Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 11/01/2008, Docket: RP09-67-000, Status: Effective

Original Sheet No. 72 Original Sheet No. 72

 

Overrun Rate: To the extent Anadarko transports gas quantities in excess of its firm capacity rights on any day, then Texas Gas'

currently effective Zone SL to Zone 4 FT overrun rate shall apply. If Anadarko is delivering gas on the Greenville

Lateral and incurs overrun, then in addition to Texas Gas' Zone SL to Zone 4 FT overrun rate, Anadarko shall pay a

negotiated commodity rate of $0.20 per MMBtu/day.

 

Point Qualification(s): None

 

Annual Minimal Commodity

Revenue Commitment: The Annual Minimum Commodity Revenue Commitment (excluding ACA) paid by Anadarko to Texas Gas pursuant to the

Negotiated Commodity Rates set forth herein shall be $2,500,000 for each consecutive twelve month period (November

through October) for contract years beginning November 1, 2008 and ending October 31, 2013. For the period

beginning November 1, 2013 and ending March 31, 2014 the Minimum Commodity Revenue Commitment shall be $1,034,250.

For gas quantities transported on the Greenville lateral, $0.06 per MMBtu of commodity revenues shall be applied

toward the Annual Minimum Commodity Revenue Commitment.

 

To the extent Texas Gas pays for any or all of the cost to install a new interconnect with Anadarko in the Carthage area,

Anadarko agrees to reimburse Texas Gas for such costs, including time value of money, through an increase in the Annual

Minimum Commodity Revenue Commitment under this FT agreement over the remaining contract term. At the time the increased

Annual Minimum Commodity Revenue Commitment commences, if Anadarko does not meet the Annual Minimum Commodity Revenue

Commitment in a contract year or partial contract year in the case of the November 1, 2013 to March 31, 2014 time period,

Texas Gas agrees to allow Anadarko to use up to 50% of any excess commodity revenues (i.e., commodity revenues in excess

of the Annual Minimum Commodity Revenue Commitment paid in the immediately preceding year up to a maximum amount of 50% of

the increase in the Annual Minimum Commodity Revenue Commitment (i.e., Annual Minimum Commodity Revenue Commitment in

excess of $2,500,000). Excess revenues in a contract year may only be carried forward to the subsequent contract year and

only if Anadarko does not meet the Annual Minimum Commodity Revenue Commitment and is required to make a payment as a

result of the commodity revenue shortfall. To the extent, Anadarko meets the Annual Minimum Commodity Revenue Commitment

in a contract year, no excess commodity revenues from the immediately preceding year will be carried over.

 

Additionally, in determining whether any shortfall or excess revenues exist in the Annual and Winter Season Minimum

Commodity Revenue Commitments under the FT and STF agreements, Texas Gas will look at the Minimum Commodity Revenue

Commitments and actual commodity revenues paid by Anadarko and its replacement shippers in the aggregate. To the extent

the total commodity revenues paid by Anadarko under both contracts equal or exceed the total Minimum Commodity Revenue

Commitment under the FT and STF agreements ($2,672,400 for the contract years beginning November 1, 2008 and ending

October 31, 2013 and $1,206,650 for the Winter Season beginning November 1, 2013 and ending March 31, 2014) then Anadarko

will not be required to pay any shortfall. To the extent that the total commodity revenues paid by Anadarko exceeds the

total Minimum Commodity Revenue Commitment under the FT and STF agreements, then 50% of such excess commodity revenues may

be carried forward subject to the limitations described in the paragraph above.

 

 

Continued on Sheet No. 73