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.