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.