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

Third Revised Sheet No. 992 Third Revised Sheet No. 992

Superseding: Second Revised Sheet No. 992

 

FORM OF SERVICE AGREEMENT

FOR RATE SCHEDULE FTS-2

(Continued)

 

ARTICLE II

 

TERM OF AGREEMENT

 

This Service Agreement shall become effective on ___________ , and shall continue in effect

until and including March 31, 2014, and from year to year thereafter unless terminated by either

party upon one (1) year prior notice, prior to the end of the primary term or any successive term.

 

Customer hereby expressly acknowledges and agrees that, to the extent not utilized by

Customer for transportation of Gas for Customer's account, Pipeline has the sole right to utilize

any pipeline capacity attributable to facilities constructed by Pipeline to provide service

pursuant to this Service Agreement as part of Pipeline's overall general system capacity. To that

end, Customer agrees not to instigate or cause to be instigated any action designed to alter or

increase Customer's right to utilize the pipeline capacity attributable to facilities constructed

by Pipeline to provide service pursuant to this Service Agreement. Upon termination of this

Service Agreement, all rights of Customer to the transportation service provided by the facilities

constructed and utilized to provide service hereunder shall terminate and the capacity provided by

such facilities shall be available without limitation for Pipeline's use as Pipeline in its sole

discretion deems desirable. If Customer elects to terminate this Service Agreement, then

notwithstanding such termination Customer shall continue to pay the monthly charge provided under

Section 3.2(A) of Rate Schedule FTS-2 until the earlier of (i) the date Pipeline recovers through

said monthly charge the full original cost of the facilities attributable to the service which has

been terminated, or (ii) the date Pipeline makes effective its next general rate filing and begins

receiving recovery on an alternate basis, which may include systemwide recovery, of the costs of

facilities attributable to the service which has been terminated. At such time Customer shall

cease paying the monthly charge attributable to the terminated service. In addition, if and to

the extent that Customer terminates this Service Agreement and the Federal Energy Regulatory

Commission or any other Agency having jurisdiction over the premises ever determines that the

facilities attributable to such service are not used or useful in providing Natural Gas service on

Pipeline's system or otherwise precludes Pipeline from recovering the full original cost of such

facilities then Customer shall reimburse Pipeline the remaining initial cost of said facilities

not previously recovered by Pipeline through depreciation charges. Such reimbursement shall not

be applicable if and to the extent that Pipeline elects to terminate this Service Agreement.

 

Any portions of this Service Agreement necessary to correct or cash-out imbalances under this

Service Agreement as required by the General Terms and Conditions of Pipeline's FERC Gas Tariff,

Volume No. 1, shall survive the other parts of this Service Agreement until such time as such

balancing has been accomplished.