Columbia Gas Transmission LLC

Third Revised Volume No. 1

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Effective Date: 03/03/2009, Docket: RP09-340-000, Status: Effective

Original Sheet No. 160 Original Sheet No. 160





(3) To the extent that Shipper's TPS transportation imbalance at any time exceeds the

Transportation Demand set forth in its TPS Service Agreement, Shipper's FSS inventory under Shipper's FSS

Rate Schedule shall be increased or decreased by the amount of such excess and the amount of such excess

imbalance shall be removed from Shipper's TPS Service Agreement the following Gas Day. Such increase or

decrease shall be deemed to be a storage injection or withdrawal under Shipper's FSS Service Agreement.

Such an adjustment to or from FSS inventory shall not relieve Shipper from its responsibility to pay all

applicable transportation and storage charges. The appropriate commodity Recourse Rates (and any overrun

charges) will be assessed for the transportation into or out of storage under the appropriate

transportation Service Agreements held by Shipper in the following order of priority, if Shipper holds

more than one firm transportation Service Agreement, up to the Transportation Demand under each: (i) SST

Service Agreement; (ii) NTS Service Agreement; (iii) NTS-S Service Agreement; (iv) FTS Service Agreement;

or (v) TPS Service Agreement; provided, that Shipper may notify Transporter in writing of a preferred

different order of priority for the specified Rate Schedules. Such notice must be received by

Transporter at least 30 days prior to the beginning of the Month for which it is to be initially

effective. Any such action shall not increase Transporter's firm service obligations to Shipper.


(4) If Shipper does not have any or adequate FSS storage inventory on Transporter's system

to cure an TPS transportation imbalance, and Shipper has under-tendered gas to Transporter, Shipper

shall pay Transporter for each Dth of such outstanding under-tendered imbalance, grossed up for the

Retainage percentages applicable to Columbia Gulf Transmission Company's ITS-1 Rate Schedule and

Transporter's ITS Rate Schedule. The payment shall be the sum of: (i) the Spot Market Price for the

Month during which such quantities are made up by Transporter; plus (ii) the cost of transporting such

quantities at the total effective maximum rate under Columbia Gulf Transmission Company's ITS-1 Rate

Schedule. "Spot Market Price", for purposes of this Section, shall mean, for the applicable Month, the

contract index price last published during the applicable Month for gas delivered to Columbia Gulf

Transmission Company at Rayne Station, Louisiana, as reported in Natural Gas Intelligence or successor

publication. Upon payment of such charge, the imbalance shall be removed from Shipper's account. If

Shipper does not have adequate FSS storage capacity on Transporter's system to cure a TPS transportation

imbalance, and Shipper has over-tendered gas to Transporter, any such quantities automatically shall be

forfeited by Shipper to Transporter free and clear of all liens and encumbrances. Transporter shall

post such forfeited quantities on its EBB as gas available for sale to the highest bidder within a 24

hour notice period. Such posting may provide as a condition of sale that such gas be withdrawn from

storage within a period of time to be specified in the notice. Upon receipt of payment, Transporter

shall treat the forfeited gas proceeds as Penalty Revenues as defined in Section 19.6 of the General

Terms and Conditions.'


(5) Except for force majeure events and/or events or conditions which threaten the integrity

of Transporter's system or Transporter's ability to meet its firm service obligations, Transporter will

notify Rate Schedule TPS Shippers at least 24 hours in advance on its Internet EBB of the ability to

cure a Rate Schedule TPS imbalance by means other than the utilization of Rate Schedule FSS or the

injection and/or withdrawal of natural gas at the primary interconnect with the Third Party Storage



(6) During any time period when Transporter determines in its reasonable judgment that

system operations so require, Transporter shall have the right to require that the Shipper under a TPS

Service Agreement fully remove any TPS transportation imbalance (actual receipts versus actual

deliveries) existing on its TPS Service Agreement, regardless of whether the imbalance exceeds or is less

than the Transportation Demand on its TPS Service Agreement. If Transporter determines that an imbalance

must be removed, Transporter shall notify Shipper and Shipper will have forty-eight (48) hours from the

time of notification to correct the imbalance. The imbalance can be corrected by utilizing one of the

methods set forth in Section 3(b) above. If Shipper does not correct the imbalance within forty-eight

(48) hours of notification, Transporter, by agreement or, as operator of the Third Party Storage Company,

shall have the right to correct the imbalance by injecting into or withdrawing from Shipper's Third Party

Storage Company inventory. Shipper shall be responsible for all charges applicable under Shipper's

third party storage Service Agreement, plus any applicable transportation and storage charges incurred on

Transporter's system. To the extent that Shipper's third party storage Service Agreement gas storage

inventory is inadequate to correct the imbalance, Transporter shall avail itself of the provisions of

Section 3(b)(4) above.