Tennessee Gas Pipeline Company
FIFTH REVISED VOLUME NO. 1
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Effective Date: 03/13/2006, Docket: RP06-219-000, Status: Effective
Third Revised Sheet No. 560I Third Revised Sheet No. 560I : Effective
Superseding: Second Revised Sheet No. 560I
GAS TRANSPORTATION AGREEMENT (continued)
(For Use Under FT-BH 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 shall be in accordance with Transporter's
Rate Schedule FT-BH 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.
6.2 INCIDENTAL CHARGES - Shipper agrees to reimburse Transporter for any filing or
similar fees, which have not been previously paid for by Shipper, which
Transporter incurs in rendering service hereunder.