Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 09/15/2008, Docket: RP08-392-003, Status: Superseded

Second Substitute Original Sheet No. 900 Second Substitute Original Sheet No. 900

 

RATE SCHEDULE

ISS

Interruptible Storage Service

 

 

1. Availability

 

This Rate Schedule is available for the purchase of storage service from the Pipeline for

any Customer subject to the following limitations:

 

(a) Pipeline has determined that it has sufficient available and uncommitted storage

capacity to perform service requested by Customer; and

 

(b) Pipeline and Customer have executed an Agreement under this Rate Schedule;

 

(c) Customer has met the credit requirements of Section 5 of the General Terms and

Conditions; and

 

(d) Pipeline and Customer have executed applicable transportation agreements to enable

the delivery of gas to Pipeline's storage facilities and the redelivery of gas to

Customer; and

 

(e) Customer has the option to provide its own gas for storage or may purchase such

gas from Pipeline at the greater of a negotiated market price or Pipeline's book

cost of gas, unless the available storage capacity to be used to provide service

to Customer is filled, in whole or in part, with working gas owned by Pipeline, in

which case either the Customer or another buyer must agree to purchase such

working gas inventory from Pipeline at the greater of a negotiated market price or

Pipeline's book cost of such gas. Such purchase must be made prior to the

commencement of service under this rate schedule. The book cost of such gas is

defined as the unit cost of working gas as reflected in FERC Acct. 117.3 on the

Pipeline's books. Pipeline will be required, however, to allow such purchase of

gas in place only if inventory levels are sufficient to, in Pipeline's reasonable

judgement, permit such purchase without adversely affecting the storage

deliverability required to perform any of Pipeline's other services including no-

notice service for NNS, NNL, SGT, and SGL customers; Pipeline will sell such gas

unless such a sale would hamper its ability to provide no-notice service or to

balance Pipeline's system.

 

2. Applicability & Character of Service

 

The service provided hereunder provides for the receipt and injection of Customer's gas

into storage during the Summer Season and the subsequent withdrawal and delivery of the

gas during the Winter Season, all on an interruptible basis. The service is a contract

storage service which requires the Customer to schedule and nominate quantities to be

injected into or withdrawn from storage. Withdrawals during the Summer Season and

injections during the Winter Season will be permitted on an interruptible basis, subject

to Pipeline's discretion.

 

Daily withdrawal and injection Quantities of Gas shall be subject to available capacity

and ISS Stored Volume attributable to a Customer. All services performed under this Rate

Schedule shall be performed on a capacity available basis. ISS service will only be

available to the extent that injection, storage, and withdrawal capacity is not required

to satisfy Texas Gas' firm service obligations under Rate Schedules NNS, NNL, and FSS or

to