Dauphin Island Gathering Partners

First Revised Volume No. 1

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Effective Date: 09/01/2010, Docket: RP10-467-001, Status: Effective

Substitute Third Revised Sheet No. 243 Substitute Third Revised Sheet No. 243

Superseding: Second Revised Sheet No. 243

 

22. LIMITED SECTION 4 STORM SURCHARGE

 

22.1 Purpose and Applicability

 

Transporter shall have the right to recover, through a limited

Natural Gas Act Section 4 filing, all capital costs and related

operation and maintenance expenditures made by Transporter in

connection with or related to a Storm. As used in all

subsections of this Section 22, a Storm is defined as any

hurricane, tropical storm or depression named or numbered by the

U.S. National Weather Service. The Storm Surcharge shall be

applicable to gas transportation service provided by Transporter

pursuant to all of its rate schedules. The Storm Surcharge shall

apply to each dekatherm of gas transported, consistent with the

ACA surcharge, and be paid in addition to the rates applicable to

such services including service qualifying for any rate discount

or provided under any negotiated rate agreement. The Storm

Surcharge shall reimburse Transporter for Eligible Costs as

defined in Section 22.2, below.

 

22.2 Definition of Eligible Costs

 

The costs eligible for reimbursement through the Storm Surcharge

("Eligible Costs") are the actual capital and operation and

maintenance expenses related to Storm damage (including

inspections of or for damage related to a Storm, and/or other

actions related to a Storm and required by federal or state laws

or regulations).

 

Eligible Costs shall include:

 

(a) Property damage insurance purchase costs and premiums

exceeding $233,280;

 

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

insurance claims;

 

(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);