Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 09/22/2004, Docket: RP04-494-000, Status: Effective

Third Revised Sheet No. 357 Third Revised Sheet No. 357 : Effective

Superseding: Second Revised Sheet No. 357

 

 

FORM OF SERVICE AGREEMENT

UNDER RATE SCHEDULE CSS

(Continued)

 

to the available Maximum Daily Injection Quantity (MDIQ) specified on Exhibit

A or any effective Capacity Release Transaction.

 

1.2 Company shall redeliver a thermally equivalent quantity of gas, less the applicable

fuel charge as set forth in Rate Schedule CSS, to Shipper or a third party designated by Shipper

at the Storage Point described on Exhibit A hereto. Company's obligation to withdraw gas from

Storage for delivery at the Storage Point on any day is limited to the available

Maximum Daily Withdrawal Quantity (MDWQ) specified on Exhibit A or any

effective Capacity Release Transaction and Shipper's Storage Inventory.

 

1.3 In the event Shipper is the successful bidder on released firm storage capacity under

Section 22 of Company's General Terms and Conditions, Company will promptly finalize by

means of SoNet Premier the Capacity Release Transaction. Upon the finalization of a Capacity Release

Transaction, subject to the terms, conditions and

limitations hereof and Company's Rate Schedule CSS, Company agrees to provide the

released firm storage service to Shipper under Rate Schedule CSS, the General Terms and

Conditions thereto, and this Agreement.

 

ARTICLE II

 

CONDITIONS OF SERVICE

 

2.1 It is recognized that the storage service hereunder is provided on a firm basis

pursuant to, in accordance with and subject to the provisions of Company's Rate

Schedule CSS, and the General Terms and Conditions thereto, which are

contained in Company's FERC Gas Tariff, as in effect from time to time, and

which are hereby incorporated by reference. In the event of any conflict between

this Agreement and Rate Schedule CSS, the terms of Rate Schedule CSS shall

govern as to the point of conflict. Any limitation of storage service hereunder

shall be in accordance with the priorities set out in Rate Schedule CSS.

 

2.2 This Agreement shall be subject to all provisions of the General Terms and

Conditions specifically made applicable to Company's Rate Schedule CSS, as such

conditions may be revised from time to time. Unless Shipper requests otherwise,

Company shall provide to Shipper the filings Company makes at the Commission

of such provisions of the General Terms and Conditions or other matters relating

to Rate Schedule CSS.

 

2.3 Company shall have the right to discontinue service under this Agreement in

accordance with Section 15.3 of the General Terms and Conditions contained in

Company's FERC Gas Tariff.

 

2.4 The parties hereto agree that neither party shall be liable to the other party for

any special, indirect, or consequential damages (including, without