Southern Star Central Gas Pipeline, Inc.

Original Volume No. 1

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Effective Date: 07/10/2009, Docket: RP09-758-002, Status: Effective

Substitute First Revised Sheet No. 306 Substitute First Revised Sheet No. 306

Superseding: First Revised Sheet No. 306

 

GENERAL TERMS AND CONDITIONS

 

32. Third Party Storage Transactions (cont'd)

 

32.3 Annual True-up Adjustment

 

(a) The third party storage operators described in this section

will be subject to an annual true-up adjustment to be

calculated based on that operator's storage activity

related to Southern Star's system through March 31 of each

year. By April 30 of each year, the third party storage

operator shall provide to Southern Star a complete

accounting of storage activity for the 12-month period

ended March 31. Such accounting shall include, but not be

limited to, (1) a full monthly accounting of all gas

injected into and withdrawn from the storage facility for

all pipelines, gathering systems and any other sources

connected to the storage facility, and (2) monthly working

and cushion gas inventories.

 

(b) The true-up adjustment will be calculated based on

deliveries to and receipts from the directly-connected

third party storage facility related to Southern Star's

system for the 12-month period ended March 31. If

deliveries to such facility exceed receipts from the same

facility, Southern Star will invoice the third party

storage operator for commodity transportation charges equal

to the excess deliveries times the average of the maximum

winter and maximum summer ITS rate for the area in which

such facility is located. The third party storage operator

may request to defer and potentially avoid payment to

Southern Star by warranting and providing documentation to

Southern Star that the excess deliveries remain in the

storage facility. Southern Star, at its sole discretion,

may accept or reject such request. Southern Star, acting

reasonably, will not be unduly discriminatory in accepting

or rejecting such requests. The deferral of payment and

monthly documentation may continue for a period not to

exceed 12 consecutive months. If actual receipts from the

directly-connected third party storage facility exceed

deliveries to such facility for the previous 12-month

period, Southern Star