Horizon Pipeline Company, L.L.C.

Original Volume No. 1

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Effective Date: 04/18/2002, Docket: CP00-129-001, Status: Effective

Original Sheet No. 123 Original Sheet No. 123 : Effective

 

 

 

GENERAL TERMS AND CONDITIONS

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6. NEW FACILITIES CHARGE

 

6.1 When new and/or expanded facilities are required to

accommodate receipt and/or delivery of gas under a request for new

service, and Horizon determines that installation of such

facilities will not impair service to any existing Shipper or

threaten the integrity of Horizon's System, Horizon will construct

such facilities but Horizon shall require Shipper to pay all

construction costs, including any filing fees and a reimbursement

amount to compensate for federal income tax effects associated with

such facilities, except that Horizon will pay the cost of such

facilities when the criteria set forth below are satisfied.

 

6.2 (a) Horizon will pay the cost of the modification or

construction of facilities required at Receipt or Delivery Point(s)

to effectuate the receipt or delivery of natural gas hereunder when

the construction or modification of such facilities is economically

beneficial to Horizon. Horizon may conclude that a portion of the

facilities are economically beneficial.

 

(b) (1) For the purposes of determining whether a gas

supply project is economically beneficial to Horizon, Horizon will

evaluate each prospective project based upon the amount of the

reserves and/or deliverability characteristic of the gas supply to

be attached. Facility additions at Receipt Points shall be

evaluated based upon the incremental cost of service of the

facilities to be constructed by Horizon, and the incremental

revenues which Horizon estimates will be generated as a result of

constructing and/or modifying such facilities.

 

(2) For the purposes of determining whether a

project to deliver gas is economically beneficial to Horizon,

Horizon will evaluate each prospective project based upon the

incremental cost of service of the facilities to be constructed by

Horizon, and the incremental revenues which Horizon estimates will

be generated as a result of constructing and/or modifying such

facilities.

 

(3) In estimating the incremental revenues to be

generated, Horizon will base those revenues upon transportation

rates it expects to be able to charge, exclusive of any surcharges,

such as an ACA charge, and the projected incremental volumes which

will result from the project. Horizon will consider volumes to be

incremental if the volumes which will be transported would not

otherwise flow through Horizon's System.