RELATED PARTY TRANSACTIONS

6 Months Ended

Mar. 31, 2017

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 as a component of regulatory assets.

NJRES may periodically enter into storage or park and loan agreements with its affiliated FERC-jurisdictional natural gas storage facility, Steckman Ridge. As of March 31, 2017, NJRES has entered into transactions with Steckman Ridge for varying terms, all of which expire by October 2020.

Demand fees, net of eliminations, associated with Steckman Ridge were as follows:



	Three Months Ended				Six Months Ended
	March 31,				March 31,
(Thousands)	2017		2016		2017		2016
NJNG	$	1,383	$	1,385	$	2,793	$	2,774
NJRES	689		692		1,390		1,377
Total	$	2,072	$	2,077	$	4,183	$	4,151

The following table summarizes demand fees payable to Steckman Ridge as of:



(Thousands)	March 31, 2017		September 30, 2016
NJNG	$	780	$	775
NJRES	376		375
Total	$	1,156	$	1,150

NJNG and NJRES have entered into various asset management agreements, the effects of which are eliminated in consolidation. Under the terms of these agreements, NJNG releases certain transportation and storage contracts to NJRES. As of March 31, 2017, NJNG and NJRES had three asset management agreements with expiration dates ranging from October 2017 through March 2018.

NJNG has entered into a 15-year transportation precedent agreement for committed capacity of 180,000 Dths per day with PennEast, which is estimated to be in service by the first quarter of fiscal 2019.