U-T Offshore System, L.L.C.

Third Revised Volume No. 1

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Effective Date: 06/01/1997, Docket: RP97-146-001, Status: Effective

Second Revised Sheet No. 9 Second Revised Sheet No. 9 : Superseded

Superseding: First Revised Sheet No. 9

 

 

RATE SCHEDULE FT

FIRM TRANSPORTATION SERVICE

(Continued)

 

 

4.5 Unauthorized Overrun. U-TOS shall notify Shipper verbally of any unauthorized

overrun service that is occurring for Shipper, and shall immediately confirm

such notification by telex or similar means. Shipper shall pay U-TOS a penalty

of $2.00 per Dth or the current Spot Market Price for the Offshore Texas region

as reported in Natural Gas Week, whichever is higher, for any unauthorized daily

overrun not terminated within 24 hours of U-TOS' verbal notification. Such

penalty payments shall be paid to U-TOS in addition to the charges otherwise

payable by Shipper under this or the appropriate Rate Schedule. U-TOS may

waive, in whole or in part, any overrun penalty provided for herein if, in

U-TOS' sole discretion, such penalty was incurred due to circumstances beyond

Shipper's control.

 

4.6 Transportation of Associated Liquids. If Associated Liquids are transported

hereunder for Shipper and U-TOS is required by any regulatory agency, from time

to time, to allocate a portion of its cost of service to such transportation

service or to charge, or impute, a fee for such service, then Shipper shall

reimburse U-TOS for such allocated costs and such fee.

 

4.7 Commission and Other Regulatory Fees. Shipper shall reimburse U-TOS for all

filing, reporting and application fees required by the Commission or any other

regulatory body which are related to service provided under this Rate Schedule.

 

4.8 Rate Changes. Subject to any rights or limitations imposed by additional

Transportation Agreement provisions agreed to by Shipper and U-TOS, U-TOS may

from time to time and at any time selectively adjust any or all of the rates

charged to any individual Shipper for which a Maximum Rate and Minimum Rate are

stated on Sheet No. 4 of this Tariff; provided, however, that such adjusted

rate(s) shall not exceed the applicable Maximum Rate(s), nor shall they be less

than the Minimum Rate(s) set forth on such sheets. U-TOS shall have the right

to charge the Maximum Rate at any time as a condition for new service or for

continuation of service under an existing Agreement. U-TOS shall make all

information filings required by the Commission's regulations with respect to any

charges at less than the Maximum Rate. Whenever U-TOS adjusts the rate to be

charged to a Shipper pursuant to this Section 4.8, notice thereof shall be given

to Shipper not less than seventy-two (72) hours prior to the effective date of

such adjustment.

 

5. WARRANTY

 

Shipper warrants for itself, its successors and assigns, that it will have at the time

of delivery of Gas and Associated Liquids for transportation hereunder good title or

the good right to deliver such Gas and Associated Liquids to U-TOS and accept

redelivery at the Point of Delivery. U-TOS warrants for itself, its successors and

assigns, that it will at the time of delivery to others of the Gas and Associated

Liquids transported hereunder have good right to deliver such Gas and Associated

Liquids to others. Shipper warrants for itself, its successors and assigns, that the

Gas it warrants hereunder shall be free and clear of all liens, encumbrances, and

claims whatsoever, that it will indemnify U-TOS and save U-TOS harmless from and

against all suits, actions, debts, accounts, damages, costs, losses, and expenses

including U-TOS' actual attorney's fees and cost of defense arising from or out of any

adverse claims of any and all persons to said Gas and/or to royalties, taxes, license

fees, or charges thereon which are applicable to such delivery of Gas and that it will

indemnify U-TOS and save it harmless from all taxes or assessments which may be levied

and assessed upon such delivery and which are by law payable by, and the obligation of,

the Party making such delivery.