Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 01/01/2009, Docket: RP09-129-000, Status: Effective

First Revised Sheet No. 57 First Revised Sheet No. 57

Superseding: Original Sheet No. 57

 

4/The Minimum Annual Commodity Revenue (MACR) paid by Devon to Texas Gas pursuant to the Negotiated Commodity Rates set forth herein shall not be

less than $3,000,000.00 for each consecutive 12 month period (December through November) during the term hereof.; provided however that up to

$900,000 of IT revenues received by Texas Gas under Contract No. 25151 for interruptible transportation of up to 100,000 MMBtu/d from Meter No.

2757, Sharon, Louisiana to pipeline interconnects in Texas Gas Zone SL (at a discounted rate of $0.0375 per MMBtu) may be credited toward the

MACR in each applicable twelve month period. If Devon fails to transport a sufficient quantity of gas during any such 12 month period to

generate total commodity revenues that meet or exceed the MACR, then Texas Gas shall bill Devon, and Devon shall pay, for such deficiency.

 

5/Fuel Retention: Devon will incur and pay the applicable Texas Eastern and Texas Gas fuel retention rates for all gas quantities received at the

Primary Receipt Point, except for deliveries to Sharon, Louisiana. Devon will only incur the Texas Eastern fuel retention rate for all gas

quantities received at the Primary Receipt Point and delivered to Sharon, Louisiana. Devon will incur only the applicable Texas Gas fuel

retention rate for all gas quantities received at any Secondary Receipt Point. Texas Eastern's revised fuel rate is 0.44% and is subject to

change annually based upon actual fuel used to provide this service. Texas Gas' fuel rates will be stated in its tariff on Sheet No. 37 and are

subject to a tracker that is filed annually. Texas Gas and Devon agree to resolve any fuel over or under collections (i.e., fuel true up)

incurred moving gas quantities under this agreement through the Texas Eastern leased capacity as soon as possible after this agreement expires.

Such true up shall be provided in actual volumes (i.e., in-kind) unless Devon and Texas Gas mutually agree otherwise.

 

6/Capacity Release Crediting Mechanism: Devon may release its capacity under the FT agreement, subject to the terms of Texas Gas' tariff, provided

that Texas Gas is paid the Negotiated Rates set forth above. For each MMBtu delivered under any release or re-release, Texas Gas will credit

Devon for any revenues received from the releasing shipper(s) up to the Negotiated Rates and Devon will pay Texas Gas the difference, if any,

between the Negotiated Rates and the amount actually received from the replacement shipper(s). Devon will receive all revenues received from the

replacement shipper(s) for amounts in excess of the Negotiated Rates. Alternatively, Devon may elect a different negotiated pricing structure

for Zone 1 to 4 capacity released as detailed in 2/ above.

 

7/Alternative Pricing Mechanism: To the extent Devon releases capacity from Zone 1 to 4, then Devon may elect the following alternate pricing

structure for such portion of firm capacity released, for the term of the release:

 

Daily Demand Rate: $0.335/MMBtu

Commodity Rate:

Lebanon Delivery Points: Minimum FT Commodity Rate to Lebanon, Meter Nos. 1247, 1715 and 1859

Other Delivery Points: Maximum applicable FT Commodity Rate

 

 

All incremental demand revenues (i.e. demand revenues in excess of $0.19/MMBtu) received as a result of Devon's election of this alternate

pricing structure will be credited toward Devon's Minimum Annual Commodity Revenue commitment. Devon must notify Texas Gas of its election to

price capacity released using this revised pricing structure prior to or at the time that it posts capacity for release on Texas Gas' internet

website.

 

8/Adjustment for Force Majeure on Texas Eastern: If Texas Eastern declares force majeure which renders it unable to transport gas from east Texas

to Sharon, and to the extent Texas Gas is relieved thereby of any obligation to pay lease charges to Texas Eastern, then Texas Gas will reduce

Devon's demand rate by the amount of the Texas Eastern lease payment that Texas Gas is not required to pay for that force majeure period.