Tennessee Gas Pipeline Company
FIFTH REVISED VOLUME NO. 1
Contents / Previous / Next / Main Tariff Index
Effective Date: 03/13/2006, Docket: RP06-219-000, Status: Effective
Third Revised Sheet No. 540 Third Revised Sheet No. 540 : Effective
Superseding: Second Revised Sheet No. 540
GAS TRANSPORTATION AGREEMENT (continued)
(For Use Under FT-G Rate Schedule)
ARTICLE V
QUALITY SPECIFICATIONS AND STANDARDS FOR MEASUREMENT
For all gas received, transported and delivered hereunder the Parties agree to
the Quality Specifications and Standards for Measurement as specified in the
General Terms and Conditions of Transporter's FERC Gas Tariff Volume No. 1. To
the extent that no new measurement facilities are installed to provide service
hereunder, measurement operations will continue in the manner in which they have
previously been handled. In the event that such facilities are not operated by
Transporter or a downstream pipeline, then responsibility for operations shall
be deemed to be Shipper's.
ARTICLE VI
RATES AND CHARGES FOR GAS TRANSPORTATION
6.1 TRANSPORTATION RATES - Commencing upon the effective date hereof, the rates,
charges and surcharges to be paid by Shipper to Transporter for the
transportation service provided herein, including compensation for system fuel
and losses, shall be in accordance with Transporter's Rate Schedule FT-G and
the General Terms and Conditions of Transporter's FERC Gas Tariff. Except as
provided to the contrary in any written or electronic agreement(s) between
Transporter and Shipper in effect during the term of this Agreement, Shipper
shall pay Transporter the applicable maximum rate(s) and all other applicable
charges and surcharges specified in the Summary of Rates in Transporter's FERC
Gas Tariff and in this Rate Schedule. Transporter and Shipper may agree that a
specific discounted rate will apply only to certain volumes under the
agreement. Transporter and Shipper may agree that a specified discounted rate
will apply only to specified volumes (MDQ, TQ, commodity volumes or Authorized
Overrun volumes) under the Agreement; that a specified discounted rate will
apply only if specified volumes are achieved (with the maximum rates applicable
to volumes above the specified volumes or to all volumes if the specified
volumes are never achieved); that a specified discounted rate will apply only
during specified periods of the year or over a specifically defined period of
time; that a specified discounted rate will apply only to specified points,
zones, markets or other defined geographical area; and/or that a specified
discounted rate will apply only to production or reserves committed or
dedicated to Transporter. Transporter and Shipper may agree to a discounted
rate pursuant to the provisions of this Section 6.1 provided that the
discounted rate is between the applicable maximum and minimum rates for this
service.
In addition, a discount agreement may include a provision that if one rate
component which was at or below the applicable Maximum Rate at the time the
discount agreement was executed subsequently exceeds the applicable Maximum Rate
due to a change in Transporter's Maximum Rates so that such rate component must
be adjusted downward to equal the new applicable Maximum Rate, then other rate
components may be adjusted upward to achieve the agreed overall rate, as long as
none of the resulting rate components exceed the Maximum Rate applicable to that
rate component. Such changes to rate components shall be applied prospectively,
commencing with the date a Commission Order accepts revised tariff sheet rates.
However, nothing contained herein shall be construed to alter a refund obligation
under applicable law for any period during which rates that had been charged
under a discount agreement exceeded rates which ultimately are found to be just
and reasonable.