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. 113A Fourth Revised Sheet No. 113A

Superseding: First Revised Sheet No. 113a

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

Section 6.1 (continued)

 

and SHIPPER shall specify on said Exhibit A the Maximum Daily Receipt Quantity of gas to be received

for transportation at said point. For service performed under the FT Rate Schedule and FT-NN Rate

Schedule, the sum of the Maximum Daily Receipt Quantities specified on the Exhibit A to the Service

Agreement shall not exceed the Transportation Demand specified in the Service Agreement. Exhibit A-1

to SHIPPER'S Service Agreement under Rate Schedule FT or Rate Schedule FT-NN shall consist of all

Receipt Points at which interruptible capacity is available on COMPANY'S contiguous pipeline system.

For service performed under the IT Rate Schedule and a Liquefiables Transportation Agreement, Exhibit

A to the Service Agreement shall consist of all Receipt Points on COMPANY'S system, as supplied by

COMPANY on SoNet Premier which are available for SHIPPER'S interruptible transportation service.

 

Nothwithstanding the foregoing, if (i) a SHIPPER'S primary Receipt Point is not active such that no

gas is capable of flowing upstream of the point for twelve (12) consecutive months or (ii) damage to

or destruction of facilities prevents any gas supplies from flowing from SHIPPER's primary Receipt

Point for a period of thirty (30) consecutive days ("30-day scenario"), then SHIPPER shall provide in

writing to COMPANY an election whether or not to continue contracting for such primary Receipt Point

within thirty (30) days of COMPANY's notification. COMPANY shall notify all firm shippers with the

affected Receipt Point as their primary point in writing or as a notice on SoNet Premier of such

inactivity. As part of such election, SHIPPER may elect to transfer such primary Receipt Point on its

Exhibit A to the nearest downstream Receipt Point that is flowing gas and has sufficient firm

capacity or such other point as mutually agreed between COMPANY and SHIPPER that is active and has

sufficient capacity, and such transfer shall be reflected on SHIPPER's Exhibit A as provided in

Section 6.3 of these General Terms and Conditions. If such transfer results in firm capacity

request(s) exceeding the firm capacity available at a replacement Receipt Point, SHIPPER shall

receive its pro-rata share of available capacity at the replacement Receipt Point based on the ratio

of its requested capacity relative to the total requested capacity at such replacement Receipt Point.

Additional replacement Receipt Points may be assigned or mutually agreed to in accordance with this

paragraph and as necessary for SHIPPER to achieve its total MDRQ at functioning Receipt Points.

 

Once the damage to facilities is repaired and service at the Receipt Point is restored or once a

SHIPPER'S original primary Receipt Point is active such that gas becomes capable of flowing upstream

of the point, COMPANY shall notify SHIPPER and SHIPPER may elect to return its primary point to such

Receipt Point up to the MDRQ previously contracted. In such instances, SHIPPERS previously holding

MDRQ at the Receipt Point at the time of the damage shall have a priority right to MDRQ at its

original primary Receipt Point over other shippers that did not hold MDRQ at the Receipt Point. If

the restored Receipt Point capacity is less than the capacity at the Receipt Point prior to such

damage or destruction in the 30-day scenario described above in (ii), SHIPPER shall receive its pro-

rata share of the new capacity to determine its MDRQ at the Receipt Point based on the ratio of its

previous MDRQ to the prior capacity or the SHIPPER may leave the entire MDRQ at the replacement

Receipt Point. If SHIPPER does not elect to return its primary Receipt Point to the restored Receipt

Point within thirty (30) days of such notification of Receipt Point restoration, then this option

will terminate. Alternatively, in the event that a SHIPPER elects to retain its primary Receipt Point

in the 30-day Scenario and did not elect to obtain a replacement Receipt Point, that Shipper would

not be subject to pro-rating if service to the Receipt Point is restored at a reduced level.