Southern Star Central Gas Pipeline, Inc.

Original Volume No. 1

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Effective Date: 01/01/2010, Docket: RP10-189-000, Status: Effective

First Revised Sheet No. 267A First Revised Sheet No. 267A

Superseding: Original Sheet No. 267A

 

GENERAL TERMS AND CONDITIONS

 

 

13. FUEL AND LOSS REIMBURSEMENT (Cont'd)

 

The current charge portion of the storage fuel reimbursement

percentage shall be calculated each year based on the actual

storage fuel divided by the most recent three year average of

actual customer storage injections.

 

 

The surcharge portion of the storage fuel reimbursement percentage

shall be calculated by dividing the over or under collections by

the most recent three-year average of actual customer storage

injections. Over or under recovery of storage fuel is calculated

by comparing the actual storage fuel incurred during the preceding

twelve-month period (January through December) to the quantity of

gas retained under the current charge portion of the storage fuel

reimbursement percentage which was in effect during each month of

such period. The quantity retained is calculated by multiplying

the actual customer storage injections times the current charge

portion of the storage fuel reimbursement percentage in effect

during the calculation period.

 

The storage loss reimbursement percentage shall have two

components: a current charge and a surcharge.

 

Storage loss is calculated annually at the end of the injection

cycle based on shut-in pressure tests for each field taken at the

end of the withdrawal and injection cycles. If Southern Star

adjusts the results of the storage loss calculation for any field,

Southern Star shall include in its annual filing a request for

waiver, the original results of the storage loss calculation, the

adjusted storage loss and an explanation as to why the storage

loss for the field was adjusted.

 

Except as necessary to meet operational demands, SSC shall: (i)

perform the end-of-the-injection-cycle shut-in pressure test on

each field at the point in time when SSC reasonably believes the

field is at or near the highest inventory level that will be

achieved; and (ii) perform the end-of-the-withdrawal-cycle shut-

in pressure test on each field at the point in time when SSC

reasonably believes the field is at or near its lowest inventory

level that will be achieved. If operational demands

significantly