Columbia Gulf Transmission Company

Second Revised Volume No. 1

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Effective Date: 01/14/2006, Docket: RP06-145-000, Status: Effective

Eighth Revised Sheet No. 39 Eighth Revised Sheet No. 39 : Effective

Superseding: Seventh Revised Sheet No. 39

FTS-1 RATE SCHEDULE

FIRM TRANSPORTATION SERVICE (Continued)

 

(e) Under normal operating conditions, a Shipper under this Rate Schedule may segment its

transportation capacity between primary physical receipt and delivery points, and secondary physical receipt

and delivery points at which it does not have primary receipt and delivery rights under its FTS-1 Service

Agreement. For purposes of this section, virtual aggregation points under Rate Schedule AS and virtual

scheduling points that represent physical receipt or delivery points (MLI Points) are eligible receipt or

delivery points for segmentation purposes. Supply pooling points under Rate Schedule IPP are not eligible

receipt or delivery points for segmentation purposes. For purposes of this Section 2(e), the phrase "normal

operating conditions" shall be defined to mean those situations in which Transporter is not required to: (i)

construct or install new facilities in order to accommodate a capacity segmentation request from a Shipper

under this Rate Schedule; or (ii) operate or modify Transporter's existing facilities in a manner

inconsistent with the current design and operation of such facilities in order to accommodate a capacity

segmentation request from a Shipper under this Rate Schedule. A Shipper may not use its segmented primary

or secondary physical points in such a way that its total nomination within any segment, or at any primary

or secondary points exceeds its original Transportation Demand in that segment, or at such point(s),

provided that, Shipper may segment its capacity to consist of forward hauls and backhauls up to original

Transportation Demand to the same point at the same time, subject to the scheduling and allocation

provisions of Section 7 of the General Terms and Conditions. For such a segmentation backhaul to the same

point, Transporter shall provide such service on a secondary basis. Shipper shall not be permitted to

segment its transportation capacity under this Rate Schedule if such segmentation would limit Transporter's

ability to provide firm service to other Shippers or in situations where transportation capacity is not

available in particular segments or at primary or secondary points. Requests for segmentation of

transportation capacity under this Rate Schedule must be submitted by Shipper and Transporter shall evaluate

such requests to determine if capacity segmentation can be permitted as requested by Shipper. Transporter

reserves the right to evaluate and disallow segmentation on a case-by-case basis for those situations that

are not operationally feasible and not already described in this Section 2(e). Transporter shall review all

properly submitted requests for segmentation in zones where there are feasibility issues within ten (10)

days, provided, however, Transporter shall use reasonable efforts to accommodate a Shipper if a request for

segmentation is made less than ten (10) days before the desired effective date. Disallowance of

segmentation requests will be made on a non-discriminatory basis. Transporter will post on its EBB within

10 business days, the explanation for any disallowance of segmentation not specifically described in this

Tariff. Transporter will post on its EBB the reasons for denial of any request for capacity segmentation.

 

(f) Service rights under an FTS-1 Service Agreement may be released and assigned in accordance with

Section 14 (Release and Assignment of Service Rights) of the General Terms and Conditions. Service to an

assignee under any such release and assignment shall be subject to the terms and conditions set forth in this

Rate Schedule and in the General Terms and Conditions. Under normal operating conditions, a Shipper that

releases its service under an FTS-1 Service Agreement may release transportation capacity on any segment

between primary physical receipt and delivery points, and secondary physical receipt and delivery points at

which it does not have primary receipt and delivery rights under its FTS-1 Service Agreement. A Releasor may

not re-release a released segment until such time as the Releasor either recalls the released segment or the

released segment reverts to the Releasor at the end of the release term. Replacement Shippers that desire to

re-release a released segment may release transportation capacity within their acquired capacity segment and to

any points within the zone for which the Shipper pays. The sum of capacity released in any segment cannot

exceed the Releasor's original Transportation Demand.

 

(g) Imbalances under this Rate Schedule are subject to the following requirements:

 

(1) All imbalances must be eliminated by the end of the calendar month in which they are

reported to Shipper.

 

(2) A Shipper's imbalance account will not be credited with any imbalance volumes unless (i)

the gas is designated as imbalance gas by the Shipper prior to Transporter's receipt of any imbalance

gas by Transporter or delivery of any imbalance gas by Transporter, and (ii) the Shipper has properly

nominated and scheduled the gas for transportation in accordance with this Tariff, has been awarded

capacity, has had its nomination confirmed and been actually allocated quantities of gas for

shipment.

 

(3) Imbalances incurred in one rate zone may be eliminated by netting or trading in that same

rate zone or may be eliminated by netting or trading between rate zones, although elimination of the

imbalance between rate zones may constitute transportation service for which charges apply.

 

(4) Any imbalance, which is not eliminated by the end of the calendar month in which it is

reported to the Shipper, is subject to the penalties provided for under this Tariff.