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FERC GAS TARIFF
ORIGINAL VOLUME No. 1
OF
DISCOVERY GAS TRANSMISSION LLC
FILED WITH
FEDERAL ENERGY REGULATORY COMMISSION
Communications concerning this tariff
should be addressed to:
Mr. Kevin Rehm
Vice President
Discovery Gas Transmission LLC
P. O. Box 1396
Houston, TX 77251-1396
2800 Post Oak Blvd.
Houston, TX 77056
Telephone: 713-215-2694
Facsimile: 713-215-3050
Electronic Mail: Kevin.Rehm@Williams.com
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TABLE OF CONTENTS
ORIGINAL VOLUME NO. 1
Description Sheet No.
Preliminary Statement 10
System Map 11
Statement of Transportation Rates 20
Rate Schedules:
FT-1 Firm Transportation Service 30
FT-2 Firm Transportation Service 40
IT Interruptible Transportation Service 50
General Terms and Conditions 100
Forms:
FT-1 Transportation Service 200
FT-2 Transportation Service 220
IT Transportation Service 240
Capacity Release 260
Request for Service 270
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Sheet Nos. 2 through 9 are reserved for future use.
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PRELIMINARY STATEMENT
Discovery Gas Transmission LLC (Discovery) is a Limited Liability Company,
organized under the laws of the State of Delaware, engaged in the business of
transporting Natural Gas and Condensates in interstate commerce under
authorization granted by and subject to the jurisdiction of the Federal Energy
Regulatory Commission. Discovery owns and operates an offshore Natural Gas
transmission pipeline located in the Federal Domain, Offshore Louisiana, with
a terminus onshore in the vicinity of Larose, Louisiana.
The Transportation of Natural Gas is and will be undertaken by Discovery only
under written agreement(s) acceptable to Discovery upon consideration of
existing commitments, operating conditions and any other factors deemed
pertinent by Discovery.
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SYSTEM MAP
This sheet to be replaced by System Map.
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Sheet Nos. 12 through 19 are reserved for future use.
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STATEMENT OF TRANSPORTATION RATES
(Rates per Dt)
Rate Schedule Maximum Rate Minimum Rate
FT-1 Rate Schedule: 4/
FT-1 (Mainline)
Monthly Reservation Rate $5.2590 $0.24333
Daily Reservation Rate 1/ $0.1729 $0.00800
FT-1 (Market Expansion)
Monthly Reservation Rate $3.3945 $0.24333
Daily Reservation Rate 1/ $0.1116 $0.00800
FT-2 Rate Schedule: 4/
FT-2 (Mainline)
Usage Rate $0.1729 $0.00800
FT-2 (Market Expansion)
Usage Rate $0.1116 $0.00800
IT Rate Schedule: 4/
IT (Mainline)
Usage Rate $0.1729 $0.00800
IT (Market Expansion)
Usage Rate $0.1116 $0.00800
Gathering Charge applied to
volumes transported through
Gathering Facilities 4/ $0.0430 $0.00200
Fuel, Lost and Unaccounted for Gas 0.0% of Gas Receipts
Additional Surcharges Applicable to All Mainline Transportation Service:
Annual Charge Adjustment (ACA) Surcharge 2/ $0.0019
Hurricane Mitigation & Reliability Enhancement (HMRE) Surcharge $0.0096
Market Outlet (MO) Surcharge 3/ $0.0100
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FOOTNOTES
1/ Section 154.107(f) of the Commission's Regulations requires a total
rate. For this purpose only, a Daily Reservation Charge which equals
the Monthly Reservation Charge divided by 30.4167 (365 days/12 months)
is reflected.
For capacity release transactions at maximum rate, the Monthly
Reservation Charge is divided by the number of Days in the applicable
Month. For less than maximum rate transactions only, converting Daily
rate to Monthly rate is accomplished by multiplying the Daily rate times
number of Days in rate period, dividing the result by number of Months
in rate period and taking the remainder out to 5 decimal places and
rounding up or down to the fourth decimal place. Converting a Monthly
rate to a Daily rate is accomplished by multiplying the Monthly rate by
the number of Months in rate period; dividing the result by number of
Days in rate period and taking the remainder out to 5 decimal places and
rounding up or down to the fourth decimal place.
2/ For the period during which this ACA Surcharge is effective, it is
Transporter's intent not to seek recovery of any annual charges assessed
pursuant to Part 382 of the Commission's Regulations and Commission
Order No. 472, except as permitted under this ACA Surcharge. This ACA
Surcharge is in addition to any amounts otherwise payable to Transporter
under its Rate Schedules.
3/ Commencing on April 1, 2008, the MO Surcharge shall be assessed and
paid through a volumetric surcharge applicable to any Mainline
transportation service provided to a Shipper charged a discount or
negotiated rate pursuant to this FERC Gas Tariff under a Service
Agreement executed on or before December 31, 2007, but not to any
Shipper that receives transportation service through both the Mainline
Facilities and the Expansion Facilities under a Service Agreement
pursuant to Rate Schedule FT-2 executed on or before December 31, 2005.
In no event shall the sum of a discount rate and the MO Surcharge
exceed the otherwise applicable maximum tariff rate. The MO Surcharge
shall expire on April 1, 2013.
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FOOTNOTES
4/ Pursuant to "Order Approving Settlement and Severing Party", issued by
the Commission on February 5, 2008, in Docket No. RP08-70, ExxonMobil
Gas & Power Marketing Company, A Division Of Exxon Mobil Corporation
will be offered service up to the following maximum rates (in addition
to the ACA Surcharge or any charge for Fuel, Lost and Unaccounted for
Gas):
Rate Schedule Maximum Rate
FT-1 (Mainline)
Monthly Reservation Rate $4.77240
Daily Reservation Rate (see Footnote 1)/ $0.15690
FT-1 (Market Expansion)
Monthly Reservation Rate $2.48200
Daily Reservation Rate (see Footnote 1)/ $0.08160
FT-2 (Mainline)
Usage Rate $0.15690
FT-2 (Market Expansion)
Usage Rate $0.08160
IT (Mainline)
Usage Rate $0.15690
IT (Market Expansion)
Usage Rate $0.08160
Gathering Charge applied to volumes transported
Through Gathering Facilities $0.03900
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Elements of
Negotiated Rate Transactions
Shipper Applicable Negotiated Term of Contracted Primary Primary
Name Rate Rate Agreement Capacity Delivery Receipt
Schedule Dt/d Point Point
National FT-1 $/Dt 4,13 04-01-08 25,000 Transco Tennessee
Energy & to Old Lady Lake
Trade, LP 03-31-092 (Meter #23026)
Energy IT $0.12/Dt 05-10-07 N/A All ST 46
Partners, Ltd. 5 to Larose
06-09-07 2
Texas FT-1 $0.01/Dt 04-01-07 N/A TETCO TETCO
Eastern to Larose (MTR#07009)
Transmission, 09-30-07 7
LP1
Mariner FT-2 $0.126/Dt 04-10-07 1,712 TETCO ST308
Energy, Inc 5 to Bridgeline
End of Lease 6 Larose
Gulf South
Chevron USA FT-1 $/Dt8 09-01-07 100,000 Bridgeline Tennessee
Inc 5 to Larose Old Lady Lake
12-31-10 (Meter #23026)
Minerals FT-19 $0.13/Dt11,12 11-01-07 35,000 TETCO All 3
Management to Bridgeline
Service1 10-31-08 10 LaRose
Gulf South
1 If a cash-out refund is due and payable to Shipper during any year pursuant to
Transporter's FERC Gas Tariff, Shipper will be deemed to have immediately assigned its
right to the refund amount to the Transporter.
2 Month to month evergreen until terminated by either party with 30 days' prior written
notice.
3 Any gas received at TETCO Mtr 07009 and redelivered to the TETCO delivery point will be
transported at Discovery's minimum IT rate which is currently $0.008/Dt.
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4 The negotiated rate is a usage rate. Transporter shall have the right to terminate the
negotiated rate on one-day's notice if Shipper fails to transport at least 66% of its MDQ
on average during each calendar quarter. For any refund due and payable to Shipper for
any period pursuant to Transporter's FERC Gas Tariff, Shipper shall be deemed to have
immediately assigned its right to the refund amount to the Transporter.
5 For any refund due and payable to Shipper for any period pursuant to Transporter's FERC
Gas Tariff, Shipper shall be deemed to have immediately assigned its right to the refund
amount to the Transporter.
6 Effective for the life of the lease on G22759- South Timbalier 288.
7 Year to year evergreen until terminated by either party with 3 months' prior written
notice.
8 This is a usage rate equal to the applicable maximum daily reservation rates. No
reservation rate will apply. All other applicable rates and charges required or permitted
by the FERC are unaffected by this negotiated rate.
9 Amendment to existing non-conforming service agreement, effective 11-01-07.
10 Year to year evergreen until terminated by either party with 30 days' prior written
notice.
11 The negotiated rate is a usage rate.
12 In the event the Commission directs Transporter to redesign its rates prior to, or during
the effective period of this Negotiated Rate, or requires the collections of costs or
charges through the Negotiated Rate that are not now a component of such rate, the
parties agree to renegotiate the Negotiated Rate to take into account such actions. Such
renegotiated rate shall reflect the economic positions of the parties.
13 The Negotiated Rates are:
Rates Period Receipt Point
$0.10/Dt 04-01-08 to 10-31-08 Tennessee Old Lady Lake (Meter #23026)
$0.05/Dt 04-01-08 to 10-31-08 Larose (secondary within path)
$0.14/Dt 11-01-08 and thereafter Tennessee Old Lady Lake (Meter #23026)
$0.09/Dt 11-01-08 and thereafter Larose (secondary within path)
Note: Pursuant to Section 12.2 of the General Terms and Conditions, the Right of First Refusal
provision does not apply to any transportation agreements for firm service listed above.
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List of
Non-Conforming Agreements
The Mineral Management Services Rate Schedule FT-1 Agreement,
dated as of November 1, 2006, as amended November 1, 2007.
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Sheet Nos. 24 through 29 are reserved for future use.
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FT-1 RATE SCHEDULE
FIRM TRANSPORTATION SERVICE
1. AVAILABILITY
This FT-1 Rate Schedule is available to any Shipper for Firm
Transportation of Gas by Discovery Gas Transmission LLC (Transporter)
under the authority and provisions of Part 284 of the Federal Energy
Regulatory Commission's (Commission) regulations, provided that:
a. Transporter determines that it has sufficient System Capacity to
render the Firm Transportation service and is able to provide said
Transportation;
b. Any construction, acquisition, or expansion of facilities
necessary to commence and provide the Firm Transportation service
has been completed;
c. Any Shipper requesting Firm Transportation service under Section
311 of the Natural Gas Policy Act (NGPA) has provided written
certification, including sufficient information to verify that the
requested service qualifies under Section 311 of the NGPA, and
certifications have been received from the qualifying local
distribution companies or intrastate pipelines in accordance with
Section 4 of the General Terms and Conditions;
d. Shipper satisfies the creditworthiness criteria of Section 10 of
the General Terms and Conditions; and
e. Shipper executes the FT-1 Firm Service Agreement in the form
contained in this FERC Gas Tariff for service under this Rate
Schedule within ten (10) Business Days after it is provided to
Shipper.
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2. APPLICABILITY AND CHARACTER OF SERVICE
a. Transportation service hereunder, through all or any portion of
the Mainline Facilities or Expansion Facilities, as appropriate,
on Transporter's System, will be Firm, subject to the availability
of capacity, to the provisions of an Effective FT-1 Firm Service
Agreement, and to the General Terms and Conditions.
b. Transportation service hereunder will consist of the acceptance by
Transporter of Gas tendered for the account of Shipper for
Transportation from the Primary Receipt Point(s) specified in an
Effective FT-1 Firm Service Agreement, or Alternate Receipt
Point(s) as nominated by Shipper, the Transportation of that Gas
through the Mainline Facilities or Expansion Facilities, as
appropriate, on Transporter's System, and the delivery of that
Gas, after appropriate reductions for Fuel, Lost and Unaccounted
for Gas, for the account of Shipper at the Primary Delivery
Point(s) specified in an Effective FT-1 Firm Service Agreement or
Alternate Delivery Point(s) on the Mainline Facilities or
Expansion Facilities as nominated by Shipper.
c. Transportation service provided under this Rate Schedule is
limited to Shipper's MDRQ-Mainline and MDRQ-Expansion and to the
MDQs for each Primary Receipt and Delivery Point specified in an
Effective FT-1 Firm Service Agreement, and Transporter shall not
be obligated to provide Transportation service hereunder in excess
of the MDRQ-Mainline and MDRQ-Expansion and the MDQs so specified.
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3. RATES AND CHARGES
The applicable charges for Transportation services provided under this FT-
1 Rate Schedule are set forth in the currently effective Sheet No. 20 of
this FERC Gas Tariff or in Exhibit D to the FT-1 Service Agreement, in the
case of Negotiated Rates. For all Transportation service rendered under
this Rate Schedule, Shipper shall pay Transporter each Month the sum of
the reservation charge, ACA, HMRE and MO surcharges, and any other charges
authorized under the provisions of this FERC Gas Tariff, as follows:
a. Reservation Charge - The sum of:
i. An amount determined as the product of:
A. The Shipper's MDRQ-Mainline specified in Exhibit B of an
Effective FT-1 Service Agreement; and
B. The reservation rate(s) per Dt for FT-1 (Mainline) set
forth from time to time on the currently effective Sheet No.20
of this FERC Gas Tariff, Original Volume 1, or superseding
tariff plus
ii. An amount determined as the product of:
A. The Shippers MDRQ-Expansion specified in Exhibit B of an
Effective FT-1 Service Agreement; and
B. The reservation rate(s) per Dt for FT-1 (Expansion) set
forth from time to time on the currently effective Sheet No.
20 of this FERC Gas Tariff, Original Volume 1, or superseding
tariff.
b. ACA, HMRE and MO Surcharges - An amount determined as the product
of:
i. The total quantity of Gas in Dts received by Transporter for
the account of Shipper during the previous Month; and
ii. The ACA, HMRE and MO surcharges per Dt set forth from time to
time on the currently effective Sheet No. 20 of this FERC Gas
Tariff, Original Volume No. 1, or superseding tariff.
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c. Gathering Charge - If Shipper designates a Receipt Point(s)
identified as a Gathering Receipt Point on Exhibit A to the FT-1
Service Agreement, then, in addition to the charges above, Shipper
shall pay an amount determined as the product of:
i. The Shipper's MDRQ-Mainline and/or MDRQ-Expansion specified in
Exhibit B of an Effective FT-1 Service Agreement; and
ii. The Gathering charge per Dt set forth from time to time on the
currently effective Sheet No. 20 of this FERC Gas Tariff,
Original Volume No. 1, or superseding tariff.
d. Any charges authorized from time to time under the provisions of
this FERC Gas Tariff.
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Transporter may at any time and from time to time charge any Shipper for
service under this Rate Schedule, a reservation charge predicated upon a
reservation rate that is less than the maximum reservation rate set
forth from time to time on the currently effective Sheet No. 20 of this
FERC Gas Tariff; provided, that the reservation rate may not be less
than the effective minimum reservation rate.
Transporter shall file any and all reports required by the Commission's
regulations setting forth the applicable discounted reservation rates
and Shippers affected, along with any other required information.
4. FUEL, LOST AND UNACCOUNTED FOR GAS
In addition to the charges stated herein, each Shipper under this Rate
Schedule will be assessed its proportionate share of Fuel, Lost and
Unaccounted for Gas resulting from System operations. Each Shipper's
deliveries from the System will be reduced by zero per cent (0.0%) from
its total receipts into Transporter's System until July 1, 2008.
Transporter will calculate the actual amount of Fuel, Lost and
Unaccounted for Gas experienced during each calendar Year and file any
revisions to the reduction percentage to more closely approximate the
actual amount of Fuel, Lost and Unaccounted for Gas experienced by the
System and to reflect differences between projections and actual fuel
and losses from the previous calendar Year. The revised percentage of
reduction will be filed to become effective on July 1 of each Year.
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5. APPLICABILITY OF GENERAL TERMS AND CONDITIONS
Unless otherwise expressly indicated in this Rate Schedule or in an
Effective FT-1 Firm Service Agreement, all of the General Terms and
Conditions contained in this FERC Gas Tariff, including any future
modifications, additions or deletions, from and after their effective
dates, are applicable to Firm Transportation service rendered under this
Rate Schedule and, by this reference, are incorporated and hereby made a
part of this Rate Schedule.
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Sheet Nos. 35 through 39 are reserved for future use.
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FT-2 RATE SCHEDULE
FIRM TRANSPORTATION SERVICE
1. AVAILABILITY
This FT-2 Rate Schedule is available to any Shipper for Firm
Transportation by Discovery Gas Transmission LLC (Transporter) of Gas
produced from Committed Production under the authority and provisions of
Part 284 of the Federal Energy Regulatory Commission's (Commission)
regulations, provided that:
a. Transporter determines that it has sufficient System Capacity to
render the Firm Transportation service and is able to provide said
Transportation;
b. Any construction, acquisition, or expansion of facilities
necessary to commence and provide the Firm Transportation service
has been completed;
c. Any Shipper requesting Firm Transportation service under Section
311 of the Natural Gas Policy Act (NGPA) has provided written
certification, including sufficient information to verify that the
requested service qualifies under Section 311 of the NGPA, and
certifications have been received from the qualifying local
distribution companies or intrastate pipelines in accordance with
Section 4 of the General Terms and Conditions;
d. Shipper satisfies the creditworthiness criteria of Section 10 of
the General Terms and Conditions;
e. Shipper executes the FT-2 Firm Service Agreement in the form
contained in this FERC Gas Tariff for service under this Rate
Schedule within ten (10) Business Days after it is provided to
Shipper; and
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f. Shipper has committed the Committed Production to Transporter for
Transportation under this Rate Schedule and satisfactorily submits
documentation establishing P-50 reserves of the Committed
Production within eighteen (18) Months after committing the
Committed Production. Shipper's MDVQ-Mainline and MDVQ-Expansion
established in accordance with Subsection 2.a. of this FT-2 Rate
Schedule for service, based on Shipper's good faith estimate
before the Committed Production is documented, will not be
increased as a result of such documentation unless firm capacity
is available at that time.
g. A Shipper with an Effective FT-2 Service Agreement may request an
increase of its MDVQ-Mainline or MDVQ-Expansion if the estimated
or proven amount of its Committed Production increases as the
result of documentation, or drilling additional wells or acquiring
additional Gas production rights in the blocks, lands and leases
dedicated to Transporter and described in Shipper's Effective FT-2
Service Agreement. Shipper must submit a written request for an
increase of its MDVQ-Mainline or MDVQ-Expansion in accordance with
Section 4 of Transporter's FERC Gas Tariff, and capacity will be
awarded in accordance with Section 2 of Transporter's FERC Gas
Tariff.
2. APPLICABILITY AND CHARACTER OF SERVICE
a. Transportation under this Rate Schedule is limited to Committed
Production as described in Shipper's Effective FT-2 Service
Agreement and is further limited to the MDVQ-Mainline or MDVQ-
Expansion, as defined in this Subsection 2.a.
Shipper's MDVQ-Mainline and MDVQ-Expansion for Transportation
service provided before Shipper satisfactorily documents the
Committed Production will be an amount equal to Shipper's good
faith estimate of the Committed Production divided by two thousand
nine hundred and twenty (2920). This amount will be prorated,
based on the number of Days the FT-2 service is in effect prior to
the recalculation date, which will be January 1 of each Year.
Thereafter, the MDVQ-Mainline and MDVQ-Expansion will be
determined by subtracting the quantities of Gas shipped during the
previous Contract Year from the Committed Production
================================================================================
and dividing the result by two thousand nine hundred and twenty
(2920).
b. Transportation service hereunder, through all or any portion of
the Mainline Facilities or Expansion Facilities, as appropriate,
on Transporter's System, will be Firm, subject to the availability
of capacity, to the provisions of an Effective FT-2 Firm Service
Agreement, and to the General Terms and Conditions.
c. Transportation service hereunder will consist of the acceptance by
Transporter of Gas tendered for the account of Shipper for
Transportation from the Primary Receipt Point(s) specified in an
Effective FT-2 Firm Service Agreement, the Transportation of that
Gas through the Mainline Facilities or Expansion Facilities, as
appropriate, on Transporter's System, and the delivery of that
Gas, after appropriate reductions for Fuel, Lost and Unaccounted
for Gas, for the account of Shipper at the Primary Delivery
Point(s) specified in an Effective FT-2 Firm Service Agreement or
Alternate Delivery Point(s) on the Mainline Facilities or
Expansion Facilities, as appropriate, as nominated by Shipper.
d. Transporter shall not be obligated to provide Transportation
service hereunder in excess of the MDVQ-Mainline and MDVQ-
Expansion, as determined for each Contract Year in accordance with
Subsection 2.a.
e. Shipper shall submit documentation to Transporter in accordance
with Subsection 1.f. of this FT-2 Rate Schedule, proving the P-50
reserves of the Committed Production. If, in Transporter's
reasonable judgment, the documentation submitted by Shipper fails
to establish the P-50 reserves of the Committed Production,
Transporter and Shipper will review the data underlying the
documentation and attempt to reach agreement. If Transporter and
Shipper are unable to reach such agreement, Transporter and
Shipper will agree upon a qualified third-party expert whose good
faith determination shall establish the P-50 reserves of the
Committed Production and shall be binding upon Transporter and
Shipper. Transporter and Shipper will share equally the costs of
the qualified third-party expert agreed to by Transporter and
Shipper.
f. If, after the commencement of production from Committed
Production, Shipper fails to ship at least fifty per cent (50%) of
its MDVQ-Mainline or MDVQ-Expansion during any consecutive twelve
(12) Month period, Transporter shall have the right to reduce
Shipper's MDVQ-Mainline or MDVQ-Expansion for the following
Contract Year.
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The reduced MDVQ-Mainline or MDVQ-Expansion will be one hundred fifty per
cent (150%) of the Gas shipped through the Mainline Facilities or the
Expansion Facilities, respectively, during said twelve (12) Month period.
Shipper will have the opportunity to retain Firm service under Shipper's
FT-1 Rate Schedule equal to the reduction under Transporter's right of
first refusal procedures, as set forth in Section 12 of the General Terms
and Conditions.
3. RATES AND CHARGES
The applicable charges for Transportation services provided under this FT-
2 Rate Schedule are set forth in the currently effective Sheet No. 20 of
this FERC Gas Tariff or in Exhibit E to the FT-2 Service Agreement, in the
case of Negotiated Rates. For all Transportation service rendered under
this Rate Schedule, Shipper shall pay Transporter each Month the sum of
the Usage charge, the ACA, HMRE and MO surcharges, and any other charges
authorized under the provisions of this FERC Gas Tariff, as follows:
a. Usage Charge - The sum of:
i. An amount determined as the product of:
A. The total quantity of Gas in Dts received by
Transporter for the account of Shipper during the
previous Month for service through the Mainline
Facilities; and
B. The usage rate(s) per Dt for FT-2 (Mainline) set forth
from time to time on the currently effective Sheet No.
20 of this FERC Gas Tariff, Original Volume No. 1, or
superseding tariff; plus
ii. An amount determined as the product of:
A. The total quantity of Gas in Dts delivered by
Transporter for the account of Shipper during the
previous Month for service through the Expansion
Facilities; and
B. The usage rate(s) per Dt for FT-2 (Market Expansion)
set forth from time to time on the currently effective
Sheet No. 20 of this FERC Gas Tariff, Original Volume
No. 1, or superseding tariff.
================================================================================
b. ACA, HMRE and MO Surcharges - An amount determined as the product
of:
i. The total quantity of Gas in Dts received by Transporter
for the account of Shipper during the previous Month; and
ii. The ACA, HMRE and MO surcharges per Dt set forth on the
currently effective Sheet No. 20 of this FERC Gas Tariff,
Original Volume No. 1, or superseding tariff.
c. Gathering Charge - If Shipper designates a Receipt Point(s)
identified as a Gathering Receipt Point on Exhibit A to the FT-2
Service Agreement, then, in addition to the charges above,
Shipper shall pay an amount determined as the product of:
i. The total quantity of Gas in Dts received by Transporter
for the account of Shipper during the previous Month; and
ii. The Gathering Charge per Dt set forth from time to time on
the currently effective Sheet No. 20 of this FERC Gas
Tariff, Original Volume No. 1, or superseding tariff.
d. Any charges authorized from time to time under the provisions of
this FERC Gas Tariff.
================================================================================
Transporter may at any time and from time to time charge any Shipper for
service under this Rate Schedule, a usage charge predicated on a usage
rate that is less than the maximum usage rate set forth from time to
time on the currently effective Sheet No. 20 of this FERC Gas Tariff;
provided, that the usage rate may not be less than the effective minimum
usage rate.
Transporter shall file any and all reports required by the Commission's
regulations setting forth the applicable discounted usage rates and
Shippers affected, along with any other required information.
4. FUEL, LOST AND UNACCOUNTED FOR GAS
In addition to the charges stated herein, each Shipper under this Rate
Schedule will be assessed its proportionate share of Fuel, Lost and
Unaccounted for Gas resulting from System operations. Each Shipper's
deliveries from the System will be reduced by zero per cent (0.0%) from
its total receipts into the System until July 1, 2008. Transporter will
calculate the actual amount of Fuel, Lost and Unaccounted for Gas
experienced during each calendar Year and file any revisions to the
reduction percentage to more closely approximate the actual amount of
Fuel, Lost and Unaccounted for Gas experienced by the System and to
reflect differences between projections and actual fuel and losses from
the previous calendar Year. The revised percentage of reduction will be
filed to become effective on July 1 of each Year.
================================================================================
5. APPLICATION OF GENERAL TERMS AND CONDITIONS
Unless otherwise expressly indicated in this Rate Schedule or in an
Effective FT-2 Firm Service Agreement, all of the General Terms and
Conditions contained in this FERC Gas Tariff, including any future
modifications, additions or deletions, from and after their effective
dates, are applicable to Firm Transportation service rendered under this
Rate Schedule and, by this reference, are incorporated and hereby made a
part of this Rate Schedule.
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Sheet Nos. 46 through 49 are reserved for future use.
================================================================================
IT RATE SCHEDULE
INTERRUPTIBLE TRANSPORTATION SERVICE
1. AVAILABILITY
This IT Rate Schedule is available to any Shipper for Interruptible
Transportation of Gas by Discovery Gas Transmission LLC (Transporter)
under the authority and provisions of Part 284 of the Federal Energy
Regulatory Commission's (Commission) Regulations, provided that:
a. Transporter determines that it has available System Capacity to
render the Interruptible Transportation service and is able to
provide said Transportation;
b. Any construction, acquisition, or expansion of facilities
necessary to commence and provide the Interruptible Transportation
service has been completed;
c. Any Shipper requesting Interruptible Transportation service under
Section 311 of the Natural Gas Policy Act (NGPA) has provided
written certification, including sufficient information to verify
that the requested service qualifies under Section 311 of the
NGPA, and certifications have been received from the qualifying
local distribution companies or intrastate pipelines in accordance
with Section 4 of the General Terms and Conditions;
d. Shipper satisfies the creditworthiness criteria of Section 10 of
the General Terms and Conditions; and
e. Shipper executes an IT Service Agreement in the form contained in
this FERC Gas Tariff for service under this Rate Schedule within
ten (10) Business Days after it is provided to Shipper.
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2. APPLICABILITY AND CHARACTER OF SERVICE
a. Transportation service hereunder, through all or any portion of
Transporter's System, will be Interruptible, subject to the
availability of capacity and Transporter's operating conditions
and System requirements, to the provisions of an Effective IT
Service Agreement and to the General Terms and Conditions.
b. Transportation service hereunder shall consist of the acceptance
by Transporter of Gas tendered for the account of Shipper for
Transportation from the Receipt Point(s) specified in an Effective
IT Service Agreement, the Transportation of that Gas through the
Mainline Facilities or Expansion Facilities, as appropriate, on
Transporter's System, and the delivery of that Gas, after
appropriate reductions for Fuel, Lost and Unaccounted for Gas, for
the account of Shipper at the Delivery Point(s) specified in an
Effective IT Service Agreement.
c. Transportation service provided under this Rate Schedule is
limited to Shipper's MDTQ-Mainline and MDTQ-Expansion specified in
an Effective IT Service Agreement and Transporter shall not be
obligated to provide Transportation service hereunder in excess of
the MDTQ-Mainline or MDTQ-Expansion so specified.
d. Transportation service under this IT Rate Schedule is subject to
interruption on any Day if Transporter receives nominations for
Transportation service in excess of Transporter's Available
Capacity. In such event, FT-1 and FT-2 service will be scheduled
first, followed by IT service, in the manner set forth in Section
6 of the General Terms and Conditions.
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3. RATES AND CHARGES
The applicable charges for Transportation services provided under this IT
Rate Schedule are set forth in the currently effective Sheet No. 20 of
this FERC Gas Tariff or in Exhibit D to the IT Service Agreement, in the
case of Negotiated Rates. For all Transportation service rendered under
this Rate Schedule, Shipper shall pay Transporter each Month the sum of
the usage charge, ACA, HMRE and MO surcharges and any other charges,
authorized under the provisions of this FERC Gas Tariff, as follows:
a. Usage Charge - The sum of:
i. An amount determined as the product of:
A. The total quantity of Gas in Dts received by
Transporter for the account of Shipper during the
previous Month for service through the Mainline
Facilities; and
B. The usage rate per Dt for IT (Mainline) set forth from
time to time on the currently effective Sheet No. 20
of this FERC Gas Tariff, Original Volume No. 1, or
superseding tariff; plus
ii. An amount determined as the product of:
A. The total quantity of Gas in Dts delivered by
Transporter for the account of Shipper during the
previous Month for service through the Expansion
Facilities; and
B. The usage rate per Dt for IT (Market Expansion) set
forth from time to time on the currently effective
Sheet No. 20 of this FERC Gas Tariff, Original Volume
No. 1, or superseding tariff.
b. ACA, HMRE and MO Surcharges - An amount determined as the product of:
i. The total quantity of Gas in Dts received by Transporter for
the account of Shipper during the previous Month; and
ii. The ACA, HMRE and MO surcharges per Dt set forth from time to
time on the currently effective Sheet No. 20 of this FERC Gas
Tariff, Original Volume No. 1, or superseding tariff.
================================================================================
c. Gathering Charge - If Shipper designates a Receipt Point(s)
identified as a Gathering Receipt Point on Exhibit A to the IT
Service Agreement, then, in addition to the charges above,
Shipper shall pay an amount determined as the product of:
i. The total quantity of Gas in Dts received by Transporter
for the account of Shipper during the previous month; and
ii. The Gathering Charge set forth on the currently effective
Tariff Sheet No. 20 of this FERC Gas Tariff, Original
Volume No. 1, or superseding tariff.
d. Any charges authorized from time to time under the provisions of
this FERC Gas Tariff.
================================================================================
Transporter may from time to time and at any time charge any Shipper for
service under this Rate Schedule, a usage charge predicated upon a usage
rate that is less than the effective maximum usage rate set forth from
time to time on the currently effective Sheet No. 20 of this FERC Gas
Tariff; provided, that the usage rate may not be less than the effective
minimum usage rate.
Transporter will file any and all reports as required by the
Commission's regulations setting forth the applicable discounted usage
rates and Shippers affected, along with any other required information.
4. FUEL, LOST AND UNACCOUNTED FOR GAS
In addition to the charges stated herein, each Shipper under this Rate
Schedule will be assessed its proportionate share of Fuel, Lost and
Unaccounted for Gas resulting from System operations. Each Shipper's
deliveries from the System will be reduced by zero per cent (0.0%) from
its total receipts into the System until July 1, 2008. Transporter will
calculate the actual amount of Fuel, Lost and Unaccounted for Gas
experienced during each calendar Year and file any revisions to the
reduction percentage to more closely approximate the actual amount of
Fuel, Lost and Unaccounted for Gas experienced by the System and to
reflect any differences between projections and actual fuel and losses
for the previous calendar Year. The revised percentage of reduction
will be filed to become effective on July 1 of each Year.
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5. APPLICABILITY OF GENERAL TERMS AND CONDITIONS
Unless otherwise expressly indicated in this Rate Schedule or in an
Effective IT Service Agreement, all of the General Terms and Conditions
contained in this FERC Gas Tariff, including any future modifications,
additions or deletions, from and after their effective dates, are
applicable to Interruptible Transportation service rendered under this
Rate Schedule and, by this reference, are incorporated and hereby made a
part of this Rate Schedule.
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Sheet Nos. 55 through 99 are reserved for future use.
================================================================================
GENERAL TERMS AND CONDITIONS
Table of Contents
SECTION DESCRIPTION SHEET NO.
1 Definitions 103
2 Operating Provisions for Firm Service 113
3 Operating Provisions for Interruptible
Service 118
4 Requests for Service 120
5 Nomination Procedures 121
6 Scheduling and Curtailment 127
7 Operational Flow Orders 135
8 Allocation of Measured Gas Quantities 138
9 Resolution of Imbalances 142
10 Billing and Payment 147
11 Capacity Release 151
12 Pregranted Abandonment 167
13 Gas Quality 171
14 Measurement 173
15 Properties and Facilities 178
16 Rate Filings 181
17 Contemporaneous Communication of Information 182
18 Standards of Conduct; Complaint Procedures 185
================================================================================
Table of Contents
SECTION DESCRIPTION SHEET NO.
19 [Reserved for Future Use] 186
20 Liability and Warranty 187
21 Force Majeure 189
22 Assignment 193
23 Waiver 194
24 Descriptive Headings 195
25 NAESB Standards 196
26 Discounting 197
27 Limited Section 4 Hurricane Mitigation and
Reliability Enhancement Surcharge 198
28 [Reserved for Future Use] 199
29 Negotiated Rates 199
================================================================================
Sheet No. 102 is reserved for future use.
================================================================================
GENERAL TERMS AND CONDITIONS
1. DEFINITIONS
1.1 ALTERNATE DELIVERY POINT(S) - All Delivery Points on the Mainline
Facilities or Expansion Facilities, as appropriate, on Transporter's
System that are not designated as Primary Delivery Points in an
Effective Firm Service Agreement where quantities of Gas may be
delivered by Transporter for the account of Shipper, under an Effective
Firm Service Agreement, as nominated by Shipper.
1.2 ALTERNATE RECEIPT POINT(S) - All Receipt Points on the Mainline
Facilities or Expansion Facilities, as appropriate, on Transporter's
System that are not designated as Primary Receipt Points in an Effective
FT-1 Firm Service Agreement where quantities of Gas may be received by
Transporter for the account of Shipper, under an Effective FT-1 Firm
Service Agreement, as nominated by Shipper.
1.3 AVAILABLE CAPACITY - The capacity in the Mainline Facilities or
Expansion Facilities, as appropriate, on Transporter's System that is
not subscribed or scheduled for service under the terms of Transporter's
Rate Schedules.
1.4 BTU - A British Thermal Unit; equal to the quantity of heat required to
raise the temperature of one (1) pound avoirdupois of pure water from
fifty-eight and five- tenths degrees Fahrenheit (58.5øF) to fifty-nine
and five-tenths degrees Fahrenheit (59.5øF) at a constant pressure of
fourteen and seventy-three hundredths pounds per square inch (14.73
PSIA). The standard Btu is the International Btu, which is also called
the Btu(IT). MMBtu shall mean one million (1,000,000) Btus.
1.5 BUSINESS DAY - Monday through Friday, excluding Federal Banking
Holidays.
1.6 CENTRAL CLOCK TIME - Time in U.S. Central Time Zone, as adjusted for
Daylight Savings Time and Standard Time. As used herein, Central Time
means Central Clock Time.
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1.7 COMMISSION - The Federal Energy Regulatory Commission or any federal
commission, agency or other governmental body or bodies succeeding to,
lawfully exercising or superseding any powers that are exercisable by
the Federal Energy Regulatory Commission.
1.8 COMMITTED PRODUCTION - Shipper's working interest share of all Gas
production that is now or hereafter owned by Shipper, its successors and
permitted assigns in the Gas production from the blocks, lands, and
leases described in a Shipper's Effective FT-2 Service Agreement.
1.9 CONDENSATE - Those hydrocarbon liquids at Receipt Point pressure and
temperature produced in association with Natural Gas and transported
through the System; provided, however, that such term does not include
crude oil.
1.10 CONTRACT YEAR - A Year that commences on the first Day of the term of an
Effective Service Agreement and ends on the same calendar date of the
next succeeding Year, unless otherwise provided in an Effective Service
Agreement.
1.11 DAY - A period of consecutive hours beginning and ending at 9:00 a.m.
Central Clock Time. The date of a day is that of its beginning.
1.12 DEKATHERM (Dt) - The standard unit for purposes of nominations,
scheduling, invoicing and balancing. One Dekatherm is equivalent to one
MMBtu.
1.13 DELIVERY POINT(S) - Any point(s) on Transporter's System where
quantities of Gas may be delivered by Transporter for the account of
Shipper under an Effective Service Agreement.
================================================================================
1.14 EFFECTIVE AGREEMENT - An agreement that has been signed by Shipper or
Operator and Transporter and has not terminated under the provisions of
the agreement or through the exercise of any rights under this FERC Gas
Tariff.
1.15 EXPANSION FACILITIES - Facilities of Transporter certificated by the
FERC in FERC Docket No. CP03-342-000, et al. including but not limited
to pipelines and delivery points to Columbia Gulf Transmission Company,
Tennessee Gas Pipeline Company, and Transcontinental Gas Pipe Line
Company.
1.16 EQUIVALENT QUANTITIES - An amount equal to the sum of the quantities of
Gas, expressed in Dts, received by Transporter from Shipper at the
Receipt Points during a given Month, reduced by Fuel, Lost and
Unaccounted for Gas.
1.17 FIRM SERVICE - A service that is not subject to interruption except as
otherwise provided in the applicable Rate Schedule, the applicable
Transportation Service Agreement, or the General Terms and Conditions of
Transporter's FERC Gas Tariff.
1.18 FUEL, LOST AND UNACCOUNTED FOR GAS - The difference between the sum of
all volumes received into the System during an accounting period and the
sum of all volumes delivered from the System during the same period
(including but not limited to Gas used for fuel by or for the benefit of
Transporter, such as for compressor operation, Gas vented, leakage or
other actual losses; discrepancies due to meter inaccuracies, variations
of temperature, pressure, composition, and other variants; and
reductions as a result of retrograde condensation).
1.19 GAS OR NATURAL GAS - Hydrocarbon natural gas in a gaseous state,
including oil well gas produced with crude oil, gas from gas wells, and
residue gas from processing either oil well gas or gas well gas, or
both.
1.20 GATHERING - The receipt and transportation by Transporter of Gas through
any of the following of Transporter's facilities: (i) the 20-inch
lateral extending from the main trunk eastward to Grand Isle South
Addition Block 115; (ii) the 18-inch lateral extending from the main
trunk westward to South Timbalier Block 200; (iii) the 12-inch lateral
extending from the main trunk westward to South Timbalier 37; and (iv)
the 12-inch lateral extending from the main trunk westward to South
Timbalier 308.
================================================================================
1.21 GROSS HEATING VALUE - The number of Btus produced by the complete
combustion in air, at a constant pressure, of the amount of Gas that
would occupy a volume of one (1) cubic foot at a temperature of sixty
degrees Fahrenheit (60F), if saturated with water vapor and under
pressure equivalent to that of thirty (30) inches of mercury at thirty-
two degrees Fahrenheit (32F), and under standard gravitational force
with air of the same temperature and pressure as the Gas when the
products of combustion are cooled to the initial temperature of the Gas
and air and when the water formed by combustion is condensed to the
liquid state. The gross heating value of the Gas thus obtained will be
expressed on the measurement basis set forth in this FERC Gas Tariff
(14.73 PSIA) and will be adjusted from a saturated basis to the actual
water content of the Gas actually delivered, provided, however, that if
the Gas as delivered contains seven (7) pounds of water or less per
million (1,000,000) cubic feet, such Gas will be deemed to be dry.
1.22 INTEREST RATE - The interest rate determined by the Commission in
accordance with Section 154.501(d)(1) of the Commission's regulations.
1.23 INTERRUPTIBLE SERVICE - A service that is subject to interruption when
and to the extent Transporter determines that capacity is not available
in its existing System, and as provided in the IT Rate Schedule, the IT
Service Agreement, or the General Terms and Conditions of Transporter's
FERC Gas Tariff.
1.24 INTRADAY NOMINATION - An intraday nomination is a nomination submitted
after the nomination deadline whose effective time is no earlier than
the beginning of the Gas Day and runs through the end of that Gas Day.
An Intraday Nomination will span one Day only.
1.25 MAINLINE FACILITIES - Facilities of Transporter existing prior to the
date that service through the Expansion Facilities commenced, including
without limitation Transporter's 30-inch offshore mainline to the Larose
Processing Plant, 4 associated gathering laterals, the 20-inch pipeline
to Texas Eastern Transmission, LP and the 30-inch pipeline to Bridgeline
Gas Distribution LLC.
1.26 MAXIMUM DAILY QUANTITY (MDQ) - The maximum daily quantity of Gas
Transporter will receive or deliver at each Receipt or Delivery Point in
accordance with the terms of an Effective Service Agreement.
1.27 MAXIMUM DAILY RESERVATION QUANTITY-EXPANSION (MDRQ-Expansion) - The
maximum quantity of Gas Transporter is obligated to receive through the
Expansion Facilities for the account of Shipper, as stated in an
Effective FT-1 Firm Service Agreement between Shipper and Transporter.
================================================================================
1.28 MAXIMUM DAILY RESERVATION QUANTITY-MAINLINE (MDRQ-Mainline)- The
maximum quantity of Gas Transporter is obligated to receive through the
Mainline Facilities for the account of Shipper, as stated in an
Effective FT-1 Firm Service Agreement between Shipper and Transporter.
1.29 MAXIMUM DAILY TRANSPORTATION QUANTITY-EXPANSION (MDTQ-Expansion) - The
maximum quantity of Gas Transporter is obligated to receive through the
Expansion Facilities for the account of Shipper, as stated in an
Effective IT Service Agreement between Shipper and Transporter.
1.30 MAXIMUM DAILY TRANSPORTATION QUANTITY-MAINLINE (MDTQ-Mainline) - The
maximum quantity of Gas Transporter is obligated to receive through the
Mainline Facilities for the account of Shipper, as stated in an
Effective IT Service Agreement between Shipper and Transporter.
1.31 MAXIMUM DAILY VOLUMETRIC QUANTITY-EXPANSION (MDVQ-Expansion) - The
maximum quantity of Gas Transporter is obligated to receive through the
Expansion Facilities for the account of Shipper, as stated in an
Effective FT-2 Service Agreement between Shipper and Transporter.
1.32 MAXIMUM DAILY VOLUMETRIC QUANTITY-MAINLINE (MDVQ-Mainline) - The maximum
quantity of Gas Transporter is obligated to receive through the Mainline
Facilities for the account of Shipper, as stated in an Effective FT-2
Service Agreement between Shipper and Transporter.
1.33 MCF - 1,000 standard cubic feet of Natural Gas.
1.34 MMCF - 1,000,000 standard cubic feet of Natural Gas.
1.35 MONTH - The period beginning on the first Day of a calendar Month and
ending on the first Day of the succeeding calendar Month.
1.36 NAESB - North American Energy Standards Board
1.37 NAESB Standards - Any and all such standards issued by NAESB and
adopted by the Commission.
================================================================================
1.38 NEGOTIATED RATE - Any rate, rate formula, or rate design negotiated by
Transporter and a Shipper that may be less than, equal to, or more than
the maximum, Commission-approved tariff rate for such service, but not
less than the minimum rate, and for which there is a recourse rate on
file. The negotiated rate, rate, design, or rate formula will be stated
in an exhibit to Shipper's service agreement.
1.39 OPERATIONAL BALANCING AGREEMENT (OBA) - A contract between two parties
which specifies the procedures to manage operating variances at an
interconnect.
1.40 OPERATOR - Any individual, firm, or corporation, or its agent, assignee,
or legal representative, who operates Gas production, processing or
upstream or downstream pipeline facilities that are directly connected
to Transporter's System, and who is responsible for the confirmation,
scheduling, receipt or delivery, and the allocation of Gas through such
interconnecting facility.
1.41 PREDETERMINED ALLOCATION - The distribution of quantities of Gas
measured at Receipt Point(s) and/or Delivery Point(s) among Shipper(s)
based on a methodology agreed to by the Operator(s) and Transporter
prior to the commencement of Gas flow.
================================================================================
1.42 PREPAYMENT - With respect to requests for capacity or service,
"Prepayment" means that amount of money that must be submitted by a
Shipper along with a request for Transportation service or capacity.
Such amount will be credited to Shipper's invoice for services provided
by Transporter, or forfeited by Shipper if it fails to enter into a
Service Agreement with Transporter in accordance with the terms of
Transporter's FERC Gas Tariff. With respect to creditworthiness,
"Prepayment" means the advance payment for Transportation services
rendered by Transporter.
1.43 PRIMARY DELIVERY POINT(S) - The Delivery Points on the Mainline
Facilities or Expansion Facilities, as appropriate, on Transporter's
System where quantities of Gas may be delivered by Transporter for the
account of Shipper, as described in an Effective Firm Service Agreement
between Shipper and Transporter.
1.44 PRIMARY PATH - Shipper's reserved right to capacity between a Primary
Receipt Point and a Primary Delivery Point as such points are defined in
an Effective Firm Transportation Agreement up to the lesser of the MDQ
at the Primary Receipt Point or the MDQ at the Primary Delivery Point.
1.45 PRIMARY RECEIPT POINT(S) - The Receipt Points on the Mainline Facilities
or Expansion Facilities, as appropriate, on Transporter's System where
quantities of Gas may be received by Transporter for the account of
Shipper, as described in an Effective Firm Service Agreement between
Shipper and Transporter.
1.46 PRO RATA SHARE - The ratio of a Firm Shipper's entitlements under an
Effective Firm Service Agreement to the entitlements of all Firm
Shippers; and the ratio of an Interruptible Shipper's nominations to all
Interruptible nominations with the same priority.
================================================================================
1.47 PSIA - Pounds per square inch absolute.
1.48 PSIG - Pounds per square inch gauge.
1.49 RATE SCHEDULE - The terms and conditions applicable to a specific
service offered by Transporter.
1.50 RECEIPT POINT(S) - Any point(s) on Transporter's System where quantities
of Gas may be received by Transporter for the account of Shipper under
an Effective Service Agreement.
1.51 RELEASED CAPACITY - Capacity reserved under the terms of an Effective
FT-1 Service Agreement that a Releasing Shipper or Secondary Releasing
Shipper seeks to permanently or temporarily release to a Replacement
Shipper.
1.52 RELEASING SHIPPER - A Shipper who releases all or part of its rights to
capacity reserved under the terms of an Effective FT-1 Service Agreement
on a permanent or temporary basis.
1.53 REPLACEMENT SHIPPER - A Shipper who acquires all or part of the rights
to capacity held by a Releasing Shipper under the terms of an Effective
FT-1 Service Agreement on a permanent or temporary basis.
1.54 SCHEDULED QUANTITY - The quantity of Natural Gas a Shipper nominates for
receipt by Transporter at a Receipt Point and for redelivery by
Transporter for Shipper at a Delivery Point, and that the Operator of
the connecting facility confirms, and that Transporter schedules for
Transportation between the Receipt Point and the Delivery Point.
1.55 SECONDARY RELEASING SHIPPER - A Replacement Shipper who releases all or
part of its right to capacity acquired from a Releasing Shipper.
================================================================================
1.56 SERVICE AGREEMENT - The document that sets forth the agreement of
Transporter and a Shipper with respect to a particular service,
substantially in the form included in Transporter's FERC Gas Tariff.
1.57 SHIPPER - Any individual, firm, corporation, agent, assignee, or legal
representative so designated to deliver Gas to Transporter for
Transportation and to receive the Gas from Transporter after it has been
transported under the terms of an Effective Service Agreement.
1.58 STANDARD CUBIC FOOT (SCF) - The quantity of Natural Gas necessary to
fill a cubic foot of space at a temperature of 60 degrees Fahrenheit
(60F) and at a pressure of 14.73 PSIA.
1.59 SYSTEM - The pipeline system and appurtenances thereto that are owned,
leased, or operated in whole or in part by Transporter, including any
facilities added thereto, for the Transportation of Gas.
1.60 SYSTEM CAPACITY - The quantitative ability of Transporter's existing
System to provide immediate maximum Gas Transportation service on the
Mainline Facilities or Expansion Facilities, as appropriate. The
ability of Transporter's System to provide maximum Gas Transportation
service may be limited by changes in prevailing operating pressures,
temperatures, Gas flow rates and Gas flow directions within any
portion(s) of Transporter's System, including any Receipt Point(s) or
Delivery Point(s); physical capacity limitations of regulators, valves,
pipelines or pipeline segments, measuring facilities or appurtenances to
Transporter's System; and necessary testing, maintenance, repair,
overhaul, alteration, modification, replacement, enlargement, or
construction of pipelines, metering, regulating, and other transmission
facilities and equipment appurtenant to Transporter's System.
================================================================================
1.61 TRANSPORTATION - Forward haul, exchange, backhaul, displacement, or
other methods of transportation.
1.62 TRANSPORTER - Discovery Gas Transmission LLC.
1.63 YEAR - A period of three hundred sixty-five (365) consecutive Days;
provided, however, that any such year containing the date of February 29
will consist of three hundred sixty-six (366) consecutive Days.
================================================================================
2. OPERATING PROVISIONS FOR FIRM SERVICE
2.1 AVAILABILITY OF FIRM SERVICE - Firm service under this FERC Gas Tariff
will be provided when, and to the extent that, Transporter determines
capacity is available in the Mainline Facilities or Expansion
Facilities, as appropriate, in its existing System that is not subject
to a superior claim by another Shipper and it is operationally feasible.
If operating conditions ever limit Transporter's ability to provide Firm
service, service will be provided on the basis described in Section 6 of
the General Terms and Conditions.
2.2 EXISTING, UNCOMMITTED CAPACITY - Existing, uncommitted Firm capacity
will be posted on Transporter's Internet web site (web site). Requests
for posted capacity must be made by providing Transporter the specific
information in, and in the form prescribed by, Section 4 of the General
Terms and Conditions. Each request must be accompanied by a Prepayment
of Ten Thousand Dollars ($10,000), and will be considered incomplete
unless the Prepayment is included. Transporter will evaluate all
complete requests in the order received and will notify Shipper in
writing of the acceptance of a complete request. Transporter shall not
be required to accept a request for Firm service at a rate that is less
than its currently effective maximum rate. Request for Service forms
will be supplied to any potential Shipper upon request, and are
available at Transporter's offices during normal business hours, or
electronically on the web site by following the procedures of Section 17
of the General Terms and Conditions.
================================================================================
2.3 NEW CAPACITY - In the event new capacity becomes available due to the
construction or acquisition of facilities or the expansion of existing
facilities, pursuant to authorization under Section 7 of the Natural Gas
Act and the Commission's regulations, Transporter shall hold an open
season with a minimum duration of ten (10) calendar Days during which
potential Shippers may submit requests for Firm service in accordance
with the provisions of the open season notice. Each request for Firm
service must be made by submitting a completed Request for Service form
and a Prepayment in the amount of Ten Thousand Dollars ($10,000).
Request for Service forms will be supplied to any potential Shipper upon
request, and are available at Transporter's offices during normal
business hours, or electronically on the Internet web site (web site) by
following the procedures of Section 17 of the General Terms and
Conditions.
If at the end of the open season there is insufficient capacity to fill
all valid requests, then each valid request will be assigned a value
determined by multiplying the rate, not to exceed the maximum rate, the
term, and the quantity requested. Requests for a term of more than one
(1) Month that vary in rate or term will be assigned a total present
value based on the Commission's current Interest Rate. If requests for
service providing the same value exceed the Available Capacity, then the
Available Capacity will be prorated among those requests. Shippers that
stipulated in their requests that they would not accept less than the
amount requested will not be included in the pro rata allocation.
Transporter shall not be required to consider requests for service or
award capacity if the rate stipulated in a request for service is less
than Transporter's maximum rate.
================================================================================
2.4 PRIORITY OF SERVICE - The Firm Transportation of Gas at Receipt and
Delivery Points will have the following priority for service under an
Effective Firm Service Agreement:
a. Receipt Point Priority - The receipt of Gas from Primary and
Alternate Receipt Points will be on a Firm basis except as
provided in Sections 6 and 21 of the General Terms and Conditions.
The receipt of Gas from Alternate Receipt Points will be
subordinate to the receipt of Gas from Primary Receipt Points and
superior to the receipt of Gas for Interruptible Transportation
service.
b. Delivery Point Priority - The delivery of Gas to Primary and
Alternate Delivery Points will be on a Firm basis except as
provided in Sections 6 and 21 of the General Terms and Conditions.
The delivery of Gas to Alternate Delivery Points will be
subordinate to the delivery of Gas to Primary Delivery Points and
superior to the delivery of Gas for Interruptible Transportation
service.
2.5 RECEIPT AND DELIVERY POINT DESIGNATIONS - Each Receipt Point and each
Delivery Point specified in an Effective Firm Service Agreement will be
designated Primary Receipt Points and Primary Delivery Points for Firm
Transportation service. Each Shipper's MDRQ-Mainline and MDRQ-Expansion
or MDVQ-Mainline and MDVQ-Expansion must be allocated among the Primary
Receipt Points and Primary Delivery Points such that the MDRQ-Mainline
and MDRQ-Expansion or the MDVQ-Mainline and MDVQ-Expansion equals both
the sum of the MDQs for Primary Receipt Points and the sum of the MDQs
for Primary Delivery Points. A Shipper may amend its FT-1 Service
Agreement to add, delete, or modify Primary Receipt or Delivery Point
MDQs, or its FT-2 Service Agreement to add, delete, or modify Primary
Delivery Point MDQs, provided Firm capacity is available. In such
event, the MDQs must be reallocated as necessary so that the sum of the
MDQs for Primary Receipt Points and the sum of the MDQs for Primary
Delivery Points in the amended Firm Service Agreement do not exceed the
MDRQ-Mainline and MDRQ-Expansion or the MDVQ-Mainline and MDVQ-
Expansion. Transporter reserves the right to limit the number of such
amendments per Service Agreement to five (5) per Month in order to avoid
administrative burdens.
================================================================================
2.6 MODIFICATION OF PRIMARY RECEIPT POINTS - A Shipper with an Effective FT-
1 Service Agreement may change its Primary Receipt Point on a temporary
basis by designating any downstream Receipt Point within its Primary
Path as its Primary Receipt Point for up to ninety (90) Days without
losing its right to return to its permanent Primary Receipt Point. Use
of such point is subject to availability and all other terms of
Shipper's Effective FT-1 Service Agreement, the FT-1 Rate Schedule, and
Transporter's General Terms and Conditions. The availability of
capacity at Shipper's permanent Primary Receipt Point will be subject to
such right. Any other Shipper that wishes to use that point will be
informed that another Shipper has the right to return to the Receipt
Point.
2.7 ALTERNATE POINTS - All System points on the Mainline Facilities or
Expansion Facilities, as appropriate, where capacity exists in excess of
capacity allocated to provide Primary Receipt Point or Primary Delivery
Point Firm Transportation service will be available to FT-1 Shippers as
Alternate Receipt or Delivery Points. All System points on the Mainline
Facilities or Expansion Facilities, as appropriate, where capacity
exists in excess of capacity allocated to provide Primary Delivery Point
Firm Transportation service will be available to FT-2 Shippers as
Alternate Delivery Points. Alternate Delivery Point(s), at which
Transporter may deliver Gas for the account of Shipper, shall include
all Delivery Points located on the Mainline Facilities or the Expansion
Facilities, as the case may be, subject to the availability of firm
capacity to such Delivery Points and Shipper's MDVQ-Mainline or MDVQ-
Expansion, respectively.
Any discounted reservation rate for Firm Transportation service between
Primary Receipt and Delivery Points will not automatically transfer to
service using Alternate Receipt or Delivery Points, unless Transporter
directs Shipper to use an Alternate point for operational reasons
pursuant to Subsection 7.2 of the General Terms and Conditions.
================================================================================
2.8 REQUEST INVALIDATION - Requests for service submitted by potential
Shippers after the initial in-service date of Transporter's System will
be deemed invalid if service is requested to commence more than ninety
(90) Days after a request for service is submitted, unless new or
additional facilities are required to provide the service. If new or
additional facilities are required to provide the service, requests for
service using said facilities may not specify a service commencement
date more than thirty (30) Days after the in-service date of the new
facilities.
2.9 REQUESTS FOR OPERATING DATA - Upon request by Transporter, Shipper shall
submit estimates of daily, monthly and annual quantities of Gas to be
transported, including peak day requirements, together with the
estimated amounts thereof applicable to each Primary Receipt Point and
Primary Delivery Point. Transporter will use such information and
operating data to determine its System's Available Capacity, to evaluate
potential System Capacity needs, to plan its maintenance and repair
operations, and to assure adequate service to its Shippers.
2.10 ADDITIONAL FACILITIES - Transporter shall not be required to construct
additional facilities, modify or expand facilities, or acquire
facilities to provide Firm Transportation service.
2.11 FUTURE EMERGENCY SERVICE - If, within five years from the date of a Rate
Schedule FT-2 Service Agreement between Transporter and a Shipper (the
"Funding Shipper") that reimburses Transporter for the costs of the
facilities installed during 2005 following Hurricane Katrina to create
additional capacity by reversing flow on the Expansion Facilities to
receive gas from the delivery point at Tennessee Gas Pipeline Company,
Transporter decides (in its sole discretion) to use the same facilities
during a future emergency, the Funding Shipper shall have a higher
priority in the allocation of such capacity but only to the extent that
all other aspects of the Funding Shipper's bid for the capacity are
equal to the competing bids as measured pursuant to Transporter's FERC
Gas Tariff.
================================================================================
3. OPERATING PROVISIONS FOR INTERRUPTIBLE SERVICE
3.1 AVAILABILITY OF INTERRUPTIBLE SERVICE - Interruptible service under this
FERC Gas Tariff will be provided when, and to the extent that,
Transporter determines capacity is available in its existing System that
is not subject to a superior claim by another Shipper or another class
of service. Available Interruptible capacity will be allocated by
Transporter in accordance with Subsection 3.2.
3.2 PRIORITY OF SERVICE - Interruptible Transportation services will be
subordinate to Firm Transportation services provided by Transporter.
Transporter will allocate available Interruptible capacity on a daily
basis to Shippers nominating service under the IT Rate Schedule on the
basis of rate. Capacity at each rate level will be allocated on a pro
rata basis.
3.3 SHIPPER REQUESTS FOR INTERRUPTIBLE SERVICE - Requests for Interruptible
service hereunder must be made by providing the specific information in,
and in the form prescribed by, Section 4 of the General Terms and
Conditions. Request for Service forms will be supplied to any potential
Shipper upon request, and are available at Transporter's offices during
normal business hours or electronically on Transporter's Internet web
site (web site) by following the procedures in Section 17 of the General
Terms and Conditions.
3.4 REQUESTS FOR OPERATING DATA - Upon request of Transporter, Shipper shall
submit estimates of daily, monthly and annual quantities of Gas to be
transported, including peak day requirements, together with the
estimated amounts thereof applicable to each Receipt Point and Delivery
Point. Transporter will use such information and operating data to
determine its System's Available Capacity, to evaluate potential System
Capacity needs, to plan its maintenance and repair operations, and to
assure adequate service to its Shippers.
================================================================================
3.5 RECEIPT AND DELIVERY POINTS - Each Receipt Point and each Delivery Point
on Transporter's System is available for Interruptible Transportation
service, subject to the prior allocation of capacity at such points to
Firm Transportation services, up to the MDTQ-Mainline and MDTQ-Expansion
set forth in a Shipper's Effective IT Service Agreement with
Transporter.
3.6 INTERRUPTION OF SERVICE - Transporter retains all rights at any and all
times during the term of an Effective IT Service Agreement to decrease
or temporarily suspend receipt and/or delivery of Gas if the capacity is
required for a higher priority service or Shipper. If Transporter
exercises such right, Shipper shall hold Transporter harmless from any
loss, claim, damage or expense that such Shipper or other party may
incur by reason of such decrease or suspension.
3.7 FAILURE TO USE SERVICE - If Shipper fails to nominate service within
twelve (12) Months after the execution of an IT Service Agreement or
during any consecutive twelve (12) Month period, Transporter may
terminate the IT Service Agreement on thirty (30) Days prior written
notice.
3.8 ADDITIONAL FACILITIES - Transporter shall not be required to construct,
modify, expand, or acquire facilities to provide Interruptible
Transportation service.
3.9 LIMITATION - Transporter reserves the right to limit each Shipper to one
(1) IT Service Agreement.
================================================================================
4. REQUESTS FOR SERVICE
4.1 REQUEST FOR SERVICE FORM - Each Shipper requesting Firm or Interruptible
Transportation service hereunder shall provide the information specified
in the Request for Service form, the form of which is included in this
FERC Gas Tariff in the "Forms" section. Each request must be
accompanied by a Prepayment of Ten Thousand Dollars ($10,000).
4.2 INCOMPLETE SERVICE FORMS - Request for Service forms received by
Transporter that do not include the Prepayment required by Subsection
4.1., or do not contain all the requested information, including credit
information sufficient to demonstrate that a Shipper will be able to
meet its financial obligations under the requested Service Agreement,
will be considered incomplete. Transporter will notify Shipper of any
deficiencies and Shipper's request for service will not be considered
until all of the required information is provided to Transporter. The
request for service will be deemed invalid if Shipper fails to provide
the required information within ten (10) Business Days after
notification by Transporter that the request is incomplete.
================================================================================
5. NOMINATION PROCEDURES
5.1 REQUIRED INFORMATION - For each Day on which Shipper desires
Transportation service under any Service Agreement, Shipper shall submit
to Transporter the daily quantity of Gas, expressed in Dts, that it has
available for Transportation at each Receipt Point and the quantity of
Gas Shipper desires to have delivered at each Delivery Point. Shipper's
Receipt Point nominations, minus Lost and Unaccounted for Gas, must
equal its Delivery Point nominations on each Day. Shipper may submit
either a written or an electronic nomination in the format set forth in
the NAESB Standards. Once submitted, nominations, except for Intraday
Nominations, will remain in effect for the specified period of time
unless a prospective written or electronic nomination change is received
from Shipper. Each Shipper nomination must include the information
required by the NAESB Standards.
When a nomination for a date range is received, each Day within that
range is considered an original nomination. When a subsequent nomination
is received for one or more Days within that range, the previous
nomination is superseded by the subsequent nomination only to the extent
of the Days specified. The Days of the previous nomination outside the
range of the subsequent nomination are unaffected. Nominations have a
prospective effect only.
================================================================================
5.2 NOMINATION DEADLINES -
a. The Timely Nomination Cycle - The standard nominations timeline is
as follows: 11:30 a.m. for nominations leaving control of the
nominating party; 11:45 a.m. for receipt of nominations by
Transporter (including from Title Transfer Tracking Service
Providers (TTTSPs)); noon to send Quick Response; 3:30 p.m. for
receipt of completed confirmations by Transporter from upstream
and downstream connected parties; 4:30 p.m. for receipt of
scheduled quantities by Shipper and point Operator (Central Clock
Time on the Day prior to flow).
b. Intraday Nominations - A Shipper may submit and Transporter will
accept Intraday nominations, provided: (i) such nominations are
within Shipper's total MDRQ-Mainline, MDRQ-Expansion, MDVQ-
Mainline and MDVQ-Expansion or MDTQ-Mainline and MDTQ-Expansion
and (ii) such nominations can be confirmed. Intraday Nominations
may be used to start service, to request increases or decreases in
nominated quantities, to nominate new supply or market, or to
reflect changes in the specified Receipt and Delivery Points.
Intraday Nominations will be effective only for a single Gas Day,
and, therefore, will not remain in effect for prospective Days.
To the extent a Shipper submits an Intraday Nomination (including
nominations received after the standard nomination deadline) which
specifies an effective term of longer than one Gas Day,
Transporter will make the nomination effective only for the first
Gas Day of the specified effective period.
Intraday Nominations may be submitted to Transporter at any time,
and will be scheduled in accordance with Section 6.3 of this FERC
Gas Tariff. Except as provided in iii. below, Intraday Nominations
for firm transportation services will be given priority over
scheduled and flowing interruptible transportation services.
================================================================================
Intraday Nominations will be scheduled in one of three "Cycles"
and will be processed according to the following timelines:
i. The Evening Nomination Cycle: 6:00 p.m. for nominations
leaving control of the nominating party; 6:15 p.m. for
receipt of nominations by Transporter (including from
TTTSPs); 6:30 p.m. to send Quick Response; 9:00 p.m. for
receipt of completed confirmations by Transporter from
upstream and downstream connected parties; 10:00 p.m. for
Transporter to provide scheduled quantities to affected
Shippers and point Operators, and to provide scheduled
quantities to bumped parties (notice to bumped parties),
(Central Clock Time on the Day prior to flow).
Scheduled quantities resulting from an Evening Nomination
that does not cause another Shipper to receive notice that
it is being bumped should be effective at 9:00 a.m. on the
Gas Day; and when an Evening Nomination causes another
Shipper to receive notice that it is being bumped, the
scheduled quantities should be effective at 9:00 a.m. on the
Gas Day.
ii. The Intraday 1 Nomination Cycle: 10:00 a.m. for nominations
leaving control of the nominating party; 10:15 a.m. for
receipt of nominations by Transporter (including from
TTTSPs); 10:30 a.m. to send Quick Response; 1:00 p.m. for
receipt of completed confirmations by Transporter from
upstream and downstream connected parties; 2:00 p.m. for
Transporter to provide scheduled quantities to affected
Shippers and point Operators, and to provide scheduled
quantities to bumped parties (notice to bumped parties),
(Central Clock Time on Gas Day). Scheduled quantities
resulting from Intraday 1 Nominations should be effective at
5:00 p.m. on the Gas Day.
================================================================================
iii. The Intraday 2 Nomination Cycle: 5:00 p.m. for nominations leaving
control of the nominating party; 5:15 p.m. for receipt of
nominations by Transporter (including from TTTSPs); 5:30 p.m. to
send Quick Response; 8:00 p.m. for receipt of completed
confirmations by Transporter from upstream and downstream
connected parties; 9:00 p.m. for Transporter to provide scheduled
quantities to affected Shippers and point Operators (Central Clock
Time on the Gas Day).
Scheduled quantities resulting from Intraday 2 Nominations should
be effective at 9:00 p.m. on the Gas Day. Bumping is not allowed
during the Intraday 2 Nomination Cycle.
iv. For purposes of Section 5.2 b(i), b(ii), and b(iii) of the FERC
Gas Tariff, "provide" shall mean, for transmittals pursuant to
standards 1.4.x (NAESB standards relating to nomination datasets),
receipt at the designated site, and for purposes of other forms of
transmittal, it shall mean send or post.
c. Quick Response - Transporter will send a Quick Response, as
defined by NAESB, to Shipper for each nomination received. Such
Quick Response will serve only as notification of the receipt and
validation of nomination information in accordance with NAESB
Standards, but will not indicate whether the nomination will be
confirmed or scheduled pursuant to Subsections 6.2 and 6.3 of this
FERC Gas Tariff.
For standard nominations, the Quick Response will be sent to the
nominating party by 12:00 p.m. Central Clock Time on the Day the
nomination is received. For Intraday Nominations, the Quick
Response will be sent according to the following schedule: Batch 1
Nomination Cycle - 6:30 p.m. Central Clock Time on the Day prior
to flow; Batch 2 Nomination Cycle - 10:30 a.m. Central Clock Time
on the Gas Day; Batch 3 Nomination Cycle - 5:30 p.m. Central Clock
Time on the Gas Day.
d. Notification to Bumped Shippers - Transporter will notify
individual Shippers of bumped quantities by telephone or facsimile
in accordance with the timelines for Batch 1 and Batch 2
Nomination Cycles.
e. Waiver of Penalties - To the extent that a Shipper is bumped as a
result of an Intraday nomination by a Shipper with a higher
priority of service, Transporter will waive any applicable
penalties incurred by Shipper solely as a result of the Intraday
bump, and only for the Day on which Shipper is bumped.
================================================================================
5.3 REQUIRED NOMINATION CHANGES - Transporter may require revised
nominations or prospective nomination changes by Shipper if the daily
flows under a particular Service Agreement differ from confirmed
nominations, or if an imbalance has occurred due to operational reasons.
When a Shipper receives notice requiring a revised nomination or
prospective nomination change, Shipper shall submit a nomination in
accordance with Subsection 5.1 and with the revisions specified by
Transporter. Shipper shall be responsible for informing its upstream
and downstream parties of the changes.
5.4 DELEGATION OF NOMINATION AUTHORITY TO AGENT - A Shipper may delegate to
any third party the responsibility for submitting nominations and
receiving confirmations or performing other administrative duties under
any Effective Agreement, subject to the following conditions:
a. Any designation of a third party as agent, or any change in such
designation, must be provided in writing to Transporter at least
two (2) Business Days prior to the requested effective date of the
designation.
b. The written designation must specify any limits on the authority
of the Agent, including any time limit for the designation.
Transporter may reject any Shipper's request to delegate
responsibilities if the limitations on the designation would
impose undue administrative burdens on Transporter.
c. Transporter will rely on communications from a Shipper's agent for
all nomination purposes except to the extent the designation is
expressly limited. Communications by Transporter to such Agent
will be deemed notice to Shipper.
================================================================================
d. Any third party may administer multiple Service Agreements as the
agent for one or more Shippers, but the agent must make
nominations and otherwise administer and account separately for
each Service Agreement.
5.5 SHIPPER PRIORITIZATION OF NOMINATED QUANTITIES - If Shipper elects to
nominate quantities of Gas to be received by Transporter from one or
more upstream parties at one or more Receipt Points for delivery by
Transporter to one or more downstream parties at one or more Delivery
Points for the account of Shipper, Shipper shall provide the priority,
method, and extent to which each nominated receipt quantity from a
particular upstream party at a particular Receipt Point should be
reduced in the event that any downstream Operator verifies and confirms
deliveries that are less than the Shipper's nominated deliveries, or in
the event that, due to Transporter's allocation of Available Capacity
for Transportation services, all nominated receipts cannot be scheduled.
Likewise, if Shipper elects to nominate quantities of Gas to be
delivered by Transporter to one or more downstream parties at one or
more Delivery Points for the account of Shipper, Shipper shall provide
the priority, method, and extent to which each nominated delivery
quantity to a particular downstream party at a particular Delivery Point
should be reduced in the event that any upstream Operator verifies and
confirms receipts that are less than the Shipper's nominated receipts,
or in the event that, due to Transporter's allocation of Available
Capacity for Transportation services, all nominated deliveries cannot be
scheduled.
Shipper prioritization of nominated quantities must be consistent with
the terms of this FERC Gas Tariff and such prioritization will be
honored to the extent that Transporter reasonably determines such
prioritization is operationally feasible and the conditions of
Subsection 8.4 have been met.
================================================================================
6. SCHEDULING AND CURTAILMENT
6.1 ALLOCATION OF AVAILABLE CAPACITY - Each Day, upon consideration of
prevailing operating conditions, scheduled or unscheduled maintenance or
repairs, and similar conditions, Transporter will allocate Available
Capacity in sequence on the basis of Receipt Point priorities, followed
by mainline segment capacity priorities, and finally by Delivery Point
priorities, in the following manner:
a. Receipt Point capacity will be allocated to Firm Shippers who have
designated the nominated Receipt Point on the Mainline Facilities
or the Expansion Facilities, as appropriate, as a Primary Receipt
Point in an Effective FT-1 or FT-2 Service Agreement, followed by
allocation to Shippers who have nominated the Receipt Point on the
Mainline Facilities or the Expansion Facilities, as appropriate,
as an Alternate Receipt Point under an Effective FT-1 Service
Agreement. Any remaining Receipt Point capacity on the Mainline
Facilities or the Expansion Facilities, as appropriate, will be
allocated to Interruptible Shippers on the basis of rate, with the
Shipper paying the highest rate, up to the maximum rate, scheduled
first. Shippers having the same level of priority as stated
herein will be scheduled on a pro rata basis. In the case of a
Negotiated Rate for Interruptible Service that exceeds the
maximum, Commission-approved tariff rate, the Negotiated Rate will
be deemed to equal the maximum rate for the purposes of this
section. A Negotiated Rate that is less than the maximum rate
will be considered in the same manner as recourse rates.
================================================================================
b. Capacity on the Mainline Facilities and the Expansion Facilities,
respectively, will be allocated in the following sequence, from
highest priority to lowest priority: Primary Firm Receipt Points
to Primary Firm Delivery Points, Primary Firm Receipt Points to
Alternate Firm Delivery Points, Alternate Firm Receipt Points to
Primary Firm Delivery Points, Alternate Firm Receipt Points to
Alternate Firm Delivery Points, and Interruptible Receipt Points
to Interruptible Delivery Points.
c. Delivery Point capacity will be allocated first to Firm Shippers
who have designated the nominated Delivery Point on the Mainline
Facilities or the Expansion Facilities, as appropriate, as a
Primary Delivery Point in an Effective FT-1 or FT-2 Service
Agreement, followed by allocation to Shippers who have nominated
the Delivery Point on the Mainline Facilities or the Expansion
Facilities, as appropriate, as an Alternate Delivery Point.
Any remaining Delivery Point capacity on the Mainline Facilities
or the Expansion Facilities will be allocated to Interruptible
Shippers on the basis of rate, with the Interruptible Shipper
paying the highest rate, up to the maximum rate, scheduled first.
Shippers having the same level of priority as stated herein will
be scheduled on a pro rata basis. In the case of a Negotiated
Rate for Interruptible Service that exceeds the maximum,
Commission-approved tariff rate, the Negotiated Rate will be
deemed to equal the maximum rate for the purposes of this section.
A Negotiated Rate that is less than the maximum rate will be
considered in the same manner as recourse rates.
================================================================================
6.2 CONFIRMATION OF NOMINATED QUANTITIES - Nominations made in accordance
with Section 5 of the General Terms and Conditions will not be effective
until Transporter has confirmed the nominated receipts with upstream
Operators and the nominated deliveries with downstream Operators.
Shipper must advise Transporter of the appropriate contact persons for
upstream and downstream Operators who have the authority to verify and
confirm nominated Gas quantities. Prior to scheduling nominated
quantities for Transportation service requested by Shippers, Transporter
will contact the appropriate Operators at the designated Receipt and
Delivery Points in order to confirm the nominated quantities.
Transporter may reject, in whole or in part, any nominated quantities
where the daily quantities of Gas Shipper desires to be transported, the
upstream shipper name(s) and contract number(s), or the downstream
shipper name(s) and contract number(s) fail to conform to the
information provided by the designated Operators at the Receipt and
Delivery Points. If all information conforms except for the daily
quantities of Gas Shipper desires to have Transporter receive or
deliver, Transporter will schedule and confirm the nomination at the
lower of the daily quantities nominated by Shipper and the daily
quantities the Operators can confirm for scheduling at the designated
Receipt and Delivery Points. Transporter will provide notification of
Shipper's confirmed Transportation quantities either by telephone,
facsimile, or electronically. Shipper shall be responsible for
informing its upstream and downstream parties of any differences between
confirmed quantities and nominated quantities.
For Standard Nominations, Transporter will receive completed
confirmation from upstream and downstream operators by 3:30 p.m. Central
Clock Time on the Day prior to flow.
For Intraday Nominations, Transporter will receive completed
confirmations from upstream and downstream operators according to the
following schedule: Batch 1 Nomination Cycle - 9:00 p.m. Central Clock
Time on the Day prior to flow; Batch 2 Nomination Cycle - 1:00 p.m.
Central Clock Time on the Gas Day; Batch 3 Nomination Cycle - 8:00 p.m.
Central Clock Time on the Gas Day.
================================================================================
6.3 SCHEDULING NOMINATED QUANTITIES - Promptly upon the close of the
nomination deadline for each nomination cycle, Transporter will evaluate
all timely nominations and the Available Capacity of its System.
Transporter will schedule nominated quantities of Gas to the extent
capacity is available in accordance with Subsection 6.1 and to the
extent nominations can be confirmed in accordance with Subsection 6.2.
Transporter shall not be required to schedule quantities of Gas at any
Receipt or Delivery Point where the cumulative daily nominated
quantities at such Receipt or Delivery Point are below the quantities
required to meet the measurement standards as prescribed in API Manual
of Petroleum Measurement Standards, Chapter 14, Section 3, Latest
Edition. Transporter will first schedule nominated quantities under Firm
Service Agreements followed by nominated quantities under Interruptible
Service Agreements, in the following manner:
a. Firm Transportation service from Primary Receipt Points to Primary
Delivery Points;
b. Firm Transportation service from Primary Receipt Points to
Alternate Delivery Points;
c. Firm Transportation service from Alternate Receipt Points
downstream of the Primary Receipt Points to Primary Delivery
Points;
d. Firm Transportation service from Alternate Receipt Points upstream
of the Primary Receipt Points to Primary Delivery Points;
e. Firm Transportation service from Alternate Receipt Points
downstream of the Primary Receipt Points to Alternate Delivery
Points;
f. Firm Transportation service from Alternate Receipt Points upstream
of the Primary Receipt Points to Alternate Delivery Points;
g. IT Transportation service from Receipt Points to Delivery Points
on the basis of rate paid.
================================================================================
Following scheduling of confirmed standard nominations, Transporter will
furnish a report to the Shipper and point operator for receipt by 4:30
p.m. Central Clock Time the Day before the effective date of the
requested service showing the scheduled receipt and delivery quantities
by contract number, Receipt Point and Delivery Point. Following
scheduling of confirmed Intraday Nominations, Transporter will furnish a
report to the Shipper and point operator showing the scheduled receipt
and delivery quantities by contract number and receipt/delivery point
according to the following schedule: Batch 1 Nomination Cycle - 10:00
p.m. Central Clock Time on the Day prior to flow; Batch 2 Nomination
Cycle - 2:00 p.m. Central Clock Time on the Gas Day; Batch 3 Nomination
Cycle - 9:00 p.m. Central Clock Time on the Gas Day. At the end of each
Gas Day, Transporter will provide the final scheduled quantities for the
just completed Gas Day. For written nominations, such communication may
be made by facsimile or other acceptable means of electronic
correspondence. For electronic nominations, Transporter will send a
report in accordance with the NAESB standards.
================================================================================
6.4 CHANGES IN DAILY SCHEDULED QUANTITIES - After Shipper has submitted a
standard nomination and Transporter has confirmed and scheduled the
quantities of Gas to be transported, such quantities will remain
scheduled until the ending date specified in the nomination unless:
a. A prospective nomination is received from Shipper requesting a
change in previously confirmed and scheduled quantities; or
b. A prospective nomination is required by Transporter in accordance
with Subsection 5.3 of the General Terms and Conditions; or
c. Transportation service is curtailed or interrupted in order to
provide service for a higher priority service or Shipper; or
d. The designated contact persons with upstream and downstream
Operators who have the authority to verify and confirm nominated
Gas quantities or require a reduction of the confirmed and
scheduled quantities; or
e. Receipts or deliveries at a particular Receipt Point or Delivery
Point are outside the established tolerance levels specified in an
Effective OBA; or
f. Adjustments of receipts or deliveries at a particular Receipt
Point or Delivery Point are required as specified in an OFO; or
g. Capacity used in providing service is inadequate as a result of a
force majeure event, overbooking of capacity, or an operational
limiting event.
h. Other reasons required or permitted under this FERC Gas Tariff.
================================================================================
6.5 CURTAILMENT - If, at any time, Transporter determines, that because of
operating or other conditions affecting its System the capacity of all
or part of its System on the Mainline Facilities or Expansion
Facilities, as appropriate, is insufficient to serve all Transportation
quantities confirmed and scheduled on a Day, Transportation services
will be curtailed on all or part of the System on the Mainline
Facilities or Expansion Facilities, as appropriate, where capacity is
insufficient as follows:
a. IT Transportation service to Delivery Points from Receipt Points
on the basis of rate paid, with the lowest rate curtailed first.
b. Firm Transportation service.
In the case of a Negotiated Rate for Interruptible Service that exceeds
the maximum, Commission-approved tariff rate, the Negotiated Rate will
be deemed to equal the maximum rate for the purposes of this section. A
Negotiated Rate that is less than the maximum rate will be considered in
the same manner as recourse rates.
Pro rata curtailments of Gas quantities will be based on the ratio of
each Shipper's confirmed and scheduled Transportation quantities to the
total confirmed and scheduled quantities by all Shippers at the same
priority multiplied by the amount of Available Capacity.
If capacity is limited on only part of Transporter's System, including
any Delivery and/or Receipt Point(s), Transporter's curtailment orders
pursuant to Subsection 6.8 will be limited to the Transportation
services confirmed and scheduled for such part(s) of Transporter's
System.
================================================================================
6.6 NOTICE OF CURTAILMENT - Transporter will post notices of curtailment on
its web site, and, if necessary, notify all affected shippers as soon as
practicable, and in a manner that is reasonable under existing
conditions, that a period of curtailment exists. Such notice will set
forth any limits on receipts or deliveries and the anticipated duration
of such curtailment period. Upon notice of curtailment, Shipper shall
adjust its receipts and/or deliveries of Gas as specified by Transporter
within the time period specified by Transporter. Shipper compliance
will be a change in Gas flow to the level specified by Transporter and
will be evidenced by the confirmation of a flow rate change by an
upstream or downstream Operator or the confirmation of the flow rate
change by Transporter.
6.7 CURTAILMENT PENALTIES - Failure of any Shipper to adjust its receipts
and/or deliveries within the time and in the manner specified by
Transporter will result in the imposition of curtailment penalties. All
Gas received or delivered for the account of Shipper after notification
of a curtailment under Subsection 6.6 that deviates from the quantities
set by Transporter in the notice of curtailment will be assessed a
penalty of Twenty-Five Dollars ($25.00) per Dt. The imposition of a
curtailment penalty will not relieve Shipper of its obligations to
resolve any imbalance created during a period of curtailment. Although
a notice of curtailment must result in an immediate change in Gas flow,
Transporter will not assess penalties unless notice of curtailment is
given at least twelve (12) hours before the curtailment is required.
Net penalty revenues will be applied to Transporter's Fuel, Lost and
Unaccounted for Gas account.
6.8 EMERGENCY PROCEDURES - Variations in the curtailment procedures set
forth in Subsection 6.5 may be permitted by Transporter when necessary
to respond to emergency situations (including environmental emergencies)
where supplemental deliveries are required to forestall injury to life
or property.
================================================================================
7. OPERATIONAL FLOW ORDER (OFO)
7.1 APPLICABILITY - An Operational Flow Order (OFO) is an order issued to
alleviate conditions, inter alia, which threaten or could threaten the
safe operations or system integrity of Transporter's system or to
maintain operations required to provide efficient and reliable firm
service. Whenever Transporter experiences these conditions, any
pertinent order will be referred to as an Operational Flow Order.
Transporter will determine, in its reasonable judgment, the
circumstances that will result in the issuance of an OFO.
Circumstances that may prompt an OFO cannot be quantified in advance
because the need to issue an OFO will depend on quantities of Gas
confirmed and scheduled, the point(s) where actual receipts or
deliveries deviate from confirmed and scheduled quantities, whether an
OBA governs the allocation at the point(s), and the relationship of
these individual factors to general System operations on any given Day.
Generally, an OFO may be issued if there is a significant decrease or
increase in line pressure or if a curtailment order fails to reduce gas
flow in the event there is insufficient capacity to handle all confirmed
and scheduled nominations.
OFOs will identify the situation to be addressed and will identify
specific actions to be taken by Shipper, stated in terms of an hourly
Gas flow level, and the probable duration of an OFO. Transporter will
provide periodic reports on Transporter's Internet Web Site (web site)
as to any changes in the condition that prompted the OFO and probable
duration of the OFO. OFOs affecting multiple Shippers on all or any
portion of Transporter's System will be posted on the web site. The OFO
will be posted within one (1) hour of its issuance and will be effective
within four (4) hours of issuance. To the extent an OFO is only
applicable to specific Shippers, Transporter may notify such Shippers by
telephone or facsimile, but the OFO will be effective as to such
Shippers when posted on Transporter's web site. Shipper must make a
contact person available on a twenty-four (24) hour basis to receive OFO
notices, and provide all necessary information to Transporter.
Transporter will use reasonable efforts to give actual notice to that
person, as time permits.
================================================================================
7.2 COMPLIANCE WITH OPERATIONAL FLOW ORDERS - OFOs issued to alleviate
conditions that threaten the operational integrity of Transporter's
System will require compliance within four (4) hours of issuance, or
such other time specified in the OFO. Any Shipper receiving an OFO must
undertake such of the following actions as are necessary to comply with
such order:
a. Commence or increase tenders of Gas into Transporter's System by a
specified quantity at specified Receipt Points or shift tenders of
Gas, in whole or in part, to different specified Receipt Points;
b. Cease or reduce tenders of Gas into Transporter's System by a
specified quantity at specified Receipt Points;
c. Commence or increase takes of Gas from Transporter's System by a
specified quantity at specified Delivery Points or shift takes of
Gas, in whole or in part, from different Delivery Points;
d. Cease or reduce takes of Gas from Transporter's System by a
specified quantity at specified Delivery Points.
7.3 PENALTIES - If Shipper is notified by Transporter of an OFO and fails to
comply with such OFO during the effective period of the OFO, Shipper
shall be subject to a penalty for quantities received and/or delivered
in excess of the quantities specified by Transporter in such OFO. If
Shipper complies by adjusting its tenders or takes within the time
period specified in an OFO, Shipper shall not be subject to the penalty
set forth in this Subsection 7.3. Shipper compliance will be a change
in Gas flow to the level specified by Transporter and will be evidenced
by the confirmation of a flow rate change from an upstream or downstream
Operator or the confirmation of a flow rate change by Transporter.
Transporter will use reasonable efforts to assist any Shipper in
complying with an OFO.
================================================================================
Penalties for failure to comply with an OFO will be assessed according
to the following schedule.
------------------------------------------------------------------
100% Compliance $ 0.00/dt
Less than 100% and Greater than 99% $ 10.00/dt
Less than 99% and Greater than 98% $ 20.00/dt
Less than 98% $ 50.00/dt
------------------------------------------------------------------
Transporter will refund or carry forward, for each calendar Year, any
difference between the penalty revenues received by Transporter and the costs
incurred by Transporter as a result of failures of Shippers to comply with
OFOs. To the extent the difference between costs and revenues in respect of
such OFO penalties during any calendar Year is less than Four Hundred
Thousand Dollars ($400,000), Transporter shall carry forward the difference
to the next calendar Year. To the extent the difference is greater than Four
Hundred Thousand Dollars ($400,000), Transporter shall refund or invoice each
System Shipper in proportion to such Shipper's use of the System during such
calendar Year within one hundred twenty (120) Days after the end of the
calendar Year. Any such difference, whether a positive or negative, shall
include interest at the rate set forth in section 154.501 of the Commission's
regulations.
================================================================================
7.4 IMMINENT OPERATIONAL FLOW ORDERS - If Transporter determines that
operational circumstances exist such that the issuance of an OFO is
imminent, but that corrective actions could mitigate such circumstances,
Transporter will notify affected Shippers of a potential OFO.
Transporter will postpone the issuance of an OFO, if feasible, a |
