Texas Gas Transmission, LLC

Third Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

Effective Date: 04/01/2009, Docket: RP09-03-000, Status: Suspended

First Revised Sheet No. 2100 First Revised Sheet No. 2100

Superseding: Original Sheet No. 2100

GENERAL TERMS AND CONDITIONS

Section 9

9. Fuel, Discounting, Negotiated Rates, and Other Rates and Charges

9.1 Unless otherwise agreed to in writing by Texas Gas and Customer, Texas Gas may,

from time to time, and at any time selectively after negotiation, discount the

rate(s) applicable to any individual Customer; provided, however, that such

discounted rate(s) shall not exceed the applicable Maximum Rate(s) nor shall they

be less than the Minimum Rate(s) set forth in the currently effective Sheet Nos.

21, 22, 23 and 32 of this Tariff. If Texas Gas so discounts any rates to any

Customer, Texas Gas shall file with the Commission any and all required reports

respecting such adjusted rate. Further, Texas Gas and Customer may mutually agree

to a negotiated rate pursuant to Section 9.5 of the General Terms and Conditions

of Texas Gas' tariff.

9.2 Fuel Retention

9.2.1 Fuel Zones

Gas service under this tariff is divided into three Fuel Zones:

Fuel Zone South is comprised of Service Zones SL and 1;

Fuel Zone Middle is comprised of Service Zones 2 and 3; and

Fuel Zone North is comprised of Service Zone 4.

The Service Zones are more fully defined in Section 8.4 of the General

Terms and Conditions of this tariff.

9.2.2 General

The provisions of this Section 9.2 are applicable to all transportation

services under which Texas Gas retains fuel. In addition to the payments

by Customer to Texas Gas for transportation service pursuant to Texas Gas'

Rate Schedules NNS, NNL, SGT, SGL, SNS, FT, STF, IT, FSS, and ISS,

Customer shall reimburse Texas Gas in-kind in accordance with the

Effective Fuel Retention Percentage(s) ("EFRP") applicable to each

transaction.

Fuel retained for each transportation transaction shall be calculated as

the product of the EFRP times the applicable quantity of gas tendered for

transportation. The EFRP shall be the sum of the Projected Fuel Retention

Percentage (PFRP) and the Fuel Adjustment Percentage (FAP) and shall be

set forth on Sheet Nos. 36, 37, and 38 and shall be subject to change from

time to time as provided in this Section 9.2 of these General Terms and

Conditions. Fuel retained for transportation transactions consisting

solely of back-hauls that do not consume gas between two physical points

shall be zero.

The provisions of this Section 9.2 are also applicable to storage service

under Rate Schedules FSS and ISS. Fuel retained for each service

transaction under these Rate Schedules shall be calculated as the product

of the EFRP times the applicable quantity of gas tendered for injection

into storage. The EFRP shall be the sum of the PFRP and the FAP and shall

be set forth on Sheet Nos. 36, 37, and 38 and shall be subject to change

from time to time as provided in this Section 9.2 of these General Terms

and Conditions. Fuel retained for In-Field transfers of Storage shall be

zero.

9.2.3 Effective Fuel Retention Percentages

EFRPs for transportation under Rate Schedules FT and IT shall be

established on an annual basis. EFRPs for transportation under Rate

Schedules NNS, NNL, SGT, SGL, SNS, and STF shall be established as set

forth below to provide either an annual EFRP, which remains constant for

the entire annual period, or a seasonal EFRP, which applies, as

applicable, to the Summer and Winter seasons, as follows:

(a) Winter Season - November 1 through March 31, and

(b) Summer Season - April 1 through October 31.