East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

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Effective Date: 11/18/2006, Docket: RP07- 23-000, Status: Effective

First Revised Sheet No. 386 First Revised Sheet No. 386 : Effective

Superseding: Original Sheet No. 386

 

GENERAL TERMS AND CONDITIONS (Continued)

 

form of payment is otherwise mutually agreed upon. Such payment

shall be applied to the actual cost of such new facilities;

provided, however, any excess shall be returned to the Shipper or

Balancing Party and any amounts still owing shall be paid by the

Shipper or the Balancing Party to Transporter within thirty days

after final determination.

 

36.3 Transporter may waive from time to time, at its discretion, all or

a portion of the facility cost reimbursement requirement set forth

in Section 36.2, if Shipper provides Transporter adequate

assurances of transportation throughput to make construction of

the facilities economical to Transporter. All requests for waiver

shall be handled by Transporter in a manner which is not unduly

discriminatory. For purposes of determining whether a project is

economical, Transporter will evaluate projects on the basis of

various economic criteria, which will include the estimated

transportation throughput, cost of the facilities, operating and

maintenance as well as administrative and general expenses

attributable to the facilities, the revenues Transporter estimates

will be generated as a result of such construction, and the

availability of capital funds on terms and conditions acceptable

to Transporter. In estimating the revenues to be generated,

Transporter will evaluate the existence of capacity limitations

downstream of the facilities, the marketability of the capacity,

the location of the markets, the interruptible versus the firm

nature of the transportation service, and other similar factors

which impact whether the available deliverability will actually be

transported.

 

37. [RESERVED FOR FUTURE USE]