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

Fifth Revised Sheet No. 831 Fifth Revised Sheet No. 831

Superseding: Fourth Revised Sheet No. 831

 

FORM OF SERVICE AGREEMENT

FOR RATE SCHEDULE SCT

 

Date: __________________________, Contract No. __________________

 

SERVICE AGREEMENT

 

This AGREEMENT is entered into by and between Texas Eastern Transmission, LP,("Pipeline") and

_____________________________________ ("Customer").

 

WHEREAS,

 

NOW THEREFORE, in consideration of the premises and of the mutual covenants herein contained,

the parties do agree as follows:

 

1. Pipeline shall deliver and Customer shall take and pay for service pursuant to the terms of

this Agreement and subject to Pipeline's Rate Schedule SCT and the General Terms and

Conditions of Pipeline's Tariff, which are incorporated herein by reference and made a part

hereof.

 

2. The Maximum Daily Quantity (MDQ) for service under this Agreement and any right to increase

or decrease the MDQ during the term of this Agreement are listed on Exhibit D attached

hereto. The Point(s) of Receipt and Point(s) of Delivery, respectively, are listed on

Exhibits A and B attached hereto. Customer's Zone Boundary Entry Quantity and Zone Boundary

Exit Quantity for each of Pipeline's Zones are specified on Exhibit C attached hereto.

Exhibit(s) A, B, C, and D are incorporated herein by reference and made a part hereof.

 

Pipeline shall not be obligated to, but may at its discretion, receive at any Point of

Receipt on any Day a Quantity of Gas in excess of the applicable Maximum Daily Receipt

Obligation (MDRO), plus Applicable Shrinkage, but shall not receive in the aggregate at all

Points of Receipt on any Day a Quantity of Gas in excess of the applicable MDQ, plus

Applicable Shrinkage. Pipeline shall not be obligated to, but may at its discretion, deliver

at any Point of Delivery on any Day a Quantity of Gas in excess of the applicable Maximum

Daily Delivery Obligation (MDDO), but shall not deliver in the aggregate at all Points of

Delivery on any Day a Quantity of Gas in excess of the MDQ.

 

3. This Agreement shall be effective on __________ and shall continue for a term ending on and

including __________ ("Primary Term") and shall remain in force from year to year thereafter

unless terminated by either party upon _________ prior written notice [at least one (1) year

prior notice for Long-Term Service Agreements, with the exception that, for Service

Agreements with a Primary Term of exactly one (1) year, the notice must be submitted within

ten (10) Business Days of the beginning of the Primary Term of the Service Agreement, and at

least one (1) year for subsequent notices for such Service Agreement; mutually agreeable for

Short-Term Service Agreements] prior to the end of the Primary Term or any successive term

thereof. This Agreement may be terminated at any time by Pipeline in the event Customer

fails to pay part or all of the amount of any bill for service hereunder and such failure

continues for thirty (30) days after payment is due; provided, Pipeline gives thirty (30)

days prior written notice to Customer of such termination and provided further such

termination shall not be effective if, prior to the date of termination, Customer either pays

such outstanding bill or furnishes a good and sufficient surety bond or other form of

security reasonably acceptable to Pipeline guaranteeing payment to Pipeline of such

outstanding bill. Any portions of this Agreement necessary to correct or cash-out imbalances

under this Agreement as required by the General Terms and Conditions of Pipeline's Tariff

shall survive the other parts of this Agreement until such time as such balancing has been

accomplished.

 

If this Agreement qualifies as a "ROFR Agreement" as defined in the General Terms and

Conditions of Pipeline's Tariff, the provision of a termination notice by either Customer or

Pipeline, pursuant to this article 3, a notice of partial reduction in MDQ pursuant to

Exhibit D or the expiration of this Agreement of its own terms triggers Customer's right of

first refusal under Section 3.13 of the General Terms and Conditions of Pipeline's Tariff.