Texas Eastern Transmission, L P
Seventh Revised Volume No. 1
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Effective Date: 11/16/2009, Docket: RP10-53-000, Status: Effective
Fourth Revised Sheet No. 594 Fourth Revised Sheet No. 594
Superseding: Third Revised Sheet No. 594
GENERAL TERMS AND CONDITIONS
(Continued)
9. SEGMENT CAPACITY ENTITLEMENTS
9.1 This Section sets forth the terms and conditions regarding the Base and Operational
Segment Capacity Entitlements for Customers paying Reservation Charges under Section
3.2 of Rate Schedules CDS, FT-1 and SCT (such Customers hereinafter referred to as
"Entitlement Holders"). Entitlement quantities for Customers with executed service
agreements under Rate Schedule MLS-1 will be calculated in accordance with Rate
Schedule MLS-1 and the executed MLS-1 Service Agreement. The Operational Segment
Capacity Entitlements shall be controlling for the scheduling of Gas within the Access
Area subject to this Section 9 and Section 4.3. Pipeline shall recalculate on an
annual basis in a not unduly discriminatory manner Customer's Operational Segment
Capacity Entitlements based on information provided by Customer or Pipeline
projections, including the peak day receipts of Gas by Pipeline and deliveries of Gas
by Pipeline. Such recalculated Operational Segment Capacity Entitlements, along with
supporting documentation explaining the basis for any change(s), shall be filed with
the Commission each September 1 to be effective the following November 1, subject to
Commission approval. Adjustments to entitlements pursuant to this Section 9.1 will be
applied to capacity obtained by Replacement Customers pursuant to Section 3.14, each
November, as applicable. Adjustments will be applied pro rata between each Customer
and Replacement Customer, or such other method mutually agreeable to the affected
parties. The Operational Segment Capacity Entitlements as well as the input
distribution of Operational Segment Capacity Entitlements at each compression station
site and pipeline junction are displayed in the LINK® System. Operational Segment
Capacity Entitlements as displayed in the LINK® System will be updated as required to
include changes in entitlements pursuant to Section 3.14 and Sections 9.1 and 9.9.
These updated Operational Segment Capacity Entitlements will serve as the basis for
scheduling and curtailment of service in accordance with Section 4 and this Section 9.
The Base Segment Capacity Entitlements represent the distribution of capacity to
Entitlement Holders calculated by assuming that all quantities flowing through each
segment enters such segment at the furthermost upstream point and exits such segment
through the furthermost downstream point. Base Segment Capacity Entitlements are
included as a reference to assist Entitlement Holders in understanding the impact of
modifying the location of a Point of Receipt on the capacity of a given segment.
An Entitlement Holder may cause in the aggregate quantities of Natural Gas to be
received into each of Pipeline's Access Area Zones under Rate Schedules CDS, FT-1 and
SCT up to its Operational Segment Capacity Entitlements. To the extent that receipt by
Pipeline of quantities in excess of the Operational Segment Capacity Entitlements for
one Customer will not impair Pipeline's ability to receive Quantities of Gas up to the
Operational Segment Capacity Entitlements requested by any other Customers or impair
Pipeline's ability to meet its other firm obligations, such excess quantities (herein
called "Preferential Capacity") may be utilized by such Customer. Entitlement Holders
are permitted to use such Preferential Capacity to source from the Access Area the
lesser of Customer's MDQ or an aggregate Quantity of Gas equal to the sum of Customer's
ETX/M1 and ELA/M1 Zone Boundary Entry Quantities (which includes Customer's
Transportation Path entitlement from Kosciusko, Mississippi). In the event Gas
tendered by more than one Entitlement Holder who has Operational Segment Capacity
Entitlements must be reduced, such reduction shall be pro