East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

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Effective Date: 08/02/2010, Docket: RP10-946-000, Status: Effective

First Revised Sheet No. 402 First Revised Sheet No. 402

Superseding: Original Sheet No. 402

 

GENERAL TERMS AND CONDITIONS (Continued)

 

49. NEGOTIATED RATES (continued)

 

49.6 Filing Requirement

 

Transporter will file, prior to the commencement of service under

a negotiated rate agreement, a Statement of Negotiated Rates

reflecting the Shipper's exact legal name, rate schedule,

negotiated rate, the term of the negotiated rate, quantities,

points of receipt and delivery to which the negotiated rate

applies, the exact formula underlying a negotiated rate for any

negotiated rate agreement, and any other rate-related terms that

apply to the negotiated rate. Such Statement of Negotiated Rates

also affirms that actual negotiated rate agreements do not

deviate in any material respect from the form of service

agreements.

 

49.7 Documentation

 

Any negotiated rate agreed to by Transporter and Shipper pursuant

to this Section 49 shall be implemented by Transporter's

completion of a pro forma Statement of Negotiated Rates with the

applicable negotiated rate-related provisions as described

herein. Transporter shall tender such pro forma Statement of

Negotiated Rates to Shipper together with a transmittal letter

for counter-execution by Shipper, which transmittal letter shall

have the sole purpose of memorializing Transporter's and

Shipper's mutual agreement to the rate-related provisions

reflected on such attached pro forma Statement of Negotiated

Rates. After execution by both Transporter and Shipper,

Transporter shall file a Statement of Negotiated Rates with the

Commission which shall contain rate-related provisions identical

to the rate-related provisions reflected on the pro forma

Statement of Negotiated Rates agreed to by Transporter and

Shipper. Any negotiated rate agreed to pursuant to this Section

49 shall become effective only after acceptance by the

Commission; prior to such date the rate applicable to any such

service shall be the maximum recourse rate.

 

49.8 Effect of Negotiated Rate

 

Shipper, by agreeing to a negotiated rate, acknowledges that the

otherwise generally applicable maximum recourse rate(s) shall not

apply or be available to Shipper for service under the applicable

service agreement during the period for which the negotiated

rate is effective, notwithstanding any adjustment to such

generally applicable maximum recourse rate(s) which may become

effective during the period for which the negotiated rate is

effective. If, at any time during the period for which the

negotiated rate is effective, Transporter is collecting its

effective maximum recourse rate(s) subject to refund under

Section 4 of the Natural Gas Act, Transporter shall have no

refund obligation to Shipper even if the final maximum recourse

rate(s) are reduced to a level below the negotiated rate.

Shipper's right to receive credits relating to Transporter's

penalty revenue or other similar revenue, if any, applicable to

service on Transporter's system shall be governed by

Transporter's FERC Gas Tariff and any applicable Commission

orders and/or regulations.