Dominion South Pipeline Co., LP

Original Volume No. 1

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Effective Date: 12/16/2005, Docket: CP05- 77-001, Status: Effective

Original Sheet No. 1067 Original Sheet No. 1067 : Effective

 

 

GENERAL TERMS AND CONDITIONS

CONSTRUCTION OF FACILITIES

 

22.4 (Cont.)

 

D. The Requesting Customer shall reimburse or agree to reimburse Pipeline for the cost

of construction as provided for in GT&C Section 22.5 below or agree to construct the

Requested Facilities in compliance with Pipeline's technical requirements.

 

22.5 Subject to GT&C Sections 11 and GT&C Section 22.4, Pipeline shall construct, modify, or

rearrange Requested Facilities for any Requesting Customer that agrees to pay Pipeline

an amount that fully reimburses Pipeline for the cost of such Requested Facilities and

their Construction as set forth in a facilities agreement. Pipeline may condition its

Construction of Requested Facilities on payment from the Requesting Customer of (1) any

or all costs of the Requested Facilities and their Construction and (2) other Related

Costs incurred prior to the in-service date of the Requested Facilities, which shall be

defined to include, but are not limited to, operating and maintenance expenses,

administrative and general expenses, employee salaries on a time-devoted basis and

related expenses, taxes other than income taxes, depreciation costs and the time value

of money, as set forth in a facilities agreement, and (3) a gross-up for state and

federal income taxes, if applicable. Unless Pipeline agrees to allow the Requesting

Customer to pay such costs at some other time or in installments, any agreement for

Construction of Requested Facilities shall provide that the Requesting Customer shall

pay Pipeline the costs of Construction and Related Costs prior to the commencement of

Construction. If actual costs are not known, Pipeline shall be entitled to bill the

Requesting Customer based upon estimated costs and the Requesting Customer shall be

required to pay such estimated costs, provided however, upon determining its actual

costs, Pipeline shall have thirty (30) days to either refund any over-collections or

bill for any under-collections, as appropriate, to provide for Pipeline's collection of

its actual costs, including the time value of money. If Pipeline fails to use due

diligence in pursuing the Construction of Requested Facilities or the filing of the

necessary governmental permits and such failure delays the commencement of service

beyond 60 days of the agreed in-service date, Pipeline shall reimburse Requesting

Customer the time value of money advanced for each day beyond the agreed in-service date

at the FERC approved Interest Rate.

 

22.6 Pipeline may agree to pay all or part of the costs of the Requested Facilities and their

Construction, Related Costs and tax gross up if the Construction is economically or

operationally beneficial to Pipeline. In determining economic or operational benefit,

Pipeline may consider the following factors, among others: costs of the Requested

Facilities and their Construction; the estimated incremental throughput and/or revenues

attributable to the Requested Facilities; the Related Costs and tax gross up attributable

to the Requested Facilities; the marketability of the capacity associated with the

Requested Facilities; the location of the markets associated with the Requested

Facilities; the interruptible or firm nature of the transportation service; the

availability of capital funds on terms and conditions acceptable to Pipeline; the time

value of money; increased system or operational reliability or flexibility; and increased

access to new supplies or markets.

 

22.7 Subject to Section 22.4 above, the Requesting Customer may construct their own

interconnect facilities at their sole expense, provided, however, such interconnecting

facilities shall meet all of Pipeline's technical and engineering requirements. These

interconnect facilities shall be built to Pipeline's system but only Pipeline shall

construct the tap, at the Requesting Customer's sole cost, to complete the interconnect.

 

22.8 Pipeline shall have the right to operate and maintain any facilities constructed pursuant

to this Section 22 regardless of ownership of such facilities. Customer shall fully

reimburse Pipeline for all costs related to Pipeline's operation of such facilities

including operating and maintenance expenses.