Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 03/01/2009, Docket: RP09-304-001, Status: Effective

Substitute First Revised Sheet No. 2805 Substitute First Revised Sheet No. 2805

Superseding: Original Sheet No. 2805

 

GENERAL TERMS AND CONDITIONS

Section 16

(Cont'd)

 

 

(ii) Releasing Customers may specify a minimum price term and/or volume

to be bid for capacity offered to be released and assigned.

However, regardless of any minimum price posted by the Releasing

Customer, or however the rate bid by the Potential Replacement

customer is stated (i.e., two-part rate or volumetric rate), the

rate bid represents the reservation portion of the charges to the

Releasing customer, and in addition to such rate bid, Replacement

Customers must agree to pay Pipeline the applicable maximum

commodity rate for all volumes actually transported for the

Replacement Customer, plus any related surcharges, unless the

Pipeline agrees with the Replacement Customer to some lesser rate.

 

(iii) To the extent a release is subject to the maximum rate cap, a

Releasing Customer cannot resell for the maximum rate plus any

marketing fees that may be due Pipeline, but a Releasing Customer

can require a Replacement Customer to pay any applicable

surcharges, in addition to the maximum rate.

 

(iv) Pipeline may actively market any capacity offered for release and

assignment, if Pipeline and the Releasing Customer mutually agree.

The fee to be retained by Pipeline for such marketing activities

and the other terms and conditions of such arrangement, including

what activities are necessary or contemplated to secure a fee, will

be negotiated by the Pipeline and the Releasing Customer on a case-

by-case basis.

 

(v) As stated in Section 16.3(e)(ii) above, bids are to be based on the

Reservation Charge only, provided that the Reservation Charge may

be converted into a volumetric charge. To the extent a volumetric

release is subject to the maximum rate cap, the maximum rate for

such volumetric releases shall be equal to the 100% load factor

rate of the otherwise applicable maximum Reservation Charge, plus

all applicable usage charges.

 

(vi) A Releasing Customer may release capacity to a Customer without

bidding for any period of 31 days or less; provided, however, a

Releasing Customer may not roll over, extend, or in any way

continue the release to the same Replacement Customer using this

bidding exemption until 28 days after the first release period has

ended.