Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 03/04/2010, Docket: RP10-360-000, Status: Effective

Second Revised Sheet No. 3704 Second Revised Sheet No. 3704

Superseding: First Revised Sheet No. 3704

 

GENERAL TERMS AND CONDITIONS

Section 25

(Cont'd)

 

 

25.9 Reimbursement of Sales and Use Taxes

 

Customer shall pay to Transporter any applicable energy, value added, sales or use

tax, or similar tax, and any penalty and interest imposed on the Customer by the

federal government, any state, or by any political subdivision of a state, which

amount Transporter is obligated by law to collect and remit. Payment shall be at

the applicable rate prescribed by law. If Customer is exempt from the obligation

to pay such taxes, Customer shall provide Transporter with documentation

establishing that exemption.

 

25.10 Separation of Storage Services

 

Texas Gas shall manage and account for cost-based storage service under Rate

Schedules FSS, ISS, NNS, SNS, WNS and SGT separately from market based rate

storage service under Rate Schedules FSS-M and ISS-M. Texas Gas will establish

and maintain separate logical meters to be utilized solely for FSS-M and ISS-M

service, and nomination, scheduling and allocation for FSS-M and ISS-M shall be

handled separately from cost-based services. As set forth in Rate Schedules FSS-M

and ISS-M, Texas Gas has received approval to charge market based rates for

8,400,000 MMBtu of storage capacity and 93,855 MMBtu/day of deliverability. Texas

Gas will limit the volume of storage capacity and deliverability available for

FSS-M and ISS-M service subject to Market Based Rate authority received in Docket

No. CP07-405-000 to these volumes.

 

Any reductions in the availability of interruptible storage service due to system

integrity issues will be prorated as between interruptible cost-based and market-

based rate service.

 

Regarding system outages, Texas Gas will utilize a three-prong approach as

follows:

 

1. If Texas Gas can reasonably determine that the facility outage involves

only equipment dedicated to market-based customer, then only the market-

based customers will be affected;

 

2. If Texas Gas can reasonably determine that the facility outage involves

only equipment dedicated to cost-based customers, then only the cost-based

customers will be affected; and

 

3. If the facility outage involves equipment that benefits both cost-based

and market-based customer or Texas Gas cannot reasonably determine that

the facility outage is limited to equipment dedicated to only one category

of customers, both cost-based and market-based customer will be affected

on a prorated basis.