Texas Gas Transmission, LLC

Third Revised Volume No. 1

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

First Revised Sheet No. 2005 First Revised Sheet No. 2005

Superseding: Substitute Original Sheet No. 2005

 

GENERAL TERMS AND CONDITIONS

Section 8

(Cont'd)

 

8.5.4 Conversion of Service to Rate Schedule NNL or SGL: A Customer receiving

no-notice service from Texas Gas under its "NNS" Rate Schedule may elect

to convert all or part of its no-notice service to "NNL" Rate Schedule, or

a Customer receiving no-notice service from Texas Gas under its "SGT" Rate

Schedule may elect to convert all or part of its no-notice service to

"SGL" Rate Schedule, as follows: Customer shall give Texas Gas at least

90 days advance written notice of its desire to convert. Within 45 days of

the receipt of such written notice, Texas Gas and Customer shall negotiate

in good faith a sales price for the corresponding volume of working gas in

storage. After Texas Gas and Customer agree to a mutually acceptable price

for the sale of the working gas, then Customer shall execute a new service

agreement converting the existing no-notice service to service under Texas

Gas Rate Schedule NNL or SGL, as applicable. The new NNL or SGL service

agreement shall begin on the mutually agreed-upon date set forth in the

new NNL or SGL service agreement and shall continue for a term expiring no

earlier than April 1 of the year subsequent to the expiration date

specified in the NNS or SGT service agreement being converted. If Texas

Gas and Customer are unable to agree to a mutually acceptable price for

the working gas within 45 days of Texas Gas' receipt of Customer's written

notice to convert, then Customer's request to convert to NNL or SGL shall

be deemed withdrawn and Customer's NNS or SGT service will continue

pursuant to the terms of Customer's existing NNS or SGT service agreement.

 

8.6 Supply Lateral Capacity

 

8.6.1 Use of any allocated, awarded, or grandfathered supply lateral capacity

provides Customer the right to (1) change primary receipt point capacity

reserved on supply laterals with such ability being limited only by

Customer's capacity rights on each supply lateral and by the availability

of firm receipt point capacity, and (2) release unused capacity on supply

laterals pursuant to the terms and conditions of Texas Gas' capacity

release program.

 

8.6.2 Texas Gas will post any of its available firm capacity on its supply

laterals on its Internet website on the same basis as it posts other

available firm capacity. Supply lateral capacity is subject to the

Request for Service, posting, and bidding processes as set forth in

Sections 8 and 11. In new firm service agreements executed on or after

July 3, 2007, Customers shall receive supply lateral capacity allocations

of up to 119% of the effective daily Contract Demand but not more than

100% of the effective contract demand, on any individual supply lateral,

as selected by Customer from the available supply lateral capacity. Any

supply lateral capacity allocated on or after July 3, 2007, shall not be

grandfathered supply lateral capacity as set forth in Sections 8.6.3 and

8.6.4 below.

 

8.6.3 All firm supply lateral capacity allocations and primary receipt point

designations within such supply lateral capacity allocations for firm

service agreements in existence on July 2, 2007 are grandfathered. Such

grandfathered supply lateral capacity allocations will remain in full

force and effect for the life of Customer's applicable contract, including

any automatic rollover or evergreen terms, and will be subject to

Customer's right of first refusal, if applicable, pursuant to Section 10

of these General Terms and Conditions. A listing of the grandfathered

supply lateral capacity allocations and existing primary receipt point

designations within such supply lateral capacity allocations will be

posted to Texas Gas' Internet Website.