Steuben Gas Storage Company

Original Volume No. 1

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Effective Date: 06/01/1997, Docket: RP97-177-001, Status: Effective

First Revised Sheet No. 147 First Revised Sheet No. 147 : Effective

Superseding: Original Sheet No. 147





or contingencies affecting such performance relieve Customer,

in whole or in part, from its obligations to pay the monthly

charges provided for in Section 8 of these General Terms and







(a) Priority Of Request For Initial Firm Storage Agreements:

After notification, pursuant to Section 2.9 hereof, that

Seller has available firm storage capacity which is not

subject to contract or is released pursuant to Section 7

of Rate Schedule FS, Seller will accept requests that

Seller enter into an Agreement for firm Storage Service.

Except as provided in Section 10.1(b) below, the order of

priority among such requests shall be based upon the

economic value of the transaction to Seller, with the

transaction producing the greatest economic value having

the highest priority of request, provided, however, that

nothing herein shall require Seller to provide service at

any rates it determines to be below market rates and

provided further, that Seller shall not be required to

enter into Service Agreements with terms of more than one

Year unless Customer has a long-term debt rating of at

least Baa according to Moody's Investors Service or BBB

according to Standard & Poor's Corporation or if its

obligations to the Seller are guaranteed by a person with

a long-term debt rating equal to or greater than stated

above. Economic value shall be determined on the basis

of the product of the term of service in years in the

request, (using a term not to exceed twenty (20) years)

and the Reservation Charges for each year in the life of

the Agreement agreed to in the request by the requesting

party, discounted to present value by the then-current

interest rate determined in accordance with Section

154.501(d) of the Commission's Rules and Regulations.

The sum of the present value for each year in the life of

the Agreement shall be the economic value of the

Agreement. In the event two or more bids with equal

economic values are received for combined capacity in

excess of the quantity of available firm capacity, the

capacity will be allocated on a first come first served