Arkansas Western Pipeline Company

First Revised Volume No. 1

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Effective Date: 12/01/1993, Docket: CP92-570-005, Status: Effective

Original Sheet No. 43 Original Sheet No. 43 : Superseded




not be subject to curtailment or interruption or discontinuance,

except as provided in Section 8 of this Rate Schedule.


2.2 a. When new and/or expanded facilities are required to

accommodate receipt of gas under this FTS Rate Schedule

and Transporter determines that installation of such

facilities will be economically beneficial to

Transporter or provide increased business opportunities

for Transporter and will not impair service to any

Shipper or threaten the integrity of Transporter's

system, Transporter shall construct such facilities.


b. Except where (i) Transporter and Shipper mutually agree

to share in the cost, or (ii) Transporter agrees to pay

for the entire cost, Shipper shall pay for any

facilities required to accommodate the receipt of gas

under this FTS Rate Schedule.


c. For purposes of determining whether (i) a project is

economically beneficial or will provide increased

business opportunities or (ii) Transporter will

construct additional facilities, Transporter will

evaluate projects on the basis of various economic

criteria, which will include verification of the amount

of reserves and deliverability characteristics of the

gas supply to be attached, the cost of the facilities,

operating and maintenance as well as administrative and

general expenses attributable to the facilities, the

revenues Transporter estimates will be generated as a

result of such construction, and the availability of

capital funds on terms and conditions acceptable to

Transporter. In estimating the revenues to be

generated, Transporter will evaluate the existence of

capacity limitations downstream of the facilities, the

marketability of the gas supplies, the location of the

markets for the gas supplies, the interruptible versus

the firm nature of the service for the attached gas

supplies, and other similar factors which impact

whether the available deliverability from the attached

gas supplies will actually be transported in a manner

that generates incremental benefits to Transporter.


d. In situations where Shipper is required to pay for the

total cost of the new facilities, Shipper's payment for

the cost of the new facilities shall include the full