Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 06/01/2007, Docket: RP07-419-000, Status: Effective

Seventh Revised Sheet No. 188 Seventh Revised Sheet No. 188 : Effective

Superseding: Sixth Revised Sheet No. 188

GENERAL TERMS AND CONDITIONS

(Continued)

 

23. OFF-SYSTEM CAPACITY

 

23.1 Off-System Capacity. From Time to Time, COMPANY may enter into transportation and/or storage service

agreements with other interstate and intrastate pipeline and storage companies ("Service Provider"), including

contracts for released capacity, ("off-system capacity"). In the event that COMPANY acquires off-system

capacity, COMPANY will use such capacity for operational reasons or to render service for SHIPPER(s). In the

event that COMPAPNY uses off-system capacity to render service for SHIPPER(s), COMPANY will render service on

the acquired capacity pursuant to COMPANY's FERC Gas Tariff and SHIPPER shall pay to COMPANY the rates and

surcharges under the applicable Rate Schedule set forth above in this Tariff, as such Tariff, rates and

charges may change from time to time. In the event that off-system capacity used to render service to

SHIPPER(s) is subject to renewal or term limitations, as specified in COMPANY's service agreement with the

Service Provider and/or the tariff of the Service Provider and/or as provided by FERC regulation, COMPANY

reserves the right to limit SHIPPER's extension rights under its service agreement with COMPANY or ROFR rights

under Article 20 above to coincide with COMPANY's contractual obligations with the Service Provider. COMPANY

will indicate in any open season posting any limitation to term or extension rights that will apply as a

result of such contractual or regulatory limitations on the off-system capacity. For purposes of off-system

capacity transactions entered into subject to this Article 23, the "Shipper must have title" requirement shall

be waived.

 

23.2 Third Party Charges. If COMPANY contracts with a Service Provider for COMPANY to provide service on the

off-system capacity on behalf of SHIPPER, SHIPPER shall pay COMPANY those additional charges or surcharges not

included in or in excess of the charges or surcharges also payable by SHIPPER under the applicable Rate

Schedule herein as provided above in Section 23.1; provided, however, such additional charges shall not exceed

the charges COMPANY is obligated to pay to the Service Provider(s) for the off-system capacity. Such

additional charges may include, but are not limited to, reservation and/or usage charges and surcharges, fuel

and power charges, retention, compression, balancing, measurement or processing fees, imbalance charges and/or

other facility charges. Any additional off-system capacity charges shall be set forth in Exhibit "C" of

SHIPPER's FT Service Agreement or Exhibit "E" of SHIPPER's CSS Service Agreement and as separate line items on

invoices rendered to SHIPPER pursuant to Article 15 above. COMPANY shall indicate in its open season posting

for any off-system capacity whether any additional charges will apply to transportation or storage services

provided on the off-system capacity.

 

23.3 Scheduling of Off-System Capacity. Any off-system capacity shall be scheduled and allocated by COMPANY

under the terms of these General Terms and Conditions on an open access basis; provided, however, if agreed by

COMPANY and SHIPPER, SHIPPER may act as COMPANY's agent in scheduling the gas for SHIPPER's use on the Service

Provider's system.