Transcontinental Gas Pipe Line Company, LLC
Fourth Revised Volume No. 1
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Effective Date: 12/31/2008, Docket: RP09-158-000, Status: Effective
Original Sheet No. 354 Original Sheet No. 354
GENERAL TERMS AND CONDITIONS
(Continued)
13. SUPPLY CURTAILMENT (Continued)
13.5 Compensation (Continued)
(c) The amount of compensation owed by each Buyer that experienced lesser
curtailment to each Excess Curtailed Buyer shall be determined as follows:
(1) If an Excess Curtailed Buyer is unable to replace any or all of the
Excess Curtailment Volume with volumes from other natural gas
(excluding liquefied natural gas and synthetic natural gas) sources,
then the Buyer that experienced lesser curtailment shall pay to the
Excess Curtailed Buyer, as the Excess Curtailed Buyer's sole and
exclusive remedy for the Excess Curtailment Volume not replaced,
liquidated damages in an amount equal to one hundred fifty percent
(150%) of the Unit Price for the applicable month (as defined in
subparagraph (d) below) multiplied by the difference between (i) the
Excess Curtailed Buyer's pro rata curtailment quantity determined
under Section 13.1 above and (ii) the sum of the volumes delivered
pursuant to this Section 13 and the Replacement Volumes, as defined
below, if any, purchased by the Excess Curtailed Buyer.
(2) If an Excess Curtailed Buyer is able to replace any or all of the
Excess Curtailment Volume with volumes from other natural gas
(excluding liquefied natural gas and synthetic natural gas) sources
("Replacement Volumes"), then the Buyer that experienced lesser
curtailment shall pay to the Excess Curtailment Buyer, as the Excess
Curtailment Buyer's sole and exclusive remedy for the Excess
Curtailment Volume, liquidated damages in an amount equal to (i) the
difference between (a) the price per dekatherm that the Excess
Curtailment Buyer would have paid if the gas had been delivered under
such Excess Curtailment Buyer's Rate Schedule NS (firm only) Service
Agreement with Seller and (b) the cost per dekatherm reasonably
incurred by the Excess Curtailment Buyer for such Replacement Volumes,
such cost to be adjusted if necessary for pricing point comparability,
multiplied by (ii) the Replacement Volumes not to exceed one hundred
percent (100%) of the difference between (a) the Excess Curtailed
Buyer's pro rata curtailment quantity determined under Section 13.1
above and (b) the volume actually delivered pursuant to this Section
13.
(d) The Unit Price of Gas to be used for purposes of subparagraph (c)(1) above
shall be determined by computing the simple average of the four regional
prices (rounded to the fourth decimal place) set forth in the table "Gas
Price Report" (in $/MMBtu) published in the first issue for such month of
Natural Gas Week (or any succeeding publication of Oil Daily, Inc.) in the
column labeled "This Week" for these regions: 1) Texas, Gulf Coast Offshore,
Spot Delivered to Pipeline; 2) Texas, Gulf Coast Onshore, Spot Delivered to
Pipeline; 3) Louisiana, Gulf Coast Offshore, Spot Delivered to Pipeline; 4)
Louisiana, Gulf Coast Onshore, Spot Delivered to Pipeline.
14. DULY CONSTITUTED AUTHORITIES
The rate schedules of Seller, these General Terms and Conditions, and the respective
obligations of the parties under the service agreement, are subject to valid laws, orders,
rules and regulations of duly constituted authorities having jurisdiction.