Gulf South Pipeline Company L P

Sixth Revised Volume No. 1

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Effective Date: 04/01/2001, Docket: RP01-225-000, Status: Effective

Original Sheet No. 2904 Original Sheet No. 2904 : Superseded




Section 24



(2) other related costs incurred prior to the in-service date of

the Requested Facilities, which shall be defined to include, but

are not limited to, operating and maintenance expenses,

administrative and general expenses, employee salaries on a time-

devoted basis and related expenses, taxes other than income taxes,

depreciation costs and the time value of money, as set forth in an

interconnect agreement, and (3) a gross-up for state and federal

income taxes, if applicable. Unless Gulf South agrees in an

interconnect agreement to allow the Requesting Customer to pay

such costs at some other time or in installments, any agreement

for Construction of Requested Facilities shall provide that the

Requesting Customer shall pay Gulf South the costs of Construction

and Related Costs prior to the commencement of Construction. If

actual costs are not known, Gulf South shall be entitled to bill

the Requesting Customer based upon estimated costs and the

Requesting Customer shall be required to pay such estimated costs,

provided however, upon determining its actual costs, Gulf South

shall have thirty days to either refund any excess collections or

bill for any under-collections, as appropriate, to provide for

Gulf South's collection of its actual costs, including the time

value of money as specified in the interconnect agreement.


24.5 Gulf South may agree to pay all or part of the costs of the

Requested Facilities and their Construction, other related costs

and tax gross up if the Construction is economically or

operationally beneficial to Gulf South. In determining economic

or operational benefit, Gulf South may consider the following

factors, among others: costs of the Requested Facilities and

their Construction; the estimated incremental throughput and/or

revenues attributable to the Requested Facilities; the related

costs and tax gross up attributable to the Requested Facilities;

the marketability of the capacity associated with the Requested

Facilities; the location of the markets associated with the

Requested Facilities; the interruptible or firm nature of the

transportation service; the availability of capital funds on

terms and conditions acceptable to Gulf South; the time value of

money; increased system or operational reliability or

flexibility; and increased access to new supplies or markets.