Florida Gas Transmission Company, LLC

Fourth Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

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

First Revised Sheet No. 313 First Revised Sheet No. 313

Superseding: Original Sheet No. 313

GENERAL TERMS AND CONDITIONS

(continued)

19. Capacity Segmentation

Pursuant to this Section, a Shipper may divide its firm capacity rights into segments for the

purpose of capacity release to another Shipper or for its own use. Such segmentation shall be

permitted where the segmentation will not impede or adversely affect firm service to any other

Shipper. Segmentation within Reticulated Areas shall be evaluated and scheduled in accordance with

the factors set forth in Section 10.C of these General Terms and Conditions.

A. Segmentation Through Capacity Release

A Shipper releasing a segment of capacity must specify: (i) the specific segment as between any two

physical Receipt and Delivery Points which are valid for nominations; and (ii) all applicable changes to

the Shipper's MDQ at affected Primary Receipt and/or Delivery Points and to the contract MDTQ. When

segmenting, aggregate MDQ cannot exceed contract MDTQ. Such capacity release may be to another Shipper

or for the Relinquishing Shipper's own use under a separate service agreement. If nominations by a

Relinquishing Shipper and an Acquiring Shipper, or a Shipper releasing capacity to itself, overlap

anywhere on Transporter's system, the total quantities scheduled for the overlapping segment of the

system are limited to the Shipper's base contract MDTQ for that segment of the system; provided however,

that a Shipper nominating Forwardhauls up to Shipper's MDTQ and Backhauls up to Shipper's MDTQ to the

same point at the same time, regardless of whether the point is located on the mainline or on a lateral,

may nominate quantities exceeding MDTQ at Delivery Points or on delivery laterals, and such quantities

shall be scheduled subject to point and lateral capacity. A Shipper's nominations from a zone In-Line

Transfer Point, together with any other Receipt Point nominations in that zone, cannot exceed its MDTQ

for that zone. In the event nominations on overlapping segments (excluding delivery laterals) exceed

the Relinquishing Shipper's base contract MDTQ for that segment of the system, the quantities scheduled

for both the Relinquishing Shipper and the Acquiring Shipper will be limited to such MDTQ, and the

rankings provided by the Relinquishing and Acquiring Shippers in their respective nominations will be

used to reduce the nominated quantities for each Shipper separately (or, if not ranked by the Shipper,

will be reduced on a pro rata basis based on nominations).

B. Segmentation Through The Nomination Process

Segmented Transactions require specific Receipt Point to specific Delivery Point (i.e., pathed)

nominations. For a Shipper nominating receipts and deliveries on segments of its own capacity under a

single service agreement, the tariff provisions contained in the applicable rate schedule(s) and General

Terms and Conditions which limit receipt and delivery quantities nominated to such Shipper's MDTQ shall

not apply; provided however, that nominations on any segment shall be limited to the Shipper's MDTQ for

such segment. A Shipper nominating quantities consisting of Forwardhauls up to Shipper's MDTQ and

Backhauls up to Shipper's MDTQ to the same point at the same time, regardless of whether the point is

located on the mainline or on a lateral, may nominate quantities exceeding MDTQ at Delivery Points or on

delivery laterals, and such quantities shall be scheduled subject to point and lateral capacity. A

Shipper's nominations from a zone In-Line Transfer Point, together with any other Receipt Point

nominations in that zone, cannot exceed its MDTQ for that zone. In the event nominations on overlapping

segments (excluding delivery laterals) exceed the Shipper's MDTQ for that segment of the system, the

quantities scheduled will be limited to such MDTQ, and the rankings provided by the Shipper in the

nominations will be used to reduce the nominated quantities (or, if not ranked by the Shipper, will be

reduced on a pro rata basis, based on the nominations).

C. Alternate Point Rights

Subject to available capacity and overlapping segment limitations as described above, a Shipper may

nominate at Alternate Receipt Points, including the In-Line Transfer Points, and Alternate Delivery

Points, either within or outside of the Shipper's Primary Capacity Path.

D. Changes to Primary Points

Subject to available capacity, a Shipper may submit a request to add or change its Primary Points to

points either within or outside of such Shipper's Primary Capacity Path in its base contract.

Transporter will respond to the notice no later than three (3) Business Days following receipt of the

notice. Such a request may be submitted twice in any thirty (30) day period. However, Transporter

shall not be obligated to accept such requested changes if such changes would result in total subscribed

capacity resulting from such segmenting on any overlapping segment in excess of the Shipper's base

contract MDTQ on such segment. If Transporter cannot accommodate the requested addition or change in a

Shipper's Primary Point, then the Shipper can request a written explanation for the rejection at the

time of rejection, and Transporter shall be obligated to provide the requesting Shipper a written

explanation.