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

Pressure.

 

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

month thereafter.

 

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

JURISDICTION.