Texas Gas Transmission, LLC

Third Revised Volume No. 1

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

Original Sheet No. 555 Original Sheet No. 555




Small Customer General Transportation Service

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

(Customers with SGL Winter Contract Demands of Less than 7,500 MMBtu/d and Total

Firm Contract Demands Not Exceeding 10,000 MMBtu/d)



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


(b) An "Excess Overrun Penalty" of $10.00 per MMBtu for all Unauthorized

Contract Demand Overrun Quantities on any day in excess of 375 MMBtu.


In the event a Customer incurs an Excess Overrun Penalty, Texas Gas will credit any

amounts collected as a Nominal Overrun Penalty against amounts collected as an

Excess Overrun Penalty, so that the total Overrun Penalty collected does not exceed

$10.00 per MMBtu for overruns in excess of 105% of Contract Demand.


No overrun penalty shall be payable for any day in which the Unauthorized Overrun

quantity is less than 250 MMBtu.


The payment of a penalty for an Unauthorized Overrun Quantity by a Customer shall

not under any circumstances be considered as giving such Customer the right to

take an Unauthorized Overrun Quantity nor shall such payment be considered as a

substitute for any other remedies available to Texas Gas or any or Texas Gas'

other customers against the offending Customer for failure to respect its

obligation to adhere to the provisions of its contract with Texas Gas.


Texas Gas shall have the right, without obligation, to waive, on a non-

discriminatory basis, any Nominal Overrun Penalty for an Unauthorized Overrun if,

on the day when the Unauthorized Overrun was taken, deliveries to Texas Gas' other

customers were not adversely affected by the taking of such Unauthorized Overrun

or if Texas Gas' pipeline operations, including gas storage operations, were not

impaired thereby. Texas Gas must waive any Excess Overrun Penalty if the

Unauthorized Overrun occurs in a non-critical situation and does not cause

operational problems.


Texas Gas shall be obligated to waive any penalty for an Unauthorized Overrun



a) when such overrun is taken under circumstances beyond the control of

Customer due to emergency conditions on Texas Gas' facilities, or


b) when such overrun is due to accident to or breakage of pipelines,

machinery or equipment of the Customer; provided, however, Customer shall

promptly and diligently take such action as may be necessary and

practicable under the then existing circumstances to repair or otherwise

remedy the situation and furnish Texas Gas satisfactory evidence that such

accident or breakage was not due to Customer's gross negligence.


7. Election of Rate Schedule


Refer to Section 8.6 of the General Terms and Conditions of this tariff.