Crossroads Pipeline Company

First Revised Volume No. 1

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Effective Date: 11/01/2001, Docket: RP02- 14-002, Status: Effective

Original Sheet No. 293 Original Sheet No. 293 : 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.