Discovery Gas Transmission LLC

Original Volume No. 1

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Effective Date: 01/01/2008, Docket: RP08- 70-001, Status: Effective

Second Revised Sheet No. 198 Second Revised Sheet No. 198 : Effective

Superseding: First Revised Sheet No. 198

 

27. LIMITED SECTION 4 HURRICANE MITIGATION AND RELIABILITY ENHANCEMENT

SURCHARGE ("HMRE SURCHARGE")

 

27.1 PURPOSE AND APPLICABILITY - Transporter shall have the right to

seek recovery, through a limited Natural Gas Act Section 4 filing,

all capital costs and related operation and maintenance

expenditures, as defined in Section 27.2, made by Transporter in

connection with efforts to mitigate the cost of damage to

facilities caused by hurricanes (or other natural disasters

including but not limited to tornados, rogue waves, erosion and

mudslides (hereinafter, "Natural Disasters")), to maintain system

reliability during and immediately after hurricanes (or other

Natural Disasters), to repair and remediate facilities damaged by

hurricanes (or other Natural Disasters) and to enhance overall

system reliability. The HMRE Surcharge shall be collected through

a volumetric surcharge applicable to all transportation service

provided pursuant to Transporter's Rate Schedules FT-1, FT-2 and

IT (and any other transportation service provided by Transporter)

through the Mainline Facilities. The HMRE Surcharge shall apply

to, and be paid in addition to, the rates applicable to such

transportation service qualifying for any rate discount or

provided under any negotiated rate agreement.

 

27.2 DEFINITION OF QUALIFYING EXPENDITURES - Capital expenditures and

operation and maintenance expenditures ("Qualifying HMRE

Expenditures") that qualify for inclusion in the HMRE Surcharge

shall include:

 

a. Property damage insurance purchase costs in excess of

$509,575;

 

b. Deductible (uncovered) amounts on any such property damage

insurance claim;

 

c. Smart pigging operations and related pipeline modifications

(including but not limited to cleaning and sizing pigs; the

installation and use of pig launchers and receivers not

already installed at certain points along the System; the

removal of any restrictions or obstructions that would

impede the pig, such as the installation or removal of

certain valves, dents or bends in the pipeline; any digs

necessary to analyze anomaly readings and backfills; and any

repair or replacements required);