Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 01/01/2009, Docket: RP09-128-000, Status: Effective

First Revised Sheet No. 606 First Revised Sheet No. 606

Superseding: Substitute Original Sheet No. 606

 

RATE SCHEDULE SNS (cont'd)

 

12. Summer Season Provisions

 

During the Summer Season, Texas Gas will deliver to Customer up to Customer's

Contract Demand and Customer's Summer Quantity Entitlement-SNS as set forth below.

 

12.1 Customer may nominate into Texas Gas' system a quantity of gas up to the

Contract Demand.

 

12.2 In addition to the Nominated Daily Quantity-SNS actually scheduled by Customer,

Texas Gas will adjust deliveries from or injections into storage from Customer's

available Unnominated Daily Quantity to meet Customer's requirements up to

Customer's Contract Demand-SNS. Although a formal nomination is not required

to receive Customer's available Unnominated Daily Quantity-SNS, Customer

shall provide operational notice to Texas Gas of its anticipated needs.

 

12.3 Texas Gas shall maintain an account reflecting the net amount of Unnominated

Daily Quantity-SNS actually utilized by Customer, which net amount shall not

exceed the Maximum Unnominated Quantity-SNS. The initial balance in this

account shall be zero and the closing balance at the earlier of the end of

the summer season or the end of the Contract term, shall also be zero.

Subject to its actual physical requirements, Customer shall use its best

efforts to maintain, as near as practicable, an account balance of zero

during the Summer Season. Texas Gas may give notice requiring a Customer to

return its account balance to zero (i) within 24 hours if the balance is

equal to or less than the Customer's daily Contract Demand, (ii) within 48

hours if the balance exceeds the Customer's daily Contract Demand but is

equal to or is less than twice the Customer's daily Contract Demand or (iii)

within 72 hours if the balance exceeds twice the Customer's Contract Demand.

If the Customer fails to return its account balance to zero consistent with

such notice, the Customer shall pay a penalty of up to $50 per MMBtu per day

for each MMBtu remaining out of balance.

 

12.4 During the Summer Season, Texas Gas will also inject gas into storage on a best

efforts basis as part of SNS service. Although such injections will be done on a

best efforts basis, Texas Gas will be presumed, unless it gives notice to the

contrary, to be able to inject into storage such quantities of gas as to take into

account routine variations in no-notice deliveries. If Texas Gas is unable to

make such best efforts injections, it will advise Customer by posting on its

Internet Website. However, no presumption will exist for non-routine situations

(e.g. sustained injections of more than three days) and, in such non-routine

situations, Customer must give 24 hours advance written notice to Texas Gas of

quantities it desires to inject into