Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 08/01/2009, Docket: RP09-317-000, Status: Suspended

First Revised Sheet No. 3201 First Revised Sheet No. 3201

Superseding: Original Sheet No. 3201



Section 20




Based on the above listed criteria, a project shall be economically

beneficial when the projected first year incremental revenues equal or

exceed the projected first year incremental cost of service. When the

project is determined to be economically beneficial, Texas Gas will pay

for the cost of the contemplated facilities. When the delivery point

facilities do not qualify under the economic test of this section, the

facilities shall be installed at Customer's expense.


In addition to the above, Texas Gas may agree to pay for all or part of

the cost of modification or construction of facilities required at a

delivery point(s) to effectuate the delivery of natural gas hereunder when

Customer and Texas Gas agree to extend a service agreement for a term of

at least five years at mutually agreeable rates.


When Texas Gas has previously paid for all or a portion of delivery point

facilities under this facilities reimbursement policy, Customer shall,

nevertheless, promptly pay Texas Gas for Texas Gas' net book value of such

facilities when either of the following events occurs: (1) when Texas

Gas' ability to fully recover such costs is denied in any Section 4 or

Section 5 rate proceeding, or (2) when Customer ceases operations at the

delivery point where the facilities were installed.


(b) Texas Gas shall not construct or modify any facilities hereunder which

will result in an increase or decrease in Texas Gas' mainline capacity, or

which may compromise the operational integrity of Texas Gas' pipeline

system. For those facilities which Texas Gas agrees to construct, Texas

Gas will construct those facilities (1) pursuant to and subject to the

authorization granted in Subpart F of Part 157 of the Regulations of the

Federal Energy Regulatory Commission or (2) where the prior authorization

of the Federal Energy Regulatory Commission is not required to construct

such facilities.


Texas Gas reserves the right to seek a waiver of the foregoing

facilities reimbursement policy, for good cause shown, during any

proceeding before the Commission instituted under Section 7 of the

Natural Gas Act. Nothing in this policy statement shall require Texas

Gas to file an application for a certificate of public convenience and

necessity under Section 7(c) of the Natural Gas Act or from contesting

an application for service filed pursuant to Section 7(a) of the

Natural Gas Act.


This Section 20.1 pertains to laterals or facilities at delivery points

only. It is not intended to limit who may own, operate, install or pay

for facilities downstream of a delivery point. It is the Customer's

responsibility to assure that all facilities installed and owned by

Customer or any other party downstream of a delivery point comply with all

applicable governmental regulations and design requirements for their

intended use (i.e., pressure, control, etc.).


Texas Gas shall install, own, operate, and maintain such equipment unless

otherwise agreed to in writing by Texas Gas and Customer. Unless

otherwise agreed, Customer shall reimburse or cause Texas Gas to be

reimbursed for the cost of such facilities. Such costs include, but are

not limited to, operating and maintenance expenses, administrative and

general expenses, gross-up for state and federal income taxes, taxes other

than income taxes, depreciation costs and the time value of money.