Transwestern Pipeline Company, LLC

Third Revised Volume No. 1

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Effective Date: 11/02/2009, Docket: RP10-24-000, Status: Effective

Third Revised Sheet No. 91 Third Revised Sheet No. 91

Superseding: Second Revised Sheet No. 91

 

RATE SCHEDULE FTS-4

Firm Transportation Service

For San Juan 2005 Expansion

 

1. AVAILABILITY

 

This Rate Schedule is available for firm transportation service on a first-come, first-served basis by

Transwestern Pipeline Company, LLC (Transporter) for any Shipper:

 

A. When Shipper has entered into an FTS-4 Service Agreement of the form contained in Transporter's

FERC Gas Tariff, and

 

B. Where capacity is available on Transporter's system for such firm transportation service.

 

2. APPLICABILITY AND CHARACTER OF SERVICE

 

Gas transported by Transporter for Shipper under this Rate Schedule shall be on a firm basis.

Transporter shall be obligated on any day to receive from Shipper for transportation hereunder the

quantity of gas made available by Shipper for transportation from Primary Receipt Points, provided,

however, that such quantity shall not exceed the Maximum Daily Transportation Quantity (MAXDTQ)

specified in the Service Agreement, exclusive of Transport Fuel. Transporter may, on a not unduly

discriminatory basis, agree to varying levels in Shipper's MAXDTQ. Transporter may also receive from

Shipper for transportation hereunder the quantity of gas made available by Shipper for transportation

from Alternate Receipt Points, provided, however, that the sum of the quantity of gas made available

by Transporter for transportation from Primary and Alternate Receipt Points shall not exceed the

MAXDTQ specified in the Service Agreement, and subject to the provisions of Section 22 of the General

Terms and Conditions of this Tariff. Transporter shall make available for delivery to Shipper at the

Primary Delivery Point(s) specified in the Service Agreement, as may be amended upon mutual agreement

from time to time, and subject to the availability of capacity and any pending request for capacity,

or at Alternate Delivery Points on an interruptible basis, the same quantities received as measured,

less Transport Fuel, in accordance with Sections 4 and 22 of the General Terms and Conditions of this

Tariff. Transporter may, on a not unduly discriminatory basis, agree to a minimum delivery pressure.

 

2.1 TERM

 

The period of time to be covered by the Service Agreement shall be determined by agreement between the

parties.

 

3. RATE

 

Section 3 of Rate Schedule FTS-1 is incorporated herein, provided however that the FTS-4 Rate, Rate

Schedule or Service Agreement shall be substituted and apply where the FTS-1 rate, Rate Schedule or

Service Agreement are referenced.

 

4. CREDITWORTHINESS

 

Shipper shall establish and, at all times during the term of Shipper's Service Agreement, maintain

creditworthiness as determined by Transporter in accordance with the standard set forth in the second

paragraph of Section 13 of the General Terms and Conditions of this Tariff. If Shipper is unable, at

any time during the term of Shipper's Service Agreement, to establish and/or maintain creditworthiness

in accordance with such standard, then, within 10 days of Shipper's receipt of written notice from

Transporter that Shipper has failed to maintain creditworthiness, Shipper shall either: (a) provide

one of the following forms of credit support (each hereinafter referred to as "Credit Support"): (i)

an irrevocable letter of credit issued by a bank acceptable to Transporter, and containing terms

acceptable to Transporter, or (ii) a cash prepayment; or (b) provide to Transporter a guaranty in a

form acceptable to Transporter of Shipper's obligations under Shipper's Service Agreement, executed by

an entity that satisfies such creditworthiness standard.

 

The amount of any Credit Support to be provided by Shipper shall be determined based on (a) Shipper's

proportionate share (based on MAXDTQ) of the cost of the San Juan Expansion, with such amount

decreased by 10% each year during the term of Shipper's Service Agreement, less (b) the present value

of reservation revenue that would be collected if the capacity were resold for the remainder of the

term, as determined by an open season held during the 10 day period referenced above and in accordance

with Section 24 of the General Terms and Conditions of this Tariff ("Mitigation Value").