Southern Natural Gas Company

Original Volume No. 2

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Effective Date: 02/03/1991, Docket: RP90-139-004, Status: Effective

First Sub. First Rev. Sheet No. 616 First Sub. First Rev. Sheet No. 616 : Effective

Superseding: Original Sheet No. 616

Rate Schedule x-60 (Continued)

capacity in its existing pipeline and compression facilities not required for

its own use from time to time, Southern agrees, in accordance with all of the

terms, conditions and limitations herein set forth, to receive at the Point of

Delivery such gas as may be tendered and delivered by or for the account of

Florida and to transport and redeliver such gas to Florida at the Point of

Redelivery in the quantities, in the manner and for the term hereinafter

provided.

3. It is understood and agreed by and between the parties hereto that

Southern's pipeline facilities downstream of the Point of Delivery may become

inadequate to transport the maximum MMBTU delivery quantity hereunder through

its available excess capacity. At the written request of Florida, or with

Florida's prior approval of a written request initiated by Southern, and

subject to prior Commission authorization, Southern shall construct or cause to

be constructed the additional pipeline facilities necessary, in the sole

judgment of Southern, to increase the capacity of its then existing pipeline

facilities in accordance with the request as hereinabove set forth; provided,

however, that nothing contained herein shall affect the terms and conditions of

the service to be performed under this Agreement. Florida agrees to reimburse

Southern upon the receipt of a bill for Florida's pro rata share of any and all

actual costs, including a reasonable overhead, incurred by Southern

attributable to the additional facilities constructed hereunder, but title to

such additional pipeline facilities shall remain in Southern. 1/

 

III. QUANTITIES OF GAS

1. Commencing on the date of initial delivery of gas hereunder and

continuing throughout the term of this Agreement, Southern agrees, subject to

all provisions hereof, to receive such daily quantity of gas, hereinafter

referred to as "MMBTU delivery quantity", as may be tendered and delivered by

or for the account of Florida at the Point of Delivery up to a maximum delivery

rate of 45,000 MMBTU per day as measured at the point of measurement prescribed

in Section 1 of Article VIII hereof, or, at such greater or lesser rate as

Southern may accept at the time and from time to time depending upon the

operating conditions of its pipeline facilities and its own capacity

requirements.

2. Commencing on the effective date of initial delivery of gas hereunder

and continuing throughout the term of this Agreement, Southern agrees, subject

to all provisions hereof, to transport and redeliver to Florida at the Point of

Redelivery hereunder, a daily quantity of gas, hereinafter referred to as

"MMBTU redelivery quantity", which shall be equal to the MMBTU delivery

quantity, less: (i) 1% thereof, unless and until changed by written notice

from Southern due to changes in the operation of Southern's pipeline facilities

through which Florida's gas will be transported hereunder (which deductible

percentage shall be utilized by Southern, at no cost to Southern, to offset

compressor fuel, unaccounted for losses, etc., attributable to the

transportation service provided hereunder for Florida); (ii) Florida's pro rata

share of any gas which may be vented or lost for any reason other than

Southern's gross negligence from that portion of Southern's facilities being

utilized hereunder at the time of any such loss therefrom; and, (iii) fuel,

shrinkage, and other 2/

1/ As amended by agreement dated March 4, 1982.

2/ Revised fuel used and unaccounted for charge: 1.5%.