Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 09/15/2008, Docket: RP08-392-000, Status: Effective

Original Sheet No. 2407 Original Sheet No. 2407 GENERAL TERMS AND CONDITIONS Section 12 (Cont'd) Customers paying a Negotiated Rate which exceeds the Maximum Rate will be considered to be paying the Maximum Rate for purposes of this Section 12.11. 12.12 Priorities Applicable for Scheduling Capacity on the Mainline If insufficient pipeline capacity exists to satisfy all requests for transportation service, Texas Gas shall allocate mainline capacity in sequence as follows, with 12.12(a) and 12.12(b) being treated equally for allocation of mainline capacity: (a) Pro rata to firm transportation customers utilizing in-the-path firm transportation service pursuant to Texas Gas' Firm Rate Schedules. In- the-path firm transportation service consists of firm transportation service from primary or secondary Points of Receipt in the zone in which a firm customer has reserved firm transportation capacity, or portion of the zone in which a firm customer has not released its firm capacity rights pursuant to Section 16 of the General Terms and Conditions of Texas Gas' FERC Gas Tariff, to the firm customer's primary Point of Delivery or to a secondary Point of Delivery physically located upstream of the firm customer's primary Point of Delivery. (b) Pro rata to firm transportation customers delivering gas to downstream secondary Points of Delivery where the firm customers are utilizing firm in-the-path capacity pursuant to Texas Gas' Firm Rate Schedules through the capacity constrained point. (c) Pro rata among firm transportation customers transporting gas through Texas Gas' mainline to either an upstream or downstream secondary Point of Delivery where firm transportation customers are utilizing out-of-path capacity pursuant to Texas Gas' Firm Rate Schedules through a part of the mainline system where there is insufficient capacity to satisfy all requests for firm transportation service. Out-of-path transportation service consists of firm transportation service in which a firm customer utilizes capacity that is physically located outside their primary path, regardless of whether such out-of-path capacity is in the same zone or in an upstream zone of the firm customer's primary Point of Delivery or is downstream of the firm transportation customer's firm capacity path. (d) Among interruptible transportation customers pursuant to Texas Gas' Interruptible Rate Schedules and among transportation customers receiving authorized overrun service pursuant to Texas Gas' Firm and Interruptible Rate Schedules based upon the highest rate paid. Such transportation customer may increase its rate paid to Texas Gas' maximum applicable rate to obtain a higher scheduling priority for quantities nominated pursuant to the applicable Rate Schedule above. Capacity shall be allocated on a pro rata basis among customers willing to pay the same unit rate for such service. Customers paying a Negotiated Rate which exceeds the Maximum Rate will be considered to be paying the Maximum Rate for purposes of this Section 12.12.