Texas Gas Transmission, LLC
Third Revised Volume No. 1
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Effective Date: 09/15/2008, Docket: RP08-392-003, Status: Effective
Original Sheet No. 555 Original Sheet No. 555
Small Customer General Transportation Service
SGL-SL, SGL-1, SGL-2, SGL-3, and SGL-4
(Customers with SGL Winter Contract Demands of Less than 7,500 MMBtu/d and Total
Firm Contract Demands Not Exceeding 10,000 MMBtu/d)
6.2 Payment for Unauthorized Overrun Quantity
In any month in which Customer takes an Unauthorized Overrun Quantity, Customer
shall pay to Texas Gas, in addition to the charges otherwise payable pursuant to
Section 4.1 herein above:
(a) A "Nominal Overrun Penalty" equal to twice the effective FT Overrun Rate
for all Unauthorized Overrun Quantities taken on any day in excess of 250
(b) An "Excess Overrun Penalty" of $10.00 per MMBtu for all Unauthorized
Contract Demand Overrun Quantities on any day in excess of 375 MMBtu.
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.
No overrun penalty shall be payable for any day in which the Unauthorized Overrun
quantity is less than 250 MMBtu.
The payment of a penalty for an Unauthorized Overrun Quantity by a Customer shall
not under any circumstances be considered as giving such Customer the right to
take an Unauthorized Overrun Quantity nor shall such payment be considered as a
substitute for any other remedies available to Texas Gas or any or 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 Overrun if,
on the day when the Unauthorized Overrun was taken, deliveries to Texas Gas' other
customers were not adversely affected by the taking of such Unauthorized 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 Overrun occurs in a non-critical situation and does not cause
Texas Gas shall be obligated to waive any penalty for an Unauthorized Overrun
a) when such overrun is taken under circumstances beyond the control of
Customer due to emergency conditions on Texas Gas' facilities, or
b) when such overrun is due to accident to or breakage of pipelines,
machinery or equipment of the Customer; provided, however, Customer shall
promptly and diligently take such action as may be necessary and
practicable under the then existing circumstances to repair or otherwise
remedy the situation and furnish Texas Gas satisfactory evidence that such
accident or breakage was not due to Customer's gross negligence.
7. Election of Rate Schedule
Refer to Section 8.6 of the General Terms and Conditions of this tariff.