Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 08/01/2008, Docket: RP01-205-017, Status: Effective

Tenth Revised Sheet No. 37 Tenth Revised Sheet No. 37

Superseding: Ninth Revised Sheet No. 37

 

RATE SCHEDULE FT

Firm Transportation Service

(Continued)

Section 2(c) (continued)

 

Exhibit B to the Service Agreements under this Rate Schedule and Rate Schedule FT-NN and deliveries

under other firm transportation services. Delivery of gas pursuant to a Service Agreement under

this Rate Schedule at Exhibit B-1 Delivery Points in the path of Exhibit B Delivery Points to the

Service Agreement shall have a priority over the delivery of gas at Exhibit B-1 Delivery Points

outside of the path of Exhibit B Delivery Points under a Service Agreement.

 

(d) Transportation service provided under this Rate Schedule shall be limited to SHIPPER'S

Transportation Demand specified in the Service Agreement, subject to the provisions of Section 22 of

the General Terms and Conditions applicable hereto. Subject to the segmentation provisions set

forth in Section 12.1(l)(3) of the General Terms and Conditions, it is provided that, if gas in

excess of the total of all of SHIPPER'S currently effective Transportation Demands within a rate

zone is allocated to SHIPPER'S Service Agreement for service under this Rate Schedule on any day

pursuant to the allocation procedures set out in Section 13 of the General Terms and Conditions,

such gas shall be deemed to be overrun gas under said Service Agreement and SHIPPER shall pay the

maximum rate set forth on the currently effective Sheet Nos. 18 or 30, applicable to the zone of

deliveries under SHIPPER'S Service Agreement, for each Dth of overrun gas.

 

3. RATES AND CHARGES

 

(a) Unless SHIPPER is eligible for the volumetric rate election set forth in Section 3(b) below, SHIPPER

shall pay COMPANY the sum of the following for transportation services rendered for SHIPPER each

month under this Rate Schedule:

 

(i) Reservation Charge: The applicable rate set forth on the currently effective Sheet Nos. 14-15

or 26-27 multiplied by the Transportation Demand (TD) multiplied by the systemwide Btu factor

set forth in Section 12.1 of the General Terms and Conditions.

 

(A) Reservation Charge Credit: (1) In the event COMPANY is unable to make deliveries of at

least 98% of the volume of gas to which SHIPPER has firm entitlements on any day at primary

Delivery Point(s) under this firm Rate Schedule, and SHIPPER is a consenting party under the

Stipulation and Agreement filed in Docket No. RP04-523, then the applicable Reservation

Charge shall be credited to SHIPPER for such day, except as provided in Section

3(a)(i)(A)(1), 3(a)(i)(A)(2), 3(a)(i)(B), and 3(a)(i)(C) below. Such credit shall be applied

to the lesser of (i) the applicable MDDQ; (ii) an average of the immediately previous 7 day's

daily quantities allocated to the primary firm service at the Delivery Point, but not to

include quantities outside of SHIPPER's entitlements or quantities in excess of SHIPPER's

MDDQ; or (iii) such quantity as SHIPPER has nominated but COMPANY was not able to either

schedule or deliver solely as a result of COMPANY's inability to make deliveries as provided

above; provided, however, in the event SHIPPER has no nomination in place, then the credit

shall be applied to the lesser of (i) or (ii). The applicable Reservation Charge shall not

be credited (w) to the extent that the SHIPPER uses a secondary (B-1) Delivery Point instead

of its primary (B) Delivery Point when COMPANY is unable to make deliveries at SHIPPER's

primary Delivery Point; (x) to the extent deliveries cannot be made to a Delivery Point on a

secondary (B-1) basis and deliveries can be made to SHIPPER's primary Delivery Point(s); (y)

to the extent the affected firm MDDQ has been released under Section 22 of the General Terms

and Conditions to Delivery Points other than the affected primary Delivery Point; and/or (z)

to the extent there are limitations at firm Receipt Points but COMPANY's ability to make

deliveries at Shipper's primary Delivery Point(s) as provided above has not been limited.

 

(2) In the event all of SHIPPER'S primary Delivery Point(s) are interstate pipeline

interconnection(s) or in the event SHIPPER's primary Receipt Point is the interconnection

with Southern LNG at its Elba Island LNG terminal, then SHIPPER may elect, at the time the

Service Agreement is executed, or, for existing contracts, at the time the Stipulation and

Agreement in Docket No. RP04-523 becomes effective, for the reservation charge credit to

apply at SHIPPER's primary Receipt Point(s) instead of its primary Delivery Point(s), in the

event COMPANY is unable to receive at such Receipt Point(s) at least 98% of the volume of gas

to which SHIPPER has firm entitlements on any day. Such credit shall be applied to the

lesser of (i) the applicable MDRQ; (ii) an average of the immediately previous 7 day's daily

quantities allocated to the primary firm service at the Receipt Point(s),