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. 1250 First Revised Sheet No. 1250

Superseding: Original Sheet No. 1250

 

RATE SCHEDULE

ISS-M

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

 

(c) 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

 

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

such gas from 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

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 judgment, 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 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-M Stored Volume attributable to a Customer. All services performed under this

Rate Schedule shall be performed on a capacity available basis. ISS-M 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 Schedule FSS-M or to

otherwise ensure system operational integrity. To the extent that Texas Gas cannot

fulfill these firm obligations due to ISS-M service activity, Customer may be required to

withdraw all, or any part, of its Stored Volume under this ISS-M Rate Schedule within 30

Days following notification from Texas Gas.