Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 09/15/2008, Docket: RP08-392-003, Status: Superseded

Original Sheet No. 462 Original Sheet No. 462




No-Notice Transportation Service

NNL-SL, NNL-1, NNL-2, NNL-3, and NNL-4



16. Failure to Withdraw Gas from Storage before NNL Contract Termination


An NNL Customer is required to withdraw or otherwise diminish (e.g. through in-field

transfers) 100% of its Unnominated Seasonal Quantity before its NNL service agreement

terminates or expires so that the storage balance in its NNL account is zero by April

1. In the event that Unnominated Seasonal Quantities remain in storage on April 1,

these volumes will be subject to cash out at the system average "Index Price" for the

month of April determined in accordance with Section 14 of the General Terms and

Conditions of this Tariff, and Texas Gas shall pay Customer for its net storage

balance (in MMBtu) according to the following table:


Net Percentage of

Unnominated Seasonal Quantity Percentage of

Remaining in Storage Index Price


0% to 5% 100%

>5% - 10% 90%

>10% - 15% 80%

>15% - 20% 70%

>20% 60%


17. Redelivery of Borrowed Gas and Penalty for Failure to Redeliver Borrowed Gas Prior to

Contract Termination


If Customer borrows gas in-kind from Texas Gas by withdrawing more than 100% of its

Unnominated Seasonal Quantity pursuant to Section 10.5 or Section 12.2 hereof, then

all quantities injected into Customer's Unnominated storage thereafter shall be

treated as repayment in kind of such borrowed gas until such gas is repaid.


In the event Customer fails to deliver in kind to Texas Gas any portion of such gas

it has borrowed from Texas Gas prior to termination of its contract for service under

this Rate Schedule, Customer shall, within 30 days of contract termination, pay Texas

Gas an amount equal to the greater of 200% of Texas Gas' book value of its working

gas in storage or 200% of the highest monthly average index price calculated pursuant

to Section 14 of the General Terms and Conditions, using a twelve month period ending

on the date of contract termination.


18. General Terms and Conditions


All of the General Terms and Conditions of Texas Gas' FERC Gas Tariff are applicable to

and are hereby incorporated as a part of this Rate Schedule NNL.