Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 04/01/2009, Docket: RP09-405-000, Status: Effective

First Revised Sheet No. 1225 First Revised Sheet No. 1225

Superseding: Original Sheet No. 1225

 

RATE SCHEDULE

FSS-M

Firm Storage Service

with Market Based Rates

 

1. Availability

 

This Rate Schedule applies to the 8,400,000 MMBtu of storage and 93,855 MMBtu/day of

deliverability for which Pipeline has received approval to charge market based rates.

This Rate Schedule is available for the purchase of such 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;

 

(b) Customer has submitted a Winning Bid for such uncommitted storage capacity

pursuant to Section 11 of the General Terms and Conditions of Texas Gas's FERC

Gas Tariff

 

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

 

(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 shall provide its own gas for storage or may have the option to purchase

such gas from the Pipeline, if available, 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

Account 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 and SGT 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 firm receipt and injection of Customer's

gas into storage during the Summer Season and the subsequent firm withdrawal and delivery

of the gas during the Winter Season. 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.