Gulfstream Natural Gas System, L.L.C.

Original Volume No. 1

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Effective Date: 06/28/2010, Docket: RP10-792-000, Status: Effective

Second Revised Sheet No. 8.01t Second Revised Sheet No. 8.01t

Superseding: First Revised Sheet No. 8.01t

 

STATEMENT OF NEGOTIATED RATES

 

2008, in excess of seventeen million dollars ($17,000,000) will be applied against Shipper's throughput commitment hereunder for service

during the period commencing on January 1, 2009 and ending on December 31, 2010. Notwithstanding the foregoing, in the event that Shipper

terminates the firm FTS Agreement: (aa) on or before March 1, 2006, then Shipper shall not be obligated for the throughput commitment or

commitment to make further payments to Transporter pursuant to clauses (ii) and (iii) above; and (bb) after March 1, 2006 but before February

1, 2007, then Shipper shall not be obligated for the throughput commitment or commitment to make further payments to Transporter pursuant to

clause (iii) above. In no event shall Transporter be obligated to refund monies to Shipper.

 

In the event that (i) Transporter has not completed the facilities necessary to provide service under the FTS Agreement to the West County

Energy Center on or before July 1, 2008, and (ii) the conditions precedent set forth in Paragraphs 7(B)(i), 7(B)(ii), 7(B)(iv) and 7(B)(vi) of

the precedent agreement between Transporter and Shipper related to the FTS Agreement have been satisfied or waived by the dates set forth in

such paragraphs, then commencing on (aa) July 1, 2008 and continuing through July 31, 2008, Shipper's Throughput Commitment obligations set

forth above for any quantities not actually transported shall be reduced by $50,000 per day for each day Transporter is not capable of

delivering gas to the West County Energy Center under the Service Agreement, and (bb) August 1, 2008, Shipper's Throughput Commitment

obligations set forth above for any quantities not actually transported shall be reduced by $190,000 per day for each day Transporter is not

capable of delivering gas to the West County Energy Center under the Service Agreement, but in no event shall Shipper's Throughput Commitment

be less than ten million dollars ($10,000,000). In no event shall Transporter be obligated to refund monies to Shipper. The reductions in

Throughput Commitment provided for in this Paragraph shall not apply unless and until Shipper's West County Energy Center is capable of

receiving and utilizing gas for the purpose of testing its gas-fired turbines. In addition, in the event that the West County Energy Center

is not capable of receiving and utilizing gas for the purpose of testing its gas-fired turbines by July 1, 2008, then the July 1, 2008 date

set forth above for the reduction in Throughput Commitment in this Paragraph shall be extended by the same number of days by which the

capability of receiving and utilizing gas for testing the gas-fired turbines at the West County Energy Center extends beyond July 1, 2008.

 

If, at any time after the date service commences under the Service Agreement and thereafter during the term of this Agreement, Transporter is

collecting its effective maximum Recourse Rates subject to refund under Section 4 of the Natural Gas Act as amended ("NGA"), Transporter shall

have no refund obligation to Shipper even if the final maximum recourse rates are reduced to a level below the Negotiated Rates provided

herein. Shipper's right to receive credits relating to Transporter's penalty revenue or other similar revenue, if any, applicable to

transportation service on Transporter's system shall be governed by Transporter's Tariff and any applicable FERC orders and/or regulations.

 

4/ This negotiated rate agreement does not deviate in any material respect from the Form of Service Agreement contained in Transporter's Tariff.

 

5/ This negotiated rate is available at all points on an interruptible basis.

 

6/ Applicable agreements as defined in footnote 3 includes those agreements numbered 9000016 (ITS), 9000305 (PALS), 9000306 (PALS), 9006626

(ITS), 9007448 (PALS), 9013446 (ITS), and 9031061 (PALS).

 

7/ (A) Regulatory Approval: Transporter shall make a filing with the FERC for approval to implement the Negotiated Rates set forth herein

pursuant to the NGA, the FERC's regulations promulgated under the NGA, and the FERC's Statement of Policy Alternatives to Traditional Cost

of Service Ratemaking for Natural Gas Transporters and Regulation of Negotiated Transportation Service of Natural Gas Transporters issued

January 31, 1996, in Docket Nos. RM95-6-000 and RM96-7-000. This Agreement and the Negotiated Rates set forth herein shall not apply to

service under the Service Agreement unless and until the FERC approves such filing without condition and/or modification.