Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

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Effective Date: 06/01/1993, Docket: RS92- 11-020, Status: Effective

Sub Original Sheet No. 876 Sub Original Sheet No. 876 : Effective

 

FORM OF SERVICE AGREEMENT

FOR RATE SCHEDULE FTS-7

(Continued)

 

ARTICLE II

 

TERM OF AGREEMENT

 

This Service Agreement shall become effective on __________ and shall

continue in force for a primary term of ______ years; and from year to year

thereafter unless terminated by either party upon twenty-four months' prior

written notice. Subject to Section 22 of Pipeline's General Terms and

Conditions and without prejudice to such rights, this Service Agreement may

be terminated at any time by Pipeline in the event Customer fails to pay

part or all of the amount of any bill for service hereunder and such

failure continues for thirty (30) days after payment is due; provided,

Pipeline gives thirty (30) days prior written notice to Customer of such

termination and provided further such termination shall not be effective

if, prior to the date of termination, Customer either pays such outstanding

bill or furnishes a good and sufficient surety bond guaranteeing payment to

Pipeline of such outstanding bill. Notwithstanding the foregoing, service

shall not be terminated unless and until Pipeline has received abandonment

authority pursuant to Section 7 of the Natural Gas Act. Customer shall

have the right to oppose Pipeline's application to the Federal Energy

Regulatory Commission, or any successor agency, for such abandonment

authority. For the 120 days following termination of this Service

Agreement, Pipeline shall utilize its best efforts to provide Customer with

such additional interruptible transportation service, to be provided

pursuant to Rate Schedule IT-1 or successor of Rate Schedule IT-1, as is

necessary for Customer to withdraw and receive delivery of all gas

remaining in storage pursuant to CNG's Rate Schedule GSS.

 

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-7 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.

 

Customer shall pay Pipeline for, all services rendered hereunder and

for the availability of such service in the period stated, the applicable

prices established under Pipeline's Rate Schedule FTS-7 as filed with the

Federal Energy Regulatory Commission and as the same may be hereafter

revised or changed.