Stingray Pipeline Company

Third Revised Volume No. 1

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Effective Date: 12/01/1996, Docket: RP97- 39-000, Status: Effective

First Revised Sheet No. 117 First Revised Sheet No. 117 : Effective

Superseding: Original Sheet No. 117









(a) Unless otherwise agreed by Stingray, Stingray shall

own, operate and maintain all pipeline and measurement facilities

necessary to receive and measure gas hereunder. Shipper shall (in

addition to all other applicable charges) reimburse Stingray for the

actual cost (including income taxes associated with a contribution-

in-aid of construction) of any and all facilities installed by

Stingray pursuant to this Section at Shipper's request in order to

provide service for such Shipper including, but not limited to, the

cost of all labor, materials and rights-of-way; provided that

Shipper shall repay Stingray in kind for any gas lost from

Stingray's pipeline as a result of the installation of such

facilities. Stingray may submit billings to Shipper up to sixty (60)

days in advance for the estimated cost of construction to be

incurred by Stingray. Shipper shall make payments within ten (10)

days of the date of receipt of any billings submitted by Stingray

pursuant to this Section. For purposes of this Section, the bill is

deemed to be received by Shipper three (3) days after the postmark

date. Late payments shall be subject to Section 13 of these General

Terms and Conditions. Any such estimated billings shall be

reconciled to the actual costs of construction, and any payments to

reflect such reconciliation shall be made, within six (6) months

after construction is completed. Neither the amounts collected

hereunder nor the cost of such facilities shall be recognized in

establishing Stingray's general System rates.


(b) Stingray may elect, on a nondiscriminatory basis,

to pay all or a portion of the costs of the facilities constructed

pursuant to subsection (a) above if Stingray determines that the

construction of such facilities is economically beneficial to

Stingray. For purposes of determining whether a project is

beneficial, Stingray will evaluate projects on the basis of various

economic criteria, which will include the estimated transportation

throughput, cost of the facilities, operating and maintenance as

well as administrative and general expenses attributable to the

facilities, the revenues Stingray estimates will be generated as a

result of such construction, and the availability of capital funds

on terms and conditions acceptable to Stingray. In estimating the

revenues to be generated, Stingray will base those revenues upon

transportation rates it expects to be able to charge, exclusive of