Steckman Ridge, LP

Original Volume No. 1

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Effective Date: 01/09/2010, Docket: RP10-230-000, Status: Effective

First Revised Sheet No. 285 First Revised Sheet No. 285

Superseding: Original Sheet No. 285

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

25. CONSTRUCTION OF NEW RECEIPT OR DELIVERY FACILITIES (continued)

 

25.2 Except as provided in Section 25.4 herein, Customer shall

reimburse Steckman Ridge for (a) the costs of any facilities

installed by Steckman Ridge with Customer's consent to receive,

measure, store or deliver natural Gas for Customer's account and

(b) any and all filings and approval fees required in connection

with Customer's Service Agreement that Steckman Ridge is obligated

to pay to the Commission or any other governmental authority

having jurisdiction.

 

25.3 Any reimbursement due Steckman Ridge by Customer pursuant to

Sections 25.1 or 25.2 shall be due and payable to Steckman Ridge

within ten (10) days of receipt by Customer of Steckman Ridge's

invoice(s) for same; provided, however, subject to Steckman

Ridge's consent, such reimbursement, plus carrying charges

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

extend beyond the primary term of the Service Agreement between

Steckman Ridge and Customer. Carrying charges shall be computed

utilizing interest factors acceptable to both Steckman Ridge and

Customer.

 

25.4 Steckman Ridge may waive from time to time, at its discretion, all

or a portion of the facility cost reimbursement requirement set

forth in Section 25.2 for Rate Schedules FSS, EPS, ELS, ISS, IPS

and ILS if Customer provides Steckman Ridge adequate assurances to

make construction of the facilities economical to Steckman Ridge.

All requests for waiver shall be handled by Steckman Ridge in a

manner which is not unduly discriminatory. For purposes of

determining whether a project is economical, Steckman Ridge 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 Steckman Ridge

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

the availability of capital funds on terms and conditions

acceptable to Steckman Ridge. In estimating the revenues to be

generated, Steckman Ridge 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.