Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 04/01/2009, Docket: RP00-426-042, Status: Effective

Original Sheet No. 85 Original Sheet No. 85

 

STATEMENT OF NEGOTIATED RATES

 

Shipper Name: Southwestern Energy Services Company (Southwestern)

Contract No.: 27014

Rate Schedule: FT

Time Period(s): From the later of (i) January 1, 2009 or (ii) the first day of the month following the date on which the Fayetteville

Expansion Project facilities are complete and made available for service (the "Effective Date" through ten (10) years

from the Effective Date as well as the first two (2) Renewal Terms, if exercised by Southwestern, as long as

Southwestern maintains Transportation Contract Demand in each Renewal Term that is at least 50% of the immediately

preceding Initial Term or Renewal Term, as the case may be.

 

For purposes of this Agreement and Contract no. 27014, the term "Fayetteville Expansion Project" refers to the

expansion by Texas Gas of its system by the installation of a lateral line of at least 18" in diameter from near

Grandview in eastern Conway County, Arkansas and connecting with its existing mainline system near Lula, Mississippi;

provided that this Negotiated Rate Agreement shall in no event be construed as waiving any rights that Southwestern

has under the MFN Contract (defined below) or relieving Texas Gas of its obligations to Southwestern under the MFN

Contract.

 

Quantity(ies): January 1, 2009 through March 31, 2009 300,000 MMBtu per day

April 1, 2009 through October 31, 2009 350,000 MMBtu per day

November 1, 2009 through October 31, 2010 400,000 MMBtu per day

November 1, 2010 through October 31, 2011 450,000 MMBtu per day

Beginning November 1, 2011 500,000 MMBtu per day

 

Provided, however, the Contract Demand schedule shall be superseded and the Contract Demand shall increase to 500,000

MMBtu/day--subject to any temporary reduction of allocation of Daily Firm Capacity required by the Federal Energy

Regulatory Commission (FERC) or Texas Gas' FERC Gas Tariff for any period prior to Texas Gas receiving all necessary

authority (and all conditions related to such authority are complied with) from the FERC and the Pipeline and

Hazardous Materials Safety Administration (PHMSA) to operate the Fayetteville Lateral at capacity of 950,000

MMBtu/day or more, and the Daily Firm Capacity (MMBtu/day) of the Primary Receipt Points under Contract No. 27014

shall be as set forth under the heading "Effective November 1, 2011" on Exhibit A thereto, also subject to any

temporary reduction or allocation of Daily firm Capacity required by the FERC or Texas Gas' FERC Gas Tariff for any

period prior to Texas Gas receiving all necessary authority (and all conditions related to such authority are

complied with) from the FERC and PHMSA to operate the Fayetteville Lateral at capacity of 950,000 MMBtu/day or more--

on the later of (a) April 1, 2009, or (b) the first day of the month after Texas Gas has (i) received approval from

the PHMSA of Texas Gas' Special Operating Permit application and all conditions related to such authority have been

complied with; and (ii) that Texas Gas has received authority from the FERC to operate the Fayetteville Lateral at

capacity of 950,000 MMBtu/day or more. During any period in which there is any temporary reduction or allocation of

Daily Firm Capacity required by the Federal Energy Regulatory Commission or Texas Gas' FERC Gas Tariff, the Contract

Demand for which Southwestern is required to pay a Demand Rate shall be reduced by the amount of any such reduction

or allocation.

 

 

*Continued on Sheet No. 85A