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. 604 Original Sheet No. 604 RATE SCHEDULE SNS (cont'd) operations, including gas storage operations, were not impaired thereby. Texas Gas must waive any Excess Overrun Penalty if the Unauthorized Contract Demand Overrun occurs in a non-critical situation and does not cause operational problems. Texas Gas shall be obligated to waive any penalty for Unauthorized Contract Demand 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. 8. Seasonal Quantity Entitlement Overrun Charge and Nominal Penalty 8.1 If Customer takes quantities of gas during the seven-month period commencing April 1 of each year in excess of the Summer Quantity Entitlement-SNS, such excess shall constitute Seasonal Quantity Entitlement Overrun. 8.2 In addition to all other applicable charges, if Customer takes quantities of gas in any season in excess of the applicable Seasonal Quantity Entitlement, there shall be a penalty of twice the effective FT Overrun Rate; provided, however, such seasonal penalties shall be charged only for unauthorized seasonal overruns. Texas Gas shall have the right, without obligation, to waive, on a non- discriminatory basis, any penalty under this Section 8.2 for Seasonal Quantity Entitlement Overrun if, as a result of such overrun, deliveries to Texas Gas' other Customers were not adversely affected or if Texas Gas' pipeline operations, including gas storage operating, were not impaired thereby. 8.3 Texas Gas will assess only one penalty for any infraction (i.e., a Customer will not incur both unauthorized Contract Demand overrun and seasonal quantity overrun charges or penalties based on a single infraction). 9. Unnominated Quantity Overrun 9.1 Unnominated Daily Quantity-SNS Overrun Charge and Penalty If Customer automatically takes quantities of gas from storage or injects quantities of gas into storage without nomination on any day in excess of Customer's Unnominated Daily Quantity-SNS, such excess shall constitute Unnominated Daily Quantity-SNS Overrun.