Natural Gas Pipeline Company Of America

Second Revised Volume No. 2

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Effective Date: 12/01/1993, Docket: RS92- 45-003, Status: Effective

Seventeenth Revised Sheet No. 1097 Seventeenth Revised Sheet No. 1097 : Superseded

Superseding: Sub Sixteenth Revised Sheet No. 1097

 

2.2 REDUCTION IN CONTRACT DEMAND. In the event Natural is required under the Outer

Continental Shelf Lands Act (43 USCA Subsection 1331, et seq.) to transport gas for others in the

E.I. 305 Line, and Natural cannot transport such gas without affecting its transportation service

for its existing transportation customers on the E.I. 305 Line, then Natural shall have the right to

reduce the contract demand provided for in paragraph 2.1 hereof pro rata with a reduction in

Natural's other contract demands and its own capacity in the E.I. 305 Line to the extent necessary

to enable Natural to transport such gas. Natural shall give notice of such reduction as far in

advance as reasonably possible and will include a provision to the same effect as this paragraph 2.2

in all other transportation agreements entered into with respect to the E.I. 305 Line.

 

2.3 MAXIMUM DAILY VOLUMES. Subject to Natural's prior approval, Sea Robin from time to

time may stipulate a maximum daily volume of gas and associated liquids for delivery at the point of

receipt, the aggregate of all such stipulated maximum daily volumes not to exceed the contract

demand. The initial maximum daily volume for the point of receipt shall be set forth in Exhibit "A"

attached hereto. Exhibit "A" shall be updated from time to time whenever the parties agree to a

change in the maximum daily volume for the point of receipt. Such a revised Exhibit "A" shall

replace the prior Exhibit "A" and, by this reference, shall become a part of this agreement. The

daily deliveries at the point of receipt may exceed the maximum daily volumes specified for such

point of receipt on a temporary basis, provided the E.I. 305 Line in Natural's sole judgment can

accommodate the excess volume.

 

2.4 RELEASE OF CAPACITY. If from time to time during the term hereof the ability of Sea

Robin to deliver volumes of gas is insufficient to enable Sea Robin to utilize its contract demand,

Sea Robin may from time to time notify Natural of its desire to release all or any part of its

contract demand. Upon receipt of any such notice, Natural shall attempt to utilize all or a portion

of the capacity desired to be released. To the extent Natural in its sole discretion determines it

can utilize such capacity desired to be so released, Sea Robin's contract demand shall be reduced

accordingly and such reduction shall be effective as of the date and for so long as Natural agrees

to utilize such capacity.

 

ARTICLE III

 

1/ 2/ 3.1 DEMAND CHARGE. Sea Robin agrees to pay Natural a monthly demand charge equal to a

percentage of one-twelfth (1/12) of Natural's annual cost of service of the E.I. 305 Line, which

percentage shall be equal to Sea Robin's volumes transported through said Line divided by the total

volumes transported through said Line during said month. It is recognized and agreed that at the

time the said Line is placed in service such monthly demand charge will be five thousand four

hundred ninety-three dollars ($5,493) which amount shall be payable during each month of the

12-month period commencing with the date of initial delivery of gas through the E.I. 305 Line and

five thousand one hundred thirty-one dollars ($5,131) thereafter until the end of the first

accounting period; provided, however, that in the event the total cost of the

 

 

 

1/ Effective January 1, 1989, annual rate changes are no longer required.

 

2/ Rates for the period November through March: Demand - $3.52/Mcf and Commodity - $.0035/Mcf.

Rates for the period April through October: Demand - $3.52/Mcf and Commodity - $.0035/Mcf.