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.