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