Columbia Gas Transmission LLC

Third Revised Volume No. 1

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Effective Date: 04/22/2009, Docket: RP09-468-000, Status: Effective

Original Sheet No. 170 Original Sheet No. 170

 

FSS-M RATE SCHEDULE

FIRM STORAGE SERVICE WITH MARKET-BASED RATES (Cont'd)

6. RATE

 

(a) The applicable rate for service under this Rate Schedule will be a negotiated

market-based rate as provided in Shipper's FSS-M Service Agreement.

 

(b) From the quantities delivered into storage for Shipper, Transporter will retain the

Storage Gas Loss Retainage Percentage of gas specified in Transporter's currently effective

Tariff, unless otherwise negotiated by Transporter and Shipper, and specified in Shipper's FSS-M

Service Agreement. That percentage will be subject to adjustment in accordance with Section 35

(Retainage Adjustment Mechanism) of the General Terms and Conditions. The Storage Gas Loss

Retainage Percentage applicable to Rate Schedule FSS-M will be calculated separately in

Transporter's annual Retainage Adjustment Mechanism filings.

 

(c) Shipper will remain responsible for all property or other taxes associated with the

quantities held for Shipper in storage under this Rate Schedule. Transporter will periodically

report to Shipper the quantities in storage, allocated by State, to enable Shipper to calculate

and pay all taxes associated with those storage quantities. The Crawford and Weaver storage

fields, which are subject to market-based rates, will be treated conjunctively and Shipper's

storage gas will be deemed to be proportionally allocated to these storage fields based on total

working gas in storage held in capacity subject to market-based rate rates.

 

(d) Transporter will be responsible for any loss, cost, or expense arising from any

loss of Shipper's gas in Transporter's storage that results from Transporter's negligence or

failure to exercise due diligence. Notwithstanding the provisions in Section 22 (Possession of

Gas) of the General Terms and Conditions, Shipper will be responsible for obtaining its own

insurance for any gas in storage, and will hold Transporter harmless from any loss, cost, or

expense arising from any loss of storage gas that results from a force majeure event or that is

not the result of Transporter's negligence or failure to exercise due diligence.

 

7. PENALTIES

 

(a) If Shipper fails to comply with an interruption order issued by Transporter

pursuant to this Rate Schedule or Section 16 (Interruptions of Service) of the General Terms and

Conditions and:

 

(i) Causes injections in excess of 103 percent of the lowered MDIQ set by

Transporter's interruption order (Lowered Quantity), then Shipper will be assessed and pay

penalties based on a price per Dth equal to three times the midpoint of the range of

prices reported for "Columbia Gas, Appalachia" as published in Platts Gas Daily price

survey for all quantities tendered in excess of its Lowered Quantity; or

 

(ii) Causes withdrawals in excess of 103 percent of the Lowered Quantity,

Shipper will be assessed and pay penalties based on a price per Dth equal to three times

the midpoint of the range of prices reported for "Columbia Gas, Appalachia" as published

in Platts Gas Daily price survey for all quantities taken in excess of its Lowered

Quantity.

 

(b) If Shipper fails to comply with an operational flow order issued by Transporter

pursuant to Section 17 (Operational Flow Orders) of the General Terms and Conditions, a penalty

based on a price per Dth equal to three times the midpoint of the range of prices reported for

"Columbia Gas, Appalachia" as published in Platts Gas Daily price survey will be assessed to

Shipper for all quantities in violation of that operational flow order.

 

(c) On any Day that Shipper's injections into storage exceed 110 percent of its

applicable MDIQ, as described in Section 3(c) of this Rate Schedule, Shipper will pay Transporter

a penalty of $5.00 per Dth for all quantities injected in excess of 110 percent of its MDIQ.

 

(d) In any Month in which Shipper's total monthly injection quantities exceed 105

percent of the applicable MMIQ as described in Section 3 of this Rate Schedule, Shipper will pay

Transporter a penalty of $5.00 per Dth for all quantities injected in excess of 105 percent of

the applicable MMIQ.

 

(e) In any Month in which Shipper's net withdrawals from storage exceed the applicable

limits set forth in Section 4 of this Rate Schedule, Shipper will pay Transporter a penalty of

$5.00 per Dth for all quantities withdrawn in excess of those limits.