Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

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Effective Date: 06/01/1993, Docket: RS92- 11-009, Status: Effective

Original Sheet No. 836 Original Sheet No. 836 : Effective

 

FORM OF SERVICE AGREEMENT

FOR RATE SCHEDULE FTS

(Continued)

 

Agreement or reduce the MDQ hereunder as of October 31, 1999, or at any time

thereafter by giving written notice of such election not less than two (2) years

prior to the termination or reduction date designated in such notice, unless

waived by the other party and upon approval by the regulatory agency having

jurisdiction.

 

Upon termination of or reduction of MDQ under this Service Agreement, all

rights of Customer to the capacity provided by the facilities constructed and

utilized to provide the service which has been terminated or reduced shall

terminate and such facilities shall be available without limitation for

Pipeline's use as Pipeline, in its sole discretion, deems desirable. If Customer

elects to terminate this Service Agreement or reduce the MDQ hereunder, then

notwithstanding such termination or reduction, Customer shall continue to pay the

monthly charge provided under Article III of this Service Agreement until the

earlier of October 31, 2009, or the date Pipeline makes effective its next

general rate filing and begins receiving recovery on an alternate basis, which

may include system wide recovery, of the costs of the facilities attributable to

the service which has been terminated or reduced. At such time Customer shall

cease paying the monthly charge attributable to the terminated or reduced

service. In addition, if and to the extent that Customer terminates this Service

Agreement or reduces the MDQ hereunder and the Federal Energy Regulatory

Commission or any other agency having jurisdiction over the premises ever

determines that the facilities attributable to such service are not used and

useful in providing natural gas service on Pipeline's system, or otherwise

precludes Pipeline from recovering the full original cost of such facilities,

then Customer shall reimburse Pipeline the remaining initial cost of said

facilities not previously recovered by Pipeline through depreciation charges.

Such reimbursement shall not be applicable if and to the extent that Pipeline

elects to terminate this Service Agreement.

 

Any portions of this Service Agreement necessary to correct or cash-out

imbalances under this Service Agreement as required by the General Terms and

Conditions of Pipeline's FERC Gas Tariff, Volume No. 1, shall survive the other

parts of this Service Agreement until such time as such balancing has been

accomplished.

 

ARTICLE III

 

RATE SCHEDULE

 

This Service Agreement in all respects shall be and remain subject to the

applicable provisions of Rate Schedule FTS and of the General Terms and

Conditions of Pipeline's FERC Gas Tariff on file with the Federal Energy

Regulatory Commission, all of which are by this reference made a part hereof.