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.
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
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