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. 87A Original Sheet No. 87A

 

Negotiated Rate(s): The rate set forth below will remain in effect for the term of this Agreement without regard to Texas Gas'

maximum or minimum applicable rates.

 

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.

 

$0.005/MMBtu, inclusive of all demand and commodity charges within contract demand, plus applicable ACA surcharges.

 

 

Fuel Use, Loss and

Unaccounted for: 0.00% per MMBtu

 

Texas Gas' maximum applicable transportation rates shall apply during any Renewal Term; 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 Rate shall apply to (i) all transactions using the 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.

 

Other:

Most Favored Nations Provision:

If at any time during the Initial Term, Texas Gas contracts to provide firm transportation service for a term of more

than one (1) year, including any automatic extensions or rollovers (unless such rollover or extension is at maximum

rates) of an original shorter term contract, (i) from the point of interconnection of Texas Gas' mainline system near

Lula, Mississippi to the interconnect with Texas Eastern at Kosciusko, Mississippi on the Greenville Lateral

("Greenville Transport"), or (ii) on the Fayetteville Lateral to the interconnect with Texas Gas' mainline system near

Lula, Mississippi ("Fayetteville Transport"), or (iii) a combination of the Greenville and Fayetteville Transport at

total rates, including fuel, less than the rate paid by Southwestern under this Negotiated Rate Agreement and the

other Negotiated Rate Agreements between Southwestern and Texas Gas entered into pursuant to the Precedent Agreement

dated as of December 15, 2006 (the "MFN Contract"), Texas Gas shall provide Southwestern with written notice within

ten (10) days of any such contract. Within ten (10) days of receipt of Texas Gas's notice, Southwestern may elect, by

written notice to Texas Gas, to substitute such total rates, including fuel, for the rates otherwise applicable

hereunder, limited to a volume and term equal to that contained in the MFN Contract. This right will not apply to (i)

seasonal contracts, (ii) contracts with replacement shippers pursuant to capacity release, or (iii) contracts between

Texas Gas and Southwestern or any affiliates of Southwestern. In determining whether a shipper is receiving a lower

rate than Southwestern hereunder, both the transport and the fuel rates will be considered.