Liberty Gas Storage, LLC
Original Volume No. 1
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Effective Date: 04/15/2007, Docket: RP07-357-000, Status: Effective
Original Sheet No. 152 Original Sheet No. 152 : Effective
GENERAL TERMS AND CONDITIONS
30. POLICY WITH RESPECT TO FEES AND CONSTRUCTION OF NEW FACILITIES
30.1 Except as provided in Section 30.2 herein, Customer shall reimburse
Liberty (a) for the costs of any facilities installed by Liberty with
Customer's consent to receive, measure, store or deliver Gas for Customer's
account and (b) for any and all filings and approval fees required in
connection with Customer's Storage Service Agreement that Liberty is obligated
to pay to the Commission or any other governmental authority having
jurisdiction. Any reimbursement due Liberty by Customer pursuant to this
Section 30.1 shall be due and payable to Liberty within ten (10) days of
receipt by Customer of Liberty's invoice(s) for same; provided, however, that
subject to Liberty's consent, such reimbursement, plus carrying charges
thereon, may be amortized over a mutually agreeable period not to extend beyond
the primary contract term of the Storage Service Agreement between Liberty and
Customer. Carrying charges shall be computed utilizing interest factors
acceptable to both Liberty and Customer.
30.2 Liberty 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 and SFS if Customer provides Liberty adequate assurances to
make construction of the facilities economical to Liberty. All requests for
waiver shall be handled by Liberty in a manner which is not unduly
discriminatory. For purposes of determining whether a project is economical,
Liberty 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 Liberty estimates will be generated as a result of such construction,
and the availability of capital funds on terms and conditions acceptable to
Liberty. In estimating the revenues to be generated, Liberty 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 CAPACITY
Liberty may, from time to time, acquire transportation and/or storage capacity
on a third-party pipeline system. Liberty will only provide transportation and
storage services for others using such capacity pursuant to its open access
FERC Gas Tariff subject to its rates approved by the Federal Energy Regulatory
Commission. For purposes of transactions entered into subject to this Section
31, the “shipper must hold title” policy is waived to permit such use.