Ozark Gas Transmission, L. L. C.

Original Volume No. 1

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Effective Date: 09/01/2008, Docket: RP08-458-000, Status: Effective

Original Sheet No. 29A Original Sheet No. 29A

 

RATE SCHEDULE FSS

FIRM STORAGE SERVICE (Continued)

 

Within five (5) Business Days following Transporter's receipt of a

valid Request for Service from a Shipper requesting service under

this Rate Schedule FSS, Transporter shall solicit proposals from

third-party providers for off-system firm storage services to be

provided at Points of Receipt and Delivery on Transporter's

system. Transporter shall allow third-party providers fifteen

(15) Business Days to respond to Transporter's solicitation. Such

off-system storage services may include related transportation

services to and from Transporter's system. Transporter shall

select the best third-party proposal on the basis of (1) the

degree to which the proposal matches the service requested by

Shipper, and (2) the proposal with the lowest cost. Upon

determining the best proposal, Transporter shall negotiate market-

based rates with its prospective Shipper. If Transporter and

Shipper reach agreement as to market-based rates, Transporter

shall execute the service agreement(s) with the third-party

provider for off-system firm storage and related transportation

services and Transporter and Shipper shall execute the Service

Agreement for service under this Rate Schedule FSS. Transporter

shall not be obligated to honor Shipper's Request for Service if

Transporter does not receive an acceptable response to its

solicitation of off-system capacity or if Transporter and Shipper

are unable to agree upon rates for firm storage services.

 

 

Shipper's rights to extend service under its Service Agreement,

including any rights of first refusal, shall be limited by

Transporter's rights to extend the term of its service agreements

for off-system firm storage and related transportation services,

provided that such limitations on Transporter's right to extend

its off-system capacity arrangements must be specified in a third-

party provider's tariff and/or as provided by FERC's regulations.

 

Transporter shall employ the same process as stated above for

requests for the Firm Storage Service component of service under

Rate Schedule NNS except that, instead of negotiating market-based

rates, Transporter shall calculate cost-based rates consisting of

the pass-through of all costs under Transporter's service

agreements with third-party providers for off-system firm storage

and related transportation services. Transporter shall provide to

Shipper a detailed explanation of its calculation of the cost-

based rates.