W T G Hugoton, LP
Original Volume No. 1
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Effective Date: 08/01/2007, Docket: CP06- 90-002, Status: Effective
Original Sheet No. 213 Original Sheet No. 213 : Effective
GENERAL TERMS AND CONDITIONS
4. MERCHANTABLE GAS
Natural gas delivered by WTG Hugoton to a Shipper shall be merchantable
natural gas. WTG Hugoton will offer to negotiate with a Delivery Point
Operator, upon request, how WTG Hugoton will manage the quality of gas
delivered to the Delivery Point Operator.
5. FACILITIES
5.1 WTG Hugoton shall not be required to provide any requested service under
any Rate Schedules which would require the construction or acquisition by WTG
Hugoton of any new facilities. WTG Hugoton may condition any such
construction, acquisition, or expansion on Shipper agreeing to reimburse WTG
Hugoton for all costs incurred, including any taxes incurred by WTG Hugoton as
a result of such reimbursement. An economic feasibility test will be
performed to determine when WTG Hugoton may charge Shipper such costs. Such
test shall reflect the cost of the facility to be constructed, the incremental
cost related to such facilities and the revenues which WTG Hugoton estimates
to be generated attributable to the facilities, all of which will be based on
a discounted cash flow rate of return methodology. All new facilities
(whether built by Shipper or WTG Hugoton) shall be in conformance with the
regulations set forth in 49 CFR Part 192 and shall be subject to inspection
and prior approval by WTG Hugoton. Nothing in this Section 5 shall require
WTG Hugoton to file an application for a certificate of public convenience and
necessity under Section 7(c) of the Natural Gas Act, nor prevent WTG Hugoton
from contesting an application for service filed pursuant to Section 7(a) of
the Natural Gas Act. WTG Hugoton reserves the right to seek a waiver of the
policy set forth in this Section 5 for good cause shown, during any proceeding
before the Commission instituted under Section 7 of the Natural Gas Act.
5.2 In order to maintain and expand firm entitlement and utilization of WTG
Hugoton's system, WTG Hugoton may negotiate firm transportation contracts with
shippers whereby WTG Hugoton could make a contribution in aid of construction
(CIAC) to the shipper. The shipper would use such funds to assist in the
development of natural gas facilities. Such contributions must pass an
economic feasibility test similar to the one described in the preceding
paragraph.