East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

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Effective Date: 10/01/2008, Docket: RP97-13-033, Status: Effective

Original Sheet No. 31 Original Sheet No. 31

 

STATEMENT OF NEGOTIATED RATES

 

Customer Name: Equitable Production Company

Contract Number: 410355 1/

Rate Schedule: FT-A

Demand Rate: 2/ 3/ 4/

Commodity Rate: 2/ 3/ 4/

Term of Negotiated Rate: Service Agreement commences on the earlier of 10-1-2008 , or when

Project Facilities are available for service and continues in effect until the earlier of 6-

30-2020 or ten years after the commencement of a MDTQ of 50,000Dth/d

Quantity: An initial MDTQ of 10,000 Dth/d increasing to 30,000Dth/d beginning on the earlier of

July 1, 2009 or upon notice from Customer increasing again to 50,000Dth/d on the earlier of

July 1, 2010 or notice from Customer.

Receipt Point(s): Nora Station meter (number 59315) for the 10,000 commencing 10-1-2008 the

interconnection of Jewell Ridge and ETNG's mainline facilities in Smyth County, Virginia, for

the 40,000 Dth

Delivery Point(s): 50,000Dth/d at Cascade Creek station (meter number 59204) for all volumes.

 

 

1/ The designated service agreement is materially non-conforming from the form of Service

Agreement contained in Transporter's Tariff.

 

2/ The negotiated rate shall be a Monthly Demand Rate of $9.1250 per Dth. There is no commodity

charge for the service described herein. In addition to these rates, Shipper shall pay all

applicable charges and mandatory surcharges (such as FERC Annual Charge Adjustment) and fuel

and lost and unaccounted for gas as set forth in Transporter's Tariff as revised from time to

time pursuant to Transporter's Tariff. Shipper shall not be charged for any voluntary

surcharges such as GRI Rate Adjustment.

 

3/ In consideration of the rates set forth above, the applicable rates for service under the

Service Agreement during the Primary Term shall remain as stated above. Therefore, pursuant

to Section 4.5 of the FT-A Rate Schedule of Transporter's FERC Gas Tariff, the rates set

forth above shall constitute Negotiated Rates. The Negotiated Rates shall replace the

otherwise generally applicable maximum recourse rate, rate component, charge or credit in

Transporter's FERC Gas Tariff ("Tariff Rates"), and the Tariff Rates shall not apply to or be

available to Shipper for service under the Service Agreement during the Primary Term (to the

extent that such Tariff Rates are inconsistent with the rates set forth above),

notwithstanding any adjustments to such generally applicable maximum recourse rate, rate

component, charge or credit which may become effective during the Primary Term.

 

4/ If, at any time after service commences under the Service Agreement, Transporter is

collecting its effective maximum recourse rates from other Shippers subject to refund under

Section 4 of the Natural Gas Act, Transporter shall have no refund obligation to customer

even if the final maximum rate is reduced to a level below the Negotiated Rates provided

herein. Customer's right to receive credits relating to Transporter's penalty revenue or

other similar revenue, if any, applicable to transportation service on Transporter's system

shall be governed by Transporter's FERC Gas Tariff and any applicable FERC orders and/or

regulations. In the event customer releases its firm transportation rights under the Service

Agreement, Shipper shall continue to be obligated to pay Transporter for the difference, if

any, by which the Negotiated Rate herein exceeds the release rate.