Quest Pipelines (Kpc)

Second Revised Volume No. 1

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Effective Date: 04/01/2010, Docket: RP10-394-000, Status: Effective

First Revised Sheet No. 174 First Revised Sheet No. 174

Superseding: Original Sheet No. 174

 

GENERAL TERMS AND CONDITIONS (continued)

 

15. UPSTREAM SERVICE RIGHTS

 

This section sets forth the terms and conditions under which KPC will

make available capacity retained under that certain Amended and Restated

Agreement of Lease between KansOk Partnership (predecessor in interest

to KPC) and Transok, Inc. (predecessor in interest to Enogex LLC

("Enogex")) dated April 24, 1992, including all exhibits and amendments

Thereto ("Enogex Lease"). This provision is designed to Reflect the

Commission's open access policies. This provision shall not apply to

the extent the Enogex Lease is assigned directly to any Shipper.

 

15.1 Shippers nominating gas for delivery under the Enogex Lease shall

be subject to all terms and conditions on the Lease and shall be

responsible for all imbalances and for the payment of all

penalties and charges incurred. Shipper shall pay KPC the actual

transportation costs incurred by KPC under the terms of the Enogex

Lease to deliver gas from specific Receipt Point(s) nominated by

such Shipper on Enogex's system.

 

The rates for Zone 1, as reflected herein, include costs

associated with the Enogex Lease (KansOk Partnership, Docket No.

PR94-3-000). The lease's annual minimum cost is calculated and

fixed on a monthly basis. Each month, the minimum cost is offset

by the actual cost of gas transported under the lease. Actual

costs are calculated on a per dekatherm basis pursuant to rates

set forth in the lease by specific receipt point. Revenues in

excess of the monthly minimum rate requirement are paid to Enogex

when actual transportation costs are greater than the required

monthly minimum payment. Shipper shall reimburse KPC for actual

costs incurred by the pipeline in excess of the costs reflected in

the Zone 1 rate. The following example demonstrates the monthly

calculation: Assuming (i) the annual minimum cost is one million

dollars; and (ii) the firm transportation in Zone 1 is held by two

firm shippers, one holding 51.23% of the firm capacity and one

holding 48.77% of the firm capacity, the minimum monthly payments

due Enogex by KPC would be as follows: