Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 09/15/2008, Docket: RP08-392-003, Status: Effective

Substitute Original Sheet No. 607 Substitute Original Sheet No. 607

 

RATE SCHEDULE SNS (cont'd)

 

 

storage, so that Texas Gas can determine the extent to which it can make such

injections and adjust its operations accordingly.

 

13. Shoulder Month Limitations

 

Although Customer's Summer Month Contract Demand shall be available during any day of

a Shoulder Month, it shall only be available for a maximum of fifteen (15) gas days

during any shoulder month. In the event Texas Gas is unable to provide both Shoulder

Month service under Rate Schedule SNS and Shoulder Month service pursuant to the

Shoulder Month Flexibility provisions of either Section 12 of Rate Schedule NNS,

Section 12 of Rate Schedule NNL, or Section 12 of Rate Schedule SGT, or Section 12 of

Rate Schedule SGL, then service pursuant to the Shoulder Month Flexibility provisions

of Rate Schedules NNS, NNL, SGT, and SGL shall take priority over shoulder month

service under Rate Schedule SNS.

 

14. Storage Inventory Tests

 

Inventory verification tests of Texas Gas' storage fields will be conducted on a

semiannual basis. These tests require the temporary suspension of individual storage

field activities (injections and withdrawals) for a period of approximately two

weeks. If conditions will not permit the injection or withdrawal of the full

Unnominated Daily Quantity, Texas Gas may temporarily adjust the limit and allow

make-up quantities on succeeding days. Texas Gas will provide at least 45 days prior

notice in regard to the scheduling of these shut-in periods.

 

15. Supply Lateral Capacity

 

The provisions of Section 8.7 of the General Terms and Conditions of this tariff,

Supply Lateral Capacity, shall apply to SNS service.

 

16. Hourly Deliveries

 

Texas Gas shall not be obligated to deliver to Customer at the primary point of

delivery in any hour more than one-sixteenth of Customer's Contract Demand, subject

to Section 18.1(l) of the General Terms and Conditions of this tariff.

Notwithstanding the foregoing, hourly overruns may be authorized pursuant to Section

6 above.

 

17. Penalty for Failure to Close Maximum Unnominated Quantity Account

 

In the event Customer fails to deliver in kind to Texas Gas any portion of its Maximum

Unnominated Quantity it has borrowed from Texas Gas prior to the end of the Summer Season

and/or termination of its contract for service under this Rate Schedule, if Customer has

not contracted for a full season of service, Customer shall, within 10 days of invoice

from Texas Gas, pay Texas Gas an amount equal to the greater of 200% of Texas Gas' book

value of its working gas in storage or 200% of the highest monthly average index price

calculated pursuant to Section 14 of the General Terms and Conditions during the past

twelve month period. Likewise, if Customer fails to remove from storage any portion of

its Maximum Unnominated Quantity it has injected into storage prior to the end of the

Summer Season and/or termination of its contract for service under this Rate Schedule,

Customer shall forfeit such remaining gas to Texas Gas.