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. 409 Original Sheet No. 409

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

 

20. POLICY FOR CONSTRUCTION OF INTERCONNECT FACILITIES (Continued)

 

20.4 Equipment. Seller shall have the right to require the installation of any equipment

which is necessary to maintain the merchantability of the gas within its system and

the operational integrity of its system, and to enable accurate custody transfer

measurement.

 

20.5 Responsibilities. Subject to the foregoing, the construction, ownership, operation

and maintenance of the interconnect facilities will be mutually agreed upon between

Seller and the requesting party. Seller shall have the right to be the custody

transfer party at the interconnect.

 

20.6 Support; Compliance. The requesting party shall provide support for any

authorizations or permits required by Seller to construct and operate the

interconnect facilities. The requesting party shall be responsible for assuring

that any facilities that it constructs, owns or operates comply with all applicable

governmental regulations and Seller's design requirements for their intended use.

 

20.7 Payment for Costs Incurred by Seller.

 

(a) The requesting party shall directly reimburse Seller via an advance payment(s)

for all reasonable costs incurred by Seller to design, construct, own, operate

and maintain the interconnect facilities, including as appropriate tax related

charges and, if applicable, associated operating and maintenance costs directly

related to the interconnect; provided, however, that Seller and the requesting

party may mutually agree that the requesting party will pay Seller for such

costs through an incremental facilities charge applicable to its firm

transportation service agreement(s) with Seller which will reflect, as

appropriate, all of Seller's capital costs associated with such facilities,

including without limitation depreciation, return on equity, related income

taxes and all other taxes, and, if applicable, associated operating and

maintenance costs.

 

(b) Notwithstanding the foregoing, Seller and the requesting party may negotiate an

alternative cost recovery mechanism.