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. 896 Original Sheet No. 896 : Effective

 

FORM OF SERVICE AGREEMENT

FOR RATE SCHEDULE CTS

(Continued)

 

hereinafter provided. Pipeline or Customer may elect to terminate this Service

Agreement or reduce the MDQ hereunder as of October 31, 2000, 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, 2010, 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. If, in the interim between Customer's termination of or reduction of

this Service Agreement and cessation of Customer's payment of the monthly charge

to Pipeline hereunder, Pipeline specifically contracts to use all or part of the

facilities constructed for the CTS service and Pipeline commences one or more

such contracted for replacement firm services, Customer shall be relieved of the

obligation to pay the monthly charge to the extent and for such time that the

facilities are being utilized to provide said replacement services. 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 less any amount Customer was relieved of due to

impairment of deliveries by Pipeline. Reimbursement shall not be applicable nor

shall demand charges be due from Customer if and to the extent that Pipeline

elects to terminate or reduce 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.