Saltville Gas Storage Company L.L.C.

Original Volume No. 1

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Effective Date: 02/07/2008, Docket: RP08-156-000, Status: Effective

Second Revised Sheet No. 159 Second Revised Sheet No. 159 : Effective

Superseding: First Revised Sheet No. 159

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

33.2 Except as provided in Section 33.4 herein, Customer shall

reimburse Saltville for (a) the costs of any facilities installed

by Saltville with Customer's consent to receive, measure, store or

deliver natural Gas for Customer's account and (b) any and all

filings and approval fees required in connection with Customer's

service agreement that Saltville is obligated to pay to the

Commission or any other governmental authority having

jurisdiction.

 

33.3 Any reimbursement due Saltville by Customer pursuant to Sections

33.1 or 33.2 shall be due and payable to Saltville within ten (10)

days of receipt by Customer of Saltville's bill(s) for same;

provided, however, subject to Saltville's consent, such

reimbursement, plus carrying charges thereon, may be amortized

over a mutually agreeable period not to extend beyond the primary

contract term of the service agreement between Saltville and

Customer. Carrying charges shall be computed utilizing interest

factors acceptable to both Saltville and Customer.

 

33.4 Saltville may waive from time to time, at its discretion, all or a

portion of the facility cost reimbursement requirement set forth

in Section 33.2 for Rate Schedules FSS, ISS, IPS and ILS if

Customer provides Saltville adequate assurances to make

construction of the facilities economical to Saltville. All

requests for waiver shall be handled by Saltville in a manner

which is not unduly discriminatory. For purposes of determining

whether a project is economical, Saltville will evaluate projects

on the basis of various economic criteria, which will include the

estimated cost of the facilities, operating and maintenance as

well as administrative and general expenses attributable to the

facilities, the revenues Saltville estimates will be generated as

a result of such construction, and the availability of capital

funds on terms and conditions acceptable to Saltville. In

estimating the revenues to be generated, Saltville will evaluate

the existence of capacity limitations downstream of the

facilities, the marketability of the capacity, the Interruptible

versus the firm nature of the service, and other similar factors

which impact whether the available capacity will actually be

utilized.