Mobile Bay Pipeline Company
Second Revised Volume No. 1
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Effective Date: 06/01/1997, Docket: RP97-155-001, Status: Effective
First Revised Sheet No. 358 First Revised Sheet No. 358 : Effective
Superseding: Superseding Original Sheet No. 358
1. CONDITIONS OF SERVICE: Services provided hereunder are subject to and
governed by the applicable rate schedule and the General Terms and Conditions of
PIPELINE's current tariff, as may be revised from time to time, or any effective
superseding tariff (Tariff) on file with the Federal Energy Regulatory Commission
(FERC). The Tariff is incorporated herein by reference. In the event of any conflict
between this Agreement and the Tariff, the Tariff shall govern as to the conflict.
PIPELINE makes no representation, assurance or warranty that capacity will be
available on PIPELINE's system at any time. PIPELINE shall have the right to
interrupt service under this Agreement pursuant to the Tariff.
2. TRANSPORTATION QUANTITY: CUSTOMER may deliver or cause to be
delivered to PIPELINE at the Receipt Point(s) and PIPELINE agrees to accept, at such
point(s) for transportation hereunder, daily quantities of natural gas up to the Contract
MDQ. PIPELINE shall redeliver Equivalent Quantities, as defined in the Tariff, to
CUSTOMER at Delivery Points provided herein. Should CUSTOMER desire a change
in the Contract MDQ, CUSTOMER shall notify PIPELINE in writing of the amount of
the increase or decrease and of the date CUSTOMER desires the change to become
effective. If PIPELINE advises it is not agreeable to the changed quantities of gas
requested in CUSTOMER's notice, the Contract MDQ shall remain unchanged. The
PIPELINE shall review CUSTOMER's request within thirty (30) days subject to the
Tariff. Nothing herein shall require PIPELINE to install equipment or facilities.
3. QUALITY AND PRESSURE: The gas received and delivered hereunder shall be
merchantable and of a quality sufficient to meet the standards in the Tariff. Gas
delivered to PIPELINE shall be at a delivery pressure adequate to enter PIPELINE's
facilities and such pressure shall not exceed the Maximum Allowable Operating
4. TERM: This Agreement shall become effective as of 9:00 A.M. on the Contract Date
and shall continue for the Primary Term as stated on the face hereof and month to
5. TERMINATION: Either party may cancel this Agreement effective as of the end of
the Primary Term or any succeeding one (1) month period by giving written notice to
the other at least thirty (30) days prior to the date on which cancellation is requested.
Termination of this Agreement shall not relieve PIPELINE and CUSTOMER of the
obligation to correct any quantity imbalances hereunder, or CUSTOMER to pay money
due hereunder to PIPELINE. In the event that CUSTOMER does not nominate and
tender gas for transportation within ninety (90) days under this Agreement following
the later of (i) the Contract Date or (ii) the completion date of any constructed facilities,
either party may, in the absence of force majeure, terminate this Agreement by giving
written notice of such termination to the other party.
6. TRANSPORTATION CHARGES: CUSTOMER shall be obligated to pay PIPELINE
monthly for the service provided under this Agreement. CUSTOMER shall pay
PIPELINE for any transportation of liquid hydrocarbons and liquefiables. CUSTOMER
shall also pay PIPELINE a Fuel and Company Used Gas allowance, either in-kind or in
cash, as applicable, pursuant to the Tariff. Such charges are specified in the ITS Rate
Schedule and/or the ITS Rate Sheet of the Tariff. PIPELINE may from time to time
elect in writing to collect a rate lower than that specified in the ITS Rate Schedule of the
Tariff. PIPELINE shall have no obligation to make refunds to CUSTOMER unless the
maximum rate ultimately established by the FERC for the service covered hereby is less
than the rate paid by CUSTOMER.
7. PAYMENTS: Payment shall be made in compliance with the Tariff. Payments by
check shall be made to the remittance address indicated on PIPELINE's invoice.
Payment by wire transfer shall be to a bank account designated by PIPELINE.
8. WAIVER: No waiver by either party of any one or more defaults by the other in the
performance of any provisions of this Agreement shall operate or be construed as a
waiver of any future default(s), whether of a like or different character.
9. APPLICABLE LAW: THE VALIDITY, CONSTRUCTION,
INTERPRETATION AND EFFECT OF THIS AGREEMENT SHALL BE
GOVERNED BY THE LAWS OF THE STATE OF TEXAS, EXCLUDING ANY
LAWS OF THE STATE OF TEXAS APPLYING THE LAWS OF ANOTHER