Destin Pipeline Company, L.L.C.

Original Volume No. 1

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Effective Date: 06/01/2000, Docket: RP00-268-000, Status: Effective

Third Revised Sheet No. 194 Third Revised Sheet No. 194 : Effective

Superseding: Second Revised Sheet No. 194

FORM OF SERVICE AGREEMENT

UNDER RATE SCHEDULE FT-2

(Continued)

 

TDs may be increased based on the updated production profile

only to 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 this 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 permanent release of production from Committed

Lease(s), COMPANY may require that SHIPPER update its

production information to support 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.

 

If in COMPANY's judgment a submitted estimated production

profile (including updates) and TDs provided in accordance

with this Section 1.1 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 which shall be utilized

pursuant to this section. If the parties cannot reach

agreement on an estimated production profile, 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 agree to amend Exhibits A and B to the Service

Agreement to reflect the TDs supported by the production

profile utilized.

 

SHIPPER shall have the right, at any time and from time to

time, to permanently change, in whole or in part, the

Transportation Demand for