Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 03/04/2010, Docket: RP10-360-000, Status: Effective

Original Sheet No. 653 Original Sheet No. 653


Rate Schedule WNS (cont'd)




7.2 Unauthorized Contract Demand Overrun Penalty


In any month in which Customer takes an Unauthorized Contract Demand Overrun,

Customer shall pay to Texas Gas the following penalties in addition to the charges

otherwise payable hereunder:


(a) A "Nominal Overrun Penalty" equal to twice the effective FT Overrun Rate

for all Unauthorized Contract Demand Overrun Quantities taken on any day

over 102 percent of the Contract Demand; and


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

Contract Demand Overrun Quantities taken on any day in excess of 105% of

Contract Demand.


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.


The payment of a penalty for Unauthorized Contract Demand Overrun by a Customer

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

to take Unauthorized Contract Demand Overrun nor shall such payment be considered

as a substitute for any other remedies available to Texas Gas or any of 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 Contract

Demand Overrun if, on the day when the Unauthorized Contract Demand Overrun was

taken, deliveries to Texas Gas' other Customers were not adversely affected by the

taking of such Unauthorized Contract Demand 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 Contract Demand

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



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.