Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 04/01/2009, Docket: RP00-426-041, Status: Effective

First Revised Sheet No. 53 First Revised Sheet No. 53

Superseding: Original Sheet No. 53

 

Other:

Authorized Hourly Overrun Rate: The Authorized Hourly Overrun Rate applicable to all hourly deliveries at a flow rate greater than 1/16 of

the daily Contract Demand shall be $0.00 if 100% of deliveries are transported using this SNS agreement,

otherwise $0.10 per MMBtu. Such hourly rate for authorized overruns is in addition to the Negotiated

Volumetric Rate or Daily Overrun Rate.

 

Daily Overrun rate: $0.2500/MMBtu on all daily overrun quantities.

 

Fuel Retention: TVA shall pay the applicable fuel retention per Texas Gas' tariff.

 

Summer Minimum Quantity: The Summer Minimum Quantity shall be 12,047,000 MMBtu for the period beginning April 1, 2009, through October

31, 2009. If TVA fails to transport its Summer Minimum Quantity to the Primary Delivery Point(s) during the

Summer Season, then Texas Gas shall bill TVA, and TVA shall pay, for such deficiency (the "Minimum Bill").

Such Minimum Bill shall be in an amount equal to the Negotiated Volumetric Rate of $0.2350 per MMBtu times

the difference between the applicable Summer Minimum Quantity and the actual quantity of gas transported

during such Summer Season to the Primary Delivery Point(s). Authorized Daily Overrun volumes to the Primary

Delivery Points will apply toward the Summer Minimum Quantity. Quantities delivered to the Qualified

Delivery Point and the Alternate Delivery Point do not count toward Summer Minimum Quantity.

 

Capacity Release

Crediting Mechanism: TVA may release its capacity under the SNS Agreement on a volumetric basis only, subject to the terms of

Texas Gas' tariff. For each MMBtu delivered at the Primary or Qualified Delivery Point(s) or the Alternate

Delivery Point, under any such release, Texas Gas will credit TVA for any revenues actually received from the

replacement shipper up to the Negotiated Volumetric Rate and TVA will receive all revenues received from the

replacement shipper for amounts in excess of the Negotiated Volumetric Rate.

 

To the extent TVA releases capacity at a rate less than the Negotiated Volumetric Rate, then TVA shall pay

Texas Gas the difference between the capacity release rate and the Negotiated Volumetric Rate for all gas

quantities delivered to the Primary or Qualified Delivery Point(s) or Alternate Delivery Point.