Egan Hub Storage, LLC

First Revised Volume No. 1

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Effective Date: 05/24/2010, Docket: RP10-628-000, Status: Effective

Third Revised Sheet No. 159 Third Revised Sheet No. 159

Superseding: Second Revised Sheet No. 159

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

30. CONSTRUCTION OF NEW RECEIPT AND DELIVERY FACILITIES

 

30.1 Except as provided in Section 30.3 herein, Customer shall reimburse Egan Hub for (a) the

costs of any facilities installed by Egan Hub with Customer's consent to receive, measure, store

or deliver Gas for Customer's account, and (b) any and all filings and approval fees required in

connection with Customer's service agreement that Egan Hub is obligated to pay to the Commission

or any other governmental authority having jurisdiction.

 

30.2 Any reimbursement due Egan Hub by Customer pursuant to Section 30.1 shall be due and

payable to Egan Hub within ten (10) days of receipt by Customer of Egan Hub's invoice(s) for same;

provided, however, subject to Egan Hub's consent such reimbursement, plus carrying charges

thereon, may be amortized over a mutually agreeable period not to extend beyond the primary term

of the service agreement between Egan Hub and Customer. Carrying charges shall be computed

utilizing interest factors acceptable to both Egan Hub and Customer.

 

30.3 Egan Hub may waive from time to time, at its discretion, all or a portion of the

facility cost reimbursement requirement set forth in Section 30.1 for Rate Schedules FSS, SSS,

EPS, ELS, IPS, IWS and ILS if Customer provides Egan Hub adequate assurances to make construction

of the facilities economical to Egan Hub. All requests for waiver shall be handled by Egan Hub in

a manner which is not unduly discriminatory. For purposes of determining whether a project is

economical, Egan Hub will evaluate projects on the basis of various economic criteria, which will

include the estimated cost of the facilities, operating and maintenance as well as administrative

and general expenses attributable to the facilities, the revenues Egan Hub estimates will be

generated as a result of such construction, and the availability of capital funds on terms and

conditions acceptable to Egan Hub. In estimating the revenues to be generated, Egan Hub will

evaluate the existence of capacity limitations downstream of the facilities, the marketability of

the capacity, the Interruptible versus the firm nature of the service, and other similar factors

which impact whether the available capacity will actually be utilized.

 

31. OFF-SYSTEM PIPELINE CAPACITY

 

From time to time, Egan Hub may enter into transportation and/or storage agreements with other

interstate or intrastate pipeline companies ("off-system pipeline"). In the event that Egan Hub

acquires capacity on an off-system pipeline, Egan Hub will use such capacity for operational

reasons and will only render service to Customers on the acquired capacity pursuant to Egan Hub's

FERC Gas Tariff and subject to Egan Hub's rates, as such tariff and rates may change from time to

time. For purposes of transactions entered into subject to this Section 31, the "shipper must

have title" requirement is waived.