Gulfstream Natural Gas System, L.L.C.

Original Volume No. 1

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Effective Date: 05/28/2002, Docket: CP00- 6-006, Status: Effective

First Revised Sheet No. 161 First Revised Sheet No. 161 : Effective

Superseding: Original Sheet No. 161

 

 

GENERAL TERMS AND CONDITIONS

(CONTINUED)

 

 

22.2 Transporter may waive from time to time, at its discretion,

all or a portion of the monetary reimbursement requirement

set forth in Section 22.1 if it determines that construction

of the facilities would be economic to Transporter, based on

Shipper assurance of Transportation throughput through the

proposed facilities and other matters, as described below.

All requests for waiver shall be handled by Transporter in a

manner which is not unduly discriminatory. For purposes of

determining whether a project is economic, Transporter will

evaluate projects on the basis of various economic criteria,

which may include, without limitation, the estimated

Transportation throughput, cost of the facilities,

operating, maintenance, administrative and general expenses

attributable to the facilities, the system net revenues

Transporter estimates will be generated subsequent to such

construction, and the availability of capital funds on terms

and conditions acceptable to Transporter. In estimating the

system net revenues to be generated, Transporter will

evaluate the existence of capacity limitations of the

existing facilities, the marketability of the capacity, the

location of the markets, the nature of the Transportation

service, and other factors which impact the utilization of

Transporter's system.

 

22.3 Any monetary reimbursement due Transporter by Shipper

pursuant to this Section 22 shall be due and payable to

Transporter prior to Transporter's commencement of

construction of facilities to be constructed unless

otherwise agreed by Transporter and within ten (10) Days of

receipt by Shipper of Transporter's invoice(s) for same;

provided, however, subject to Transporter's written consent,

such monetary reimbursement, plus carrying charges thereon,

may be amortized over a mutually agreeable period not to

exceed the primary contract term of any Agreement for

service between Transporter and Shipper. Carrying charges

shall be computed utilizing interest factors acceptable to

both Transporter and Shipper. Unless Transporter and

Shipper otherwise agree on interest factors for computing

the carrying charges for new facilities, the interest rates

determined by the Commission under Section 154.501(d) of the

Commission's regulations shall apply.