Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 09/15/2008, Docket: RP08-392-003, Status: Effective

Original Sheet No. 64 Original Sheet No. 64

 

Summer Minimum Quantity: 11,389,300 MMBtu for the period beginning April 1, 2008, through October 31, 2008. If TVA fails to transport

the 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 $0.2478/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 Point(s) will apply toward the Summer

Minimum Quantity. Quantities delivered to the Qualified Delivery Point and the Alternate Delivery Point do not

count toward the Summer Minimum Quantity.

 

Delivery Point Qualification: The Negotiated Volumetric Rates set out above are limited to deliveries to the above Primary and Qualified

Delivery Point(s) and the Alternate Delivery Point, as applicable. To the extent that TVA or its replacement

shipper(s) delivers gas to any other point(s), then the Negotiated Volumetric Rate shall not apply. In such

cases, TVA shall pay the maximum SNS Zone 1 reservation rate plus applicable maximum commodity rate for an

equivalent amount of its contract demand (i.e., an amount of contract demand equal to the quantity delivered

to such other point(s) by TVA and/or its replacement shipper).

 

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 Alternate

Delivery Point, under any such release, Texas Gas shall 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.