Valero Interstate Transmission Company

First Revised Volume No. 2

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Effective Date: 11/01/1991, Docket: GT91- 42-000, Status: Effective

Original Sheet No. 29 Original Sheet No. 29 : Superseded

 

 

8. The term "gas" or "natural gas" shall include casinghead gas

produced with crude oil, natural gas from gas wells, and residue gas

resulting from processing either or both casinghead gas or gas well gas.

 

9. The term "Interstate's facilities" shall mean such facilities as

are required for Interstate to gather, and deliver to Buyer at the delivery

points established under Article V hereof at the required delivery

pressure, gas of the quality and in the quantities herein established.

 

10. The term "FERC" shall mean the Federal Energy Regulatory Commission

or its successor agencies.

 

11. The term "Implementing Order(s)" shall mean that order or those

orders issued by the FERC which 1) amend Interstate's certificate of public

convenience and necessity issued under Section 7 of the Natural Gas Act in

Docket No. CP81-168 to authorize all aspects of this agreement, 2) accept

this agreement and any related filings as tariff sheets in Vitco's FERC

Gas Tariff, First Revised Volume No. 2.

 

ARTICLE II

 

RESERVATIONS OF INTERSTATE

 

1. Interstate further reserves unto itself, all gas lost and

unaccounted for and used for fuel in the operation of facilities operated

by Interstate. The gas lost and unaccounted for and used as fuel shall be

taken on a pro rata basis based on the ratio of the volume of gas sold

hereunder and the total volume of gas being moved through Interstate's

facilities.

 

2. Interstate may permit the extraction of helium and liquefiable

hydrocarbons, other than methane, from the gas prior to delivery to Buyer

hereunder, provided that such extraction shall not reduce the total heating

value per cubic foot below nine hundred seventy-five (975) Btu's and

provided that by such extraction the gas will not be rendered incapable

of meeting any of the quality specifications set forth in Article IV

hereof.

 

ARTICLE III

 

VOLUMES

 

1. Commencing on the effective date hereof, Buyer will purchase and

Interstate will sell an average of 25,000 MMBtu per day during each of

three (3) consecutive periods of twelve (12) months each beginning on the

effective date of this Agreement.