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. 85C Original Sheet No. 85C
With reference to the 18 Inch Crossing Facilities and new 36 Inch Crossing Facilities, Texas Gas shall provide
Southwestern, upon written request from time to time, with reasonable access to all books, records, contracts and
documents and billings provided pursuant to such contracts, with respect to the Crossing Facilities. Within 120 days
of the in-service date of the Crossing Facilities, Texas Gas shall provide Southwestern with a final accounting of
the total Construction Costs and the actual and projected Recovered Costs, if any. Such final accounting shall be
deemed to be accepted by Southwestern and shall be used for determining the Construction Costs unless Southwestern
provides written objections to Texas Gas within 60 days of the receipt of such accounting from Texas Gas. If
Southwestern provides written objections to the final accounting contesting whether any portion of the Construction
Costs incurred by TGT were commercially reasonable, Southwestern and Texas Gas will negotiate in good faith to
resolve such disputes. The final accounting of the total Construction Costs less the Recovered Costs as agreed to by
Texas Gas and Southwestern are referred to herein as the "Final Construction Costs".
To the extent that aggregate Facilities Surcharges paid by Southwestern exceed the Final Construction Costs, within
thirty (30) days of the determination of the Final Construction Costs, Texas Gas shall refund such excess amount to
Southwestern.
Notwithstanding the foregoing, or anything to the contrary herein, if the 36 Inch Crossing Facilities are completed
and placed in service and either (i) Texas Gas does not commence procedures with the Federal Energy Regulatory
Commission (or successor regulatory body) to abandon the 18 Inch Crossing not later than 30 days after the in-service
a date of the 36 Inch Crossing, or (ii) at any time after such abandonment, Texas Gas receives approval to place the
18 Inch Crossing back into service or (iii) Texas Gas sells or leases the 18 Inch Crossing, Texas Gas shall refund
all Facilities Surcharges paid by Southwestern hereunder within 30 days of the failure to abandon, the placement into
service of, or sale or lease of, the 18 Inch Crossing Facilities, as appropriate. If the 36 Inch Crossing Facilities
are completed and placed in service and Texas Gas does commence procedures with the Federal Energy Regulatory
Commission (or successor regulatory body) to abandon the 18 Inch Crossing and the Federal Energy Regulatory
Commission (or successor regulatory body) does not approve or grant the abandonment, Texas Gas shall refund a portion
of the Facilities Surcharges paid by Southwestern equal to the cost of pipe and materials paid by Texas Gas for
completion of the 18 Inch Crossing; provided, however, that in the event that Texas Gas subsequently sells, leases or
places the 18 Inch Crossing into service, Texas Gas shall refund all Facilities Surcharges paid by Southwestern
hereunder within 30 days of such event.
Texas Gas' maximum applicable transportation rates shall apply during any Renewal Terms; provided, however, that
during the first two (2) Renewal Terms, the Negotiated Demand, Commodity, Fuel and Overrun Rates shall apply as long
as Southwestern maintains a contract demand in each Renewal Term that is at least fifty percent (50%) of the contract
demand in the immediately preceding Initial Term or Renewal Term, as the case may be.
Point Qualification(s): The Negotiated Demand, Commodity, Fuel and Overrun Rates shall apply to (i) all transactions using Eligible Primary
and/or Eligible Secondary Points and (ii) any changes in primary points using Eligible Points. Any transaction that
uses a point other than an Eligible Point shall be at Texas Gas' maximum applicable transportation and fuel rates.
*Continued on Sheet No. 85D