Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

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Effective Date: 02/01/2006, Docket: RP06-157-001, Status: Effective

Sub Sixth Revised Sheet No. 95B Sub Sixth Revised Sheet No. 95B : Effective

Superseding: Fifth Revised Sheet No. 95B

 

RATE SCHEDULE FS

FIRM STORAGE SERVICE (continued)

 

March 1 of each calendar year will be automatically charged an overrun withdrawal

rate per DTH beneath the limit. In the event that Transporter calls a Critical

Day or issues an Action Alert pursuant to Article VIII of the General Terms and

Conditions, a Shipper will be penalized $25.00 per DTH on further withdrawals

below the minimum that are not authorized. In the event that Transporter calls a

Balancing Alert pursuant to Article VIII of the General Terms and Conditions, a

Shipper will be penalized $15.00 plus the applicable Regional Daily Spot Price for

each dekatherm on further withdrawals below the minimum that are not authorized.

Regional Spot Price means the highest spot price published in Gas Daily for the

day(s) on which, and for the region(s) in which, the Balancing Alert is in effect;

provided that if the Balancing Alert is in effect on days on which no Gas Daily is

published, the applicable price(s) reflected in the most recently published Gas

Daily shall be used in assessing the charge. However, to the extent the overruns

are explicitly authorized by Transporter, both the authorized overrun charge and

the applicable $25.00 per DTH penalty or the $15.00 per DTH penalty plus the

applicable Regional Daily Spot Price penalty will be waived.

 

(c) For the months November through March, maximum net withdrawals of a shipper's

inventory must be less than or equal to 110% of Ratchet II daily level times

the number of days in the month. This restriction will not apply to shippers

who make seasonal elections (effective December - February) to forfeit in

relation to the transportation contracts designated under Rate Schedule FT-A,

FT-G or FT-GS, release rights for capacity, including the primary receipt

point(s), upstream of Shipper's FS service point. Shippers making seasonal

elections must provide written notice of such election to Transporter by

October 20.

 

The maximum net withdrawal restriction also will not apply to Shippers who make

seasonal elections to release proportionate amounts of firm storage capacity,

deliverability rights (including conditional deliverability rights), and firm

transportation capacity upstream of Shippers' FS service point during the

months of December through February. In the event of such a proportionate

release: (a) the Releasing Shipper will retain conditional deliverability

rights in proportion to the firm storage capacity, deliverability rights

(including conditional deliverability rights), and firm transportation capacity

upstream of Shippers' FS service point that it retains; and (b) the Replacement

Shipper shall be entitled to the conditional deliverability rights included in

the proportionate release and subject to the same conditions for conditional

deliverability as the Releasing Shipper, provided that the Replacement Shipper

does not re-release either the firm storage or the designated transportation

contract during the period December through February. Shipper must provide

written notice of such proportionate releases to Transporter at least 5 days

prior to the effective date of such releases.

 

Transporter is not required to provide notice to Shippers exceeding one hundred

ten percent (110%) of Ratchet II withdrawals. For Shippers who did not make a

seasonal election, in the event that Transporter calls a Critical Day or issues

an Action Alert pursuant to Article VIII of the General Terms and Conditions,

all volumes exceeding such limit will be subject to an unauthorized overrun

charge of $25.00 per DTH. For Shippers who did not make a seasonal election, in

the event that Transporter calls a Balancing Alert pursuant to Article VIII of

the General Terms and Conditions all volumes exceeding such limit will be

subject to an unauthorized overrun charge of $15.00 per DTH plus the applicable

Regional Daily Spot Price for each dekatherm; unless Shipper receives advance

approval from Transporter, in Transporter's sole discretion, that Shipper may

exceed 110% of Ratchet II withdrawals. Transporter will use reasonable efforts

to accommodate withdrawals exceeding 110% of Ratchet II upon receipt of a

Shipper's request. Regional Spot Price means the highest spot price published

in Gas Daily for the day(s) on which, and for the region(s) in which, the

Balancing Alert is in effect; provided that if the Balancing Alert is in effect

on days on which no Gas Daily is published, the applicable price(s) reflected in

the most recently published Gas Daily shall be used in assessing the charge.