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.