Sea Robin Pipeline Company, LLC

Second Revised Volume No. 1

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Effective Date: 12/31/2004, Docket: RP05- 87-000, Status: Effective

Original Sheet No. 390 Original Sheet No. 390 : Effective

 

FORM OF RESERVE COMMITMENT AGREEMENT

(Continued)

 

 

EXHIBIT B

(Continued)

 

 

Assume, for this example, Sea Robin informs Shipper that it has

25,000 Dth/Day of additional MDQs available to Shipper under its FTS-

2 Service Agreement effective 6/1/2001 and another 30,000 Dth/Day of

additional MDQs available to Shipper under its FTS-2 Service

Agreement beginning 1/1/2002.

 

Permanent Release Quantities:

 

1. Shipper's Permanent Release Quantities are up to: 5,000

Dth/Day during 7/1/2001 through 12/31/2002; 20,000

Dth/Day during 1/1/2002 through 12/31/2003, and 0

beginning 1/1/2004 (see below):

 

7/1/2001

through 130,000 - 125,000 (FTS-2) = 5,000 Dth/Day

12/31/2001

 

1/1/2002

through 175,000 - 155,000 (FTS-2) = 20,000 Dth/Day

12/31/2003

 

beginning 120,000 - 125,000 (FTS-2) = 0 permanent

1/1/2004 release quantities

 

2. If Shipper's actual production in calendar year 2002 is

165,000 Dth/Day, only 10,000 Dth/Day will be released

(last quantities produced rule).

 

 

 

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This example is for illustrative purposes only. The actual

application of any permanent releases shall be governed by the

provisions of Section 2.5.