Destin Pipeline Company, L.L.C.

Original Volume No. 1

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Effective Date: 09/01/1998, Docket: CP96-655-003, Status: Effective

Original Sheet No. 198 Original Sheet No. 198 : Effective

 

 

FORM OF SERVICE AGREEMENT

UNDER RATE SCHEDULE FT-2

(Continued)

 

ARTICLE V

CONDITIONS PRECEDENT

 

5.1 Unless otherwise agreed to by the parties, the terms of Rate Schedule FT-2,

and the General Terms and Conditions thereto, shall apply to the acquisition

or construction of any facilities necessary to effectuate this Agreement.

Other provisions of this Agreement notwithstanding, Company shall be under no

obligation to commence service hereunder unless and until (1) all facilities,

of whatever nature, as are required to permit the receipt, measurement,

transportation, processing, and delivery of natural gas hereunder have been

authorized, installed, and are in operating condition, and (2) Company, in

its reasonable discretion, has determined that such service would constitute

transportation of natural gas authorized under all applicable regulatory

authorizations and the Commission's Regulations.

 

ARTICLE VI

REMUNERATION

 

6.1 Shipper shall pay Company monthly for the transportation services rendered

hereunder the charges specified in Rate Schedule FT-2, including any penalty

and other authorized charges assessed under Rate Schedule FT-2 and the

General Terms and Conditions. Company shall notify Shipper as soon as

practicable of the date services will commence hereunder, and if said date is

not the first day of the month, the Reservation Charge for the first month of

service hereunder shall be adjusted to reflect only the actual number of days

during said month that transportation service is available. Company may

agree from time to time to discount the rates charged Shipper for services

provided hereunder in accordance with the provisions of Rate Schedule FT-2.

Said discounted Rates shall be set forth on Exhibit C hereto.

 

6.2 Except as provided in Section 2.1 and Exhibit C to this Agreement,the rates

and charges provided for under Rate Schedule FT-2 shall be subject to

increase or decrease pursuant to any order issued by the Commission in any