Tennessee Gas Pipeline Company
FIFTH REVISED VOLUME NO. 1
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Effective Date: 03/13/2006, Docket: RP06-219-000, Status: Effective
First Revised Sheet No. 560R First Revised Sheet No. 560R : Effective
Superseding: Original Sheet No. 560R
INCREMENTAL LATERAL TRANSPORTATION AGREEMENT (continued)
(For Use Under FT-IL 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-IL 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
applicable surcharges for the specified Incremental Lateral service in the
Summary of Rates in Transporter's FERC Gas Tariff and in Rate Schedule FT-IL.
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; and/or that a specified discounted rate will apply only
to specified points. Transporter and Shipper may agree to a specified 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.