Millennium Pipeline Company, L. L. C.

Original Volume No. 1

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Effective Date: 12/22/2008, Docket: CP98-150-011, Status: Effective

Original Sheet No. 293 Original Sheet No. 293

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

27. CONSTRUCTION OF FACILITIES

 

27.1 Arrangement for Construction of Transmission Facilities. Shipper may

request Transporter to construct, maintain and operate, either all or a part

of, the lateral line for the transportation of gas from Transporter's main

transmission line to Shipper's markets, or when the delivery point to Shipper

at Transporter's main transmission line is in close proximity to a compressor

station of Transporter, Shipper may request Transporter to provide facilities

to deliver gas to Shipper in excess of Transporter's main line operating

pressure. If Transporter shall determine that the granting of such request

by Shipper is necessary or desirable, that no undue burden will thereby be

placed upon Transporter, and that no impairment of Transporter's ability to

render adequate service to its shippers will result therefrom, Transporter

will construct or provide such facilities if it can obtain proper, necessary

authorization.

 

27.2 Method of Payment.

 

(a) In the event Transporter shall provide a lateral line or other

transmission facilities at the request of Shipper, unless otherwise agreed,

Shipper will pay Transporter for the costs of such facilities by paying in

addition to the amount paid for natural gas, a facility charge consisting of

the sum of the following components:

 

(1) Depreciation computed at the annual accrual rates

being used by Transporter for booking depreciation expense applicable

to such facilities;

 

(2) Return computed at the latest rate allowed Transporter

by Federal Energy Regulatory Commission in a formal rate determination

applied to the original cost of the facilities less accrued

depreciation and plus necessary working capital applicable to such

facilities;

 

(3) Taxes paid for the ownership and operation of such

facilities; and

 

(4) Operation and maintenance expenses applicable to such

facilities.