Transwestern Pipeline Company

Second Revised Volume No. 1

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Effective Date: 04/14/2003, Docket: RP03-307-000, Status: Effective

Fourth Revised Sheet No. 95I Fourth Revised Sheet No. 95I : Effective

Superseding: Substitute Third Revised Sheet No. 95I

GENERAL TERMS AND CONDITIONS

(continued)

 

30.9 General Terms and Conditions

 

a) Priority: All released capacity will have priority over

the Transporter's interruptible services.

 

b) Alternate Points: Alternate Receipt Points and Alternate

Delivery Points may be utilized by a Replacement Shipper as

described in Section 22 of the General Terms and Conditions

of this Tariff.

 

c) Rates: Releasing Shipper cannot release capacity for an

effective price less than Transporter's minimum rates nor

more than Transporter's just and reasonable maximum rates,

as set forth in Transporter's current FERC Gas Tariff. The

maximum rate that may be charged for capacity released is

the maximum firm rate which may be charged by Transporter

for such transportation, plus Transport Fuel and all

applicable surcharges.

 

In the event a Releasing Shipper elects to accept bids

containing a one-part rate, such rate shall include

the Reservation Charge, any reservation surcharges,

and the Usage charges. Bidders may only bid on the

Reservation Charge and the reservation surcharges

(herein referred to as the "One-part Rate Bid"). The

Usage Charges include the currently effective

commodity charge plus any applicable surcharges. The

maximum One-part Rate Bid must be calculated using the

projected applicable load factor underlying

Transporter's current rates and the following formula:

 

One-part Rate Bid = (Reservation Charge/Load Factor)

 

where: Reservation Charge = Currently effective

reservation charge, and

 

Load Factor = 100%

 

Such Reservation Charges and Usage Charges will be set

forth in Transporter's current FERC Gas Tariff, and

must comply with Section 284.8 of the Commission's

Regulations.

 

Releasing Shipper may specify dollars and cents or

percentages of the maximum tariff rate in the

denomination of bids.

 

Maximum and minimum rates specified by the Releasing

Shipper must include the Reservation Charge and all

demand surcharges.

 

d) Secondary/Subsequent Releases: Replacement Shipper, and

any third parties receiving capacity rights from any

Replacement Shipper, will be authorized or permitted to

release the capacity to other third parties only under the

same set of conditions described herein, i.e., any

Replacement Shipper will be considered the Releasing

Shipper for purposes of subsequent assignments of capacity,

and any third party receiving such capacity in such

transactions will be considered the Replacement Shipper.