Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 03/01/2009, Docket: RP09-304-000, Status: Effective

First Revised Sheet No. 2817 First Revised Sheet No. 2817

Superseding: Substitute Original Sheet No. 2817

 

GENERAL TERMS AND CONDITIONS

Section 16

(Cont'd)

 

 

(b) For purposes of choosing the "best bid" for permanent releases of

capacity, Pipeline will always use the methodology set forth in Section

16.3(f) herein.

 

 

16.8 Special Terms and Conditions Applicable to NNS and NNL Service:

 

Transportation service under the NNS and NNL Rate Schedules is provided by

combining pipeline capacity and storage capacity into a single no-notice service

for a group of eligible customers. NNS and NNL Customers may release all or any

portion of that NNS or NNL service in any one of three ways:

 

(a) Release of Contract Demand: An NNS or NNL Customer may release on an

annual basis any portion of its Contract Demand, consisting of both the

unnominated (storage) and nominated (pipeline) components, with all

attendant operating and refill or fill obligations associated with those

components, including adequate Summer Contract Demand to permit refill or

fill of the Unnominated Seasonal Quantity released. Such release shall

specify on a daily and seasonal basis both the unnominated (storage) and

nominated (pipeline) components making up the Contract Demand to be

released. Such release of NNS or NNL Contract Demand must be to

interested Replacement Customers that can make use of it within the

releasing NNS or NNL Customer's current delivery points.

 

(b) Release of Nominated Daily Quantity: An NNS or NNL Customer may release

all or any portion of its Nominated Daily Quantity separately on the same

terms and conditions as FT service is released under this Section 16;

provided, however, a Releasing NNS or NNL Customer shall retain adequate

capacity to meet its obligations under Section 11.2 of the NNS or NNL Rate

Schedule to redeliver or deliver quantities into storage. If an NNS or

NNL customer releases only the Nominated Daily Quantity of his NNS or NNL

service pursuant to this Section 16.8(b), the replacement customer will be

obligated to pay Pipeline the maximum NNS or NNL commodity rate for all

commodity quantities transported. Quantities transported pursuant to such

a replacement transaction shall also be subject to the applicable NNS or

NNL fuel retention percentage.