

The breakdown of costs associated with a particular Customer’s invoice is due within three (3) Business Days of the request

$100 per Business Day late

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