Gas Transmission Northwest Corp.

Third Revised Volume No. 1-A

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Effective Date: 10/01/2009, Docket: RP09-1020-000, Status: Effective

Fourth Revised Sheet No. 21 Fourth Revised Sheet No. 21

Superseding: Third Revised Sheet No. 21

 

STATEMENT OF EFFECTIVE RATES AND CHARGES

FOR TRANSPORTATION OF NATURAL GAS

(Continued)

 

NEGOTIATED RATE AGREEMENTS UNDER RATE SCHEDULES FTS-1 AND LFS-1

 

Explanatory Footnotes for Negotiated Rates

under Rate Schedules FTS-1 and LFS-1

 

/12 Index Rate Calculation

The per-Dth Reservation Rate shall be determined daily and will equal (the Gas Daily Midpoint

Price [Gas Daily Daily Midpoint Price is the price survey midpoint for PG&E, Malin and Kingsgate,

BC as applicable as published in Gas Daily for the day of gas flow. Weekend and holiday prices

will be determined using the last published Gas Daily publication prior to the weekend or

holiday.] for PG&E, Malin minus the Gas Daily Midpoint Price for Kingsgate, BC, minus the sum of

the following):

 

1) an allowance for the per Dth cost of GTN system fuel.

2) an allowance for the per Dth cost of delivery of volumes on the GTN

System equal to the maximum delivery rate applicable under GTN's FTS-1

Tariff for the volumes transported, multiplied by the distance

transported.

3) an allowance for ACA of $0.0019/Dth.

 

The allowance for GTN System fuel shall be computed as follows:

 

The Gas Daily Midpoint Price for Kingsgate, BC multiplied by {[1.0/(1.0-the GTN System

fuel rate )] minus 1.0}, where the GTN System fuel rate equals GTN's applicable mileage-

based fuel rate multiplied by the mileage of the path of the gas transported.

 

Reservation Rate

On any day when the foregoing Index Rate Calculation produces a result less than $0.06/Dth, the

Reservation Rate shall be deemed to be $0.02/Dth. On any day when the foregoing Index Rate

Calculation produces a result greater than or equal to $0.06/Dth and less than or equal to

$0.10/Dth, the Reservation Rate shall be deemed to be equal to the calculated per Dth Reservation

Rate minus $0.04/Dth. On any day when the foregoing Index Rate calculation produces a result

greater than $0.10/Dth, the Reservation Rate shall be equal to six cents ($0.06) plus eighty per

cent (80%) of the difference between the result of the Index Rate Calculation and ten cents

($0.10). To determine the Index Rate Calculation applicable to volumes not nominated or scheduled,

the Kingsgate, BC to Malin, OR mileage will be applied to the calculation's mileage-based

components.

 

Other Charges

In addition to the Reservation Rate as calculated herein, Eagle Energy Partners shall pay the

Delivery Rate for volumes transported equal to the maximum delivery rate, plus the ACA charge as

applicable under GTN's FTS-1 Tariff. Eagle Energy Partners shall provide fuel in kind in

accordance with GTN's FTS-1 Tariff.

 

Renegotiation Request

In the event that the indices for PG&E, Malin is not published on any given day (other than a

weekend or holiday), prices will be determined based on the last published information for such

index. In the event that the indices for PG&E, Malin is not published on at least three business

days within a span of six business days, either party may request negotiation of a replacement

rate structure (a "Renegotiation Request"). Upon such Renegotiation Request, GTN and Eagle Energy

Partners will use diligent, good faith efforts to come to a mutually agreeable replacement rate

structure. Firm Transportation Service Agreement F-10738 will terminate on the fifteenth day

following a Renegotiation Request in the event the parties do not agree on a replacement rate

structure prior to such termination. In the event that the indices for Kingsgate, BC is not

published on any given day (other than a weekend or a holiday), prices will be determined based on

the TCPL Alberta, AECO-C price, converted to U.S. dollars using the currency conversion factor

printed in Gas Daily for the applicable day, plus $0.12/dth.