VNG Natural Gas Line Agreement.pdf

VIRGINIA NATURAL GAS, INC.

NON-RESIDENTIAL NATURAL GAS LINE EXTENSION AGREEMENT

BCA No.

MAIL ADDRESS

279389

9226 Third Ave #159

Norfolk VA 23511

LOCATION: 8900 Patrol RD BLDG P702 Norfolk VA 23505

DATE: 3/22/2022

THIS AGREEMENT, entered into by and between Virginia Natural Gas,Inc., hereinafter called "Company", and The United States Department of the Navy.

hereinafter called "Applicant",witnesseth:

WHEREAS, Applicant owns or occupies as lessee, certain property located at 8900 Patrol Rd P702, VA in the City/County of Norfolk, VA identified as GPIN No. or Parcel No. and has made application for natural gas to be supplied to said property by Company; and

WHEREAS, facilities of Company are not now available; and Company is willing to make its facilities available to Applicant, subject to its Terms and Conditions and Schedules for Supplying Gas as hereinafter referred to, NOW, THEREFORE, in consideration of the premises and the mutual benefits to be derived therefrom, the parties hereto bind themselves, their personal representatives, successors and assigns, as follows:

(6) Two or more parties may make a joint advance contribution on the same gas line extension. In such cases the total free length thereof will be considered to be the sum of the individual allowances that are applicable under Company’s Terms and Conditions and Schedules for Supplying Gas. The amount to be advanced by the members of the group shall be apportioned among them in such manner as they shall mutually agree upon.

(7) Legal and equitable title to all mains, service lines and appurtenances installed under this Agreement shall be and remain in Company, and Company shall have the right, without the consent of, or any refund to, Applicant, (a) to extend the gas main or connect additional gas mains to any part of it, and (b) to serve new additional regular customers at any time through service connection attached to such main or to extend or connected gas mains.

(1) Company will install gas facilities to serve Applicant in accordance with Section XVIII, Gas Line Extensions, of Company's Terms and Conditions and Schedules for Supplying Gas attached hereto, and made apart hereof.

Company will install gas facilities, substantially as configured in Attachment A, including 1 gas meter(s) to serve the total equipment load indicated in Schedule A at a delivery pressure of 2 psi;. Any changes to these facilities or their configuration requested by the Applicant will be provided by the Company and paid for by the Applicant at the Company's current material and labor rates

(8) This Agreement is subject to all Terms and Conditions and Schedules for Supplying Gas of Company that are now or may hereafter be issued, approved, or otherwise made effective, by the Virginia State Corporation Commission, or by any other governmental body having jurisdiction with respect to Company.

References herein to certain portions of such Terms and Conditions and Schedules for Supplying Gas, as they now exist, shall not be construed as exclusive, and all other portions in effect from time to time shall apply as fully as though they had been specifically referred to herein. This Agreement and any

(2) Applicant will install, commence using in a bona fide manner within six months after the date of the completion of the extension, and continue to so use for a period of 10 years, those appliances and equipment indicated by Schedule A and on which Company has relied in calculating the Allowable Company Investment and the Required Applicant Contribution, if any, to be paid by Applicant to Company, all consistent with Company's Terms and Conditions and Schedules for Supplying Gas. Company has calculated the Required Applicant Contribution in Schedule A on the assumption that Applicant will take service under the Rate Schedule identified in Schedule A for the duration of such 10-year period. If Applicant elects to take service under a different Rate Schedule at any time during such 10-year period, then Company may recalculate the Required Applicant Contribution and require Customer to pay any additional contribution prior to taking service under such different Rate Schedule.

attachments hereto, together with Company’s Terms and Conditions and Schedules for Supplying Gas, constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes all written or oral prior agreements or understandings with respect thereto. No modification, amendment, extension or waiver of or under this Agreement will be valid unless made in writing and signed by an authorized representative of the each party sought to be charged therewith.

(9) Company may rescind this offer if:

a.) either party fails to execute this Agreement within 45 days of the date set forth above;

b.) Applicant fails to make any payment required hereunder within 120 days of the date set forth above, or

(3) Within one year after service is commenced to Applicant through Company facilities installed pursuant to this Agreement, Company will determine if the equipment and appliances listed in Schedule A are installed and operating as indicated on Schedule A.

c.) Applicant provides Company with a written Notice to Proceed, as described in Paragraph 11 below, that specifies a date to proceed that is more than 45 days from the date set forth above.

(10) Applicant acknowledges that in executing this Agreement, Applicant

(4) If, based on the above determination, the Required Applicant Contribution, calculated according to Section XVIII, Gas Line Extensions, is found to be greater than that originally calculated and set forth in Schedule A, Company will notify Applicant that an additional contribution is required, and such additional contribution will be paid promptly by Applicant. The total payments required to be made by Applicant as contribution toward the installation of Company facilities will not exceed the Estimated Cost to Serve set forth in Schedule A, plus the associated tax effect, unless subsequent changes in facilities are requested by Applicant after the date of this Agreement.

(5) No assignment of this Agreement by Applicant shall be effective unless prior written approval shall have been granted by Company has not relied upon any representations by Company relating to the estimated completion date of the gas extension covered by this Agreement.

(11) Unless otherwise instructed by Applicant with a notice in writing of the date on which Applicant desires Company to proceed with the natural gas line extension contemplated by this Agreement (“Notice to Proceed”), Applicant agrees that Company may proceed with the natural gas line extension and installation of facilities in accordance with a schedule of work determined by Company in its sole discretion but without obligation to begin such work on any particular date, including the date in any Notice to Proceed.

(12) Within 90 days after the date set forth above, the Applicant shall make or procure satisfactory conveyance to Company of all rights of way required by Section I of Company’s Terms and Conditions and Schedules for Supplying Gas, and any other property rights that Company reasonably deems necessary or appropriate for the purpose of owning, constructing, operating, maintaining, repairing and replacing the gas facilities to be installed pursuant to this Agreement (together, the “Property Rights”). If Applicant is not the owner of the property identified above in this Agreement or any other property subject to the Property Rights, then Applicant shall, at its sole cost and expense, obtain from the respective property owner(s) all necessary Property Rights in the name of and for the benefit of Company. Company shall not be required to commence installation of any facilities until it has received all necessary Property Rights in a form reasonably acceptable to Company.

Schedule A

A. Applicant Gas Equipment & Appliances

UseCode Gas Equipment CFH/ Hour

CHF Heat and Water Heater 950

B. Estimated Cost to Serve $25,793.42

C. Required Applicant Contribution $2996.87

D. Rate Schedule [2]

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written, each intending to be legally bound hereby.

APPLICANT United States Department of the Navy

BY

TITLE

DATE

BY

TITLE

DATE

TERMS AND CONDITIONS

XVIII. GAS LINE EXTENSIONS

A. For individual residential applicants establishing or upgrading gas service, the Company will provide up to 100 feet of service line from the main to the Customer’s meter without a charge, provided the applicant installs and uses natural gas for either central heat or water heating.

1. The cost of the main extension, service lines, and/or other distribution facilities installed will be calculated at the present value of the costs associated with installing such facilities including: the total plant investment, annual operation and maintenance expenses, property taxes, income taxes, and an allowance for return on the total plant investment. The allowance for return shall be computed using the Company’s overall rate of return, as determined in its most recent rate case, including the authorized return on common equity. The cost to install the service line, meter and regulator will be determined, at the Company’s discretion, from either the previous year's average cost for the applicable Customer class or from a detailed cost estimate based on current labor and material cost. The cost to install main line extension will be determined from a detailed cost estimate using current labor and material costs. The present value will be determined by discounting the costs using the Company's overall rate of return, as determined in its most recent rate case, including the authorized return on common equity.

2. The Company will calculate the anticipated revenues based on estimated usage and/or consumption patterns, determined by the Company, and current authorized rates for the applicable Customer class, excluding the purchased gas charge. The Company will discount annual revenue to present value using the Company's overall rate of return, as determined in its most recent rate case, including the authorized return on common equity.

3. The Company will compute “Net Present Value” or “NPV” by subtracting the discounted costs as calculated in (1) above from the discounted revenues as calculated in (2) above.

(A). If the NPV is zero or positive, then no contribution will be required from the applicant or group of applicants prior to the installation of main extension, service lines, and/or other distribution facilities.

(B). If the NPV is negative, then the applicant or group of applicants shall pay a non-refundable contribution in an amount necessary to equal a zero ($0) NPV. The contribution shall be adjusted for the Tax Recovery Factor shown on the currently effective Schedule of Rates and Charges.

B. For individual residential applicants establishing or upgrading gas service, the Company will provide up to 100 feet of service line from the main to the Customer’s meter without a charge, provided the applicant installs and uses natural gas for either central heat or water heating.

C. The Company will make gas line extensions other than those specified in A. above under conditions specified in the Company’s Gas Line Extension Agreements on file with the Commission.

D. If a proposed gas line extension is of such length or high cost, or if in the Company's opinion, the prospective revenue from such line extension is insufficient or temporary, or if the applicant or group of applicants to be supplied are unable to establish a credit standing satisfactory to the Company, the Company reserves the right to determine finally the advisability of making such line extension.

E. The Company shall not be required to make any gas line extension under these general rules and regulations until the applicant or group of applicants to be supplied from such line extension shall have signed a Natural Gas Line Extension Agreement and until all premises to be supplied have been piped and made ready for service.

F. Except as provided in Sections A and B above the, Company shall not be obligated to construct or own any main extension, gas service line, and/or other distribution facilities, or to provide any Customer with gas.

G. These general rules and regulations shall not be construed as prohibiting the Company from making gas line extensions of greater length or higher cost, provided there is no discrimination between Customers using gas under the same classification.

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12'

INSTALL 2500'

2" PX GAS MAIN

2" PX COUPLING

LOC STATION

END CAP

295' 1-1/4" PX - NO PERMIT REQ NAVY BASE

INSTALL 5500 EFV

VNG TO INSTALL 400/2PSI MTR - 950 CFH

ONCE COMPLETE CALL MARCIE BEVINS

757-438-0359

D AVE

B AVE

A AVE

2ND ST

3RD ST

1ST ST

C ST

BOARD

C AVE

HAMPTON BLVD

PARK PL

NORTH GATE RD

90TH ST

VIRGINIA AVE

BALTIC AVE

B AVE

B AVE

HAMPTON BLVD

AGLR ROW

AGLR ROW

16-60-S

12-60-S

6-60-S

2-60-P

2-60-P

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2-60-P

2-60-P

2-60-P

6-60-S

Drawn By: Checked By: Date:

Dwg No:

Project No:

Map Section: Sheet of

Company:

Division:

Operating Area:

Pressure Duration Medium ___10 PSIG ___10 Min. ___ Air ___90 PSIG ___ 1 Hour ___ Gas ___225 PSIG __ 24 Hour ___ Soap ___Other ___ Other ___ Other By / Date:____________________

SOTUHERN

NAVY BASE NORFOLK, VA 23505

A MOBLEY

279389-2753745

193218 9243-H1

3/10/22

1 1

MJB

Virginia Natural Gas

BCA: 279389 8900 PATROL RD P-702 NORFOLK, VA 23505

INSTALL 2500' 2" PX GAS MAIN

CUSTOMER: BRYCE DUBLIN 757-341-0385