Arlington Storage Company, LLC

Original Volume No. 1

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Effective Date: 08/24/2009, Docket: RP09-872-000, Status: Effective

Original Sheet No. 154 Original Sheet No. 154

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

28.3 In the event ASC shall have suspended service pursuant to Section 28.2, Customer may cause

ASC to resume or continue service by providing an advance payment equal to one Month's

charges for service under the Customer's Storage Service Agreement(s) and providing

Financial Assurances pursuant to Section 31 of these General Terms and Conditions within

thirty (30) days of ASC's notice of suspension. Customer shall not be obligated to pay ASC

reservation charges for any suspended services during any period of suspension pursuant

to Section 28.2.

 

29. POLICY WITH RESPECT TO FEES AND CONSTRUCTION OF NEW FACILITIES

 

29.1 Except as provided in Section 29.2 herein, Customer shall reimburse ASC (a) for the costs

of any facilities installed by ASC with Customer's consent to receive, measure, store or

deliver Gas for Customer's account and (b) for any and all filings and approval fees required

in connection with Customer's Storage Service Agreement that ASC is obligated to pay to the

Commission or any other governmental authority having jurisdiction. Any reimbursement

due ASC by Customer pursuant to this Section 29.1 shall be due and payable to ASC within

ten (10) days of receipt by Customer of ASC's invoice(s) for same; provided, however, that

subject to ASC'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 Storage

Service Agreement between ASC and Customer. Carrying charges shall be computed utilizing

interest factors acceptable to both ASC and Customer.

 

29.2 ASC may waive from time to time, at its discretion, all or a portion of the facility cost

reimbursement requirement set forth in Section 29.1 for Rate Schedules FSS, NNSS, FP and FL

if Customer provides ASC adequate assurances to make construction of the facilities economical

to ASC. All requests for waiver shall be handled by ASC in a manner which is not unduly

discriminatory. For purposes of determining whether a project is economical, ASC will

evaluate projects on the basis of various economic criteria, which will include the estimated

cost of the facilities, operating and maintenance as well as administrative and general

expenses attributable to the facilities, the revenues ASC estimates will be generated as a

result of such construction, and the availability of capital funds on terms and conditions

acceptable to ASC. In estimating the revenues to be generated, ASC will evaluate the existence

of capacity limitations downstream of the facilities, the marketability of the capacity, the

Interruptible versus the firm nature of the service, and other similar factors which impact

whether the available capacity will actually be utilized.

 

30. OFF-SYSTEM CAPACITY

 

ASC may, from time to time, acquire transportation and/or storage capacity on

a third-party pipeline system. ASC will only provide transportation and storage

services for others using such capacity pursuant to its open access FERC Gas

Tariff subject to its rates approved by the Federal Energy Regulatory Commission,

and the "shipper must hold title" policy is waived to permit such use.