Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 09/15/2008, Docket: RP08-392-000, Status: Effective

Original Sheet No. 502 Original Sheet No. 502 RATE SCHEDULE SGT (cont'd) applicable to such zones as shown on Sheet No. 21 associated with volumes transported to such zones.5. Minimum Contribution to Fixed Costs Beginning on November 1, 2001, Customer agrees to pay a Minimum Contribution to Fixed Costs (MCFC) for any Responsibility Period (defined as November 1 through October 31) when the aggregate quantities transported by all Customers under this Rate Schedule during the Responsibility Period total less than the aggregate Annual Minimum SGT Quantities (AMQ) of all Customers under this Rate Schedule and the Customer transports less than the Customer's Annual Minimum SGT Quantity. For each Customer served under this Rate Schedule, the AMQ equals the product of the Customer's Annual Contract Demand (i.e., the sum of Customer's Daily Contract Demands) for the Responsibility Period multiplied by twenty percent (20%). For each zone, the AMQ is calculated by multiplying twenty percent (20%) by the sum of each Customer's Annual Contract Demands for the Responsibility Period. The MCFC applicable to each Customer is calculated by multiplying (1) the respective zone's fixed costs per MMBtu embedded in the currently effective one-part rate for service under this Rate Schedule by (2) the net deficiency of all Customers defined as the amount by which the AMQ of all Customers in the zone exceeds the aggregate quantities transported by all customers in that zone under this Rate Schedule for the Responsibility Period, then multiplied by (3) the ratio of the Customer's net deficiency (the amount by which the Customer's AMQ exceeds the Customer's actual quantity transported) to the net deficiency of all customers in that zone. The MCFC charge shall be billed to Customer in three equal installments in the succeeding months January through March. SGT customers receiving only SGT service to its city gate and receiving no transportation of FT, capacity release or IT, nor any other secondary deliveries, during the entire responsibility period, shall not be billed an MCFC charge.6. Daily Overruns 6.1 Unauthorized Overrun Quantity If Customer takes under this rate schedule on any day a quantity of gas which is greater than the applicable Contract Demand, the excess shall constitute an Unauthorized Overrun Quantity. 6.2 Payment for Unauthorized Overrun Quantity In any month in which Customer takes an Unauthorized Overrun Quantity, Customer shall pay to Texas Gas, in addition to the charges otherwise payable pursuant to Section 4.1 herein above: (a) A "Nominal Overrun Penalty" equal to twice the effective FT Overrun Rate for all Unauthorized Overrun Quantities taken on any day in excess of 250 MMBtu; and