Texas Eastern Transmission, L P

Seventh Revised Volume No. 1

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Effective Date: 11/16/2009, Docket: RP10-53-000, Status: Effective

Fourth Revised Sheet No. 594 Fourth Revised Sheet No. 594

Superseding: Third Revised Sheet No. 594







9.1 This Section sets forth the terms and conditions regarding the Base and Operational

Segment Capacity Entitlements for Customers paying Reservation Charges under Section

3.2 of Rate Schedules CDS, FT-1 and SCT (such Customers hereinafter referred to as

"Entitlement Holders"). Entitlement quantities for Customers with executed service

agreements under Rate Schedule MLS-1 will be calculated in accordance with Rate

Schedule MLS-1 and the executed MLS-1 Service Agreement. The Operational Segment

Capacity Entitlements shall be controlling for the scheduling of Gas within the Access

Area subject to this Section 9 and Section 4.3. Pipeline shall recalculate on an

annual basis in a not unduly discriminatory manner Customer's Operational Segment

Capacity Entitlements based on information provided by Customer or Pipeline

projections, including the peak day receipts of Gas by Pipeline and deliveries of Gas

by Pipeline. Such recalculated Operational Segment Capacity Entitlements, along with

supporting documentation explaining the basis for any change(s), shall be filed with

the Commission each September 1 to be effective the following November 1, subject to

Commission approval. Adjustments to entitlements pursuant to this Section 9.1 will be

applied to capacity obtained by Replacement Customers pursuant to Section 3.14, each

November, as applicable. Adjustments will be applied pro rata between each Customer

and Replacement Customer, or such other method mutually agreeable to the affected

parties. The Operational Segment Capacity Entitlements as well as the input

distribution of Operational Segment Capacity Entitlements at each compression station

site and pipeline junction are displayed in the LINK® System. Operational Segment

Capacity Entitlements as displayed in the LINK® System will be updated as required to

include changes in entitlements pursuant to Section 3.14 and Sections 9.1 and 9.9.

These updated Operational Segment Capacity Entitlements will serve as the basis for

scheduling and curtailment of service in accordance with Section 4 and this Section 9.

The Base Segment Capacity Entitlements represent the distribution of capacity to

Entitlement Holders calculated by assuming that all quantities flowing through each

segment enters such segment at the furthermost upstream point and exits such segment

through the furthermost downstream point. Base Segment Capacity Entitlements are

included as a reference to assist Entitlement Holders in understanding the impact of

modifying the location of a Point of Receipt on the capacity of a given segment.


An Entitlement Holder may cause in the aggregate quantities of Natural Gas to be

received into each of Pipeline's Access Area Zones under Rate Schedules CDS, FT-1 and

SCT up to its Operational Segment Capacity Entitlements. To the extent that receipt by

Pipeline of quantities in excess of the Operational Segment Capacity Entitlements for

one Customer will not impair Pipeline's ability to receive Quantities of Gas up to the

Operational Segment Capacity Entitlements requested by any other Customers or impair

Pipeline's ability to meet its other firm obligations, such excess quantities (herein

called "Preferential Capacity") may be utilized by such Customer. Entitlement Holders

are permitted to use such Preferential Capacity to source from the Access Area the

lesser of Customer's MDQ or an aggregate Quantity of Gas equal to the sum of Customer's

ETX/M1 and ELA/M1 Zone Boundary Entry Quantities (which includes Customer's

Transportation Path entitlement from Kosciusko, Mississippi). In the event Gas

tendered by more than one Entitlement Holder who has Operational Segment Capacity

Entitlements must be reduced, such reduction shall be pro