Southern Natural Gas Company
Original Volume No. 2
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Effective Date: 02/03/1991, Docket: RP90-139-004, Status: Effective
First Sub. Eleventh Rev. Sheet No. 554 First Sub. Eleventh Rev. Sheet No. 554 : Effective
Superseding: Tenth Revised Sheet No. 554
RATE SCHEDULE X-56 (Continued)
pursuant to the terms and provisions of the Carthage Transportation Agreement.
3. The gas to be redelivered by Southern to United at the Gwinville Point
of Exchange shall be delivered at pressures sufficient to enter United's
pipeline facilities at said point against the pressures existing therein from
time to time.
4. It is understood and agreed that Southern or United shall have the
right but not obligation to install, maintain and operate compression
facilities to effect delivery and redelivery of gas hereunder.
VI. RATES AND TAXES
1. Commencing with the effective date hereof and unless and until changed
as hereinafter provided in this Article VI, United agrees to pay to Southern
for the transportation service performed hereunder a monthly Demand Charge
equal to the MMBTU Delivery Quantity times $1.07. 1/
2. In addition to the Demand Charge specified above, United agrees to pay
Southern a Commodity Charge of six and nine-tenths (6.9) cents for each MMBTU
received by Southern from United during any day which is in excess of the MMBTU
Delivery Quantity. If Southern for any reason, other than failure of United to
tender and deliver gas, fails or is unable to receive at the Point of Receipt
on any one or more days the MMBTU Delivery Quantity, the monthly Demand Charge
shall be reduced by the Commodity Charge for each MMBTU which Southern failed
to take on such day or days.
3. The Demand Charge and/or the Commodity Charge applicable hereunder
from time to time shall be subject to increase or decrease pursuant to any
Order issued by the Federal Energy Regulatory Commission (the FERC), or any
other governmental agency having jurisdiction, in any rate proceeding initiated
by, or applicable to, Southern. United agrees that Southern shall, at all
times during the term hereof, have the right to effect changes in the Demand
Charge and/or the Commodity Charge applicable hereunder by seeking
authorization from duly constituted regulatory authorities for any such
adjustments as may be needed to assure Southern that it will receive just and
reasonable compensation for the transportation services performed hereunder for
United. Nothing herein contained shall prejudice the rights of United to
contest at any time changes to the charges set forth above with regard to the
services rendered hereunder by Southern.
4. In addition to the amounts due pursuant to this Article VI, United
shall pay or reimburse Southern for the full amount of any present or future
tax or assessment levied upon Southern with respect to the receipt,
1/ Plus the ACA unit charge and the volumetric Take-or-Pay surcharge which
are set forth in Sections 21 and 22, respectively, of Southern's FERC Gas
Tariff, Sixth Revised Volume Number 1.