Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 11/01/1993, Docket: RS92- 10-003, Status: Effective

Original Sheet No. 370 Original Sheet No. 370 : Effective

 

FORM OF SERVICE AGREEMENT

FOR TEMPORARY RELEASES OF CAPACITY

UNDER RATE SCHEDULE CSS

(Continued)

 

effective, Acquiring Shipper may bid from time to time on proposed capacity

releases under Rate Schedule CSS pursuant to the procedures set forth in Section

22 of Company's General Terms and Conditions. If at any time a bid submitted

by Acquiring Shipper is deemed to be the best bid by Company with respect to a

given offer to release firm storage capacity, Company will promptly finalize by

means of SoNet the appropriate Addendum to this Agreement, in the format

attached hereto. Upon finalization of such Addendum, Acquiring Shipper and

Company agree that Acquiring Shipper shall be considered for all purposes as a

Shipper with respect to the released service.

 

1.2 Upon the finalization of an Addendum, subject to the terms, conditions and

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

provide the released firm storage service for Acquiring Shipper under Rate

Schedule CSS, the General Terms and Conditions thereto and this Agreement.

 

1.3 Acquiring Shipper hereby agrees to promptly provide any information necessary

for Company to reevaluate Company's credit appraisal under Section 22.6(e) of

Company's General Terms and Conditions and to advise Company of any material

change in the information previously provided by the Acquiring Shipper to

Company.

 

1.4 Subject to the terms and provisions of this Agreement and Company's Rate

Schedule CSS and the General Terms and Conditions applicable thereto,

Acquiring Shipper has the right to maintain in Company's Storage fields under the

terms of this Agreement the Maximum Storage Quantity set forth on each

Addendum hereto for the applicable term specified thereon. Company's

obligation to accept gas for injection into Storage on any day is limited to the

available Maximum Daily Injection Quantity (MDIQ) specified on each

Addendum hereto.

 

1.5 Subject to the terms and provisions of this Agreement and Company's Rate

Schedule CSS and the General Terms and Conditions applicable thereto,

Company shall deliver to Acquiring Shipper from Storage a thermally equivalent

quantity of gas, less the applicable fuel charge as set forth in Rate