Florida Gas Transmission Company

Third Revised Volume No. 1

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Effective Date: 12/01/1995, Docket: RP96- 32-000, Status: Effective

Third Revised Sheet No. 125A Third Revised Sheet No. 125A : Superseded

Superseding: Second Revised Sheet No. 125A

GENERAL TERMS AND CONDITIONS

(continued)

C. Daily Tolerances

Shipper shall delivery, or cause to be delivered, to Transporter at the

point(s) of receipt on a uniform daily basis, that quantity of natural gas that

has been scheduled for transportation. To the extent Shipper deviates

significantly from the uniform daily basis, Transporter reserves the right to

implement an Operational Flow Order pursuant to Section 17C3.

 

D. Unauthorized Gas

"Unauthorized Gas" shall mean any volume of gas received at a point for which

there is no transportation nomination by any shipper. Unauthorized Gas

provisions shall not 1) apply at any point for which there is a volume

nominated and 2) encompass imbalance volumes.

 

Transporter shall post on its EBB the volume, production month received on

Transporter's system, and the point of receipt of any Unauthorized Gas received

(Notice). Transporter shall continue to post the Notice until a valid claim

has been submitted or until thirty (30) calendar days after the initial posting

of the Notice, whichever is sooner. In order to be a valid claim for purposes

hereof, a claim must: (a) be provided to Transporter in writing; (b) identify

the specific Unauthorized Gas delivered; (c) provide independent evidence of

ownership of Unauthorized Gas claimed; and (d) agree to indemnify Transporter

fully with respect to any adverse claims to ownership of the gas or to the

proceeds resulting from the sale thereof.

 

If a valid claim is submitted during the first twenty-four (24) hours of the

Notice period, then claimant shall have thirty (30) days to schedule such

volumes from the date Transporter determines the claim is valid. Such volumes

not scheduled during the thirty (30) days shall be subject to the Transporter

Purchase Provision of this section.

 

If a valid claim is received during the Notice period, after twenty-four (24)

hours of the posting of the Notice, then such volumes shall be subject to the

Transporter Purchase Provision.

 

If a valid claim is not received in the Notice period, then Transporter shall

retain such Unauthorized Gas at no cost to Transporter, free and clear of any

adverse claims.

 

The Transporter Purchase Provision. Transporter shall purchase Unauthorized Gas

not scheduled by Shipper nor retained by Transporter from the claimant at 80%

of the Tivoli Index as defined in Section 14.B.2., for the month in which the

Unauthorized Gas is delivered to Transporter or the month of settlement,

whichever is less; provided, however, that Transporter shall purchase a maximum

of 12,000 MMBtu during a twelve (12) month calendar period from any single

claimant or at any single receipt point. Volumes exceeding the maximum shall

be retained by Transporter at no cost to Transporter and free and clear of any

adverse claims.