Paiute Pipeline Company

Second Revised Volume No. 1-A

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Effective Date: 08/01/2005, Docket: RP05-163-004, Status: Effective

Substitute Original Sheet No. 37 Substitute Original Sheet No. 37 : Effective

 

RATE SCHEDULE LGS-2

INTERRUPTIBLE LIQUEFIED NATURAL GAS STORAGE SERVICE

(Continued)

 

 

2.3 Limitations on Availability of Service. Interruptible service

under this rate schedule shall only be available to the extent

that the injection, storage and withdrawal capacity designated

for Rate Schedule LGS-1 firm service is not being utilized for

such firm service. In particular, Storage Capacity for service

under this rate schedule shall be available only to the extent

that requests by Rate Schedule LGS-1 Shippers for utilization

of such capacity have not been scheduled pursuant to the pro-

visions of Section 4.7(a) of the General Terms and Conditions

of this tariff.

 

2.4 Mandatory Gasification and Withdrawal. Unless otherwise permitted

by Paiute, Shipper must gasify and withdraw from storage all vol-

umes held in storage for or on behalf of Shipper under this rate

schedule prior to April 1 of each year. In addition, if Paiute

determines that storage capacity being utilized hereunder by

Shipper is needed to meet Paiute's firm obligations under Rate

Schedule LGS-1, Paiute shall require Shipper to gasify and with-

draw all volumes held in storage under this rate schedule by

Paiute for or on behalf of Shipper within seven days; provided,

however, if Shipper has arranged for transportation of its gas

from the LNG Plant under a Rate Schedule FT-1 agreement and Paiute

is unable to provide such related transportation, then such seven

day period shall be extended by one day for each day Paiute is

unable to render such transportation. Paiute shall not extend

the seven day period if Paiute is unable to provide the related

transportation under a Rate Schedule IT-1 agreement. If Shipper

fails to gasify and withdraw all gas held in storage under this

rate schedule by Paiute for or on behalf of Shipper prior to

April 1 or within seven days upon receiving notice from Paiute,

then title to any such remaining gas in storage shall be forfeited

by Shipper, free and clear of any adverse claims. Such remaining

gas in storage shall be treated by Paiute thereafter as Gas Used

by Paiute, and shall be credited to the calculation of Gas Used

by Paiute under Rate Schedules FT-1 and IT-1 and Section 4.2(e)

of the General Terms and Conditions of this tariff. Paiute

shall be entitled to refuse to perform service under this rate

schedule when Shipper cannot demonstrate to Paiute's satisfaction

that Shipper will have the ability to remove quantities of LNG

stored under this rate schedule when Shipper is requested to do so

under this Section 2.4.