Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 03/08/2010, Docket: RP10-366-000, Status: Effective

First Revised Sheet No. 2007 First Revised Sheet No. 2007

Superseding: Original Sheet No. 2007



Section 8




8.8 Capacity Reduction Provisions


The provisions of this Section 8.8 are only applicable to Rate Schedules NNS, NNL,

SGT, and SGL.


(a) If a shipper utilizing Texas Gas' transmission facilities bypasses an

existing NNS, NNL, SGT, or SGL Customer's (referred to collectively in

this Section 8.8 as "No-notice Customer") facilities to provide direct

service to an entity that is currently receiving service from such No-

notice Customer then the affected No-Notice Customer may reduce the

applicable contract demand by an amount not to exceed the contract demand

lost as a direct result of the bypass. The No-notice Customer shall

provide written notice to Texas Gas of its desired contract demand

reduction. Such reduction shall become effective on the latter of 60 days

following receipt of such notice or the effective date of the bypass.


(b) If a No-Notice Customer is required by its regulatory or legislative

authority to unbundle its merchant function or provide open access

transportation on some or all of its facilities ("Regulatory

Proceedings"), then the No-notice Customer shall use its best efforts

during the Regulatory Proceedings:


(i) To require any parties that assume all or part of the

merchant function to take assignment of the relevant pro

rata portion of Customer's applicable contract demand

under the terms of the No-notice Customer's service

agreement, including any existing discount or negotiated

rate agreement.


(ii) To ensure that its NNS, NNL, SGT, or SGL service agreement

with Texas Gas does not receive a disproportionate

reduction in contract demand versus the contract demand of

any of its other firm service agreements on Texas Gas, or

on any other pipeline.


(iii) If the No-notice Customer is unable to assign the rights

as provided in (b)(i) above, which results in a loss of

applicable contract demand, then to the extent that any

portion of the NNS, NNL, SGT, or SGL service agreement's

demand charges becomes a stranded cost, the No-notice

Customer shall have the right to reduce its applicable

contract demand. The NNS, NNL, SGT, or SGL Customer shall

provide written notice to Texas Gas of its desired

contract demand reduction following issuance of the final

order. Such reduction shall become effective 60 days

following receipt of such notice.


Contemporaneously with any notice of contract demand reduction as provided

in (a) or (b) above, the No-notice Customer shall also submit a valid

request for service reflecting the necessary reductions in primary receipt

and delivery point quantities and supply lateral capacity rights, as



8.9 Updated Information


Texas Gas may request and Customer will provide updated, standard request-for-

service-type information, such as contact, notice, and/or billing information, to

facilitate ongoing contract administration activities and rollover/evergreen

agreement processing. Texas Gas will use reasonable efforts to minimize such