Trailblazer Pipeline Company

Fourth Revised Volume No. 1

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Effective Date: 12/28/2007, Docket: RP08-168-000, Status: Effective

Original Sheet No. 137 Original Sheet No. 137 : Effective

 

GENERAL TERMS AND CONDITIONS

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9. NEW FACILITIES CHARGE

 

9.1 When new and/or expanded facilities are required to

accommodate receipt and/or delivery of gas under a request for new

service, and Trailblazer determines that installation of such

facilities will not impair service to any Existing Shipper or

threaten the integrity of Trailblazer's System, Trailblazer will

construct such facilities but Trailblazer shall require Shipper to

pay all construction costs, including any filing fees and a

reimbursement amount to compensate for federal income tax effects

associated with such facilities, except that Trailblazer will pay

the cost of such facilities when the criteria set forth below are

satisfied.

 

9.2 (a) Trailblazer will pay the cost of the modification

or construction of facilities required at Receipt or Delivery

Point(s) to effectuate the receipt or delivery of natural gas

hereunder when the construction or modification of such facilities

is economically beneficial to Trailblazer.

 

(b) (1) For the purposes of determining whether a gas

supply project is economically beneficial to Trailblazer,

Trailblazer will evaluate each prospective project based upon the

amount of the reserves and deliverability characteristic of the gas

supply to be attached. Facility additions at Receipt Points shall

be evaluated based upon the incremental cost of service of the

facilities to be constructed by Trailblazer, and the incremental

revenues which Trailblazer estimates will be generated as a result

of constructing and/or modifying such facilities.

 

(2) For the purposes of determining whether a

project to deliver gas is economically beneficial to Trailblazer,

Trailblazer will evaluate each prospective project based upon the

incremental cost of service of the facilities to be constructed by

Trailblazer, and the incremental revenues which Trailblazer

estimates will be generated as a result of constructing and/or

modifying such facilities.

 

(3) In estimating the incremental revenues to be

generated, Trailblazer will base those revenues upon transportation

rates it expects to be able to charge, exclusive of any surcharges,

such as an ACA charge, and the projected incremental volumes which

will result from the project. Trailblazer will consider volumes to

be incremental if the volumes which will be transported would not

otherwise flow through Trailblazer's System.