W T G Hugoton, LP
Original Volume No. 1
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Effective Date: 08/01/2007, Docket: CP06- 90-003, Status: Effective
Original Sheet No. 255A Original Sheet No. 255A : Effective
GENERAL TERMS AND CONDITIONS
WTG Hugoton shall place all such revenues in a processing account and
shall distribute the revenues as follows: First, if prior to the beginning of
each month, a party notifies WTG Hugoton that it is claiming the right to
process the volumes to be transported pursuant to a transportation service
agreement that actually flow through the processing plant but for which the
party does not have a processing arrangement with the processing plant, WTG
Hugoton will allocate the revenue received from the processing plant first to
all notifying parties on a pro rata GPM basis. The notification will be made
to WTG Hugoton via the nomination process and will include an affidavit.
Second, the remainder of the revenues, after the revenues are
allocated to the parties pursuant to the above paragraph, will be credited to
the transportation commodity rates. WTG Hugoton will make a limited NGA
Section 4 filing to reduce its transportation commodity rate for any
accumulated revenues received from processing related to Strangers' gas when
the annual total would result in a reduction of $0.005 or more in the
currently effective commodity rates.
Prior to any allocation of revenue received from the processing plant,
WTG Hugoton will be reimbursed from such revenue each month an amount to cover
the increased administrative costs associated with the allocation of the
revenues.
In the event WTG Hugoton is held liable for any revenues which have
been allocated and distributed to any party in addition to any other remedy it
may have, WTG Hugoton shall have the right to reduce the amount of revenues to
be distributed pursuant to the transportation commodity rate crediting
methodology set forth above for future months by the amount paid by WTG
Hugoton for such liability including attorneys' fee and court costs.
Upon WTG Hugoton's request, Shipper or its designee shall provide to
WTG Hugoton the GPM content of the gas tendered to WTG Hugoton by Shipper or
its designee at the Points of Receipt under Shipper's Service Agreement or
information which WTG Hugoton deems sufficient to calculate the theoretical
GPM content of such gas for allocation purposes. WTG Hugoton shall have the
right to use reasonable means to ensure the accuracy of the information
provided by Shipper or its designee.