Texas Gas Transmission, LLC

Third Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

Effective Date: 03/08/2010, Docket: RP10-366-000, Status: Effective

Third Revised Sheet No. 1402 Third Revised Sheet No. 1402

Superseding: Second Revised Sheet No. 1402

GENERAL TERMS AND CONDITIONS

Section 2

(Cont'd)

The term "Market Center" shall mean a point of interconnection between Texas Gas and

another interstate pipeline system where gas purchases and sales can occur.

The term "Maximum Daily Injection Quantity" or "MDIQ" shall mean the maximum quantity of

gas that the Pipeline is required to inject during any one day into storage for a

Customer under Rate Schedule FSS, ISS, FSS-M, or ISS-M.

The term "Maximum Daily Withdrawal Quantity" or "MDWQ" shall mean the maximum quantity of

gas that the Pipeline is required to withdraw during any one day from storage for a

customer under Rate Schedule FSS, ISS, FSS-M, or ISS-M.

The term "Maximum Seasonal Quantity" or "MSQ" shall mean the maximum (net) quantity of

gas Pipeline is obligated to deliver to Customer from storage during any Winter Season

under Rate Schedule FSS, ISS, FSS-M, or ISS-M.

The term "Maximum Unnominated Quantity-SNS" shall mean the maximum cumulative quantity of

gas Texas Gas is obligated to deliver to Customer from storage or inject into storage on

behalf of Customer from time to time under the SNS Rate Schedule. The Maximum

Unnominated Quantity shall be a mutually agreed quantity not to exceed three times

Customer's daily Contract Demand.

The term "Maximum Unnominated Quantity-WNS" shall mean the maximum cumulative quantity of

gas Texas Gas is obligated to deliver to Customer from storage or inject into storage on

behalf of Customer from time to time under the WNS Rate Schedule. The Maximum

Unnominated Quantity shall be a mutually agreed quantity not to exceed three times the

Customer's daily Contract Demand.

The term "Mcf" is the abbreviation employed to denote 1,000 standard cubic feet of gas.

The term "MMBtu" is the abbreviation employed to denote 1,000,000 Btu and shall be

synonymous and interchangeable with the term "dekatherm" (Dth) and shall be the standard

unit for purposes of nominations, scheduling, invoicing, and balancing. Allocated

quantities and imbalances shall be expressed in the same units as nominated quantities.

Standard conversion factor between dekatherms and Gigajoules shall be 1.055056 Gigajoules

per dekatherm. The standard Btu is the International Btu, which is also called the Btu

(IT); the standard joule is the joule specified in the SI system of units. Standard

conversion factor between dekatherms and gigacalories shall be 0.251996 gigacalories per

dekatherm.

The term "month" shall mean the period beginning on the first day of the calendar month

and ending on the first day of the next succeeding calendar month.

The term "Net Present Value" or "NPV" shall mean the value, as determined by Texas Gas,

equal to the discounted cash flow, using a 10 percent discount factor, or incremental

revenues to Texas gas based upon the rate, term, and quantity. The NPV may be calculated

on a per MMBtu basis or on an aggregate basis, provided that Texas Gas will state in its

auction notice posting which basis will be used. The NPV shall include revenues

generated by the reservation rate or other form of revenue guarantee.

The term "NNL" or "NNL service" shall refer to the no-notice transportation provided by

Texas Gas under the NNL Rate Schedule.

The term "NNS" or "NNS service" shall refer to the no-notice transportation provided by

Texas Gas under the NNS Rate Schedule.

The term "Nominated Daily Quantity" shall mean that portion of Customer's Contract Demand

for which Customer is responsible for nominating supplies into Texas Gas' system (i.e.

the pipeline capacity portion of NNS/NNL/SGT/SGL service), expressed on a seasonal basis

under Rate Schedule NNS, NNL, SGT or SGL.