RELATED PARTY TRANSACTIONS

3 Months Ended

Dec. 31, 2015

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

NJRES may periodically enter into storage or park and loan agreements with its affiliated FERC-regulated natural gas storage facility, Steckman Ridge. As of December 31, 2015, NJRES has entered into storage and park and loan transactions with Steckman Ridge for varying terms, all of which will expire by October 31, 2020. NJRES had demand fees, net of eliminations, associated with Steckman Ridge of $685,000 and $484,000 during the three months endedDecember 31, 2015 and 2014, respectively, and demand fees payable of $376,000 and $375,000 as of December 31, 2015 and September 30, 2015, respectively.

In January 2010, NJNG entered into a 10-year agreement effective April 1, 2010, for 3 Bcf of firm storage capacity with Steckman Ridge. Under the terms of the agreement, NJNG incurs demand fees, at market rates, of approximately $9.3 million annually, a portion of which is eliminated in consolidation. These fees are recoverable through NJNG's BGSS mechanism and are included in regulatory assets. During the three months endedDecember 31, 2015 and 2014, NJNG had demand fees, net of eliminations, associated with Steckman Ridge of $1.4 million for both periods and demand fees payable of $774,900 as of December 31, 2015 and September 30, 2015.

NJNG and NJRES have entered into various asset management agreements. Under the terms of these agreements, NJNG releases certain transportation and storage contracts to NJRES. NJNG retains the right to purchase market priced gas or fixed price storage gas from NJRES. As of December 31, 2015, NJNG and NJRES had four asset management agreements with expiration dates ranging from March 2016 through March 2018.

In the fourth quarter of fiscal 2014, NJNG entered into a 15 year transportation precedent agreement for committed capacity of 180,000 dths per day with PennEast with an estimated service date of November 2017.