RELATED PARTY TRANSACTIONS

9 Months Ended

Jun. 30, 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 June 30, 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				Nine Months Ended
	June 30,				June 30,
(Thousands)	2017		2016		2017		2016
NJNG	$	1,395	$	1,391	$	4,188	$	4,165
NJRES	681		717		2,071		2,094
Total	$	2,076	$	2,108	$	6,259	$	6,259

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



(Thousands)	June 30, 2017		September 30, 2016
NJNG	$	775	$	775
NJRES	376		375
Total	$	1,151	$	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 June 30, 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. PennEast will reassess the project timeline upon receipt of a Certificate of Public Convenience and Necessity from FERC.