Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 05/12/1994, Docket: CP90-1391-004, Status: Effective

Original Sheet No. 212B Original Sheet No. 212B : Effective

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

(2) To the extent that the new direct delivery connection serves an end-

user that has historically been served by a firm customer of

COMPANY, the proposed transportation service to be provided

through the new direct delivery connection will be deemed revenue

positive or revenue neutral if the costs set out in Sections 36(f)(1), (2),

(3), and (4), as applicable, are paid or reimbursed in full by the

SHIPPER obtaining the direct delivery connection.

 

(3) To the extent that the new direct delivery connection serves an end-

user which represents new or incremental gas transportation volumes,

the proposed transportation service to be provided through the new

direct delivery connection will be deemed revenue positive or revenue

neutral if the costs set out in Section 36(f)(1) are either paid or

reimbursed in full by the SHIPPER obtaining the direct delivery

connection.

 

(f) The costs referenced in Sections 36(e)(2) and (3), as applicable, are:

 

(1) All costs, including overheads and taxes, associated with construction

of the required direct delivery connection facilities and with any

modifications to existing facilities required to maintain service to

existing firm customers.

 

(2) Any fixed monthly take-or-pay charges arising under Section 33.2 of

these General Terms and Conditions which, as a result of the direct

delivery connection, may no longer be recovered from the firm

customer that has historically served the end-user to be served through

the direct delivery connection, as provided in Section 1(b) of Article

XII of the Stipulation and Agreement approved in Southern Natural

Gas Company, 46 FERC 61,336 (1989).

 

(3) As provided in Order Nos. 636 and 636-A, any Gas Supply

Realignment Costs and other transition costs under Sections 31 and 32

of these General Terms and Conditions which the Commission orders

to be (i) allocated or assigned to SHIPPER or (ii) paid by SHIPPER,

as a result of the direct delivery connection.