Southern Star Central Gas Pipeline, Inc.

Original Volume No. 1

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Effective Date: 07/10/2009, Docket: RP09-758-000, Status: Effective

Second Revised Sheet No. 227 Second Revised Sheet No. 227

Superseding: First Revised Sheet No. 227

 

GENERAL TERMS AND CONDITIONS

 

 

8. OPERATING CONDITIONS FOR TRANSPORTATION SERVICE (Cont'd)

 

8.12 Processing Rights

 

Shippers may exercise, either on their own behalf or on behalf of

any third party possessing such rights, any processing rights they

may have to gas gathered or transported by Southern Star by

nominating the gas quantities they desire to deliver to a

processing plant on Southern Star's system for processing pursuant

to a contract between the Shipper, or its designee, and plant for

removal of any constituents of the gas. Subject to Southern Star

confirming the nomination with all necessary parties, including

the plant operator, the Shipper will be deemed to have warranted

that the Shipper or its designee has the rights to process the gas

and that the Shipper will indemnify and hold Southern Star

harmless from any third party claims based on an assertion of

processing rights to such gas. If the Shipper does not so

exercise processing rights, or if the plant operator refuses to

confirm Shipper's nomination, then Southern Star shall have the

right to process the gas between the Shipper's designated Receipt

Point(s) and Delivery Points(s), as provided in Section 19.

Further, if Southern Star in good faith asserts in writing that

Southern Star has acquired processing rights under a contract with

an owner of such rights, then Southern Star shall have the right

to process the gas downstream of the Shipper's designated Point(s)

of Receipt, subject to the understanding that neither this tariff

provision nor Section 19 shall be construed as a modification,

abrogation, waiver, or compromise of any right, claim, or remedy

with respect to such contract that any party may assert to, or

with respect to, the constituents in the gas stream, for any time

period. In the event that Southern Star prevails in any dispute

based on the "good faith assertion," then Southern Star shall have

the right to retain the substances resulting from the processing

of the gas, pursuant to Section 19.