Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 09/15/2008, Docket: RP08-392-000, Status: Effective

Original Sheet No. 403 Original Sheet No. 403 RATE SCHEDULE NNS (cont'd) the lesser of operational information or actual data to determine whether Customer's excess takes are allowable variation or unauthorized overrun quantity. c. Unauthorized Contract Demand Overrun Quantity Customer takes in excess of 102 percent of the Contract Demand on any day, without Texas Gas' prior consent, shall constitute Unauthorized Contract Demand Overrun Quantity. 6.2 Unauthorized Contract Demand Overrun Penalty In any month in which Customer takes an Unauthorized Contract Demand Overrun, Customer shall pay to Texas Gas the following penalties in addition to the charges otherwise payable hereunder: (a) A "Nominal Overrun Penalty" equal to twice the effective FT Overrun Rate for all Unauthorized Contract Demand Overrun Quantities taken on any day over 102 percent of the Contract Demand; and (b) An "Excess Overrun Penalty" of $10.00 per MMBtu for all Unauthorized Contract Demand Overrun Quantities taken on any day in excess of 105% of Contract Demand. In the event a Customer incurs an Excess Overrun Penalty, Texas Gas will credit any amounts collected as a Nominal Overrun Penalty against amounts collected as an Excess Overrun Penalty, so that the total Overrun Penalty collected does not exceed $10.00 per MMBtu for overruns in excess of 105% of Contract Demand. The payment of a penalty for Unauthorized Contract Demand Overrun by a Customer shall not under any circumstances be considered as giving such Customer the right to take Unauthorized Contract Demand Overrun nor shall such payment be considered as a substitute for any other remedies available to Texas Gas or any of Texas Gas' other Customers against the offending Customer for failure to respect its obligation to adhere to the provisions of its contract with Texas Gas. Texas Gas shall have the right, without obligation, to waive, on a non-discriminatory basis, any Nominal Overrun Penalty for an Unauthorized Contract Demand Overrun if, on the day when the Unauthorized Contract Demand Overrun was taken, deliveries to Texas Gas' other Customers were not adversely affected by the taking of such Unauthorized Contract Demand Overrun or if Texas Gas' pipeline operations, including gas storage operations, were not impaired thereby. Texas Gas must waive any Excess Overrun Penalty if the Unauthorized Contract Demand Overrun occurs in a non-critical situation and does not cause operational problems.