North Baja Pipeline, LLC

Original Volume No. 1

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Effective Date: 11/15/2004, Docket: RP05- 25-001, Status: Effective

First Revised Sheet No. 203 First Revised Sheet No. 203 : Effective

Superseding: Original Sheet No. 203

GENERAL TERMS AND CONDITIONS OF SERVICE

(Continued)

 

42. RATIONALIZATION PROCEDURES FOR LNG EXPANSION

 

For purposes of this paragraph 42, an Original Shipper is defined as a

firm shipper whose Firm Transportation Service Agreement supported

construction of Transporter's pipeline system, which was certificated

by the Federal Energy Regulatory Commission in Docket Nos. CP01-22-000,

et al. Original Shipper contracts, which provide for flows in a north

to south direction, have primary paths from Ehrenberg, Arizona to the

US/Mexico border near Ogilby, California. Notwithstanding primary path

restrictions imposed by Paragraph 22.1(d) of these General Terms and

Conditions, this paragraph sets forth a one-time right of Original

Shippers to reverse their primary paths to facilitate capacity

rationalization in anticipation of a planned expansion of Transporter's

system that is designed to accommodate receipts of LNG supplies from

Mexico.

 

(a) Reverse Flow Rights: Transporter and Original Shipper may mutually

agree in advance to reverse all or a portion of Original Shipper's

primary path (Reverse Flow Quantity) by switching the location of

all or a portion of Original Shipper's primary receipt and

delivery point rights. All path reversals shall be implemented on

the Reverse Flow Date, which shall be the date that Transporter

places into service any necessary facilities and natural gas on

Transporter's pipeline starts to flow in a south to north

direction, or such other date upon which Shipper and Transporter

mutually agree. Reverse Flow Rights are contingent upon

Transporter physically reconfiguring its system to allow for

receipts of LNG supplies from Mexico and a flow of gas from south

to north.

 

(b) Reverse Flow Facilities Contribution: Consistent with paragraphs

22.1(d) and 25 of Transporter's FERC Gas Tariff, Original Shipper

shall reimburse Transporter, on a nondiscriminatory basis and

under terms that are mutually agreeable, for costs associated with

constructing facilities necessary to effectuate delivery of

Original Shipper's Reverse Flow Quantity.