Texas Gas Transmission, LLC
Third Revised Volume No. 1
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Effective Date: 03/01/2009, Docket: RP09-304-001, Status: Effective
Substitute First Revised Sheet No. 2805 Substitute First Revised Sheet No. 2805
Superseding: Original Sheet No. 2805
GENERAL TERMS AND CONDITIONS
(ii) Releasing Customers may specify a minimum price term and/or volume
to be bid for capacity offered to be released and assigned.
However, regardless of any minimum price posted by the Releasing
Customer, or however the rate bid by the Potential Replacement
customer is stated (i.e., two-part rate or volumetric rate), the
rate bid represents the reservation portion of the charges to the
Releasing customer, and in addition to such rate bid, Replacement
Customers must agree to pay Pipeline the applicable maximum
commodity rate for all volumes actually transported for the
Replacement Customer, plus any related surcharges, unless the
Pipeline agrees with the Replacement Customer to some lesser rate.
(iii) To the extent a release is subject to the maximum rate cap, a
Releasing Customer cannot resell for the maximum rate plus any
marketing fees that may be due Pipeline, but a Releasing Customer
can require a Replacement Customer to pay any applicable
surcharges, in addition to the maximum rate.
(iv) Pipeline may actively market any capacity offered for release and
assignment, if Pipeline and the Releasing Customer mutually agree.
The fee to be retained by Pipeline for such marketing activities
and the other terms and conditions of such arrangement, including
what activities are necessary or contemplated to secure a fee, will
be negotiated by the Pipeline and the Releasing Customer on a case-
(v) As stated in Section 16.3(e)(ii) above, bids are to be based on the
Reservation Charge only, provided that the Reservation Charge may
be converted into a volumetric charge. To the extent a volumetric
release is subject to the maximum rate cap, the maximum rate for
such volumetric releases shall be equal to the 100% load factor
rate of the otherwise applicable maximum Reservation Charge, plus
all applicable usage charges.
(vi) A Releasing Customer may release capacity to a Customer without
bidding for any period of 31 days or less; provided, however, a
Releasing Customer may not roll over, extend, or in any way
continue the release to the same Replacement Customer using this
bidding exemption until 28 days after the first release period has