Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 08/01/2008, Docket: RP01-205-017, Status: Effective

Third Revised Sheet No. 293 Third Revised Sheet No. 293

Superseding: Second Revised Sheet No. 293

 

FORM OF FIRM TRANSPORTATION

SERVICE AGREEMENT

(Continued)

 

 

 

 

ARTICLE IV

TERM

 

4.1 Subject to the provisions hereof, this Agreement shall become effective as of

______________________ and shall be in full force and effect for the primary

term(s) set forth on Exhibit B hereto, if applicable, and shall continue and remain

in force and effect for successive evergreen terms specified on Exhibit B hereto

unless canceled by either party giving the required amount of written notice specified

on Exhibit B to the other party prior to the end of the primary term(s) or any

extension thereof. The primary term of the Agreement may be calculated from the date

service commences hereunder rather than the effective date as provided above, if

construction of facilities is necessary.

 

4.2 In the event SHIPPER has not contracted for firm Transportation Demand under this

Agreement directly with COMPANY, as set forth on Exhibit B hereto, then the term of

this Agreement shall be effective as of the date first hereinabove written and shall

remain in full force and effect for a primary term through the end of the month and

month to month thereafter unless canceled by either party giving at least five (5) days

written notice to the other party prior to the end of the primary term or any

extension thereof, provided however, this agreement will automatically terminate if

no nominations are requested during a period of 12 consecutive months. It is

provided, however that this Agreement shall not terminate prior to the expiration

of the effective date of any Capacity Release Transaction.

 

ARTICLE V

CONDITIONS PRECEDENT

 

5.1 Unless otherwise agreed to by the parties, the terms of Rate Schedule FT and/or FT-NN,

as applicable, and the General Terms and Conditions thereto, shall apply to the acquisition

or construction of any facilities necessary to effectuate this Agreement. Other provisions

of this Agreement notwithstanding, Company shall be under no obligation to construct the

facilities or commence service hereunder unless and until (1) Company has received and

accepted the necessary regulatory approvals and permits to construct the facilities in a form

and substance satisfactory to Company; (2) all facilities, of whatever nature, as are required

to permit the receipt, measurement, transportation, and delivery of natural gas hereunder have

been authorized, installed, and are in operating condition; (3) (If Applicable) Company has

obtained the approval of the appropriate management or management committee and/or board of

directors of Company and/or its parent company to spend the capital necessary to construct the

additional facilities; and (4) SHIPPER completes the construction and places into operation,

using diligent efforts, its upstream or downstream production or end use facilities required

to receive or deliver gas hereunder. (If applicable)In the event construction of facilities

by COMPANY is necessary to provide service under the Agreement, Company agrees to use its

reasonable efforts to meet an in-service date of _________________.

 

[If applicable] The parties agree that there are no outstanding conditions precedent to be met

or facilities remaining to be built under the Original Agreements. This Agreement is intended

to provide for the continuation without interruption of services provided under the Original

Agreements and shall not be deemed to modify any rights and obligations arising under the

Original Agreements prior to the effective date of this Agreement.

 

ARTICLE VI

REMUNERATION

 

6.1 Shipper shall pay Company monthly for the transportation services rendered hereunder

the charges specified in Rate Schedule FT, Rate Schedule FT-NN, and under each effective

Capacity Release Transaction, as applicable, including any penalty