National Fuel Gas Supply Corporation

Fourth Revised Volume No. 1

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Effective Date: 04/21/2010, Docket: RP10-504-000, Status: Effective

Second Revised Sheet No. 455 Second Revised Sheet No. 455

Superseding: First Revised Sheet No. 455

 

GENERAL TERMS AND CONDITIONS

 

 

28. POLICY CONCERNING REIMBURSEMENT FOR FACILITY CONSTRUCTION

 

28.1 Except as provided in Section 28.2 herein, Shipper shall reimburse

Transporter (a) for the costs of any facilities installed by

Transporter with Shipper's consent to receive, measure, transport

or deliver natural gas for Shipper's account and (b) for any and

all filings and approval fees required in connection with

Shipper's Service Agreement that Transporter is obligated to pay

to the Commission or any other governmental authority having

jurisdiction. Any reimbursement due Transporter by Shipper

pursuant to this Section 28.1 shall be due and payable to

Transporter within ten (10) days of receipt by Shipper of

Transporter's bill(s) for same; provided, however, subject to

Transporter's consent such reimbursement, plus carrying charges

thereon, may be amortized over a mutually agreeable period not to

extend beyond the primary contract term of the service agreement

between Transporter and Shipper. Carrying charges shall be

computed utilizing interest factors acceptable to both Transporter

and Shipper.

 

28.2 Transporter may waive from time to time, at its discretion, all or

a portion of the facility cost reimbursement requirement set forth

in Section 28.1 if Shipper provides Transporter adequate

assurances of transportation throughput to make construction of

the facilities economical to Transporter. Transporter shall post

the circumstances under which such waivers are granted on its

website to the extent required by Commission regulations.

Shipper's service agreement may provide that a waiver of

reimbursement hereunder will be rescinded, and Shipper will be

obligated to reimburse Transporter for all or a specified portion

of the facility cost reimbursement requirement, if, at any time,

Shipper materially defaults on its payment obligations under the

agreement or if Shipper becomes subject to a bankruptcy,

reorganization, insolvency or similar proceeding. All requests

for waiver shall be handled by Transporter in a manner which is

not unduly discriminatory. For purposes of determining whether a

project is economical, Transporter will evaluate projects on the

basis of various economic criteria, which will include the

estimated transportation throughput, cost of the facilities,

operating and maintenance as well as administrative and general

expenses attributable to the facilities, the revenues Transporter

estimates will be generated as a result of such construction, and

the availability of capital funds on terms and conditions

acceptable to Transporter. In estimating the revenues to be

generated, Transporter will evaluate the existence of