Viking Gas Transmission Company

First Revised Volume No. 1

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Effective Date: 12/24/2004, Docket: RP05- 89-000, Status: Effective

Sixth Revised Sheet No. 62 Sixth Revised Sheet No. 62 : Effective

Superseding: Fifth Revised Sheet No. 62

 

GENERAL TERMS AND CONDITIONS

 

 

15. (RESERVED FOR FUTURE USE)

 

16. NEW FACILITIES POLICY

 

Company will build, acquire and/or install service lateral pipelines, taps and

metering facilities necessary to provide transportation service to any new or existing

Shipper, provided:

 

16.1 Company determines in its sole discretion it has sufficient unutilized mainline

transportation capacity to provide the service requested by the Shipper without

impairing the operational integrity of its system, or Company has obtained

certificate authorizations to expand its mainline capacity by an amount

sufficient to allow Company to provide the requested service; and

 

16.2 Company has or obtains any certificate authorizations necessary to build,

acquire and/or install the service lateral pipeline(s), tap(s) and/or meter

facilities; and

 

16.3 Shipper agrees in writing to reimburse or compensate Company for 100 percent of

Company's construction, acquisition and/or installation costs (including any

associated tax effects) through one or a combination of the following payment

methods:

 

(a) payment of an up-front contribution in aid of construction prior to the

commencement of construction, acquisition and/or installation; and/or

 

(b) payment of a separately stated reservation charge for the new facilities

under a firm transportation contract for the use of those facilities;

and/or

 

(c) payment of reservation charges for a new and/or incremental quantity of

mainline firm transportation service.

 

Shippers choosing payment methods under Subsection 16.3(b) and/or under

Subsection 16.3(c) of these General Terms and Conditions shall be required to

enter into new or incremental Firm Transportation Agreements for sufficient

entitlement and duration to produce an incremental net revenue stream providing

a present value equal to or greater than Company's construction, acquisition,

and/or installation costs (including any associated tax effects). Shipper

shall be required to demonstrate creditworthiness as specified in Section 22 of

these General Terms and Conditions to support said Firm Transportation

Agreements.