Texas Eastern Transmission, L P

Seventh Revised Volume No. 1

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Effective Date: 12/01/2007, Docket: RP99-480-018, Status: Effective

Original Sheet No. 117 Original Sheet No. 117 : Pending

 

STATEMENT OF NEGOTIATED RATES 1/ 2/

 

Customer Name: NJR Energy Services Company

Service Agreement: 910614R1

 

Term of Negotiated Rate: The term of this negotiated rate ("Negotiated Rate Term") commences on the Service

Commencement Date (as defined in the Precedent Agreement) of Contract No. 910614R1 and continues through

October 31, 2008.

 

Rate Schedule: FT-1

MDQ: 150,000 dth/d

Reservation Rate: Customer shall pay a negotiated reservation rate of $6.996 per Dth, per month ("Negotiated

Reservation Rate") of Customer's MDQ under Contract No. 910614R1 during the Negotiated Rate Term.

Usage Rate: The usage rate to be paid by Customer under Contract No. 910614R1 during the Negotiated Rate Term

shall be the maximum applicable commodity charge under Texas Eastern's Rate Schedule FT-1 multiplied by the

quantity of gas, in Dekatherms, delivered in the month at the point(s) of delivery pursuant to Rate Schedule

FT-1, as applicable. Customer shall also pay the applicable Annual Charge Adjustment ("ACA"), Applicable

Shrinkage Adjustment ("ASA") charges and other charges/surcharges applicable to Customer's Contract No.

910614R1 under Rate Schedule FT-1. Texas Eastern shall apply the ASA charge for service under Contract No.

910614R1 as such charge may change from time to time in accordance with the Commission approved mechanism (if

any) for tracking such amounts, and Customer shall pay Texas Eastern for all such ASA charges.

Notwithstanding the foregoing, if the applicable ASA charge for service under Contract No. 910614R1 (as

calculated based upon the Commission approved ASA methodology and/or application of any Commission approved

tracking mechanism) is equal to or greater than 2.6%, then Customer shall pay Texas Eastern an ASA charge of

2.6% for all gas quantities up to Customer's MDQ transported from the Primary Receipt Point(s) to the Primary

Delivery Point(s) ("Primary Incremental Transportation Path") specified in Contract No. 910614R1, or from a

receipt point(s) to a delivery point(s) within the Primary Incremental Transportation Path. Further, for

transportation service from a receipt point(s) to a delivery point(s) outside of the Primary Incremental

Transportation Path and/or for quantities above Customer's MDQ, Customer shall pay Texas Eastern, for all gas

quantities transported, an ASA charge which is equal to the applicable ASA charge for service under Contract

No. 910614R1 (as calculated based upon the Commission approved ASA methodology and/or application of any

Commission approved tracking mechanism).

 

Primary Receipt Point: Uniontown, PA, M&R 18885.

Primary Delivery Point: Head of Freehold Lateral - Mainline, M&R 382802.

Recourse Rate(s): The Recourse Rate(s) applicable to this service is the maximum rate(s) stated on Texas

Eastern's currently effective Tariff Sheet No. 35B.

 

 

FOOTNOTES:

 

1/This negotiated rate transaction does not deviate in any material respect from the applicable form of

service agreement set forth in Texas Eastern's FERC Gas Tariff. This negotiated rate shall apply only to

service under Contract No. 910614R1, up to Customer's specified MDQ, and using the receipt and delivery points

designated herein.

 

2/If at any time after the Service Commencement Date Customer is no longer creditworthy as determined by

Pipeline in accordance with its FERC Gas Tariff, then Customer agrees, upon fourteen (14) days' prior written

notice from Pipeline, to provide Pipeline with a guaranty, letter of credit or other form of security

acceptable to Pipeline ("Security Agreement") from an entity that is creditworthy as determined by Pipeline in

accordance with its FERC Gas Tariff. The Security Agreement shall include provisions whereby: (i) the amount

of such Security Agreement will be equal to the months of reservation charges remaining in the primary term of

the Service Agreement, for the MDQ under the Service Agreement, at the Negotiated Rate for the Project, (ii)

the Security Agreement will remain in effect for so long as Customer is not creditworthy, (iii) the party

supporting Customer's obligations under the Security Agreement will at all times be creditworthy under

Pipeline's FERC Gas Tariff, or Customer will be required to obtain a substantially similar Security Agreement

from a creditworthy replacement party, and (iv) other provisions reasonably acceptable to Pipeline which are

customary for similar types of security agreements or instruments. The security requirements set forth herein

shall survive termination of the Negotiated Rate Agreement