Destin Pipeline Company, L.L.C.

Original Volume No. 1

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Effective Date: 09/01/1998, Docket: RP98-239-000, Status: Effective

First Revised Sheet No. 26 First Revised Sheet No. 26 : Effective

Superseding: Original Sheet No. 26

RATE SCHEDULE FT-2

Firm Transportation Service

(Continued)

 

Section 5(b) (continued)

 

the extent firm capacity is available and not previously committed

to another shipper. COMPANY shall have the right to require

SHIPPER to reduce its TDs based on an updated production profile.

SHIPPER and COMPANY shall amend (effective April 1 of the

following year) Exhibits A and B to the FT-2 Service Agreement to

conform the TDs with the updated production profiles in accordance

with the above. When considering a system expansion or evaluating

a SHIPPER's request for a permanent release of quantities of

production from Committed Lease(s), COMPANY may require that

SHIPPER update its production information to supports its TDs, and

SHIPPER shall provide such information; provided, however, that

COMPANY shall not require such updates more often than two times

within any calendar year.

 

(c) If in COMPANY's judgment the submitted estimated production

profile (including updates) and TDs provided in (a) or (b) are not

reasonable, then, subject to a mutually acceptable confidentiality

agreement, COMPANY and SHIPPER shall meet and review the

associated technical data or engineering report that is the basis

for the estimated production profile submitted by SHIPPER.

COMPANY and SHIPPER shall make a good faith attempt to concur on

an estimated production profile and TDs which shall be utilized

pursuant to this section. If the parties cannot reach agreement

on an estimated production profile and TDs, then the technical

data shall be supplied to a mutually acceptable and technically

competent third party on a confidential basis to develop an

estimated production profile which shall be utilized pursuant to

this Section. All third party costs shall be equally borne by

SHIPPER and COMPANY. COMPANY and SHIPPER shall amend Exhibits A

and B to the Service Agreement to reflect the TDs supported by the

production profile utilized.