Crossroads Pipeline Company

First Revised Volume No. 1

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Effective Date: 11/01/2001, Docket: RP02- 14-000, Status: Effective

Original Sheet No. 255 Original Sheet No. 255 : Effective

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

27. CONSTRUCTION OF FACILITIES

 

27.1 Arrangement for Construction of Transmission Facilities. Shipper may request Transporter to

construct, maintain and operate, either all or a part of, the lateral line for the transportation of gas from

Transporter's main transmission line to Shipper's markets, or when the delivery point to Shipper at

Transporter's main transmission line is in close proximity to a compressor station of Transporter, Shipper may

request Transporter to provide facilities to deliver gas to Shipper in excess of Transporter's main line

operating pressure. If Transporter shall determine that the granting of such request by Shipper is necessary

or desirable, that no undue burden will thereby be placed upon Transporter, and that no impairment of

Transporter's ability to render adequate service to its shippers will result therefrom, Transporter will

construct or provide such facilities if it can obtain proper, necessary authorization.

 

27.2 Method of Payment.

 

(a) In the event Transporter shall provide a lateral line or other transmission facilities at

the request of Shipper, unless otherwise agreed, Shipper will pay Transporter for the costs of such facilities

by paying in addition to the amount paid for natural gas, a facility charge consisting of the sum of the

following components:

 

(1) Depreciation computed at the annual accrual rates being used by Transporter for

booking depreciation expense applicable to such facilities;

 

(2) Return computed at the latest rate allowed Transporter by Federal Energy Regulatory

Commission in a formal rate determination applied to the original cost of the facilities less accrued

depreciation and plus necessary working capital applicable to such facilities;

 

(3) Taxes paid for the ownership and operation of such facilities; and

 

(4) Operation and maintenance expenses applicable to such facilities.

 

(b) The annual amount of the facility charge shall be established starting with the first day of

the calendar month in which Transporter shall have completed or made available for operation the facilities

requested by Shipper. Such amount shall be estimated by Transporter when the facilities are made available

and at the beginning of each calendar year thereafter, unless otherwise agreed. Each month, Transporter will

bill Shipper for one-twelfth of the estimated annual facility charge. An adjustment will be made if necessary

at the end of each calendar year to reflect the cost applicable to said facilities for the year.

 

27.3 Agreement. In each case where Transporter agrees to construct facilities at the request of the

Shipper, unless otherwise agreed, the Service Agreement will contain as an Exhibit thereto an agreement

concerning such facilities, executed in the form as set forth in this Tariff.