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FERC GAS TARIFF
First Revised Volume No. 1
(Supersedes Original Volume No. 1)
of
BLACK MARLIN PIPELINE COMPANY
filed with
Federal Energy Regulatory Commission
Communications concerning this Tariff should be addressed to:
Dan McVay, Director Commercial Operations
Black Marlin Pipeline Company
P.O. Box 1396
Houston, Texas 77251-1396 OR
2800 Post Oak Blvd.
Houston, TX 77056
Telephone: 713-215-3031
Electronic Mail: dan.mcvay@williams.com
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T A B L E O F C O N T E N T S
First Revised Volume No. 1 Sheet No.
Preliminary Statement 2
Maps 3
Statement of Rates 4
Rates Schedules:
T-1 90
FTS-Firm Transportation Service 100
ITS - Interruptible Transportation
Service 125
General Terms and Conditions 200
Form of Service Agreements
Firm Transportation Service 300
Interruptible Transportation Service 307
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PRELIMINARY STATEMENT
Black Marlin Pipeline Company ("Black Marlin") owns and operates an offshore
system, "Offshore System", which includes a sixteen-inch diameter gas pipeline
located offshore Texas and extending from a point offshore in High Island Area
Block 136 to Black Marlin's onshore terminal facility located at Texas City,
Texas. A sixteen-inch diameter extension of this pipeline extends from High
Island Block A-6 to a point of interconnection with the above-described
pipeline in High Island Block 137.
Black Marlin in engaged primarily in the transportation of natural gas for
other companies through its facilities, and is subject to the jurisdiction of
the Federal Energy Regulatory Commission.
This FERC Gas Tariff is filed in compliance with Part 154, Subchapter E,
Chapter I, Title 1, of the Code of Federal Regulations, constituting a portion
of the regulations of the Federal Energy Regulatory Commission.
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PLEASE SEE HARD COPY FOR SYSTEM MAP
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RESERVED FOR FUTURE USE.
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STATEMENT OF RATES
Currently Effective Rates
For Transportation of Natural Gas
Under Rate Schedules Contained in This
FERC Gas Tariff, First Revised Volume No. 1
(Rates - ¢ per MMBtu)
Rate Section Description Currently
Schedule Effective
Rates1/
T-1 3 Reservation Fee 90.00
Commodity Rate 0.00
Authorized Over-Run Rate 90.00
FTS 3 Reservation Fee
Maximum 90.00
Minimum 0.00
Commodity Rate
Maximum 0.00
Minimum 0.00
Authorized Over-Run Rate
Maximum 90.00
Minimum 0.00
ITS 3 Commodity Rate
Maximum 90.00
Minimum 0.00
ACA 3 Annual Charge Adjustment 0.19
1/ As authorized pursuant to order issued in Docket No. RP07-39 granting
the June 12, 2007 motion to place settlement rates into effect;
provided, however, in the event that the settlement is not approved by
the Commission without modification, Black Marlin has the right to
reinstate and to surcharge or direct bill its shippers, retroactive to
May 1, 2007, those rates accepted and made effective May 1, 2007,
subject to refund, by the Commission's order issued November 30, 2006 in
Docket No. RP07-39.
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List of
Non-Conforming Agreements
Hydro Gulf of Mexico, L.L.C. Rate Schedule ITS Agreement,
dated as of November 1, 2006, as amended.
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---------------------------------
Original Sheet Nos. 6 through 89
Have Been Reserved for Future Use
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RATE SCHEDULE T-1
Transportation Service
1. AVAILABILITY
This rate schedule is available to any company (hereinafter called
"Shipper") for the transportation of natural gas by Black Marlin Pipeline
Company (hereinafter called "Transporter") through Transporter's Gulf
Coast pipeline facilities:
(a) when Transporter and Shipper have an executed service agreement for
service under this rate schedule; or
(b) to Phillips Petroleum Company, and to Union Carbide Corporation
(each of which is also referred to as "Shipper") during the period
that transportation service is being rendered to such companies
after termination of pre-existing contracts, and until service
agreements are executed.
This rate schedule is not available to any company to whom service is
being or is to be rendered pursuant to Section 311(a)(1) of the Natural
Gas Policy Act of 1978.
2. APPLICABILITY AND CHARACTER OF SERVICE
This rate schedule shall apply to all gas transported by Transporter for
Shipper under this rate schedule.
Service rendered by Transporter for Shipper under this rate schedule shall
consist of:
(a) the receipt by Transporter for the account of Shipper of Shipper's
gas at Shipper's Point of Receipt;
(b) the delivery of gas after transportation by Transporter for the
account of Shipper either at Transporter's terminal facilities at
Texas City, Texas, or at such other Point of Delivery as may be
specified by the executed Service Agreement or by this rate
schedule.
Transportation service rendered by Transporter to Shipper under this rate
schedule, up to Shipper's Daily Contract Quantity, shall be considered to
be firm.
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RATE SCHEDULE T-1
Transportation Service (continued)
3. RATE
The application rates for service under this Rate Schedule are set forth
on the currently effective Sheet No. 4 of this tariff and are hereby
incorporated herein.
For all natural gas service rendered hereunder, Shipper shall pay
Transporter each month the sum of the maximum charges listed below if
applicable:
Reservation Charge - The Maximum Reservation Fee multiplied by Daily
Contract Quantity multiplied by the number of days in such month.
The Maximum Reservation Fee shall be subject to adjustment as
provided by Section 5 of this rate schedule.
Commodity Charge - The Maximum Commodity Rate for Rate Schedule T-1
multiplied by the quantity of gas in Mcf received by Transporter for
Shipper in such month.
Authorized Over-Run Charge - The Authorized Over-Run Rate multiplied
by the monthly volumes in excess of its Daily Contract Quantity as
defined in Section 6 of this rate schedule, received by Transporter
to Shipper or for its account during the billing month in questions.
Annual Charge Adjustment - The Annual Charge Adjustment unit rate
multiplied by the quantity of gas in Mcf received to or for the
account of Shipper by Transporter during the billing month in
question.
Incidental Charges - Shipper shall reimburse Transporter for
incidental charges incurred by Transporter in providing this service.
Such charges may include only: (i) reporting or filing fees, (ii)
costs of construction or acquisition of new facilities necessary to
render service, to the extent agreed to by Transporter and Shipper,
and (iii) other such charges as may be authorized by the Commission.
Transporter shall not recover any charges recovered under this
paragraph in a Natural Gas Act Section 4 rate proceeding.
4. MINIMUM BILL
None, other than the amount computed pursuant to Section 3 of this Rate
Schedule.
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RATE SCHEDULE T-1
Transportation Service (continued)
5. BILLING ADJUSTMENT FOR FAILURE TO TRANSPORT
If, on any day during the month, Transporter fails to accept the quantity
of gas tendered by Shipper for transportation under this rate schedule on
such day up to Shipper's Daily Contract Quantity, and the gas so tendered
complies with and meets the provisions of this tariff with respect
thereto, the monthly charge otherwise computed shall be decreased by an
amount computed as the product of (a) and (b) below:
(a) the quantity in Mcf of gas tendered, but not accepted, up to, but
not exceeding, Shipper's Daily Contract Quantity;
(b) the Maximum Reservation Fee.
6. SHIPPER'S DAILY CONTRACT QUANTITY
Shipper's Daily Contract Quantity shall be the maximum quantity of natural
gas in Mcf which Transporter shall be obligated to receive from Shipper
(or for Shipper's account) at Shipper's Point of Receipt on any day for
transportation under this rate schedule. Shipper's Daily Contract
Quantity shall be specified in the executed Service Agreement, in this
rate schedule. Sheet No. 95 of this rate schedule constitutes an Index of
Daily Contract Quantities which are stated in the executed Service
Agreement. However, the Daily Contract Quantities which are stated in the
executed Service Agreements shall not exceed the Daily Contract Quantities
which are stated in Sheet No. 95 as effective from time to time.
Shipper shall have the right to tender on any day for transportation
volumes in excess of its Daily Contract Quantity, and Transporter shall
have the right, but shall not be obligated, to transport such excess
quantity on such day. In the event, during any month, the quantity of gas
tendered for transportation and transported by Transporter for Shipper
exceeds a total quantity equal to the product of the number of days in the
month multiplied by Shipper's Daily Contract Quantity, then Shipper shall
pay for such monthly excess quantity of an additional amount equal to such
excess quantity in Mcf, multiplied by Authorized Over-Run Rate as stated
on Sheet No. 4 of this Tariff.
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RATE SCHEDULE T-1
Transportation Service (continued)
7. OTHER ARRANGEMENTS BY SHIPPER
It is the responsibility of Shipper to make any necessary arrangements
with other parties for further transportation of gas beyond Transporter's
Point of Delivery. Shipper shall be obligated in any such arrangements to
provide for requisite dispatching and operating coordination with
Transporter.
8. THERMAL BALANCING AND REDELIVERY QUANTITY
Transporter undertakes to redelivery to Shipper at its Point of Delivery a
quantity of gas containing the gross heating value of gas received from
Shipper by Transporter at the Point of Receipt, less any attributable line
losses or unaccounted-for gas.
The specific quantity in Mcf of gas to be redelivered by Transporter to
Shipper or for Shipper's account (herein referred to as Shipper's
"Redelivery Quantity") shall be determined each month as the product of
(a), (b), and (c) below:
(a) The volume of gas in Mcf tendered by Shipper to Transporter at the
Point of Receipt for transportation during the month.
(b) A fraction, the numerator of which is the measured volume of all gas
delivered by Transporter from its pipeline during the month, and the
denominator of which is the measured volume of all gas delivered to
Transporter during the month.
(c) A fraction, whose numerator is the average monthly unit heat content
of the gas tendered by Shipper to Transporter at the Point of
Receipt for transportation during the month, and whose denominator
is the average monthly unit heat content of the gas delivered by
Transporter to Shipper or for Shipper's account at the Point(s) of
Delivery during the month. The unit heat content shall be as
defined in Section 1.9 of the General Terms and Conditions. Average
monthly determinations of heat content shall be computed by
weighting for volumes delivered during the month.
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RATE SCHEDULE T-1
Transportation Service (continued)
Scheduling on a daily basis shall reflect the general procedures
identified above, utilizing estimates of the applicable fractions where
necessary, but precise balancing shall be on a monthly basis. Any
imbalances during a particular month shall be kept to the minimum
permitted by operations and cashed-out consistent with Section 21.2 of the
General Terms and Conditions of Transporter's FERC Gas Tariff.
9. MEASUREMENT BASE
Refer to Section 4 of the General Terms and Conditions.
10. GENERAL TERMS AND CONDITIONS
The General Terms and Conditions of Transporter's FERC Gas Tariff, First
Revised Volume No. 1 are applicable to this rate schedule and are hereby
made a part hereof.
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RATE SCHEDULE T-1
Transportation Service (continued)
INDEX OF DAILY CONTRACT QUANTITIES
TO BE UTILIZED FOR BILLING UNDER
SECTION 3 OF RATE SCHEDULE T-1
Shipper's
Daily Contract
Name of Shipper Quantity - Mcf
Phillips Petroleum Company 6,849
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Notice is hereby given that effective February 17, 1994
Rate Schedule T-4 constituting Original Sheet Nos 96
through 99 of the FERC Gas Tariff of Black Marlin Pipeline
Company is to be cancelled.
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RATE SCHEDULE FTS
Firm Transportation Service
1. AVAILABILITY
This rate schedule is available to any person (hereinafter called
"Shipper") for the firm transportation of natural gas by Black Marlin
Pipeline Company (hereinafter called "Transporter") through Transporter's
pipeline facilities where:
(a) Capacity exists to provide such service;
(b) (i) Shipper has submitted a valid request for transportation
pursuant to Section 4 of this rate schedule; and
(ii) Transporter and Shipper have an executed Service Agreement for
service under this rate schedule; and
(c) Shipper has title to gas received by Transporter for transportation
under this rate schedule.
2. APPLICABILITY AND CHARACTER OF SERVICE
This Rate Schedule shall apply to all gas transported by Transporter for
Shipper under this rate schedule.
Firm service rendered by Transporter for Shipper under this rate schedule
shall consist of the receipt of gas by Transporter from or for the account
of Shipper at Shipper's Primary Receipt Point(s) and the transportation
and delivery of such gas to or for the account of Shipper at the Primary
Delivery Points, as such Point(s) of Receipt and Delivery are contained in
the executed Service Agreement.
Transportation service rendered by Transporter to Shipper under this rate
schedule, up to the Maximum Daily Transportation Quantity (MDTQ), shall
have priority over interruptible transportation service rendered by
Transporter and shall be subject to curtailment or interruption only as
provided in Sections 8 (Force Majeure) and 9 (Scheduling and Curtailment)
of the General Terms and Conditions. Gas receive for transportation
hereunder will be commingled with other gas in Transporter's system, and
the specific gas made available by Shipper or for Shipper's account for
transportation may not be the same gas delivered to Shipper or for its
account.
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RATE SCHEDULE FTS
Firm Transportation Service (continued)
Service and applicable rates for service shall commence under this rate
schedule on the earlier of:
i) the date Shipper first tenders gas to Transporter for transportation
under an executed Service Agreement; or
ii) five (5) days after the execution of such Service Agreement by
Shipper,
but in no event prior to Transporter's receipt and acceptance of any
necessary regulatory authorization to provide firm transportation service
to Shipper in accordance with the terms of this rate schedule and such
executed Service Agreements.
2A. RECEIPT POINTS
A. Primary Receipt Point(s)
The term Primary Receipt Point(s) shall mean those Point(s) of
Receipt listed in Shipper's FTS Service Agreement which are assigned
a Maximum Daily Receipt Quantity (MDRQ). Subject to the availability
of firm capacity, a Shipper may request changes in Primary Receipt
Point(s) under an executed Service Agreement at any time by
submitting a request pursuant to Section 4 of this Rate Schedule.
B. Alternate Receipt Point(s)
The term Alternate Receipt Point(s) shall mean all other Point(s) of
Receipt on Transporter's system other than those listed in Shipper's
FTS Service Agreement. Alternate Receipt Points may include
nominations in excess of the MDRQ at a Primary Receipt Point.
Shipper may nominate gas at these Alternate Receipt Point(s) subject
to the provisions of Section 9 of the General Terms and Conditions,
and provided on any given day the sum of the volumes nominated for
receipt at all Primary and Alternate Receipt Points does not exceed
the MDTQ. All volumes nominated and transported up to the MDTQ
under the FTS Service Agreement, including those received at an
Alternate Receipt Points, shall be billed at the rates for service
under this Rate Schedule.
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RATE SCHEDULE FTS
Firm Transportation Service (continued)
2B. DELIVERY POINTS
A. Primary Delivery Point(s)
The term Primary Delivery Point(s) shall mean those delivery points
listed in Shipper's FTS Service Agreement which are assigned a
Maximum Daily Delivery Quantity (MDDQ). Subject to the availability
of firm capacity, a Shipper may request changes in Primary Delivery
Points under an executed Service Agreement at any time by submitting
a request pursuant to Section 4 of this rate schedule.
B. Alternate Delivery Point(s)
The term Alternate Delivery Point(s) shall mean all other Point(s)
of Delivery other than those listed in Shipper's FTS Service
Agreement. Alternate Delivery Points may include nominations in
excess of the MDDQ at a Primary Delivery Point. Shipper may
nominate gas for delivery at Alternate Delivery Point(s) subject to
the provisions of Section 9 of the General Terms and Conditions, and
provided on any given day the sum of volumes nominated for delivery
at all Primary and Alternate Delivery Points does not exceed the
MDTQ under the FTS Service Agreement.
All volumes nominated and transported up to the MDTQ under the FTS
Service Agreement, including those delivered at an Alternate
Delivery Point, shall be billed at the rates for service under this
rate schedule.
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RATE SCHEDULE FTS
Firm Transportation Service (continued)
3. RATES
The applicable rates for service under this rate schedule are set forth on
the currently effecting Sheet No. 4 of this tariff and are hereby
incorporated herein.
For all natural gas service rendered hereunder, Shipper shall pay
Transporter each month the sum of the charges listed below if applicable:
Reservation Charge - The Reservation Fee multiplied by Maximum Daily
Transportation Quantity multiplied by the number of days in such
month. The Reservation Fee shall be subject to adjustment as
provided by Section 5 of this Rate Schedule.
Commodity Charge - The Commodity Rate multiplied by the quantity of
gas in MMBtu received by Transporter for Shipper in such month.
Authorized Over-Run Charge - The Authorized Over-Run Rate multiplied
by the quantity of Authorized Over-Run gas as defined in Section 7
of this rate schedule, received by Transporter to Shipper or for its
account during the billing month in question.
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RATE SCHEDULE FTS
Firm Transportation Service (continued)
Annual charge Adjustment - The Annual Charge Adjustment unit rate
multiplied by the quantity of gas in MMBtu received to or for the
account of Shipper by Transporter during the billing month in
question.
Incidental Charges - Shipper shall reimburse Transporter for
incidental charges incurred by Transporter in providing this
service. Such charges may include only: (i) reporting or filing
fees, (ii) costs of construction or acquisition of new facilities
necessary to render service to the extent agreed to by Transporter
and Shipper, and (iii) other such charges as may be authorized by
the Commission. Transporter shall not recover any charges recovered
under this paragraph in a Natural Gas Act Section 4 rate proceeding.
Transporter shall charge the maximum Reservation Fee and Commodity Rate
set forth on Sheet No. 4 unless Transporter, from time to time and at any
time at its sole discretion on a non-discriminatory basis, charges any
individual Shipper for transportation service under this rate schedule a
rate which is lower than such maximum Reservation Fee or Commodity rate;
provided, however, that such rates charged may not be less than the
minimum Reservation Fee or Commodity rate set forth on the currently
effective Sheet No. 4 of Transporter's FERC Gas Tariff.
Transporter shall file with the Commission any and all reports as required
by the Commission's Regulations setting forth the applicable charge, the
individual Shipper(s) affected, the volume transported and any other
information which may be required.
4. REQUESTS FOR TRANSPORTATION SERVICE
4.1 The specific information required from a Shipper for a valid request
for transportation service must be sent to Transporter to the
attention of Bill Eiser, Asset Manager, via fax (713-215-3050) or
email (bill.eiser@williams.com). Requests for transportation must
be accompanied by the following:
(a) Shipper's legal name.
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RATE SCHEDULE FTS
Firm Transportation Service (continued)
(b) Shipper's principal place of business.
(c) Shipper's contact person.
(d) Shipper's business address for notices and billings.
(e) Shipper's status (natural gas distribution company, end-user,
intrastate pipeline company, interstate pipeline company,
producer, etc.).
(f) Requested commencement date of service.
(g) Requested term of service.
(h) Requested Maximum Daily Transportation Quantity (MDTQ) stated
in MMBtu per day.
(i) Total volumes stated in MMBtu to be transported over the
requested term of service.
(j) Requested primary receipt point(s) by legal description and
maximum daily quantity requested at each primary receipt
point.
(k) Requested primary delivery point(s) by legal description and
maximum daily quantity requested at each primary delivery
point.
(l) List of names, titles and telephone numbers of all of
Shipper's employees or agents authorized to perform day-to-day
dispatching.
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RATE SCHEDULE FTS
Firm Transportation Service (continued)
(m) A letter from Shipper certifying that Shipper has, or will
have at the time gas is tendered to Transporter, title to the
gas to be transported on Transporter's system, and certifying
that Shipper has secured, or will have secured, prior to the
commencement of service, all necessary arrangements for
upstream and downstream transportation, if applicable.
For Shipper's convenience, standardized service request forms shall
be available from Transporter at the above-referenced address.
Requests for service which do not include all of the
above-referenced information shall be deemed null and void.
4.2 A. In addition, prior to or at the time of execution of a Service
Agreement, Shipper must provide the following information:
(a) Identity of the parties to the Service Agreement.
(b) Shippers utilizing transportation service for end-users
must certify that it has agreements in place with such
end-users for sale of the gas.
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RATE SCHEDULE FTS
Firm Transportation Service (continued)
4.2 B. In addition, prior to or at the time of commencement of
service, Shipper must provide the identity of all of the
upstream and downstream transporters, if any, included in the
transaction. Shipper shall return to Transporter the fully
executed FTS Service Agreement within thirty (30) days after
receipt thereof. In the event Transporter does not receive
the fully executed Service Agreement within thirty (30) days,
Shipper's request for transportation under this Rate Schedule
shall be null and void.
4.3 Requests for extension of the Primary term of a Service Agreement
are subject to the provisions of Section 15 of the General Terms and
Conditions.
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RATE SCHEDULE FTS
Firm Transportation Service (continued)
At Shipper's request, Transporter shall permit Shipper to name a
designee to perform Shipper's obligations with regard to
nominations, scheduling and/or payment under this rate schedule,
provided that Shipper, such designee and Transporter shall agree in
writing that designee shall perform the specified obligation(s) of
Shipper and, with respect to any payment obligation, such designee
shall meet the creditworthiness provisions of this Rate Schedule.
Shipper shall not name more than one designee to perform each such
specified obligation under any Service Agreement hereunder.
At Transporter's request, Shipper shall permit Transporter to name a
designee to perform Transporter's obligations with regard to
nominations, scheduling, billing, and/or receiving payment under
this Rate Schedule, provided that Shipper, Transporter, and such
designee shall agree in writing that designee shall perform the
specified obligation(s) of Transporter. Transporter shall not name
more than one designee to perform each such specified obligation
under any Service Agreement hereunder.
5. BILLING ADJUSTMENT FOR FAILURE TO TRANSPORT
If, on any day during the month, Transporter fails to accept the quantity
of gas tendered by Shipper for transportation under this Rate Schedule on
such day up to the MDTQ, and the gas so tendered complies with and meets
the provisions of this tariff with respect thereto, the monthly
Reservation Charge otherwise computed shall be decreased by an amount
computed as the product of (a) and (b) below:
(a) The quantity in MMBtu of gas tendered, but not accepted, up to but
not exceeding the MDTQ;
(b) The Reservation Fee.
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RATE SCHEDULE FTS
Firm Transportation Service (continued)
6. MAXIMUM DAILY TRANSPORTATION QUANTITY
Maximum Daily Transportation Quantity (MDTQ) shall be the maximum quantity
of natural gas in MMBtu which Transporter shall be obligated to receive
from Shipper (or for Shipper's account) at Shipper's Point of Receipt on
any day for transportation under this Rate Schedule.
MDTQ shall be specified in the executed Service Agreement.
7. AUTHORIZED OVER-RUN GAS
Shipper shall have the right to tender on any day for transportation
volumes in excess of its MDTQ, and Transporter shall have the right, but
shall not be obligated, to transport such excess quantity on such day. In
the event during any month, the quantity of gas tendered for
transportation and transported by Transporter for Shipper exceeds a total
quantity equal to the product of the number of days in the month
multiplied by MDTQ, such gas shall be defined as Authorized Over-run Gas.
Shipper shall pay for such monthly excess quantity, an additional amount,
equal to such excess quantity, in MMBtu, multiplied by the Authorized
Over-run Rate.
8. OTHER ARRANGEMENTS BY SHIPPER
It is the responsibility of Shipper to make any necessary arrangements
with other parties for further transportation of gas beyond Transporter's
Point of Delivery. Shipper shall be obligated in any such arrangements to
provide for requisite dispatching and operating coordination with
Transporter.
9. DETERMINATION OF RECEIPTS,THERMAL BALANCING AND REDELIVERY QUANTITY
9.1 Determination of Receipts
For purposes of this section "overage" shall be defined as Scheduled
Receipts in excess of actual quantities received, and "underage"
shall be defined as Scheduled Receipts below actual quantities
received. In the event actual quantities received by Transporter do
not equal the Scheduled Receipts for such point, any overage or
underage shall be allocated as follows:
(1) To the extent Transporter has entered into an Operational
Balancing Agreement ("OBA") as set forth below which covers
the point of receipt, any overages or underages at such point
of receipt shall not be allocated to Shippers, but shall be
resolved in accordance with the OBA;
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RATE SCHEDULE FTS
Firm Transportation Service (continued)
(2) To the extent there is not an OBA for the subject receipt
point, Transporter and the interconnecting party will agree as
to which party is responsible for the predetermined allocation
(PDA), and if the party has agreed to submit the PDA,
Transporter shall allocate underages or overages in accordance
with the PDA;
(3) To the extent there is no OBA or PDA, Transporter shall
allocate any overage or underage pro-rata based on scheduled
and confirmed quantities at the receipt point.
(4) The responsibility for calculation and reporting of allocated
quantities should rest with the party responsible for
accepting NAESB allocation types. The party receiving
nominations should provide allocation statements.
A. Operational Balancing Agreement (OBA)
(1) An OBA is a contract between two parties which specifies the
procedures to manage operating variances at an interconnect.
Transporter is willing to negotiate and execute Operational
Balancing Agreements (OBAs) with appropriate parties that
operate natural gas facilities which interconnect with
Transporter's system. Such OBAs will provide that any
variance between actual quantities and scheduled and confirmed
quantities for any day shall be resolved in-kind promptly or
cashed-out pursuant to the terms of the OBAs.
(2) To the extent actual receipts vary from scheduled receipts at
a point of receipt for which Transporter has entered into an
OBA, Shippers utilizing such point of receipt shall be
responsible for any charges incurred by Transporter under the
OBA.
B. Predetermined Allocation Statements (PDA)
As a minimum, allocations should be provided by both contract and
location. The upstream or downstream party providing the point
confirmation should submit the pre-determined allocation to the
allocating party after or during confirmation and before the start
of the gas day. The types of allocation methodologies is a list from
which two parties may agree. If the two parties can not agree upon
an allocation methodology, pro rata based upon confirmed nominations
should be used as the default method. The party responsible for
custody transfer (the party performing the measurement function)
should provide the allocation. The PDA methods shall include
ranked, pro rata, percentage, swing, and operator provided value, as
such terms are used in the NAESB Standards. The same standard
allocation methodologies should be available for use at all points,
except those covered by an OBA. A new allocation detail may be
needed when a nomination changes.
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RATE SCHEDULE FTS
Firm Transportation Service (continued)
Transporter shall be entitled to rely exclusively on an
effective PDA in allocating gas received at a point and the
interconnect party holds Transporter harmless against actions
taken and allocations made in reliance upon such PDA. No
retroactive changes to a PDA may be made unless Transporter
and all affected parties agree in writing. The allocating
party should send back "confirmation" of receipt of the pre-
determined allocation within 15 minutes.
9.2 THERMAL BALANCING AND REDELIVERY QUANTITY
Transporter shall undertake to redeliver to Shipper at its Point of
Delivery a quantity of gas containing the gross heating value of gas
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RATE SCHEDULE FTS
Firm Transportation Service (continued)
received from Shipper by Transporter at the Point of Receipt, plus or
minus any attributable line losses or unaccounted-for gas.
The specific quantity in MMBtu of gas to be redelivered by Transporter to
Shipper or for Shipper's account (herein referred to as Shipper's
"Redelivery Quantity") shall be determined each month as the product of
(a) and (b) below:
(a) The volume of gas in MMBtu received by Transporter from Shipper at
the Point of Receipt for transportation during the month.
(b) A fraction, the numerator of which is the measured volume in MMBtu
of all gas delivered by Transporter from its pipeline during the
month, and the denominator of which is the measured volume in MMBtu
of all gas received by Transporter during the month.
Scheduling on a daily basis shall reflect the general procedures
identified above. The timing for reporting daily operational allocations
after the gas has flowed is within one business day after the end of the
gas day. If the best available data for reporting daily operational
allocations is the scheduled quantity, that quantity should be used for
the daily operational allocation. Precise balancing shall be on a monthly
basis. Any imbalances during a particular month shall be kept to the
minimum permitted by operating conditions and cashed-out consistent with
Section 21.2 of the General Terms and Conditions of Transporter's FERC Gas
Tariff. Imbalance statements should be generated at the same time or
prior to the generation of the transportation invoice. The imbalance
statement should be rendered prior to or with the invoice, and the
transportation invoice should be prepared on or before the 9th business
day after the end of the production month. Rendered is defined as
postmarked, time-stamped, and delivered to the designated site.
Delivery point allocations should be performed at the lowest level of
detail provided by nominations. The determination of deliveries
applicable to Shipper shall be made in accordance with the thermal
balancing provisions above unless a PDA in accordance with the PDA
provision below or an operating arrangement satisfactory to Shipper,
Transporter and any third party transporting to or from Transporter's
system is submitted. The responsibility for calculation and reporting of
allocated quantities should rest with the party responsible for accepting
NAESB allocation types. The party receiving nominations should provide
allocation statements. The upstream or downstream party providing the
point confirmation should submit the pre-determined allocation to the
allocating party after or during confirmation and before the start of the
gas day. To the extent there is no OBA or PDA, Transporter shall allocate
deliveries pro rata based on confirmed quantities. As a minimum,
allocations should be provided by both contract and location. The types
of allocation methodologies is a list from
================================================================================
RATE SCHEDULE FTS
Firm Transportation Service (continued)
which two parties may agree. If the two parties can not agree upon an
allocation methodology, pro rata based upon confirmed nominations should
be used as the default method. The party responsible for custody transfer
(the party performing the measurement function) should provide the
allocation. The PDA methods shall include ranked, pro rata, percentage,
swing, and operator provided value, as such terms are used in the NAESB
Standards. The same standard allocation methodologies should be available
for use at all points. A new allocation detail may be needed when a
nomination changes. Transporter shall be entitled to rely exclusively on
an effective PDA in allocating gas delivered to a point. No retroactive
changes to a PDA may be made unless Transporter and all affected parties
agree in writing. The allocating party should send back "confirmation" of
receipt of the pre-determined allocation within 15 minutes. A Party may
change the PDA during a calendar month provided (i) such change will have
prospective effect only, (ii) all Shippers on Transporter's system with
scheduled deliveries at such point have been notified of the change and
the effective date of the change, and (iii) the interconnecting party
identifies and holds Transporter and Shippers utilizing such points
harmless against actions taken and allocations made in reliance upon such
change in PDA.
================================================================================
10. THIS SECTION IS RESERVED FOR FUTURE USE.
================================================================================
Reserved for future use.
================================================================================
RATE SCHEDULE FTS
Firm Transportation Service (continued)
11. MEASUREMENT BASE
Refer to Section 4 of the General Terms and Conditions.
12. NOMINATION OF RECEIPTS AND DELIVERIES
Receipts and deliveries of natural gas shall be nominated, confirmed,
scheduled and curtailed by Transporter in accordance with Section 9 of the
General Terms and Conditions of this Tariff.
================================================================================
RATE SCHEDULE FTS
Firm Transportation Service (Continued)
Reserved for Future Use
================================================================================
RATE SCHEDULE FTS
Firm Transportation Service (Continued)
Reserved for Future Use
================================================================================
RATE SCHEDULE FTS
Firm Transportation Service (Continued)
13. RIGHTS UNDER SECTION 4 OF THE NATURAL GAS ACT
Transporter shall have the unilateral right to file with the appropriate
regulatory authority and make changes in (a) the rates and charges
applicable to its Rate Schedule FTS, (b) Rate Schedule FTS pursuant to
which this service is rendered; provided, however, that the firm
character of service shall not be subject to change hereunder, or (c)
any provisions of the General Terms and Conditions applicable to Rate
Schedule FTS. Transporter agrees that Shipper may protest or contest
the aforementioned filings, or week authorization from duly constituted
regulatory authorities for such adjustment of Transporter's existing
FERC Gas Tariff as may be found necessary in order to assure that the
provisions in (a), (b) or (c) above are just and reasonable.
================================================================================
RATE SCHEDULE FTS
Firm Transportation Service (Continued)
14. GENERAL TERMS AND CONDITIONS
The General Terms and Conditions of Transporter's FERC Gas Tariff,
First Revised Volume No. 1, are applicable to this Rate Schedule and
are hereby made a part hereof.
================================================================================
-----------------------------------
Original Sheet Nos. 115 through 124
Have Been Reserved For Future Use
-----------------------------------
================================================================================
RATE SCHEDULE ITS
Interruptible Transportation Service
1. AVAILABILITY
This rate schedule is available to any person (hereinafter called
"Shipper") for the interruptible transportation of natural gas by Black
Marlin Pipeline Company (hereinafter called "Transporter") through
Transporter's pipeline facilities where:
(a) (i) Shipper has submitted a valid request for transportation
pursuant to Section 4 of this rate schedule; and
(ii) Transporter and Shipper have an executed Service Agreement
for service under this rate schedule; and
(b) Shipper has title to gas received by Transporter for
transportation under this rate schedule.
2. APPLICABILITY AND CHARACTER OF SERVICE
This rate schedule shall apply to all gas transported by Transporter
for Shipper under this rate schedule.
Service rendered by Transporter for Shipper under this rate schedule
shall consist of the receipt of gas by Transporter from or for the
account of Shipper at Shipper's Point(s) of Receipt and the
transportation and delivery of such gas to or for the account of
Shipper at the Point(s) of Delivery, as such Point(s) of Receipt and
Delivery are contained in the executed Service Agreement.
Transportation service rendered by Transporter to Shipper under this
rate schedule shall be subject to curtailment or interruption in order
for Transporter to meet its firm service obligations and as provided in
Sections 8 (Force Majeure) and 9 (Scheduling and Curtailment) of the
General Terms and Conditions.
Gas received for transportation hereunder will be commingled with other
gas in Transporter's system, and the specific gas made available by
Shipper or for Shipper's account for transportation may not be the same
gas delivered to Shipper or for its account.
================================================================================
RATE SCHEDULE ITS
Interruptible Transportation Service (continued)
3. RATES
The applicable rates for service under this rate schedule are set forth
on the currently effective Sheet No. 4 of this tariff and are hereby
incorporated herein.
For all natural gas service rendered hereunder, Shipper shall pay
Transporter each month the sum of the charges listed below if
applicable:
Commodity Charge - The Commodity Rate multiplied by the quantity
of gas in MMBtu received by Transporter for Shipper in such month.
Annual Charge Adjustment - The Annual Charge Adjustment unit rate
multiplied by the quantity of gas in MMBtu received to or for the
account of Shipper by Transporter during the billing month in
question.
Incidental Charges - Shipper shall reimburse Transporter for
incidental charges incurred by Transporter in providing this
service. Such charges may include only: (i) reporting or filing
fees, (ii) costs of construction or acquisition of new facilities
necessary to render service, to the extent agreed to by
Transporter and Shipper, and (iii) other such charges as may be
authorized by the Commission. Transporter shall not recover any
charges recovered under this paragraph in a Natural Gas Act
Section 4 rate proceeding.
Transporter shall charge the maximum Commodity Rate set forth on
Sheet No. 4 unless Transporter, from time to time and at any time
at its sole discretion on a non-discriminatory basis, charges any
individual Shipper for transportation service under this Rate
Schedule a rate which is lower than such maximum Commodity rate;
provided, however, that such Commodity Rate charged may not be
less than the minimum Commodity rate set forth on the currently
effective Sheet No. 4 of Transporter's FERC Gas Tariff.
================================================================================
RATE SCHEDULE ITS
Interruptible Transportation Service (Continued)
Transporter shall file with the Commission any and all reports as
required by the Commission's Regulations setting forth the applicable
charge, the individual Shipper(s) affected, the volume transported and
any other information which may be required.
4. REQUESTS FOR TRANSPORTATION SERVICE
4.1 The specific information required from a Shipper for a valid
request for transportation service must be sent to Transporter to
the attention of Bill Eiser, Asset Manager, via fax (713-215-3050)
or email (bill.eiser@williams.com). Requests for transportation
must be accompanied by the following:
(a) Shipper's legal name.
(b) Shipper's principal place of business.
(c) Shipper's contact person.
(d) Shipper's business address for notices and billings.
(e) Shipper's status (natural gas distribution company, end-user,
intrastate pipeline company, interstate pipeline company,
producer, etc.).
(f) Requested commencement date of service.
(g) Requested term of service.
(h) Requested Maximum Daily Transportation Quantity (MDTQ) stated in
MMBtu per day.
(i) Total volumes stated in MMBtu to be transported over the requested
term of service.
(j) Requested receipt point(s) by legal description and maximum daily
quantity requested at each receipt point.
================================================================================
RATE SCHEDULE ITS
Interruptible Transportation Service (continued)
(k) Requested delivery point(s) by legal description and maximum daily
quantity requested at each delivery point.
(l) List of names, titles and telephone numbers of all of Shipper's
employees or agents authorized to perform day-to-day dispatching.
(m) A letter from Shipper certifying that Shipper has, or will have at
the time gas is tendered to Transporter, title to the gas to be
transported on Transporter's system, and certifying that Shipper
has secured, or will have secured, prior to the commencement of
service, all necessary arrangements for upstream and downstream
transportation, if applicable.
For Shipper's convenience, standardized service request forms shall be
available from Transporter at the above-referenced address.
Requests for service which do not include all of the above-referenced
information shall be deemed null and void.
4.2A. In addition, prior to or at the time of execution of a Service
Agreement, Shipper must provide the following information:
================================================================================
RATE SCHEDULE ITS
Interruptible Transportation Service (continued)
(a) Identity of all parties to the service agreement.
(b) Shippers utilizing transportation service for end-users must
certify that it has agreements in place with such end-users
for sale of the gas.
4.2B. In addition, prior to or at the time of commencement of service,
Shipper must provide the identity of all of the upstream and
downstream transporters, if any, involved in the transaction.
Shipper shall return to Transporter the fully executed ITS Service
Agreement within thirty (30) days after receipt thereof. In the
event Transporter does not receive the fully executed Service
Agreement within thirty (30) days, Shipper's request for
transportation under this Rate Schedule shall be null and void.
================================================================================
RATE SCHEDULE ITS
Interruptible Transportation Service (Continued)
4.3 At Shipper's request, Transporter shall permit Shipper to name a
designee to perform Shipper's obligations with regard to
nominations, scheduling and/or payment under this Rate Schedule,
provided that Shipper, such designee and Transporter shall agree
in writing that designee shall perform the specified obligation(s)
of Shipper and, with respect to any payment obligation, such
designee shall meet the creditworthiness provisions of this rate
schedule.
================================================================================
RATE SCHEDULE ITS
Interruptible Transportation Service (Continued)
Shipper shall not name more than one designee to perform each such
specified obligation under any Service Agreement hereunder.
At Transporter's request, Shipper shall permit Transporter to name
a designee to perform Transporter's obligations with regard to
nominations, scheduling, billing, and/or receiving payment under
this Rate Schedule, provided that Shipper, Transporter, and such
designee shall agree in writing that designee shall perform the
specified obligation(s) of Transporter. Transporter shall not
name more than one designee to perform each such specified
obligation under any Service Agreement hereunder.
5. MAXIMUM DAILY TRANSPORTATION QUANTITY
Maximum Daily Transportation Quantity (MDTQ) shall be the maximum
quantity of natural gas in MMBtu which Transporter shall, subject to
the provisions of Transporter's Tariff, receive from Shipper (or for
Shipper's account) at Shipper's Point of Receipt on any day for
transportation under this Rate Schedule.
MDTQ shall be specified in the executed Service Agreement.
6. OTHER ARRANGEMENTS BY SHIPPER
It is the responsibility of Shipper to make any necessary arrangements
with other parties for further transportation of gas beyond
Transporter's Point of Delivery. Shipper shall be obligated in any
such arrangements to provide for requisite dispatching and operating
coordination with Transporter.
================================================================================
RATE SCHEDULE ITS
Interruptible Transportation Service (continued)
7. DETERMINATION OF RECEIPTS, THERMAL BALANCING AND REDELIVERY QUANTITY
7.1 Determination of Receipts:
For purposes of this section "overage" shall be defined as Scheduled
Receipts in excess of actual quantities received, and "underage" shall
be defined as Scheduled Receipts below actual quantities received. In
the event actual quantities received by Transporter do not equal the
scheduled receipts for such point, any overage or underage shall be
allocated as follows:
(1) To the extent Transporter has entered into an Operational
Balancing Agreement as set forth below which covers the point
of receipt, any overages or underages at such point of receipt
shall not be allocated to Shippers, but shall be resolved in
accordance with the OBA:
(2) to the extent there is not a OBA for the subject receipt
point, Transporter and the interconnecting Party will agree as
to which party is responsible for the predetermined allocation
(PDA) and if the party has agreed to submit the PDA,
Transporter shall allocate underages or overages in accordance
with the PDA;
(3) To the extent there is no OBA or PDA, Transporter shall
allocate any overage or underage pro-rata based on scheduled
and confirmed quantities at the receipt point.
(4) The responsibility for calculation and reporting of allocated
quantities should rest with the party responsible for
accepting NAESB allocation types. The party receiving
nominations should provide allocation statements.
A. Operational Balancing Agreement (OBA)
(1) An OBA is a contract between two parties which specifies the
procedures to manage operating variances at an interconnect.
Transporter is willing to negotiate and execute Operational
Balancing Agreements (OBAs) with appropriate parties that
operate natural gas facilities which interconnect with
Transporter's system. Such OBAs will provide that any
variance between actual quantities and scheduled and confirmed
quantities for any day shall be resolved in kind promptly or
cashed-out pursuant to the terms of the OBAs.
B. Predetermined Allocation Statements (PDA)
The upstream or downstream party providing the point confirmation
should submit the pre-determined allocation to the allocating party after
or during confirmation and before the start of the gas day. As a minimum,
allocations should be provided by both contract and location.
================================================================================
RATE SCHEDULE ITS
Interruptible Transportation Service (continued)
The types of allocation methodologies is a list from which two
parties may agree. If the two parties can not agree upon an
allocation methodology, pro rata based upon confirmed nominations
should be used as the default method. The party responsible for
custody transfer (the party performing the measurement function)
should provide the allocation. The PDA methods shall include
ranked, pro rata, percentage, swing, and operator provided value,
as such terms are used in the NAESB Standards. The same standard
allocation methodologies should be available for use at all points
except those covered by an OBA. A new allocation detail may be
needed when a nomination changes. Transporter shall be entitled
to rely exclusively on an effective PDA in allocating as received
at a point taken and allocations made in reliance upon such PDA.
No retroactive changes to a PDA may be made unless Transporter
harmless against actions taken and allocations made in reliance
upon such PDA. No retroactive changes to a PDA may be made unless
Transporter and all affected parties agree in writing. The
allocating party should send back "confirmation" of receipt of the
pre-determined allocation within 15 minutes.
7.2 THERMAL BALANCING AND REDELIVERY QUANTITY
Transporter shall undertake to redeliver to Shipper at its Point of
Delivery a quantity of gas containing the gross heating value of gas
received from Shipper by Transporter at the Point of Receipt, less any
attributable line losses or unaccounted-for gas.
The specific quantity in MMBtu gas to be redelivered by Transporter to
Shipper or for Shipper's account (herein referred to as Shipper's
"Redelivery Quantity") shall be determined each month as the product of
(a), and (b) below:
(a) The volume of gas in MMBtu received by Transporter from Shipper at
the Point of Receipt for transportation during the month.
(b) A fraction, the numerator of which is the measured volume in MMBtu of
all gas delivered by Transporter from its pipeline during the month,
and the denominator of which is the measured volume in MMBtu of all
gas received by Transporter during the month.
Scheduling on a daily basis shall reflect the general procedures
identified above. The timing for reporting daily operational allocations
after the gas has flowed is within one business day after the end of the
gas day. If the best available data for reporting daily operational
allocations is the scheduled quantity, that quantity should be used for
the daily operational allocation. Precise balancing shall be on a
monthly basis. Any imbalances during a particular month shall be kept to
the minimum permitted by operating conditions and cashed-out consistent
with Section 21.2 of the General Terms and Conditions of Transporter's
FERC Gas Tariff.
================================================================================
RATE SCHEDULE ITS
Interruptible Transportation Service (continued)
Imbalance statements should be generated at the same time or prior to the
generation of the transportation invoice. The imbalance statement should
be rendered prior to or with the invoice, and the transportation invoice
should be prepared on or before the 9th business day after the end of the
production month. Rendered is defined as postmarked, time-stamped, and
delivered to the designated site.
Delivery point allocations should be performed at the lowest level of
detail provided by nominations. The determination of deliveries
applicable to Shipper shall be made in accordance with the thermal
balancing provisions above unless a PDA in accordance with the PDA
provision below or an operating arrangement satisfactory to Shipper,
Transporter and any third party transporting to or from Transporter's
system is submitted. The responsibility for calculation and reporting of
allocated quantities should rest with the party responsible for accepting
NAESB allocation types. The party receiving nominations should provide
allocation statements.
The upstream or downstream party providing the point of confirmation
should submit the pre-determined allocation to the allocating party after
or during confirmation and before the start of the gas day. To the extent
there is no OBA or PDA, Transporter shall allocate pro rata based on
confirmed nominations. As a minimum, allocations should be provided by
both contract and locations. The types of allocation methodologies is a
list from which two parties may agree. If the two parties can not agree
upon an allocation methodology, pro rata based upon confirmed nominations
should be used as the default method. The party responsible for custody
transfer (the party performing the measurement function) should provide
the allocation. The same standard allocation methodologies should be
available for use at all points. A new allocation detail may be needed
when a nomination changes. The PDA methods shall include ranked, pro
rata, percentage, swing, and operator provided value, as such terms are
used in the NAESB Standards. Transporter shall be entitled to rely
exclusively on an effective PDA in allocating gas delivered to a point.
No retroactive changes to a PDA may be made unless Transporter and all
affected parties agree in writing. The allocating party should send back
"confirmation" of receipt of the pre-determined allocation within 15
minutes.
A Party may change the PDA during a calendar month provided (i) such
change will have prospective effect only, (ii) all Shippers on
Transporter's system with scheduled deliveries at such point have been
notified of the change and the effective date of the change, and (iii)
the interconnecting Party identifies and holds Transporter and Shippers
utilizing such points harmless against actions taken and allocations made
in reliance upon such change in PDA.
================================================================================
8. THIS SECTION IS RESERVED FOR FUTURE USE.
================================================================================
Reserved for future use.
================================================================================
RATE SCHEDULE ITS
Interruptible Transportation Service (continued)
9. MEASUREMENT BASE
Refer to Section 4 of the General Terms and Conditions.
10. NOMINATION OF RECEIPTS AND DELIVERIES
Receipts and deliveries of natural gas shall be nominated, confirmed,
scheduled and curtailed by Transporter in accordance with Section 9 of
the General Terms and Conditions of this tariff.
================================================================================
RATE SCHEDULE ITS
Interruptible Transportation Service (continued)
Reserved for Future Use
================================================================================
RATE SCHEDULE ITS
Interruptible Transportation Service (continued)
Reserved for Future Use
================================================================================
RATE SCHEDULE ITS
Interruptible Transportation Service (continued)
11. RIGHTS UNDER SECTION 4 OF THE NATURAL GAS ACT
Transporter shall have the unilateral right to file with the appropriate
regulatory authority and make changes in (a) the rates and charges
applicable to its Rate Schedule ITS, (b) Rate Schedule ITS pursuant to
which this service is rendered; provided, however, that the interruptible
character of service shall not be subject to change hereunder, or (c) any
provisions of the General Terms and Conditions applicable to Rate Schedule
ITS. Transporter agrees that Shipper may protest or contest the
aforementioned filings, or seek authorization from duly constituted
regulatory authorities for such adjustment of Transporter's existing FERC
Gas Tariff as may be found necessary in order to assure that the
provisions in (a), (b) or (c) above are just and reasonable.
================================================================================
Rate Schedule ITS
Interruptible Transportation Rates (continued)
12. GENERAL TERMS AND CONDITIONS
The General Terms and Conditions of Transporter's FERC Gas Tariff, First
Revised Volume No. 1, are applicable to this Rate Schedule and are
hereby made a part hereof.
================================================================================
-----------------------------------
Original Sheet Nos. 139 through 199
Have Been Reserved For Future Use
-----------------------------------
================================================================================
GENERAL TERMS AND CONDITIONS
INDEX
Section Description Sheet No.
1 Definitions 201
2 Quality of Gas 202
3 Measuring Equipment 205
4 Measurement Base 206
5 Inspection of Equipment and Records 208
6 Billing and Payments 209
7 Notice of Changes in Operating Conditions 210
8 Force Majeure 210
9 Nominations, Confirmation, Scheduling
and Curtailment 211
10 Reallocation of Capacity 213
11 Warranty of Title 214
12 Possession of Gas and Responsibility 214
13 Liability of Parties 215
14 Miscellaneous Provisions 215
15 Service Agreement 217
16 Pressure 217
17 Creditworthiness 217A
18 Annual Charge Adjustments (ACA) Clause 218
19 Requests for Transportation Service;
Complaint Procedures 220
20 Electronic Communication of Information 221
21 Imbalances 222
22 [Reserved For Future Use] 225
23 Operational Flow Orders 226
================================================================================
GENERAL TERMS AND CONDITIONS
(continued)
1. DEFINITIONS:
1.1 The word "day" shall mean a period of twenty-four (24) consecutive
hours, beginning and ending at 9:00 o'clock a.m. Central Clock Time.
1.2 The word "month" shall mean a period extending from the beginning at
9:00 o'clock a.m. Central Clock Time of the first day in a calendar
month to the beginning of the first day in the next succeeding
calendar month.
1.3 The term "billing month" shall mean the month of service hereunder
which immediately precedes the month in which Transporter is
obligated to render a bill for such service.
1.4 The term "contract year" shall mean a period of twelve (12)
consecutive months from the first day of the month following the
date gas is first delivered.
1.5 The term "gas" shall mean natural gas, or any mixture of
hydrocarbons or of hydrocarbons and noncombustible gases, in a
gaseous state, consisting predominantly of methane, which meets the
quality specifications set forth herein, but shall specifically
exclude natural gas liquids existing in a free liquid state.
1.6 The term "cubic foot of gas" shall mean that quantity of gas which
occupies one (1) cubic foot when such gas is at a temperature of
sixty (60) degrees Fahrenheit and at a pressure of 14.73 pounds per
square inch absolute (14.73 psia) and corrected for deviation from
ideal gas behavior.
1.7 The term "Mcf" shall mean one thousand (1,000) cubic feet of gas and
shall be measured as set forth in Section 4 hereof.
1.7 (a) "NAESB" shall mean North American Energy Standards Board.
================================================================================
GENERAL TERMS AND CONDITIONS
(continued)
1.7 (b) "NAESB" Standards shall mean any such standards and
definitions issued by NAESB, which have been adopted by the
FERC. Transporter incorporates the following NAESB Standards:
(i) Additional Standards (version 1.7): 0.1.1, 0.1.2, 0.3.1
through 0.3.10
(ii) Nominations Related Standards (version 1.7): 1.1.1 through
1.1.5, 1.1.9, 1.1.12, 1.1.14 through 1.1.18, 1.1.22, 1.2.1
through 1.2.6, 1.2.8 through 1.2.19, 1.3.1, 1.3.2(v),
1.3.2(vi), 1.3.3 through 1.3.9, 1.3.11, 1.3.13 through 1.3.16,
1.3.19 through 1.3.46, 1.3.51, 1.3.75.
(iii)Flowing Gas Related Standards (version 1.7): 2.1.1 through
2.1.6, 2.2.1, 2.2.3 through 2.2.5, 2.3.1 through 2.3.23,
2.3.25 through 2.3.31, 2.3.40, 2.3.42 through 2.3.50, 2.3.54
through 2.3.64.
(iv)Invoicing Related Standards (version 1.7): 3.1.1, 3.1.2,
3.2.1, 3.3.1 through 3.3.22, 3.3.25, 3.3.26.
(v) Electronic Delivery Mechanism Standards (version 1.7;
Recommendation R03035A; 2004 Annual Plan Item 2 FERC Order
2004 and 2005 Annual Plan Item 8 (May 3, 2005) (Affiliate
Order standards)): 4.1.2 through 4.1.4, 4.1.6, 4.1.7, 4.1.9,
4.1.10, 4.1.12, 4.1.13, 4.1.15 through 4.1.21, 4.1.29, 4.1.30,
4.1.40, 4.2.1 through 4.2.9, 4.2.14, 4.2.15, 4.3.1 through
4.3.3, 4.3.5, 4.3.7, 4.3.8, 4.3.10 through 4.3.18, 4.3.20,
4.3.22 through 4.3.38, 4.3.40, 4.3.41, 4.3.45, 4.3.73, 4.3.87,
4.3.89 through 4.3.92.
(vi) Capacity Release Related Standards (version 1.7): 5.1.2,
5.1.3, 5.2.1 through 5.2.3, 5.3.1, 5.3.3 through 5.3.5, 5.3.7
through 5.3.9, 5.3.13 through 5.3.30, 5.3.35 through 5.3.40,
5.3.44 through 5.3.47, 5.3.49 through 5.3.60.
================================================================================
GENERAL TERMS AND CONDITIONS
(continued)
1.7 (c) The term "working day" shall mean "Business Day" as such term
is defined in the NAESB Standards and shall include the days
Monday through Friday, exclusive of federal banking holidays,
unless notified otherwise.
1.7 (d) "Central Clock" Time shall mean the Central Time, as adjusted
for Daylight Savings Time and Standard Time. Unless otherwise
stated, as used herein "Central Time" shall mean Central Clock
time.
1.7 (e) "Contact Person" shall mean the person(s) specified by Shipper
that is available by telephone or paging device to receive
communication from Transporter at any and all times and upon
whose written and oral communications Transporter may rely.
Every shipper must have a contact person and shipper must
provide Transporter with sufficient information to
conclusively contact and communicate with such contact person.
================================================================================
GENERAL TERMS AND CONDITIONS
(continued)
1.8 The term "Btu" shall mean British thermal unit, and is defined as the
amount of heat required to raise the temperature of one pound of
water one (1) degree Fahrenheit from fifty-nine (59) degrees
Fahrenheit to sixty (60) degrees Fahrenheit at a standard pressure of
fourteen and seventy-three hundredths pounds per square inch absolute
(14.70 psia). For reporting purposes, Btu conversion factors should
be reported to not less than 3 decimal places.
1.9 The term "gross heating value" shall mean the quantity of heat in
Btu's liberated by the complete combustion at constant pressure, of a
cubic foot of gas at a temperature of sixty (60) degrees Fahrenheit
on a water free basis and at an absolute pressure of absolute (14.73
psia) with air at the same temperature and pressure as the gas, when
the products of the combustion are cooled to sixty (60) degrees
Fahrenheit and when the water formed by combustion is condensed to
the liquid state.
1.10 The term "psia" shall mean pounds per square inch absolute.
1.11 The term "psig" shall mean pounds per square inch gauge.
1.12 The term "thermally equivalent" means an equal number of Btu's.
1.13 The term "MMBtu" is equivalent to the term "dekatherm" Dekatherms
shall be the standard unit for nominating, scheduling, invoicing, and
balancing. The number of dekatherms received or delivered shall be
determined by multiplying the number of cubic feet of gas received or
delivered, by the total heating value of such gas, in British thermal
units per cubic foot. Pressure base conversion factors should be
reported to not less than 6 decimal places. For calculation
purposes, not less then 6 decimal places should be used for both
conversion factors. Divide the product by a million (1,000,000).
2. QUALITY OF GAS:
2.1 Quality Standards: Except as provided herein, the gas which Shipper
delivers hereunder to Transporter and the gas which Transporter
delivers hereunder to Shipper for transport shall be merchantable
gas, at all times complying with the following quality requirements:
(a) the gas shall be free from objectionable odors, solid matter,
dust, gums and gum-forming constituents, or any other substance
which might interfere with the merchantability of the gas, or
cause injury to or
================================================================================
GENERAL TERMS AND CONDITIONS
(continued)
interference with proper operation of the line, meters,
regulators, or other appliances through which it flows;
(b) shall have been dehydrated by Shipper for removal of water present
therein in a vapor state to contain not more than seven (7) pounds
of water vapor per one thousand (1,000) Mcf, as determined by use
of the dew point moisture monitor apparatus mutually agreed upon;
provided, however, Transporter may periodically waive this
specification if in Transporter's sole, but reasonable opinion,
the receipt of gas containing more than seven (7) pounds of water
vapor per one thousand (1,000) Mcf will not impair the operation
of the pipeline;
(c) shall contain not more than one quarter (1/4) grain of hydrogen
sulfide per one hundred (100) cubic feet of gas as determined by a
quantitative test mutually agreeable to the parties hereto after
the presence of hydrogen sulfide has been indicated by qualitative
test;
(d) shall contain not more than ten (10) grains of total sulphur per
one hundred (100) cubic feet of gas;
(e) shall contain not more than a combined total of three percent (3%)
by volume of carbon dioxide and/or nitrogen;
(f) shall contain no more than two tenths of one percent (.2%) by
volume of oxygen;
(g) shall have a temperature of not more than one hundred twenty (120)
degrees Fahrenheit; and
(h) shall a Btu content of not less than nine hundred fifty (950) per
cubic foot.
================================================================================
GENERAL TERMS AND CONDITIONS
(continued)
Notwithstanding any other provision herein, Shipper may deliver at
Transporter's Receipt Points gas that does not meet the quality
specifications contained in 2.1(a) through (h) above, inclusive, so long
as Transporter is satisfied that the blended gas stream at all Delivery
Points meets the quality specifications, and so long as the safety and
reliability of Transporter's system is not impaired, in Transporter's
sole opinion, exercised in good faith; provided, however, if the blended
gas stream at all Delivery Points does not meet the quality
specifications or the safety and reliability of Transporter's system is
impaired, in Transporter's sole opinion, exercised in good faith,
Transporter will notify Shipper of such deficiency and if Shipper fails
to remedy such deficiency promptly, the gas at the Receipt Point(s) most
out of compliance with the quality specification shall be shut-in until
the blended gas stream at the Delivery Point(s) meets the quality
specification; and, if more than one Receipt Point is equally out of
compliance, the shut-in shall be pro-rata as to those Receipt Points;
provided further, that nothing herein shall restrict Transporter's right
to refuse to accept further receipt of gas tendered for delivery to
Transporter by Shipper which fails at any time to conform to the quality
specifications in 2.1(a) through (h) above if the safety and reliability
of Transporter's system is impaired, in Transporter's sole opinion
exercised in good faith.
2.2 Quality Tests:
(a) The quality specifications of the gas delivered hereunder shall be
determined by tests which Transporter shall cause to be made at
each receipt and delivery point.
(b) The heating value of the gas delivered shall be calculated from a
chromatographic analysis of a representative gas sample collected
daily during the month, or any other method mutually agreed upon.
Such chromatographs shall be owned, operated, and maintained by
Transporter at Representative locations on Transporter's system, or
as agreed upon.
(c) Tests shall be made to determine the total sulpher, hydrogen
sulfide, carbon dioxide, nitrogen and oxygen content of the gas, by
approved standard methods in general use in the gas industry, and
to determine the hydrocarbon dewpoint and water vapor content of
such gas by methods satisfactory to the parties. Tests shall be
made frequently enough to assure that the gas is conforming
continuously to the quality requirements. Transporter shall have
the right to require Shipper to have remedied any deficiency of the
gas in quality and, in the event such deficiency is not remedied,
================================================================================
GENERAL TERMS AND CONDITIONS
(continued)
the right, in addition to all other remedies available to it
by law, to refuse to accept such deficient gas from Shipper
until such deficiency is remedied.
3. MEASURING EQUIPMENT
3.1 Installation: At each Point of Receipt or Delivery all measuring
equipment, devices and materials shall be furnished and installed,
owned, maintained and operated as mutually agreed by the parties;
provided, however, that Transporter may require, at its option, that
Shipper bear the expense of furnishing and installing such equipment
devices and materials in any instance in which such Shipper requests
a new or additional Point of Delivery or Receipt for such Shipper's
convenience. Shipper may install and operate check measuring
equipment at its expense provided such installation and operation
does not interfere with the use of Transporter's equipment.
3.2 Accessibility: Shipper shall provide or cause to be provided to
Transporter, free of charge, sufficient space on the platforms
designated as Points of Receipt on Appendix A for the Executed
Service Agreement for Transporter to install and access by
helicopter or boat its measurement facilities.
3.3 Testing Meter Equipment: The accuracy of Transporter's measuring
equipment shall be verified by test, at no more than forty-five (45)
day intervals and at other times upon request of the Shipper. No
less than 72 hours notice of the time and nature of the test shall
be given by Transporter to permit convenient arrangement for the
presence of Shipper's representative. If, after notice, the Shipper
fails to have a representative present, the results of the test
shall nevertheless be considered accurate until the next test. If
any of the measuring equipment is found to be registering
inaccurately in any percentage, it shall be adjusted at once to read
as accurately as possible. All tests of such
================================================================================
GENERAL TERMS AND CONDITIONS
(continued)
measuring equipment shall be made at the expense of Transporter,
except that the Shipper shall bear the expense of additional tests
made at its request if the inaccuracy is found to be two percent
(2%) or less.
3.4 Correction and Adjustment: If at any time any of the measuring
equipment is registering inaccurately by an amount less than two
percent (2%), previous readings shall be considered correct. If the
inaccuracy exceeds two percent (2%) at a reading corresponding to
the average hourly rate of flow, the previous readings of such
equipment shall be corrected to zero error for any inaccurate period
definitely known or agreed upon, or if not so known or agreed upon,
for a period of one-half (1/2) of the elapsed time since the last
test not to exceed a correction period of thirty (30) days. If the
measuring equipment is out of service, the volume of gas delivered
during such period shall be determined:
(a) By using the data recorded by any check measuring equipment
accurately registering; or
(b) If such check measuring equipment is not registering
accurately, but the percentage of error is ascertainable by a
calibration test, by using the data recorded, corrected to
zero error; or
(c) If neither of the methods provided in (a) and (b) above can be
used, by estimating the quantity delivered by reference to
deliveries under similar conditions during a period when the
equipment was registering accurately.
4. MEASUREMENT BASE
4.1 Metering: The gas shall be metered by one or more of the following:
orifice, displacement or turbine type meters, at the discretion of
Transporter. When orifice meters are used, they shall be
================================================================================
GENERAL TERMS AND CONDITIONS
(continued)
installed and maintained, and volumes shall be measured in
accordance with the methods prescribed in "Orifice Metering of
Natural Gas", ANSI/API 2530, including the Appendix thereto, as
published December 1985, or any subsequent revision thereof
acceptable to both parties. If turbine meters are used, they shall
be installed and operated in accordance with American Gas
Association Transmission Measurement Committee Report No. 7. When
displacement meters are used, the number of Mcf delivered hereunder
shall be computed by including factors for pressure, temperature and
deviation from Boyle's Law.
4.2 Deviation from Ideal Gas Laws: Correction shall be made for
deviation of the gas from Boyle's Law at the pressure and
temperature at which the gas is metered. To determine the factors
for such correction, a quantitative analysis of the gas shall be
agreed upon by both parties or by computations made in accordance
with NX-19 of the American Gas Association and any modifications and
amendments thereof applied in a practical manner.
4.3 Specific Gravity: The specific gravity of the gas delivered shall
be calculated from a chromatographic analysis of a representative
gas sample collected daily during the month, or any other method
mutually agreed upon. Such chromatographs shall be owned, operated,
and maintained by transporter at representative locations on
Transporter's system, or as agreed upon.
4.4 Flowing Temperature: The flowing temperature of the gas being
metered shall be determined by means of a recording thermometer of a
type acceptable to both parties, installed and maintained in
accordance with the specifications set forth in said ANSI/API 2530.
The arithmetical average of readings each day for time that gas is
flowing shall be deemed the gas temperature and used in computing
the volumes of gas metered during such day.
================================================================================
GENERAL TERMS AND CONDITIONS
(continued)
4.5 Measurement: The Unit of Measurement for gas delivered or
redelivered hereunder shall be one thousand (1,000) cubic feet, (one
[1] Mcf) of gas at a base temperature of sixty degrees (60)
Fahrenheit and at a base pressure of fourteen and seventy-three
hundredths (14.73) pounds per square inch absolute.
4.6 New Measurement Techniques: If at any time during the term hereof,
a new method or technique is developed with respect to gas
measurement, such new method or technique may be substituted for the
gas measurement set forth in this Section upon mutual agreement
thereto by the Parties.
5. INSPECTION OF EQUIPMENT AND RECORDS
5.1 Inspection of Equipment and Data: Each party shall have the right
to inspect equipment installed or furnished by the other, and the
charts and other measurement or test data of the other, at all times
during business hours; but the reading, calibration and adjustment
of such equipment and changing of charts shall be done only by the
party installing or furnishing same. Unless the parties otherwise
agree, each party shall preserve all original test data, charts and
other similar records in such party's possession, for a period of at
least three (3) years.
5.2 Information for Billing: When information necessary for billing by
Transporter is in the control of Shipper, Shipper shall furnish the
actual information to Transporter on or before the fifth (5th)
working day of the month following the billing month.
Monthly Measurement. Transporter shall include any corrections
received on or before five (5) working days after the month in
preparation of monthly measurement statements. Measurement data
available upstream of aggregated points should be sent to the
allocating party and used to allocate the aggregated volume back to
the upstream points. The monthly measurement set will serve as the
basis upon which allocations are performed. For treatment of
measurement prior period adjustments, treat the adjustment by taking
it back to the production month. A meter adjustment becomes a prior
period adjustment after the fifth business day following the
business month. Transporter shall process prior period adjustments
within six (6) months of the monthly measurement for the respective
month, subject to an additional three (3) month period for an
affected party, including Transporter, to challenge any prior period
adjustment. Such processing limitations shall not apply in the case
of deliberate omission or misrepresentation to limit Shipper's or
Transporter's other statutory or contractual rights. To the extent
an interconnecting party is contractually or statutorily permitted to process adjustments beyond the six (6) month period above, Transporter shall be permitted to process such corresponding adjustments to Shippers.
================================================================================
GENERAL TERMS AND CONDITIONS
(continued)
5.3 Verification of Computations: Each party shall have the right to
examine at reasonable time the books, records and charts of the
other to the extent necessary to verify the accuracy of any
statement, charge or computation made pursuant to these General
Terms and Conditions and to the Rate Schedules to which they apply.
================================================================================
GENERAL TERMS AND CONDITIONS
(continued)
6. BILLING AND PAYMENTS
6.1 Billing: On or before the tenth (10th) day of each month,
Transporter shall render to each Shipper a bill for the actual
service rendered during the immediately preceding month ("billing
month") if actual data is available. All statements should be
standardized to the same level of detail. The specific minimum
level of detail on invoice, remittance and statement of an account
should be guided by the development of data elements. If actual
data is not available, billing will be on an estimated basis and
such estimate will be corrected to actual tools on the billing
immediately following receipt by Transporter of such actual data.
Bills will utilize the descriptions and charge codes set forth in
the NAESB Standards. Transportation bills shall specify all rate
components, and shall separately state the net billing rate and any
discount, if applicable, and any prior period adjustments. Prior
period adjustments are reported by production date, but they do not
have to be invoiced separately by production month - nor is each
production month a separate paper invoice page. Required invoice
backup data should accompany or precede this invoice. Regarding
inadequate detail, supporting documentation should be provided upon
request, with timing of supporting documentation to follow the
timing of the flowing gas transactions.
6.2 Payment: Within ten (10) calendar days after the date of receipt of
billing invoice, or the next business day in the event the tenth
(10th) day is a weekend or bank holiday, Shipper shall provide any
supporting documentation, including invoice number(s), and shall pay
Transporter by check, or by wire transfer of federal funds, the
amount of the bill rendered by Transporter for the billing month in
accordance with Section 6.1. For purposes of this Section, the date
of receipt of billing invoice is deemed to be three (3) days after
the postmark date. Any payment shall be considered to have been
made on the date such payment is transferred by Shipper to the
address designated by Transporter. If presentation of a bill by
Transporter is delayed after the due date, then the time for payment
shall be extended correspondingly unless Shipper is responsible for
such delay. If Shipper has notified Transporter in writing of an
error in invoice during the period for which a genuine dispute
exists as to the alleged error, Shipper shall pay the portion of the
invoiced amount which is not in dispute and shall provide
documentation identifying the basis for the dispute.
================================================================================
GENERAL TERMS AND CONDITIONS
(continued)
6.3 Interest on Unpaid Amounts: Should Shipper fail to pay the amount
of any bill rendered by Transporter when such amount is due,
interest shall accrue thereon at a rate of interest equal to the
then effective rate computed in the manner set forth in the
Commission's Regulations.
6.4 Remedies for Failure to Pay: If such failure to pay continues for
thirty (30) days after payment is due, Transporter, in addition to
any other remedy it may have, may suspend gas transportation service
with ten (10) days notice until such amount, including interest, is
paid unless Shipper in good faith disputes the amount owing and pays
or provides guarantee of payment of all amounts not subject to such
good faith dispute.
6.5 Statement of Account. Transporter shall provide Shipper with a
detailed Statement of Account in accordance with the NAESB
Standards, which statement shall indicate any outstanding amounts by
invoice.
================================================================================
GENERAL TERMS AND CONDITIONS
(continued)
6.6 Adjustment of Billing Error: In the event an error is discovered in
any bill rendered by Transporter, the amount of such error shall be
adjusted within thirty (30) days after discovery, provided that
claim therefore shall have been made within six (6) months from the
date such bill was rendered subject to an additional three (3) month
period for an affected party to challenge the error. Such
processing limitations shall not apply in the case of deliberate
omission or misrepresentation or mutual mistake of fact. Nothing
herein shall be construed to limit Shipper's or Transporter's other
statutory or contractual rights. To the extent an interconnecting
party is contractually or statutorily permitted to process
adjustments beyond the six (6) month period above, Transporter shall
be permitted to process such corresponding adjustments to Shippers.
7. NOTICE OF CHANGES IN OPERATING CONDITIONS
Transporter and Shipper shall notify each other from time to time as
necessary of expected changes in the rates of delivery or receipt of gas,
or in the pressures or other operating conditions, and the reason for such
expected changes, to the end that the other party may be prepared to meet
them when they occur.
8. FORCE MAJEURE
8.1 If either party shall fail to perform any obligation imposed upon it
by these General Terms and Conditions or by an executed Service
Agreement, and such failure shall be caused, or materially
contributed to, by: any acts of God; strikes; lockouts; or other
industrial disturbances; act of public enemies; sabotage; wars;
blockades; insurrections; riots; epidemics; landslides; lightening;
earthquakes; floods; storms; fires; washouts; arrests and restraints
of rulers and peoples; civil disturbances; explosions; breakage of
or accident to machinery or lines of pipe, materials or equipment;
the failure of any of Shipper's gas suppliers to delivery gas, or
failure of Shipper to receive gas, in accordance with its
obligations if such failure
================================================================================
GENERAL TERMS AND CONDITIONS
(continued)
is occasioned by an event or occurrence of the character described
in this Section as constituting force majeure; any legislative,
administrative or judicial action which has been resisted in good
faith by all reasonable legal means; any act of omission whether of
the kind herein enumerated or otherwise not within the control of
the party invoking this Section and which by the exercise of due
diligence such party could not have prevented, or shall be
occasioned by the necessity for making repairs to or reconditioning
machinery, equipment, or pipelines, not resulting from the fault or
negligence of such party; such failure shall be deemed not to be a
breach of the obligation of such party, but such party shall use
reasonable diligence to put itself in a position to carry out its
obligations. Nothing contained herein shall be construed to require
either party to settle a strike or lockout by acceding against its
judgment to the demands of the opposing parties.
8.2 No such cause affecting the performance of either party shall
continue to relieve such party from its obligation after the
expiration of a reasonable period of time within which by the use of
due diligence such party could have remedied the situation
preventing its performance, nor shall any such cause relieve either
party from any obligation unless such party shall give notice
thereof in writing to the other party with reasonable promptness;
and like notice shall be given upon termination of such cause.
9. NOMINATIONS, CONFIRMATION, SCHEDULING AND CURTAILMENT
9.1 Nomination:
A. General
Quantities nominated and scheduled shall be reflected in MMBtu.
Unless otherwise agreed to by Transporter, Shipper shall
nominate in writing to Transporter's Gas Management and Control
Department the following information:
(1) The contract number under which service is being nominated;
(2) The quantity in dekatherms per day of gas to be tendered at
each receipt point;
(3) The quantity in dekatherms per day of gas to be tendered at
each receipt point;
(4) The term of the nomination. All nominations should be
considered original nominations and should be replaced to
be changed.
(5) A receipt and delivery rank for each upstream and
downstream party can be submitted by Shipper. This will be
used when making reductions during the scheduling process.
================================================================================
GENERAL TERMS AND CONDITIONS
(continued)
The total receipt nominations must equal the total delivery
nominations, with the exception of quantities nominated to
correct an imbalance.
A package ID is a way to differentiate between discrete business
transactions. When used, Package ID should be supported for
nominating, scheduling, allocating, and invoicing (sales and
purchase), and not required for transportation invoicing. Use
of the Package ID is at the discretion of the service requester,
and if sent, should be accepted and processed by the service
provider.
If Shipper fails to comply with provisions (1) through (4) of
this Section 9.1.A, Transporter shall not schedule the
commencement of service or change to a prior nomination.
Transporter supports a seven-days-a-week, twenty-four-hours-a-
day nominations process. It is recognized that the success of
seven-days-a-week, twenty-four-hours-a-day nominations process
is dependent on the availability of affected parties scheduling
personnel on a similar basis. Party contacts need not be at
their ordinary work sites, but should be available by beeper.
Overrun quantities must be scheduled as a separate transaction.
B. Nomination Timeline
Transporter and Shipper shall support the following minimum
NAESB standard nomination cycles as set forth below in (1) and
(2). Such nomination opportunities shall represent the grid-
wide synchronization times across the North American pipeline
network.
(1) Nominations for the Upcoming Gas Day
(a) The Timely Nomination Cycle. 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).
================================================================================
GENERAL TERMS AND CONDITIONS
(continued)
(b) 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 do
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.
(2) Intraday Nominations
(a) 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 the gas day). Scheduled quantities resulting from
Intraday 1 nominations should be effective at 5:00 p.m. on the gas
day.
(b) 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.
For purposes of Section 9.1.B(1)(b), (2)(a) and (2)(b), "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.
================================================================================
GENERAL TERMS AND CONDITIONS
(continued)
There is no limitation as to the number of intraday nominations
which a Shipper may submit at any one standard nomination cycle
or in total across all standard nomination cycles. Intraday
nominations will be effective for a single gas day, and will not
remain in effect for prospective gas days. There is no need to
renominate if intraday nomination modifies existing nomination.
Intraday nominations must have a beginning and ending time. To
the extent, a Shipper submits an intraday nomination which
specifies an effective term of longer than one day, Transporter
shall make the nomination effective for the first day of the
effective period on an intraday basis for the applicable
nomination cycle. The nomination then will be processed as a
Timely Nomination for the remaining effective term of the
nomination. Intraday nominations can be used to request
increases or decreases in total flow, changes to receipt points,
or changes to delivery points of scheduled gas. Intraday
nominations may be used to nominate new supply or market.
In the event capacity remains available after gas has been
scheduled or as a result of an operational or weather situation,
then Transporter may accept nominations or schedule service
after the time deadlines set forth above. Any written
nominations received after the above stated deadlines will be
scheduled after nominations received before the nomination
deadline.
Upon request by Transporter, Shipper shall from time to time
submit estimates of daily, monthly and annual quantities of gas
to be transported, including peak day requirements.
(3) Bumping
Nominations submitted by a firm Shipper during the Evening
or Intraday 1 Nomination Cycles shall be given scheduling
priority over nominated and scheduled volumes for
interruptible Shippers. Bumping is not permitted during the
Intraday 2 Nomination Cycle.
When an interruptible Shipper's scheduled volumes are to be
reduced as a result of a nomination submitted by a firm
Shipper during the Evening or Intraday 1 Nomination Cycles,
Transporter shall provide such interruptible Shipper advance
notice that its scheduled volumes are to be reduced. Such
notification shall be as set forth in Section 9.3 herein.
================================================================================
GENERAL TERMS AND CONDITIONS
(continued)
9.2 Confirmation: All nominations must be confirmed by Shipper in
writing via telecopy on the date of the nomination and must contain
a contact person for upstream and downstream confirmation.
Nominations shall not become effective until Transporter has
confirmed the nominated receipts and deliveries with the upstream
and downstream parties. If such confirmation cannot be obtained,
transportation service will be delayed until such confirmation is
obtained.
With respect to the Timely Nomination Cycle at a receipt or delivery
point, in the absence of agreement to the contrary, the lesser of
the confirmation quantities should be the confirmed quantity. If
there is no response to a Request For Confirmation or an unsolicited
Confirmation Response, the lesser of the confirmation quantity or
the previously scheduled quantity should be the new confirmed
quantity.
With respect to the processing of requests for increases during the
Evening, Intraday 1 or Intraday 2 Nomination Cycles, in the absence
of agreement to the contrary, the lesser of the confirmation
quantities should be the new confirmed quantity. If there is no
response to a Request For Confirmation or an unsolicited
Confirmation Response, the previously scheduled quantity should be
the new confirmed quantity.
With respect to the processing of requests for decreases during the
Evening, Intraday 1 or Intraday 2 Nomination Cycles, in the absence
of agreement to the contrary, the lesser of the confirmation
quantities should be the new confirmed quantity, but in any event no
less than the elapsed-prorated-scheduled quantity. If there is no
response to a Request For Confirmation or an unsolicited
Confirmation Response, the greater of the confirmation quantity or
the elapsed-prorated-scheduled quantity should be the new confirmed
quantity.
With respect to the preceding three paragraphs, if there is no
response to a request for confirmation or an unsolicited
confirmation response, the Transportation Service Provider should
provide the Service Requester with the following information to
explain why the nomination failed, as applicable:
(1) the Service Requester's Transportation Service Provider did
not conduct the confirmation;
(2) the Service Requester is told by its Transportation Service
Provider that the upstream confirming party did not conduct
the confirmation;
================================================================================
GENERAL TERMS AND CONDITIONS
(continued)
(3) the Service Requester is told by its Transportation Service
Provider that the upstream Service Requester did not have the
gas or submit the nomination;
(4) the Service Requester is told by its Transportation Service
Provider that the downstream confirming party did not conduct
the confirmation;
(5) the Service Requester is told by its Transportation Service
Provider that the downstream Service Requester did not have
the market or submit the nomination.
This information should be imparted to the Service Requester on the
Scheduled Quantity document.
9.3 Scheduling: Transporter shall schedule transportation quantities
based on Shippers' nominations, in accordance with the following
priorities:
================================================================================
GENERAL TERMS AND CONDITIONS
(continued)
1. Firm transportation from Primary Receipt Points to Primary Delivery Points
within the MDTQ specified in Shippers' FTS Service Agreement, including capacity
acquired through the capacity release mechanism set forth in Section 10 herein.
2. Alternate Firm transportation within the MDTQ specified in Shipper's FTS Service
Agreement utilizing either an Alternate Receipt or Alternate Delivery Point.
3. Inte |
