Southern Natural Gas Company

Seventh Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

 

 

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.