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. 95 Original Sheet No. 95

 

28. FACILITIES

 

28.1 The following provision shall apply to requests for installation of new facilities

unless otherwise provided in the Tariff.

 

28.2 In order for COMPANY to receive, measure, transport, and/or deliver the gas to be

transported under this Rate Schedule, it may become necessary for COMPANY to

install facilities or to modify existing facilities at or near a Receipt Point or

Delivery Point ("Interconnection Facilities"). Should SHIPPER or Point Operator

request the installation or modification of said facilities and agree to reimburse

COMPANY for the entire cost to COMPANY thereof, COMPANY shall agree to construct

and install, or cause to be constructed and installed, or will modify, or cause to

be modified, Interconnection Facilities; provided that, (i) the proposed

Interconnection Facilities do not adversely affect COMPANY's operations; (ii) the

proposed Interconnection Facilities and the associated transportation service to

or from the interconnection do not diminish service to any of COMPANY's shippers;

(iii) the proposed Interconnection Facilities do not cause COMPANY to violate or

be in violation of any applicable environmental or safety laws, permits or

regulations; (iv) the proposed Interconnection Facilities do not conflict with or

cause COMPANY to be in violation of its rights-of-way agreements or any other

contractual obligation, and/or (v) the Point Operator requesting the

Interconnection Facilities agrees to receive and deliver natural gas that conforms

with Section 3.1 above through the interconnect. In the event SHIPPER does not

agree to pay the costs of installing or modifying the Interconnection Facilities,

COMPANY will construct or modify such facilities on a nondiscriminatory basis for

similarly situated SHIPPERS if the construction or modification of such

Interconnection Facilities is economically feasible and the conditions listed

above in (i) - (iv) are met. Construction or modification is economically

feasible if the proposed transportation service to be provided through the

Interconnection Facilities produces a net revenue gain. The net revenue gain

requirement will be met if (a) the total revenues generated over the term of

SHIPPER's Service Agreement for the service provided through the new facilities

exceed the cost of service of said facilities for the greater of (i) ten years or

(ii) the term of SHIPPER's Service Agreement for the service provided through the

new facilities and the SHIPPER extends the terms of its existing Service

Agreement(s) with COMPANY for a period commensurate with that of its new Service

Agreement; provided however, that (1) SHIPPER does not have to extend the

remaining term of an existing Service Agreement if said term already exceeds the

term of its new Service Agreement, and (2) if the net revenue gain requirement is

met over a period less than the term of the new Service Agreement, SHIPPER need

extend the term of its existing Service Agreement(s) only for a term commensurate

with that shorter period; or (b) COMPANY determines that the construction of the

facilities will avoid a significant reduction in revenue when comparing the cost

of the construction to the projected amount of revenue which would be lost as a

result of a SHIPPER's exercising a right to reduce its firm transportation

quantity or as a result of a SHIPPER's failing to extend or renew its existing

Service Agreement(s).