Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

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

Twelfth Revised Sheet No. 318 Twelfth Revised Sheet No. 318

Superseding: Eleventh Revised Sheet No. 318

 

GENERAL TERMS AND CONDITIONS (continued)

 

 

within the services included in Section 5(d), (f), (g), (h), (i), (j), or (k)

of this Article III, Transporter's customers will be curtailed according to

the price ranking used for scheduling, such that Shippers who pay higher rates

are curtailed after those who pay lower rates; provided that customers with

Term Rate PAL Agreements will receive priority over customers with Daily Rate

PAL Agreements; and in the event more than one Shipper is paying a given

price, then the service interruption for those Shippers will be allocated pro

rata based on each Shipper's share of scheduled nominations for that Service

Point and/or in accordance with the supply/market rankings provided pursuant

to Shipper's Customer Nomination Form. For purposes of the foregoing

sentence, any shipper paying a rate above the maximum applicable rate for the

shipper's service shall be deemed to be paying the maximum applicable rate.

The scheduled quantities for each customer shall be adjusted to amounts

determined by this capacity allocation until the next nominations are received

by Transporter.

 

7. SUPPLY DEFICIENCIES

 

If Transporter experiences a supply shortfall due to the underdelivery of

supplies to Transporter's pipeline, then (a) if the deficient source is known,

Transporter will curtail the corresponding FT/IT market; or (b) if the deficient

sources are indeterminable, then Transporter will localize the smallest affected

area and, at the corresponding delivery point, will curtail interruptible

service first in reverse scheduling order and then firm services will be

curtailed pro rata. Provided that Transporter has sufficient capacity to

accommodate such supplies, verifiable receipt point volumes will not be subject

to supply short fall curtailment. To the extent that information concerning the

deficient source is, or becomes available, Transporter will provide such

information to all curtailed Shippers.

 

8. SHIPPER SCHEDULING AND IMBALANCES

 

8.1 Shipper Duty to Control Imbalances - A Shipper receiving any

transportation or storage service from Transporter will use, or will

cause any party receiving or delivering Shipper's gas to use, all

reasonable efforts to ensure that receipts and deliveries of gas are

equal to the quantities scheduled by Transporter. A Shipper receiving

service from Transporter at receipt and/or delivery points not covered

by a Balancing Agreement shall also be subject to Daily Variance

charges and monthly balancing penalties contained in Rate Schedule LMS-

MA and/or Rate Schedule LMS-PA, as applicable.