Tennessee Gas Pipeline Company


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Effective Date: 03/13/2006, Docket: RP06-219-000, Status: Effective

Third Revised Sheet No. 560I Third Revised Sheet No. 560I : Effective

Superseding: Second Revised Sheet No. 560I




(For Use Under FT-BH Rate Schedule)







For all gas received, transported and delivered hereunder the Parties agree to the

Quality Specifications and Standards for Measurement as specified in the General Terms

and Conditions of Transporter's FERC Gas Tariff Volume No. 1. To the extent that no new

measurement facilities are installed to provide service hereunder, measurement operations

will continue in the manner in which they have previously been handled. In the event

that such facilities are not operated by Transporter or a downstream pipeline, then

responsibility for operations shall be deemed to be Shipper's.







6.1 TRANSPORTATION RATES - Commencing upon the effective date hereof, the rates,

charges, and surcharges to be paid by Shipper to Transporter for the

transportation service provided herein shall be in accordance with Transporter's

Rate Schedule FT-BH and the General Terms and Conditions of Transporter's FERC

Gas Tariff. Except as provided to the contrary in any written or electronic

agreement(s) between Transporter and Shipper in effect during the term of this

Agreement, Shipper shall pay Transporter the applicable maximum rate(s) and all

other applicable charges and surcharges specified in the Summary of Rates in

Transporter's FERC Gas Tariff and in this Rate Schedule. Transporter and Shipper

may agree that a specific discounted rate will apply only to certain volumes

under the agreement. Transporter and Shipper may agree that a specified

discounted rate will apply only to specified volumes (MDQ, TQ, commodity volumes

or Authorized Overrun volumes) under the Agreement; that a specified discounted

rate will apply only if specified volumes are achieved (with the maximum rates

applicable to volumes above the specified volumes or to all volumes if the

specified volumes are never achieved); that a specified discounted rate will

apply only during specified periods of the year or over a specifically defined

period of time; that a specified discounted rate will apply only to specified

points, zones, markets or other defined geographical area; and/or that a

specified discounted rate will apply only to production or reserves committed or

dedicated to Transporter. Transporter and Shipper may agree to a discounted rate

pursuant to the provisions of this Section 6.1 provided that the discounted rate

is between the applicable maximum and minimum rates for this service.


In addition, a discount agreement may include a provision that if one rate

component which was at or below the applicable Maximum Rate at the time the

discount agreement was executed subsequently exceeds the applicable Maximum Rate

due to a change in Transporter's Maximum Rates so that such rate component must be

adjusted downward to equal the new applicable Maximum Rate, then other rate

components may be adjusted upward to achieve the agreed overall rate, as long as

none of the resulting rate components exceed the Maximum Rate applicable to that

rate component. Such changes to rate components shall be applied prospectively,

commencing with the date a Commission Order accepts revised tariff sheet rates.

However, nothing contained herein shall be construed to alter a refund obligation

under applicable law for any period during which rates that had been charged under

a discount agreement exceeded rates which ultimately are found to be just and



6.2 INCIDENTAL CHARGES - Shipper agrees to reimburse Transporter for any filing or

similar fees, which have not been previously paid for by Shipper, which

Transporter incurs in rendering service hereunder.