Elba Express Company, L.L.C.

Original Volume No. 1

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Effective Date: 03/01/2010, Docket: RP10-342-000, Status: Effective

Original Sheet No. 9 Original Sheet No. 9

 

(v) Unauthorized Overrun Gas: All Unauthorized Overrun Gas, as set forth in

Section 30.2(c) of the General Terms & Conditions, shall be assessed the

penalties set out in Section 30 ("Operational Flow Orders and Penalties")

of the General Terms and Conditions.

 

(d) Adjustment to the Reservation Charge or Negotiated Rate.

 

(i) MDDQ Shortfall. If, on any Day, COMPANY fails to make available for

transportation the quantity up to the TD that SHIPPER has nominated, and

such failure is not attributable to failure of the Point Operator to

confirm the nomination, the Reservation Charge or Negotiated Rate otherwise

payable by the SHIPPER for each such Day shall, unless provided otherwise

below, be credited by an amount equal to the product of:

 

(A) the quantity not made available ("TD Shortfall"), times

 

(B) SHIPPER's Reservation Charge or Negotiated Rate on a 100 percent

load factor basis.

 

(ii) MDDQ Shortfall due to force majeure. In the event of force majeure, as

defined in Section 8.3 of the General Terms and Conditions, causing COMPANY

to fail to make available for delivery the quantity up to the TD that

SHIPPER has nominated, the Reservation Charge or Negotiated Rate otherwise

payable by the SHIPPER for each such Day shall, unless provided otherwise

below, be credited by an amount equal to the product of:

 

(A) the TD Shortfall, times

 

(B) that portion of the maximum recourse reservation rate attributable

to COMPANY's allowed return on common equity and associated income

taxes, as determined in the last FERC proceeding establishing such

rate.

 

The result of the calculation in (A) and (B) shall be the "Recourse Floor"

rate. If SHIPPER pays a discounted reservation rate or Negotiated Rate for

such MDDQ Shortfall that exceeds the Recourse Floor, then SHIPPER shall

likewise receive a credit no greater than an amount resulting in SHIPPER's

paying the Recourse Floor.