Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

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Effective Date: 10/01/2009, Docket: RP09-998-000, Status: Effective

Third Revised Sheet No. 241 Third Revised Sheet No. 241

Superseding: Second Revised Sheet No. 241

 

RATE SCHEDULE PAL

PARK AND LOAN SERVICES (continued)

 

7.2 Loan Service

 

(a) In the event any of the following occurs, loaned quantities shall

be sold to Shipper at 150% of the highest weekly spot price of the

region of the PT during the term of the agreed upon transaction as

set forth in the PAL Agreement:

 

(i) Transporter's prevailing operations require Transporter to

notify Shipper that receipt of Shipper's loaned quantities

must be suspended or be reduced, and Shipper continues to

receive loaned quantities; and/or

 

(ii) Transporter's prevailing operations require Transporter to

notify Shipper that all or part of Shipper's loaned quantities

must be returned to Transporter, and Shipper fails to comply

within the specified time frame; and/or

 

(iii) the PAL account reflects a negative balance at the termination

date of the executed PAL Agreement.

 

(b) If, pursuant to Section 7.2(a)(i), Transporter notifies Shipper

that receipt of Shipper's loaned quantities must be suspended or

be reduced, only those quantities loaned in violation of the

notification shall be sold to Shipper at 150% of the highest

weekly spot price of the region of the PT.

 

(c) In the event that a PAL account for Loan Service reflects a positive

balance at the termination date of the executed PAL Agreement, those

overpaid quantities shall become the property of Transporter at no

cost to Transporter, free and clear of any adverse claims.

 

(d) In the event any of the occurrences in Sections 7.2(a), 7.2(b)

and/or 7.2(c) of this Rate Schedule are impeded to the extent

Shipper nominates in accordance with the terms of its contract

pursuant to such notification or to remedy a positive balance at the

termination date and Transporter is unable to schedule Shipper's

nomination, the specified time frame will be extended accordingly.

 

(e) Notwithstanding Sections 7.2(a) and (c), in the event that on the

termination date of the executed PAL Agreement the PAL account for

Park Service reflects a positive or negative balance of one hundred

(100) dekatherms or less, and such balance is not due to

Transporter's inability to schedule Shipper's nominated quantities,

Shipper shall have five (5) business days ("Grace Period") to

resolve such balance. In the event that Transporter is unable to

schedule any of Shipper's nominated quantities during the Grace

Period, Transporter and Shipper may mutually agree to extend the

Grace Period for the amount of time that Transporter was unable to

schedule the Loan Service. If, at the end of the Grace Period,

Shipper has a remaining balance, Section 7.2(a) or (c), whichever

is applicable, shall control.

 

The highest weekly regional, spot price shall be obtained from Gas Daily, or from

another agreed upon daily or weekly publication containing Transporter's weekly

regional spot prices.

 

8. GENERAL TERMS AND CONDITIONS

 

The provisions of the General Terms and Conditions of Transporter's FERC Gas

Tariff, as such may be amended from time to time, are hereby incorporated by

reference and made a part of this Rate Schedule PAL and shall apply to services

rendered hereunder as stated herein.