Stingray Pipeline Company, L. L. C.

Third Revised Volume No. 1

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Effective Date: 11/01/2008, Docket: RP08-436-000, Status: Effective

First Revised Sheet No. 75 First Revised Sheet No. 75

Superseding: Original Revised Sheet No. 75

 

RATE SCHEDULE FTS-2

FIRM TRANSPORTATION SERVICE

 

(c) In the event that Shipper's MDQs are reduced for any

subsequent period pursuant to this Section 11.1 and

Shipper does not satisfy its Throughput Commitment for

the current Contract Year, Shipper shall not have the

option of reducing its MDQs pursuant to Section 11.2

and shall be required to pay the Conditional

Reservation Charge as determined in Section 8.2(e) of

this Rate Schedule FTS-2.

 

(d) If Shipper believes that the MDQs contained in the

engineering report are inadequate to permit delivery

of all of Shipper's Gas production from the OCS

Field(s) and Leasehold Interest(s) committed to this

Rate Schedule FTS-2 under Shipper's FTS-2 Agreement,

Shipper shall be entitled to FTS service for the

incremental MDQs that Shipper requests pursuant to

Section 4.6 of this Rate Schedule FTS-2. If Shipper

executes an FTS Agreement to supplement the FTS-2 MDQs

prescribed by the engineering firm and, during the

first Contract Quarter of service under its Rate

Schedule FTS Agreement, Shipper's total throughput

exceeds its FTS-2 MDQ, then Stingray shall have the

option to increase Shipper's MDQ under its FTS-2

Agreement by the amount of such incremental MDQs and,

if Stingray fails to provide such increase in

Shipper's Rate Schedule FTS-2 MDQs within sixty (60)

Days of the end of such Contract Quarter, Shipper

shall have the right to release such incremental MDQs

from its Commitment under its FTS-2 Agreement.

 

11.2 If, over any Contract Year, Shipper fails, for any reason

other than force majeure, to satisfy its Throughput

Commitment under Section 5.1 of this Rate Schedule FTS-2,

then, at the conclusion of such Contract Year, Stingray

shall have the right, upon providing notice to Shipper in

accordance with Section 25 of this Tariff, to require

Shipper to elect either to (1) reduce its MDQs for the

remaining term of its FTS-2 Agreement or (2) pay to Stingray

the Conditional Reservation Charge as determined in Section

8.2(e)of this Rate Schedule FTS-2. Within ten (10) Days of

receipt of Stingray's notice to Shipper requiring an

election to be made, Shipper shall notify Stingray, in

accordance with Section 25 of the General