Texas Eastern Transmission, L P

Seventh Revised Volume No. 1

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Effective Date: 12/01/2008, Docket: RP99-480-027, Status: Effective

Original Sheet No. 121G Original Sheet No. 121G

 

STATEMENT OF NEGOTIATED RATES 1/ 2/

 

Customer Name: EServices, LLC

 

Service Agreement: Contract No. 8911269

 

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

December 1, 2008 and continues until and including October 31, 2009.

 

Rate Schedule: FT-1, TIME II Project

 

MDQ: 10,000 dth/d

 

Reservation Rate: Customer shall pay a reservation rate, as determined pursuant to the capacity

release processes set forth in Section 3.14 of the General Terms and Conditions of the Texas

Eastern Tariff, per Dth, per day ("Reservation Rate") of Customer's MDQ under Contract No.

8911269 during the Negotiated Rate Term.

 

Usage Rate: The usage rate to be paid by Customer under Contract No. 8911269 during the

Negotiated Rate Term shall be zero. 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. 8911269 under Rate Schedule FT-1. Texas Eastern shall

apply the ASA charge for service under Contract No. 8911269 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. 8911269 (as calculated based upon

the Commission approved ASA methodology and/or application of any Commission approved tracking

mechanism) is equal to or greater than 3.6%, then Customer shall pay Texas Eastern an ASA charge

of 3.6% 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. 8911269, or from a receipt point(s) within or downstream of the Primary

Incremental Transportation Path. Provided, however, for the period December 1, 2008 through

October 31, 2009, if the applicable ASA charge for service under Contract No. 8911269 (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

other than gas transported from receipt points upstream of the Primary Receipt Point(s)

specified in Contract No. 8911269. Further, for transportation service from a receipt point(s)

upstream 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. 8911269 (as calculated

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

tracking mechanism).

 

Primary Receipt Points: M&R 79951, TETCO Lebanon Lateral Takeaway Point-Mainline, Warren Co.

OH.: MDRO = 10,000 dth.

 

Primary Delivery Point: Head of Freehold Lateral - Mainline, M&R 79037.

 

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

in Texas Eastern's currently effective FERC Gas Tariff for Rate Schedule FT-1, TIME II Project.

 

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.

 

2/The negotiated rate is applicable for receipts and deliveries at any receipt and delivery

point on Pipeline's system within each applicable zone.