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. 3100 Original Sheet No. 3100 GENERAL TERMS AND CONDITIONS Section 1919. Penalties All penalty amounts actually collected by Texas Gas, except for those amounts due to cash- out penalties covered by Section 14, shall be determined for each calendar year and reported and credited, if necessary, within ninety days after the end of the calendar year. Texas Gas will accrue interest at the FERC interest rate on actual penalty revenues collected. Should the balance of the penalty amounts collected, including interest, be less than $250,000 at the end of any calendar year, then that amount shall be carried forward to the next calendar year reporting period. If the balance of the penalty revenues collected, including interest, is $250,000 or greater at the end of any calendar year, then Texas Gas shall credit that amount to Customers pro rata based on their transportation charges paid during each applicable month when a penalty was collected, excluding any Customer which was charged any penalty during that month. If Texas Gas waives a penalty, such penalty shall not be considered as "charged" for purposes of this section. Credits shall be distributed to the original Customer where capacity has been released except in the case of a permanent release where amounts shall be distributed to the Replacement Customer. A Customer whose contract for service has expired shall be entitled to a distribution of any penalty revenues that accrued while the contract was in effect, including any interest on such revenues accruing both before and after expiration of the contract.