Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 03/31/2009, Docket: RP00-426-043, Status: Effective

Original Sheet No. 91A Original Sheet No. 91A

 

Option 2: Negotiated Demand Rate on the Southern Indiana lateral for 8.5 mile build with total firm transportation

commitment of 27,000 MMBtu per day:

 

Negotiated Demand Rate Capital Cost of 8.5 Mile Lateral

$0.1250 per MMBtu $8.1 Million

$0.1250 per MMBtu $8.9 Million

$0.1395 per MMBtu $9.7 Million

$0.1465 per MMBtu $10.4 Million

$0.1535 per MMBtu $11.2 Million

$0.1605 per MMBtu $12.0 Million

$0.1675 per MMBtu $12.7 Million

$0.1745 per MMBtu $13.5 Million

$0.1815 per MMBtu $14.3 Million

$0.1885 per MMBtu $15.1 Million

 

Note: To the extent the actual capital costs of the southern Indiana lateral line fall in between the various levels

provided herein, then the increase in the Negotiated Demand Rate will be pro rated accordingly.

 

In as much as the Negotiated Daily Demand Rate is based on the actual capital cost of the Southern Indiana Lateral

Line, prior to the in-service date of the FT agreement, Texas Gas shall notify Aventine in writing of its then good

faith estimate of the actual capital cost of the Southern Indiana Lateral Line and the preliminary Negotiated Daily

Demand Rate determined using Option 1 or 2, as applicable. Within two hundred seventy (270) days following the in-

service date of the FT agreement, Texas Gas shall notify Aventine in writing of the actual capital cost of the

Southern Indiana Lateral Line (together with detailed supporting documentation of such actual capital costs) and the

final Negotiated Daily Demand Rate from Option 1 or 2, as applicable. In the event the preliminary Negotiated Daily

Demand Rate is less, or greater, than the final Negotiated Daily Demand Rate, adjustment will be made back to the in-

service date of the FT agreement based upon such difference.

 

Negotiated Commodity Rate: Texas Gas' minimum Zone 3 to 3 commodity rate, currently $0.0058 per MMBtu, plus applicable surcharges and fuel for

transportation between the Primary Receipt Point and Primary Delivery Point specified above.

 

Fuel Retention: Subject to regulatory approval, Texas Gas will not charge fuel, use or unaccounted for associated with transportation

from the Primary Receipt Point to Primary Delivery Point if Texas Gas collects fuel on a transportation agreement

that delivers to the Southern Indiana Lateral Line. Otherwise Aventine shall pay the applicable Zone 3-3 fuel

retention.

 

Surcharges: If necessary, Texas Gas agrees to seek regulatory approval not to charge the FERC's ACA charge or any other surcharge

for transportation from the Primary Receipt Point to Primary Delivery Point if Texas Gas collects such ACA charge or

other surcharge, as applicable, on a transportation agreement that delivers to the Southern Indiana Lateral Line.

 

 

 

Continued on Sheet No. 91B