Columbia Gas Transmission, LLC FERC NGA Gas Tariff

Baseline Tariffs Proposed Effective Date: January 1, 2018

Service Agreement No. 195969 – Ascent Resources – Utica, LLC Option Code A

Service Agreement No. 195969 Revision No. I

PTS SERVICE AGREEMENT

THIS AGREEMENT is mode nncl enlererJ into this ~ \~ny of December, 2017, by 1md between COLUMBIA GAS TRANSMISSION, LLC (''Transporter'') nncl ASCENT RESOURCES - UTICA, LLC ("Shipper").

WITNESS ETH: That in consldcrntion of the mutunl covcnnnls herein contoined, the p1u·1ies hereto ngrce ns follows:

Sectio11 I. Service lo be Rendered. Transporter slrnll perform nncl Shipper shnll receive service in nccorclnnce wllh the provisions of the effeclive FTS Rote Schedule and npplicnble Oen em I Tenns nnd Conditions of Tl'fmspo11er's PBRC Gns Tari ff, Fou11h Revised Volume No. I ("Tariff'), on file with the Feclernl Energy Regulutory Commission ("Conunission.,), ns 1he snme mny be amended or superseded in accordance with the mies nnd regulations of the Commission. The maximum obligation of Trnnsporter to deliver gos hereunder to or for Shipper, lhe designation of the points of delivery nt which Trnnsporter shall deliver or cnuse gas to be delivered to 01· for Shipper, ond the points of recelpl at which Shipper shull deliver or cause gas lo be delivered, nre specified in Appendix A, ns the some moy be amended from lime to time by ngrccment between Shipper nncl Trnnsporter, or in occordirnee with the rules ond regulations of lhe Commission.

Section 2. Term. Notwithslnnding Trnnsporlcr onticipntcs that its Leoch XPrnss Project ("Projccl") shnll be placed into service 011 or before November I, 201 7, this Agreement shall be effective ns of the date lhnl nll of Trnnsporter's Leach XPrcss Project focilil ies necessary to provide firm trnnsportntion service to Shipper have been deemed by Tnmsporter lo he l'eady for service nnd FERC hns been nolifiecl thnt the Project is complete nn<I is ready to be placed into service ("Aclual In-Service Dntc"), nncl shall remain in full force nnd effect for a tenn of fifteen ( 15) years (''lnilinl Tenn") from lhc Actual In-Service Dntc. Pre-grnnted olrnndonmcnt shall apply upon lerminalion of this Agreement, subject to any right of first rcfllsnl Shipper may have under the Commission's regulations nnd Trnnspo11er's Toriff~

Al lhe end of the lniliol Tenn, Shipper shall hove the right to extend its Service Ag1·eement for one (I) or two (2) successive 5-year tcnns (each an "Ex tended Term''), exercisnble no later thon twelve ( 12) months prior to the ex pi mt ion of the lnitinl Tenn and the fi rst Extended Term, if' opplicnble. Any Exlended Term must be for n minimum qunntity of J 00,000 Dth/clay and at the snme r11tcs nncl commereinl tenns contained herein. Provided, however, if Shipper elects to ex lend the lnitiol Term nl a quantity less thnn ils lnilinl Tenn quantity, then such reduced quantity for the first Ex tended Tenn shall become the m11ximum t)lll\ntity for nny second Ex tenclecl Tenn. In nddition lo the rotes upplicablc to Shipper's Extended Tenn, Shipper shull pay all surcharges (excluding lhc Copitul Cost Recovery Meclrnnism chnrge) n1>1>lic11ble to Rnlo Schedule FTS thnl

arc set fo11h In the T11riff, wilhoul cxccplion, ns those surchnrgcs moy be nmended, added or modified from time to time.

Section 3. Rates. Shipper shall pny Trnnspo11er the negotiated mies nnd fornish retninoge ns set fo11h in the Negotiated Rnte Letter Agreement nttochecl hereto as Appendix B.

Section 4. Notices. Notices to Trnnspo11cr under this Agreement shall be addressed to ii nt 5151 San relipe, Suite 2500, Houslon, Texus 77056, Attention: Customer Services nnd notices lo Shipper shall be nddresscd to it at Ascent Resources - Utica, LLC, 301 NW 63"1 Street, Suite 600, Oklohomo City, OK 73116, Attention: Director Mnrkellng nnd Midstream, until changed by either pnr1y by writlen notice.

Section 5. Superseded Agreements, This Service Agreement supersedes and cancels, ns of the effective dote hereof, the following Service Agreement(s): FTS Agreement 195969 Revision 0.

COLUMBIA OAS TRANSMISSION, LLC

By ~ {\IJ (

Ruaaall A. Mahan tM'>l Title

~~~vn~ce·....-cpr~ua~1dmam111~~~~

Dnte _ __ 1/J~~---~-'-----

Begin Date

11

Begin Date

I f

1/

End Date

I/

J I

End Date

l /

Scheduling Point No. 743103

Appendix A to Service Agreement No. 195969 Under Rate Schedule FTS

between Columbia Gas Transmission. LLC {"Transponerl and Ascent Resources - Utica. LLC ('"Shipper-)

Transportation Demand

Begin Dare

11

End Date

I/

Transportation Dc:mznd Dthldav 161.759

Recurrence Interval

111-12131

Scheduling Point Name

Eureka

Primary Receipt Points

Measuring Point No. 743103

Measuring Point Name

Eureka

Prim21"V Deliverv Points

Maximum Daily Quantity

{Dth/dav) 161759

Maximum Daily Design Delivery Daily

Minimum Receipt Pressure Obligation (psig)

2/

Minimum Scheduling Scheduling Measuring Measuring Obligation Quantity Delivery Pressure Point No. Point Name Point No. Point Name (Dth/day) 21 {Dth/dav) Obligation Cnsig)

23N-2 Columbia 708682 7.357 7357 21 ?J Gas OH OP

05-2

23-4 707751 P.C.C. 4.000 11 ?J Airfoils

Revision No. l

Rccurn:nce Interval

111-12131

Rcc~cc

Intef''al

1/1-12131

111-12131

Columbia Ga.c:OHOP

07-4 COH

( ' 11 23..4 Columbia Alliance

2J GasOHOP 709255 Wolf~ Allianc@Wr V30 21 1/1 -12131

07-1

I • ti 23-5 Columbfa 21 21 1/1 -12131

GasOHOP COHGender 07-5 734409 Rd. :woo

II 23-5 Columbia COH

21 21 l/1-12131 Gas OH OP Watkins

07-5 735903 Road 6000 Columbia

1.' li 23-5 GasOHOP COHCors 21 21 1/1-12131 07-5 737965 East Broad 18495

I/ 11 33-6 CENTER.VI 21 21 J/1-12131

Dayton-6 730598 LLE 33742

11 1t 23N-7 Columbia

21 21 Gas OH OP Lorain West

111 -12131

05-7 707713 U042 16522

i: 11 23-8 Columbia

21 21 GasOHOP 111 -12131

07-8 709592 BRANDON 70

1.1 I I 23-8 Columbia

2! 21 GasOHOP MALABAR 1/1-12131

07-8 703675 FARM 56

I I I I 23-8 Columbia

21 2! GasOHOP POSSUM

111-12131

07-8 709329 GREEN 14 I/ t i 23-8 706254 NEW.ARK 631 21 2/ l /1- 12131

Columbia GasOHOP

07-8

11 11 23-8 Columbi2

GasOHOP WELLSTO 21 21 1/1-12131

07-8 706281 N 481

II 1.' 23-8 Columbi2

GasOHOP 11 21 111-12131

07-8 710811 GLENROY 239

I / 11 13-3 Columbia GasOHOP

21 11 In-12131

07-8 712256 COALTON 402

11 f l 23-8 Columbia

GasOHOP COH 11 21 1/1-12131

07-8 709763 GAMBIER 417

11 23-8 Columbia

GasOHOP SOUTH 11 11 1/ 1-12131

07-S 709467 WEB STIR 635

1· 11 23-8 Columbia

Gae: OH OP GRANVILI.. 21 21 l/t-12131

07-8 709757 E 143

I I 11 23-8 Columbia

GasOHOP MCARTHU 21 21 111-12/3]

07-8 709192 R 100

11 I I 23-8 Columbia KINGSFOR

GasOHOP D 11 11 111-12131

07-8 711017 BUILDING 220

I I 11 23-8 Columbia CEDAR 21 21 111-12131

Gas OH OP HEIGITTS 07-8 711116 CLAY 251

I.' 11 23-8 Columbia BANQUET 21 ~ lil -12131

Gac:OHOP FOODS(JE 07-S 711588 NO'S) 5503

11 11 23~ Columbia 21 2J lll -1213 1

GasOHOP KITTS 07-8 712573 Hil..L 1610

1/ I I 23-8 Columbia 21 2J 1/1-12131

GasOHOP SOU!E 07-8 713541 POINT 1381

I f 23-& Columbia 21 ., .

l /1-12131 Gas OH OP

iJ

07-8 713542 Burlington 18356

11 1: 23-8 Columbia

2J ?.J 1/1 -12131 Gas OH OP MT. 07-8 740392 VERNON 13713

I ! ) / 23-8 Columbi2

2l GasOHOP

2J 111-12131

07-8 709666 ASHLAND 1146

1: 51-8 National STURGEO 21 2/ 111-12131 Gas&Oil-8 705361 N 588

1' 11 51-8 National 21 21 111-12131 Gas&Oil-8 710741 HUBER 246

11 1: 51-8 National BEA'VER 2i 2J 1/1 -12131 Gas&Oil-8 734529 RUN ROAD 665

ZOLLINGE 11 11 51-8 National R(SRELL 21 2J 1/1-12131

Gas&Oil-8 700018 BEACH) 361

11 f l 23-9 Columbia 21 11 111-12131

GasOHOP 07-9 709465 GLOUSTER 3858

MIDDLEPO

I I f / 23-9 Columbia RT-21 21 l /l -12131

GasOHOP BRAD BUR <J7-9 706333 y 3200

JI 11 23-9 Columbia 11

.,, l /J -12131 GasOHOP

.:J

<J7-9 705570 LOGAN 595

I I 11 23-9 Columbia COH 21 2J l/J -12131

GasOHOP ATHENSE <J7-9 712046 61 1700

II II 23-9 Columbia 21 21 l/l-12131

GasOHOP COH 07-9 709472 DRESDEN 1000

( I 1/ 23-9 Columbia 21 21 In-12131

GasOHOP NEW 07-9 709536 CONCORD 652

... I' 23-9 Columbia 11 21 l /1 -12131 Gas OH OP ZANESVIl..

07-9 711153 LE 10on

11 II 23-9 Columbia NEW

21 21 GasOHOP LEXIl·mTO

111 -12131

07-9 706465 N 500 I I If 23-9 704658 DERWENT 400 21 21 1/1 -12131

1' ,. ~

Columbia GasOHOP

07-9

1' ,, 23-9 Columbia

GasOHOP BYESVILL 11

07-9 709860 E 821

II I .' 23-9 Columbia

GasOHOP BEECH 21

07-9 711165 GROVE 600

Per Section 2 of the Service Agreement. Application ofMDDOs. DDQs 2nd ADQs. minimum pressure and/or hourly tlowrate shill be as follows:

2/ l/I -1213 l

21 1/1-12/31

The Master List oflnti:rconnects ("Ml.I) as defined in Section 1 of the General Terms and Conditions ofTransporta'!> Tariff is incorporated herein by reference for purposes oflisting valid secondary interruptible receipt points and delivery points.

_Yes _X_ No (Check applicable blank) Transporter and Shipper have mutually agreed to a Regulatory Restructuring Reduction Option pursuant to Section 42 of the General Terms and Conditions ofTransponc:r's FERC Gas Tariff.

_Yes _X_ No (Cheek applicable blank) Shipper has a contractual right of first refusal equivalent to the right of first refuSGJ set forth from time to time in Section 4 of the General Terms and Conditions ofTransporta's FER.C Gas Tariff.

_Y ~ _X_ No (Check applicable blank) All gas shall be delivered aI existing points of interconnection within the MDDOs. ADQs and/or DDQs. as applicable. set forth in Transporter's currently effective Rate Schedule __ Service Agreement No. __ Appendix A ""ith Shipper. which are incorporated h~in by refCTCnce.

_Yes _X_ No (Check applicable blank) This Service Agreement covers interim capacity sold pu~t to the provisions of General Tenns and Conditions Section 4. Right of first refusal rights. if any. applicable to this interim capacity are limited as provided for in General Tcnns and Concfrtions Section 4.

Yes X No (Check applicable blank) This Service Agr=ment covers oftSystem capacity sold pUTSUant to Section 47 of the General Terms and Conditions. Right offiISt refusal rights. if any. applicable to this offsystem capacity are limited as provided for in General Terms and Conditions Section 4i .

/ Y. ¥11 -/!1lV.£.Uj~'/fr&.1,,-, f.tT

COLUMB~S TRANSMISSION. LLC

By ~~ /jJv RISell~

Trtle • _ p e:sident YU I

Date '~P#

Appendix 8 to Service Agreement No. 195969 Revision 1

April~Ol8

Ascent Resources - Utica, LLC 30 I NW 63rd Street, Suite 600 Oklahoma City, OK 73116 Attention: Jim Johnson

RE: FTS Service Agreement No. 195969 Revision 1 Amended and Restated Negotiated Rate Letter Agreement

Dear Jim:

This Amended and Restated Negotiated Rate Letter Agreement between Columbia Gas Transmission, LLC ("Transporter" or "TCO") and Ascent Resources - Utica, LLC ("Shipper"), shall set forth the applicable rates and other rate provisions associated with the transportation service provided by Transporter to Shipper pursuant to the above­referenced Service Agreement. Transporter and Shipper may be referred to individually as a "Party" or collectively as the "Parties".

Shipper and Transporter hereby agree:

1. The "Negotiated Reservation Rates" during the Initial Term for the transportation service provided shall be those rates and terms agreed upon as set forth in the ATTACHMENT B-1 attached hereto.

2. As a result of the operation of the Daily Demand Rate adjustment mechanism set forth in Paragraph I of the Negotiated Rate Letter Agreement executed by and between the Parties and dated December 20, 2017, attached hereto as ATTACHMENT B-2, the Daily Demand Rate set forth therein is increased $0.05 effective as of January I, 2018 ("Daily Demand Rate Increase"). The Daily Demand Rate Increase is included in the Daily Demand Rate set forth in ATTA CHM ENT B-1 attached hereto.

3. Shipper shall have a one-time right, to be exercised no later than thirteen (13) months after the date that Transporter files its statement of costs with the Federal Energy Regulatory Commission pursuant to 18 CFR § l 57.20(c)(3) to review Transporter's books and records as reasonably necessary lo verify the Project costs used in the calculation of the Daily Demand Rate adjustment mechanism described

1

Appendix 8 to Service Agreement No. 195969 Revision 1

above. Transp011er is required by the above-referenced regulation to file such statement or costs no later than July 1, 2018.

4. Shipper agrees not lo withhold payment of the Daily Demand Rate Increase pmsuant to the good faith dispute provisions set forth in General Terms and Conditions Section 10.2(d) of Transpo1ter's Tariff prior to the Parties' resolution of the findings of Shipper's Audit and Transporter agrees to amend ATTACHMENT B-1 and to promptly refund, with accrued interest calculated in accordance with 18 C.F.R. § 154.501, such portion of the Daily Demand Rate Increase as necessary to reflect such resolution.

5. All capitalized terms used but not defined herein shall have the meanings given them in PTS Service Agreement No. 195969 Revision 1.

6. This Amended and Restated Negotiated Rate Letter Agreement replaces and supersedes the Negotiated Rate Letter Agreement between the Parties dated December 20, 2017.

Accepted and agreed to this IAay of April, 2018.

Ascent Resources - Utic

Till

Columbia Gas Transmission, LLC

By: _2~"~~=-v+--.· v~~~J Russell A. Mahan

Vice Presidenr----

By: _ _,~-~-=-------~),..} l'itle: ~ ~~~s~r.~\~'i1~cee~P~r~e~s~id~e~11~t~~-

Title:

Date: _ ___,_~_,__o~.~~f'--- Date: ___ «1_,_}i6'._ A,_1B ____ _

2

Appendix 8 to Service Agreement No. 195969 Revision 1

ATTACHMENT B-1

NEGOTIATED RESERVATION RATES

Primary Primary Transportation

Daily Daily Delivery Demand Term

Receipt Point(s)* Point(s)* (Dth/day)

Demand Commodity Rate Rate

Eureka (meter no. Ohio Market 161 ,759 Dlh/day 15 years $0.619 maximum 743103) Area Deliveries from Actual applicable

(as listed below) In-Service Date

* Shipper shall have full secondary receipt and delivery point access, pursuant to the terms and conditions of TCO's FERC Gas Tal"iff, at no incremental charge.

** In addition, Shipper shall pay all applicable demand and commodity surcharges specified under Rate Schedule FTS, as such may change from time to time, with the exception of the Capital Cost Recovery Mechanism (CCRM) surcharge.

Ohio Market Arca Deliveries:

Market Area Transport Demand

2 7,357

4 7,012

5 26,495

6 33,742

7 16,522

8 47,228

9 23,403

Total 161,759

Jn addition to the rates above, Shipper will pay the fuel retention applicable to Rate Schedule FTS, as such may change from time to time.

3

Rate Schedule

rrs

Appendix B to Service Agreement No. 195969 Revision 1

A TTACl-IMENT B-2

I. Section 2 of the Agreement is superseded and replaced in its entirety with the following:

Shipper's "Daily Demand Rates" as set forth in Attachment B-1 hereto shall be adjusted as follows:

To the extent Actual Project Costs (as defined below) exceed Estimated Project Costs (as defined below), Shipper's Daily Demand Rate shall be multiplied by the Capital Cost Overrun Factor ("CCO Factor"). The CCO Factor shall be equal to l + [(CCO/EPC) X 50%]. In no event shall the CCO Factor exceed I .0879.

To the extent Actual Project Costs (as defined below) are Jess than Estimated Project Costs (as defined below), Shipper's Daily Demand Rate shall be multiplied by the Capital Cost Underrun Factor ("CCU Factor"). The CCU Factor shall be equal to 1 - [(CCU/EPC) X 50%]. In no event shall the CCU Factor be less than .9121.

Any such adjustment to Shipper's Daily Demand Rate shall be effeclive prospectively beginning as soon as administratively feasible, but no later than the second anniversary date of the Actual In-Service Date and shall remain in effect for the balance of the Initial Term and any Extended Term Service.

"Actual Project Costs" or APC shall mean, subject to any limits on costs as set forth below, all costs and expenses incurred by Transporter including trailing costs up to twelve months subsequent to the Actual In-Service Dale, to complete the Project in the maru1er contemplated by this Precedent Agreement, including but not limited to (a) all costs and expenses incurred for the engineering, design, permitting, constrnction, pipeline and equipment procurement, installation and start-up of the Project facilities, including all compression costs, (b) all costs and expenses incutTed for environmental, right-of-way, legal, consultant, construction management, and regulatory activities, (c) all direct and allocated internal overhead and administrative costs, and (d) an allowance for funds used during construction ("A FU DC") computed in accordance with regulations of the FERC. Transporter shall maintain books and records reasonably necessary for Shipper to verify the APC. The Parties acknowledge that Transporter's formal books and records that conform lo the FERC and accounting policies and guidelines may not match the APC used to determine Shipper's adjusted Daily Demand Rate.

"Capital Cost Overrnn" or "CCO" shall be an amount in U.S. dollars equal to the difference between the Actual Project Costs and the Estimated Project Costs, if Actual Project Costs exceed Estimated Project Costs.

4

Appendix B to Service Agreement No. 195969 Revision 1

"Capital Cost Underrun" or "CCU" shall be an amount in U.S. dollars equal to the difference between the Actual Project Costs and the Estimated Project Costs, if Actual Project Costs are less than Estimated Project Costs.

"Estimated Prnject Costs" or "EPC" shall mean all costs and expenses that are projected to be incurred by Transporter to complete the Project in the manner contemplated by this Agreement, including hut not limited to (a) all costs and expenses projected to be incurred for the engineering, design, pe1111itting, construction, pipeline and equipment procurement, installation and start-up of the Project facilities, (b) all costs and expenses projected to be incuned for environmental, right-of-way, legal, and regulatory activities, (c) all direct and allocated internal overhead and administrative costs and (d) AFUDC computed in accordance with the regulations of the FERC, and (e) a contingency amount equal to at least 10% of the total EPC. For purposes of determining the adjustment to Shipper's Daily Demand Rate pursuant to this provision, the Parties agree that the Estimated Project Costs shall equal $1,420,000,000, which was presented lo and approved by NiSource Inc.'s board of directors for authorization of the Project on August 4, 2014.

Shipper shall have one-time right, exercised no later than thirteen ( 13) months after the Actual In-Service Date of the Project, to review Transporter's books and records as reasonably necessary to verify Project costs for purposes of this provision.

5