Southern Natural Gas Company
Seventh Revised Volume No. 1
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Effective Date: 09/01/2009, Docket: RP09-427-002, Status: Effective
Fourth Revised Sheet No. 45 Fourth Revised Sheet No. 45
Superseding: Second Sub Second Revised Sheet No. 45
RATE SCHEDULE FT
Firm Transportation Service
(Continued)
SHIPPER and COMPANY shall execute a separate Liquefiables Transportation Agreement in the
form set forth in COMPANY'S FERC Gas Tariff, Seventh Revised Volume No. 1.
6. FACILITIES
In order for COMPANY to receive, measure, transport, and/or deliver the gas to be
transported under this Rate Schedule, it may become necessary for COMPANY to install
facilities or to modify existing facilities at or near a Receipt Point or Delivery Point
("Interconnection Facilities"). Interconnection Facilities consist of the facilities at
the physical interconnection between the facilities of COMPANY and the facilities of the
upstream or downstream facility owner. Should SHIPPER request the installation or
modification of said facilities and agree to reimburse COMPANY for the entire cost to
COMPANY thereof, COMPANY will construct and install, or cause to be constructed and
installed, or will modify, or cause to be modified, Interconnection Facilities; provided
that,
(i) the proposed Interconnection Facilities do not adversely affect
Southern's operations;
(ii) the proposed Interconnection Facilities and the associated transportation
service to or from the interconnection do not diminish service to any of
Southern's shippers;
(iii) the proposed Interconnection Facilities do not cause Southern to violate or
be in violation of any applicable environmental or safety laws, permits or
regulations; and/or
(iv) the proposed Interconnection Facilities do not conflict with or cause
Southern to be in violation of its rights-of-way agreements or any other
contractual obligation.
In the event SHIPPER does not agree to pay the costs of installing or modifying the
Interconnection Facilities, COMPANY will construct or modify such facilities on a
nondiscriminatory basis for similarly situated SHIPPERS if the construction or
modification of such Interconnection Facilities is economically feasible and the
conditions listed above in (i) -(iv) are met. Construction or modification is
economically feasible if the proposed transportation service to be provided through the
Interconnection Facilities is revenue positive to COMPANY. The proposed transportation
service to be provided through said Interconnection Facilities will be deemed revenue
positive if the transportation service produces a net revenue gain. The net revenue gain
requirement will be met if
(a) the total revenues generated over the term of SHIPPER's Service Agreement for the
service provided through the new facilities exceed the cost of service of said
facilities for the greater of
(i) ten years or
(ii) the term of SHIPPER's Service Agreement for the service provided through the
new facilities and the SHIPPER extends the terms of its existing Service
Agreement(s) with COMPANY for a period commensurate with that of its new
Service Agreement; provided however, that
(1) SHIPPER does not have to extend the remaining term of an existing
Service Agreement if said term already exceeds the term of its new
Service Agreement, and
(2) if the net revenue gain requirement is met over a period less than the
term of the new Service Agreement, SHIPPER need extend the term of its
existing Service Agreement(s) only for a term commensurate with that
shorter period; or
(b) COMPANY determines that the construction of the facilities will avoid a significant
reduction in revenue when comparing the cost of the construction to the projected
amount of revenue which would be lost as a result of a SHIPPER's exercising a right
to reduce its firm transportation quantity or as a result of a SHIPPER's failing to
extend or renew its existing Service Agreement(s); or
(c) the total costs of construction or modification of such facilities is less than the
cost of replacing, repairing, or continuing to operate COMPANY's existing
facilities.