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. 89A Original Sheet No. 89A

 

Fuel Use, Loss and

Unaccounted for: 0.30% 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 Demand, Commodity, Fuel and Overrun Rates shall apply to (i) all transactions using Eligible

Primary and/or Secondary Points and (ii) any changes in primary points using Points. Any transaction that uses

a point other than an Eligible Point shall be at Texas Gas' maximum applicable transportation and fuel rates.

Other:

Segmenting Restrictions: To the extent Southwestern segments its firm capacity utilizing Eligible Receipt and Delivery Points without

exceeding the contract demand in any segment, then it will pay the Negotiated Commodity Rate on all segmented

deliveries and no additional demand charges shall apply.

 

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 interconnection of Texas Gas' Fayetteville

Lateral to its 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' 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.