Natural Gas Pipeline Company Of America

Seventh Revised Volume No. 1

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Effective Date: 04/18/2008, Docket: RP08-319-000, Status: Effective

Original Sheet No. 335 Original Sheet No. 335 : Pending

 

GENERAL TERMS AND CONDITIONS

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6. RECEIPT POINTS

 

6.1 FACILITIES AT RECEIPT POINTS

 

(a) Unless otherwise agreed, Natural shall own, operate

and maintain all pipeline and measurement facilities necessary to

receive and measure gas hereunder. Shipper or the interconnecting

party shall (in addition to all other applicable charges) reimburse

Natural for the actual cost (including income taxes associated with a

contribution-in-aid of construction) of any and all facilities

installed by Natural pursuant to this Section at Shipper's or the

interconnecting party's request in order to provide service for such

Shipper or interconnecting party including, but not limited to, the

cost of all labor, materials and rights-of-way; provided that Shipper

or the interconnecting party shall repay Natural in kind for any gas

lost from Natural's pipeline as a result of the installation of such

facilities. Natural may submit billings to Shipper or the

interconnecting party up to sixty (60) days in advance for the

estimated cost of construction to be incurred by Natural. Shipper or

the interconnecting party shall make payments within ten (10) days of

the date of receipt of any billings submitted by Natural pursuant to

this Section. For purposes of this Section, the bill is deemed to be

received by Shipper or the interconnecting party three (3) days after

the postmark date. Late payments shall be subject to Section 15 of

these General Terms and Conditions. Any such estimated billings shall

be reconciled to the actual costs of construction, and any payments to

reflect such reconciliation shall be made, within a time period and on

terms agreed to by the parties. Neither the amounts collected

hereunder nor the cost of such facilities shall be recognized in

establishing Natural's general system rates.

 

(b) Natural may elect, on a nondiscriminatory basis, to

pay all or a portion of the costs of the facilities constructed

pursuant to subsection (a) above if Natural determines that the

construction of such facilities is economically beneficial to Natural.

For purposes of determining whether a project is beneficial, Natural

will evaluate projects on the basis of various economic criteria, which

will include the estimated transportation throughput, cost of the

facilities, operating and maintenance as well as administrative and

general expenses attributable to the facilities, the revenues Natural

estimates will be generated as a result of such construction, and the

availability of capital funds on terms and conditions acceptable to

Natural. In estimating the revenues to be generated, Natural will base

those revenues upon transportation rates it expects to be able to

charge, exclusive of any surcharges such as ACA, and the projected

incremental volumes which will result from the project.