Florida Gas Transmission Company, LLC

Fourth Revised Volume No. 1

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Effective Date: 07/12/2010, Docket: RP10-842-000, Status: Effective

First Revised Sheet No. 240 First Revised Sheet No. 240

Superseding: Original Sheet No. 240

 

GENERAL TERMS AND CONDITIONS

(continued)

 

C. Daily Tolerances

 

Shipper shall deliver, or cause to be delivered, to Transporter at the point(s) of receipt on a

uniform daily basis, that quantity of natural gas that has been scheduled for transportation. To

the extent Shipper deviates significantly from the uniform daily basis, Transporter reserves the

right to implement an Operational Flow Order pursuant to Section 17.C.3.

 

D. Unauthorized Gas

 

"Unauthorized Gas" shall mean any volume of gas received at a point for which there is no

transportation nomination by any shipper. Unauthorized Gas provisions shall not 1) apply at any

point for which there is a volume nominated and 2) encompass imbalance volumes.

 

Transporter shall post on its Internet website the volume, production month received on

Transporter's system, and the point of receipt of any Unauthorized Gas received (Notice).

Transporter shall continue to post the Notice until a valid claim has been submitted or until

thirty (30) calendar days after the initial posting of the Notice, whichever is sooner. In order

to be a valid claim for purposes hereof, a claim must: (a) be provided to Transporter in writing;

(b) identify the specific Unauthorized Gas delivered; (c) provide independent evidence of

ownership of Unauthorized Gas claimed; and (d) agree to indemnify Transporter fully with respect

to any adverse claims to ownership of the gas or to the proceeds resulting from the sale thereof.

 

If a valid claim is submitted during the first twenty-four (24) hours of the Notice period, then

claimant shall have thirty (30) days to schedule such volumes from the date Transporter determines

the claim is valid. Such volumes not scheduled during the thirty (30) days shall be subject to

the Transporter Purchase Provision of this section.

 

If a valid claim is received during the Notice period, after twenty-four (24) hours of the posting

of the Notice, then such volumes shall be subject to the Transporter Purchase Provision.

 

If a valid claim is not received in the Notice period, then Transporter shall retain such

Unauthorized Gas at no cost to Transporter, free and clear of any adverse claims.

 

The Transporter Purchase Provision. Transporter shall purchase Unauthorized Gas not scheduled by

Shipper nor retained by Transporter from the claimant at 80% of the Purchase Posted Price as

defined in Section 14.B.2(a), for the month in which the Unauthorized Gas is delivered to

Transporter or the month of settlement, whichever is less; provided, however, that Transporter

shall purchase a maximum of 12,000 MMBtu during a twelve (12) month calendar period from any

single claimant or at any single receipt point. Volumes exceeding the maximum shall be retained

by Transporter at no cost to Transporter and free and clear of any adverse claims.

 

The purchase and/or retainage of Unauthorized Gas shall be accounted for pursuant to

Section 24.