Western Gas Interstate Company
Third Revised Volume No. 1
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Effective Date: 06/01/1993, Docket: RS92- 53-003, Status: Effective
Revised Original Sheet No. 294 Revised Original Sheet No. 294 : Superseded
GENERAL TERMS AND CONDITIONS
contesting an application for service filed pursuant to Section
7(a) of the Natural Gas Act. Western reserves the right to seek
a waiver of the policy set forth herein, for good cause shown,
during an proceeding before the Commission instituted under
Section 7 of the Natural Gas Act.
All of the rights and duties herein contained shall inure to and
be binding upon the successors and assigns of the parties
hereto, provided that no conveyance or transfer of any interest
of either party shall be binding upon the other party until such
other party has been furnished with written notice thereof and a
true copy of such conveyance or transfer.
28. RECOVERY OF UPSTREAM PIPELINE CHARGES:
This section establishes the procedures which will permit
Western to recover from its Buyers and Shippers ("Customers")
the total amount of take-or-pay and transition charges billed to
Western, as a downstream pipeline, by an upstream pipeline.
28.1 Flow-Through of Upstream Pipeline Charges - The charges
applicable to each of Western's Customers shall be the
total amount of the take-or-pay and transition cost charges
incurred from an upstream pipeline, as approved by the
FERC, and shall be flowed through, pursuant to Section
2.104(e) of the Commission's Regulations, on an "as billed"
basis as a direct bill, reservation surcharge, commodity
surcharge, or other such charge as applicable.
28.2 Recovery Period - The recovery period for the upstream
pipeline charges shall be the same period as utilized by
the upstream pipeline. In the event that Western pays the
charges in a lump sum or some shortened amortization
period, Western's Customers shall have the option of paying
Western on the same basis or over the maximum amortization
period offered to Western by the upstream pipeline. If any
Western Customer chooses to pay over a longer period than
the period over which Western pays, that Customer shall be
subject to carrying charges at the applicable Commission
approved interest rate as provided in Section 28.4 herein.