Tres Palacios Gas Storage LLC

Original Volume No. 1

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Effective Date: 08/01/2008, Docket: RP08-424-000, Status: Effective

Original Sheet No. 32 Original Sheet No. 32

 

FL RATE SCHEDULE

FIRM LOAN SERVICE

 

1. AVAILABILITY

 

This Rate Schedule is available to any Customer for the

purchase of firm loan service from TRES PALACIOS, provided that:

 

(a) TRES PALACIOS has determined that it has sufficient

operationally available firm storage capacity, injection and

withdrawal capacity to perform the firm loan service Customer has

requested ;

 

(b) Customer and TRES PALACIOS have executed a Firm

Loan Service Agreement under this Rate Schedule;

 

(c) Customer accepts responsibility for arranging any

transportation service required for utilization of the firm loan

service provided under this Rate Schedule;

 

(d) Availability of service under this Rate

Schedule shall be subject to a determination by TRES PALACIOS that

its performance of the service requested hereunder shall not cause

a reduction in TRES PALACIOS' ability to provide Firm Storage

Services under currently effective Storage Service Agreements; and

 

(e) Service under this Rate Schedule may not be

available to the extent that TRES PALACIOS would be required to

construct, modify, expand or acquire any facilities to enable TRES

PALACIOS to perform the requested services.

 

2. APPLICABILITY AND CHARACTER OF SERVICE

 

2.1 This Rate Schedule shall apply to all firm loan service

rendered by TRES PALACIOS to Customer through use of TRES

PALACIOS' storage facility located in Texas pursuant to an

executed Firm Loan Service Agreement.

 

Firm loan service rendered by TRES PALACIOS to Customer

under this Rate Schedule shall consist of:

 

(a) The withdrawal from storage on any Day during the Withdrawal

Period stated in Customer's executed Firm Loan Service Agreement

and delivery of Gas to the Point(s) of Delivery, upon nomination

and confirmation, of daily quantities of Gas up to the Maximum

Daily Withdrawal Quantity ("MDWQ"), as stated in Customer's

executed Firm Loan Service Agreement, provided that Customer's

total withdrawals shall not exceed its Maximum Loan Quantity;

 

(b) The withdrawal by Customer of sufficient quantities of Gas

under Section 2.1(a) to ensure that Customer's Loan Balance equals

Customer's Maximum Loan Quantity at the end of the Withdrawal

Period; provided that, if Customer's withdrawals during the

Withdrawal Period are curtailed by TRES PALACIOS, Customer shall

have a reasonable period of time immediately following the

Withdrawal Period to make withdrawals as necessary for Customer's

Loan Balance to equal its Maximum Loan Quantity;