Petal Gas Storage Company

Original Volume No. 1

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Effective Date: 12/18/1993, Docket: CP93- 69-002, Status: Effective

Original Sheet No. 111 Original Sheet No. 111 : Effective

 

GENERAL TERMS AND CONDITIONS

(continued)

 

 

availability of storage capacity and deliverability in the

following order of declining priority:

 

(a) Firm storage service at Primary Point(s) of

Receipt or Delivery.

 

(b) Firm storage service at point(s) other than

Primary Point(s) of Receipt or Delivery.

 

(c) Make-up volumes to correct prior variances

between (i) Transporter and Petal under a balancing agreement,

(ii) Customer and Petal, and (iii) Customer and Transporter if

the variance was due to Petal's failure to receive or deliver

Customer's scheduled volumes.

 

(d) Interruptible storage service pursuant to

Section 4.3 below.

 

(e) Authorized overrun service for FSS Customers.

 

(f) Authorized overrun service for ISS Customers.

 

4.2 Firm Service.

 

(a) During an open season, Petal will accept

requests for firm storage service from potential customers.

Capacity will be allocated to those customers offering to pay

the highest negotiated rates. Specifically, capacity will be

allocated to those customers offering to pay the highest

present value of the weighted average per unit Capacity and

Deliverability Charges over the term of each agreement. Such

present value of the Capacity and Deliverability Charges shall

be calculated in accordance with the following formula:

 

(Monthly Charges Per Unit of Storage Capacity) X

[1 - ((1 + i)to the -n power)/i] X ((1 + i) to the

-t power) = Present Value Per Unit of Storage Capacity