Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

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Effective Date: 03/01/2003, Docket: RP03-229-001, Status: Effective

Sub Second Revised Sheet No. 366A Sub Second Revised Sheet No. 366A : Effective

Superseding: First Revised Sheet No. 366A

 

 

GENERAL TERMS AND CONDITIONS (continued)

 

 

4. Subject to the provisions of Section 3 above, Transporter shall construct,

modify or rearrange Tap Facilities or Tap and Connecting Facilities for any

requesting party who agrees to pay Transporter for the cost of such Construction

as set forth in a facilities agreement and which may also be set forth in a

Transportation Service Agreement. On a not unduly discriminatory basis,

Transporter may condition its Construction of Tap Facilities or Tap and

Connecting Facilities on payment from the requesting party of any or all costs

which are directly related to the Construction of the Tap Facilities or Tap and

Connecting Facilities and which arise prior to the in-service date of the

facilities ("Related Costs"). These Related Costs include, but are not limited

to, operating and maintenance expenses, administrative and general expenses,

taxes other than income taxes, depreciation costs and the time value of money as

set forth in a facilities agreement. In any agreement for the Construction of

Tap Facilities or Tap and Connecting Facilities, Transporter and the requesting

party shall mutually agree to one or a combination of the following methods of

payment:

 

4.1 Unless otherwise agreed, the requesting party shall pay Transporter for

the costs of Construction and any applicable Related Costs prior to the

commencement of Construction of the Tap Facilities or Tap and Connecting

Facilities. On a basis which is not unduly discriminatory, Transporter

also may require the requesting party to pay a gross-up for state and

federal income taxes. These costs may also be set forth in a

Transportation Service Agreement. For requesting parties paying

Transporter in accordance with this Section 4.1, service shall not

commence at the Tap Facilities or Tap and Connecting Facilities until all

costs of Construction and applicable Related Costs have been paid by the

requesting party to Transporter.

 

4.2 The requesting party shall pay Transporter over time for the costs of

Construction and any applicable Related Costs including the time value

of money. On a basis which is not unduly discriminatory, Transporter

also may require the requesting party to pay a gross-up for state and

federal income taxes. These costs shall also be set forth in a

Transportation Service Agreement. A requesting party paying Transporter

in accordance with this Section 4.2 is not required to pay for all costs

of Construction and any Related Costs prior to the commencement of

service at the Tap Facilities or Tap and Connecting Facilities.

 

5. On a not unduly discriminatory basis, Transporter may agree to pay for all or

part of the costs for the Construction of Tap Facilities or Tap and Connecting

Facilities if the Construction is economically or operationally beneficial to

Transporter. Transporter shall post notice of any such subsidy on PASSKEY for a

period of thirty (30) days following any such agreement. In determining

economic or operational benefit, Transporter may utilize, among other criteria,

the following criteria: