EXHIBIT 10.4
FIRM TRANSPORTATION SERVICE AGREEMENT
THIS AGREEMENT is made and entered into this 26th day of October, 1993, by
and between
PACIFIC GAS TRANSMISSION COMPANY, a California corporation (hereinafter
referred to as "PGT),
and
PACIFIC GAS AND ELECTRIC COMPANY, a corporation existing under the laws of
the State of California, (hereinafter referred to as "Shipper").
WHEREAS, PGT owns and operates a natural gas pipeline transmission system
which extends from a point of interconnection with the pipeline facilities of
Alberta Natural Gas Company Ltd. (ANG) at the International Boundary near
Kingsgate, British Columbia, through the states of Idaho, Washington and Oregon
to a point of interconnection with Pacific Gas and Electric Company at the
Oregon-California border near Malin, Oregon; and
WHEREAS, Shipper desires PGT, on a firm basis, to transport certain
quantities of natural gas from Kingsgate, British Columbia to Malin, Oregon for
ultimate delivery to Shipper, a local distribution company; and
WHEREAS, pursuant to FERC Order No. 636, et seq., PGT will unbundle its
firm transportation and sales services, and PGT and Shipper will execute a new
service agreement for unbundled firm transportation service; and
WHEREAS, this Agreement will supersede and prior agreements between PGT
and Shipper for firm gas sales or firm transportation, and will incorporate the
transportation rights thereunder into this Agreement; and
WHEREAS, PGT is willing to transport certain quantities of natural gas for
Shipper, on a firm basis,
NOW, THEREFORE, the parties agree as follows:
I
GOVERNMENTAL AUTHORITY
1.1 This Firm Transportation Agreement ("Agreement") is made pursuant to
the regulations of the Federal Energy Regulatory Commission (FERC) contained in
18 CFR Part 284, as amended from time to time.
I
GOVERNMENTAL AUTHORITY
(CONTINUED)
1.2 This Agreement is subject to all valid legislation with respect to the
subject matters hereof, either state or federal, and to all valid present and
future decisions, orders, rules, regulations and ordinances of all duly
constituted governmental authorities having jurisdiction.
1.3 Shipper shall reimburse PGT for any and all filing fees incurred by
PGT in seeking governmental authorization for the initiation, extension, or
termination of service under this Agreement and Rate Schedule FTS-1. Shipper
shall reimburse PGT for such fees at PGT's designated office within ten (10)
days of receipt of notice from PGT that such fees are due and payable.
Additionally, Shipper shall reimburse PGT for any and all penalty fees or fines
assessed PGT caused by the negligence of Shipper in not obtaining all proper
Canadian and domestic import/export licenses, surety bonds or any other
documents and approvals related to the Canadian exportation and subsequent
domestic importation of natural gas transported by PGT hereunder.
II
QUANTITY OF GAS AND PRIORITY OF SERVICE
2.1 Subject to the terms and provisions of this Agreement and PGT's
Transportation General Terms and Conditions contained in PGT's FERC Gas Tariff
First Revised Volume No. 1-A (Transportation General Terms and Conditions)
applicable to Rate Schedule FTS-1, daily receipts of gas by PGT from Shipper at
the point(s) of receipt shall be equal to daily deliveries of gas by PGT to
Shipper at the point(s) of delivery; provided, however, Shipper shall deliver to
PGT an additional quantity of natural gas at the point(s) of receipt as
compressor station fuel, line loss and unaccounted for gas as specified in the
Statement of Effective Rates and Charges of PGT's FERC Gas Tariff First Revised
Volume No. 1-A which by this reference is made a part hereof. Any limitation of
the quantities to be received from each point of receipt and/or delivered to
each point of delivery shall be as specified on the Exhibit A attached hereto.
2.2 The maximum quantities of gas to be delivered by PGT for Shipper's
account at the point(s) of delivery are set forth in Exhibit A.
2.3 In providing service to its existing or new customers, PGT will use
the priorities of service specified in Paragraph 18 of PGT's Transportation
General Terms and Conditions on file with the FERC.
2.4 Prior to initiation of service, Shipper shall provide PGT with any
information required by the FERC, as well as the information identified in
Paragraphs 21, 28, and 29 of PGT's Transportation General Terms and Conditions
applicable to Rate Schedule FTS-1.
III
TERM OF AGREEMENT
3.1 This Agreement shall become effective November 1, 1993, and shall
continue in full force and effect until October 31, 2005. Thereafter, this
Agreement shall continue in effect from year to year unless Shipper gives PGT
twelve (12) months prior written notice of termination of this Agreement. The
Agreement shall terminate twelve (12) months after such notice.
IV
POINTS OF RECEIPT AND DELIVERY
4.1 The primary point of receipt of gas deliveries to PGT is as designated
in Exhibit A, attached hereto.
4.2 The primary point of delivery of gas to Shipper is as designated in
Exhibit A, attached hereto.
4.3 Shipper shall deliver or cause to be delivered to PGT the gas to be
transported hereunder at pressures sufficient to deliver such gas into PGT's
system at the point(s) of receipt. PGT shall deliver the gas to be transported
hereunder to or for the account of Shipper at the pressures existing in PGT's
system at the point(s) of delivery.
4.4 Pursuant to Paragraph 29 of PGT's Transportation General Terms and
Conditions, Shipper may designate other receipt and/or delivery points as
secondary receipt or delivery points.
V
OPERATING PROCEDURE
5.1 Shipper shall conform to the operating procedures set forth in PGT's
Transportation General Terms and Conditions.
5.2 Nothing in Section 5.1 shall compel PGT to transport gas pursuant to
Shipper's request on any given day. PGT shall have the right to interrupt or
curtail the transport of gas for the account of Shipper pursuant to PGT's
Transportation General Terms and Conditions applicable to Rate Schedule FTS-1.
VI
RATE(S), RATE SCHEDULES, AND
GENERAL TERMS AND CONDITIONS OF SERVICE
6.1 Shipper shall pay PGT each month for services rendered pursuant to
this Agreement in accordance with PGT's Rate Schedule FTS-1, or superseding rate
schedule(s), on file with and subject to the jurisdiction of FERC.
VI
RATE(S), RATE SCHEDULES, AND
GENERAL TERMS AND CONDITIONS OF SERVICE
(CONTINUED)
6.2 Shipper shall compensate PGT each month for compressor station fuel,
line loss and other unaccounted for gas associated with this transportation
service provided herein in accordance with PGT's Rate Schedule FTS-1, or
superseding rate schedule(s), on file with and subject to the jurisdiction of
the FERC.
6.3 This Agreement in all respects shall be and remains subject to the
applicable provisions of Rate Schedule FTS-1, or superseding rate schedule(s)
and of the applicable Transportation General Terms and Conditions of PGT's FERC
Gas Tariff First Revised Volume No. 1-A on file with the FERC, all of which are
by this reference made a part hereof.
6.4 PGT shall have the unilateral right from time to time to propose and
file with FERC such changes in the rates and charges applicable to
transportation services pursuant to this Agreement, the rate schedule(s) under
which this service is hereunder provided, or any provisions of PGT's
Transportation General Terms and Conditions applicable to such services. Shipper
shall have the right to protest any such changes proposed by PGT and to exercise
any other rights that Shipper may have with respect thereto.
VII
MISCELLANEOUS
7.1 This Agreement shall be interpreted according to the laws of the State
of California.
7.2 Shipper agrees to indemnify and hold PGT harmless for refusal to
transport gas hereunder in the event any upstream or downstream transporter
fails to receive or deliver gas as contemplated by this Agreement.
VII
MISCELLANEOUS
(CONTINUED)
7.3 Unless herein provided to the contrary, any notice called for in this
Agreement shall be in writing and shall be considered as having been given if
delivered by registered mail or telex with all postage or charges prepaid, to
either PGT or Shipper at the place designated below. Routine communications,
including monthly statements and payment, shall be considered as duly delivered
when received by ordinary mail. Unless changed, the addresses of the parties are
as follows:
"PGT" PACIFIC GAS TRANSMISSION COMPANY
160 Spear Street
Room 1900
San Francisco, California 94105-1570
ATTENTION: President & CEO
"SHIPPER" PACIFIC GAS & ELECTRIC COMPANY
77 Beale Street, Room 1611
Mail Code B16A, P. O. Box 770000
San Francisco, CA 94177
ATTENTION: Mgr. Gas Services Dept.
7.4 A waiver by either party of any one or more defaults by the other
hereunder shall not operate as a waiver of any future default or defaults,
whether of a like or of a different character.
7.5 This Agreement may only be amended by an instrument in writing
executed by both parties hereto.
7.6 Nothing in this Agreement shall be deemed to create any rights or
obligations between the parties hereto after the expiration of the term set
forth herein, except that termination of this Agreement shall not relieve either
party of the obligation to correct any quantity imbalances or Shipper of the
obligation to pay any amounts due hereunder to PGT.
7.7 Exhibits A and C attached hereto are incorporated herein by reference
and made a part hereof for all purposes.
IN WITNESS WHEREOF the parties have caused this Agreement to be executed
as of the day and year first above written.
PACIFIC GAS TRANSMISSION COMPANY
By: /s/ Paula G. Rosput
-------------------------------------------------
Name: Paula G. Rosput
Title: Senior Vice President
Date: October 26, 1993
PACIFIC GAS & ELECTRIC COMPANY
By: /s/ William R. Mazotti
-------------------------------------------------
Name: William R. Mazotti
Title: Vice President - Gas Services & Operations
Date: October 26, 1993
EXHIBIT A
TO THE
FIRM TRANSPORTATION SERVICE AGREEMENT
DATED____________________BETWEEN
PACIFIC GAS TRANSMISSION COMPANY
AND
PACIFIC GAS & ELECTRIC COMPANY
RECEIPT DELIVERY MAXIMUM DAILY QUANTITY (MDQ)
POINT (1) POINT(1) (DELIVERED) MMBTU/D
- --------- -------- ----------------------------
SUMMER(2) WINTER(3)
--------- ---------
KINGSGATE MALIN 1,023,120(4) 1,081,990
(1) Pursuant to Paragraph 29 of PGT's Transportation General Terms and
Conditions, Shipper may designate other receipt and delivery points as
"secondary receipt" and "secondary delivery" points. For example, Shipper may
designate Stanfield, Oregon and/or Spokane, Washington as secondary receipt
points.
(2) Summer- - months of May through October.
(3) Winter - - months of November through April,
(4) In accordance with FERC's October 1, 1993 order at Docket n. RS92-46
Shipper's firm Summer MDQ (Delivered) may exceed 1,023,120 MMBtu/d to the extent
firm capacity is available on PGT's original system. However, under no
circumstances may Shipper's firm Summer MDQ (Delivered) exceed 1,081,990
MMBtu/d.
EXHIBIT C
TO THE
FIRM TRANSPORTATION SERVICE AGREEMENT
DATED____________________BETWEEN
PACIFIC GAS TRANSMISSION COMPANY
AND
PACIFIC GAS & ELECTRIC COMPANY
Type of Replacement Service:
Replacement Shipper:
Receipt Point:
Delivery Point:
Maximum Daily Quantity:
Commencement of Credit:
Termination of Credit:
Level of Credit: _____percent of the maximum rate defined as
________________________________________________
________________________________________________
Applicable for service under Rate Schedule FTS-1
Other Terms and Conditions:
1)__________________________________________________________________________
2)__________________________________________________________________________
3)__________________________________________________________________________
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 30
Third Revised Volume No. 1-A
RATE SCHEDULE FTS-1
FIRM TRANSPORTATION SERVICE
1. AVAILABILITY
This rate schedule is available to any party (hereinafter called
"Shipper") qualifying for service pursuant to the Commission's
Regulations contained in 18 CFR Part 284, and who has executed a Firm
Transportation Service Agreement with GTN in the form contained in this
FERC Gas Tariff, Third Revised Volume No. 1-A.
2. APPLICABILITY AND CHARACTER OF SERVICE
This rate schedule shall apply to firm gas transportation services
performed by GTN for Shipper pursuant to the executed Firm
Transportation Service Agreement between GTN and Shipper. GTN shall
receive from Shipper such daily quantities of gas up to the Shipper's
Maximum Daily Quantity as specified in the executed Firm Transportation
Service Agreement between GTN and Shipper plus the required quantity of
gas for fuel and line loss associated with service under this Rate
Schedule FTS-1 and redeliver an amount equal to the quantity received
less the required quantity of gas for fuel and line loss. This
transportation service shall be firm and not subject to curtailment or
interruption except as provided in the Transportation General Terms and
Conditions.
Firm transportation service shall be subject to all provisions of the
executed Firm Transportation Service Agreement between GTN and Shipper
and the applicable Transportation General Terms and Conditions.
3. RATES
Shipper shall pay GTN each month the sum of the Reservation Charge,the
Delivery Charge, plus any applicable Extension Charge, Overrun Charge
and applicable surcharges for the quantities of natural gas delivered.
The rate(s) set forth in GTN's current Effective Rates and Charges for
Transportation of Natural Gas in this FERC Gas Tariff, Third Revised
Volume No. 1-A are applied to transportation service rendered under
this rate schedule.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 31
Third Revised Volume No. 1-A
RATE SCHEDULE FTS-1
FIRM TRANSPORTATION SERVICE
(Continued)
3. RATES (Continued)
3.1 Reservation Charge
The Reservation Charge shall be the sum of the Mileage and the
Non-Mileage Component:
(a) Mileage Component
The Mileage Component shall be the product of the
currently effective Mileage Rate as set forth on Effective
Tariff Sheet No. 4, the distance, in pipeline miles, from
the Primary Point(s) of receipt to the Primary Point(s) of
Delivery on Mainline Facilities as set forth in Shipper's
Contract, and the Shipper's Maximum Daily Quantity at such
Point(s).
(b) Non-Mileage Component
The Non-Mileage Component shall be the product of the
currently effective Non-Mileage Rate as set forth on
Effective Tariff Sheet No. 4 and the Shipper's Maximum
Daily Quantity at Primary Point(s) of Delivery on Mainline
Facilities.
(c) Mitigation Revenue Recovery Surcharge
If Shipper is a Subject Shipper, the Mitigation Revenue
Recovery Surcharge for the Mileage and Non-Mileage
Components as set forth on Effective Tariff Sheet No. 4
shall be included in, and become a part of, the maximum
Mileage and Non-Mileage Base Reservation Rates used for
computing the Mileage and Non-Mileage Components of the
Reservation Charge. The Mileage Component shall be
designed to recover, on the basis of the mileage billing
determinants of the Subject Shippers underlying GTN's
currently effective rates, mileage mitigation revenues not
recovered from other shippers in accordance with Article
IV, Section 1(b) of the Stipulation and Agreement in
Docket No. RP94-149-000, et al., and the Non-Mileage
Component shall be designed to recover, on the basis of
the Non-Mileage billing determinants of the Subject
Shippers underlying GTN's currently effective rates,
Non-Mileage mitigation revenues not recovered from other
shippers in accordance with Article IV, Section 1(b) of
the Stipulation and Agreement in Docket No. RP94-149-000,
et al.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 32
Third Revised Volume No. 1-A
RATE SCHEDULE FTS-1
FIRM TRANSPORTATION SERVICE
(Continued)
3. RATES (Continued)
3.1 Reservation Charge (Continued)
(d) Competitive Equalization Surcharge
The Mileage and Non-Mileage components of the Competitive Equalization
Surcharge as set forth on Effective Tariff Sheet No. 4 shall be
included in, and become a part of, the maximum Mileage and Non-Mileage
Base Reservation Rates used for computing the Mileage and Non-Mileage
Components of the Reservation Charge of shippers that have contracted
for service utilizing, in whole or in part, CES Capacity under a Firm
Transportation Service Agreement having a term of one year or more and
shippers that have obtained service rights from such shippers pursuant
to Section 28 of the General Terms and Conditions of this FERC Gas
Tariff. The Mileage Component shall be equal to the Mileage Component
of the Mitigation Revenue Recovery Surcharge and the Non-Mileage
Component shall be equal to the Non-Mileage Component of the Mitigation
Revenue Recovery Surcharge. Shippers to which the Competitive
Equalization Surcharge applies, other than shippers that have obtained
service pursuant to Section 28 of the General Terms and Conditions of
this FERC Gas Tariff, shall be identified on Effective Tariff Sheet No.
11.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 33
Third Revised Volume No. 1-A
RATE SCHEDULE FTS-1
FIRM TRANSPORTATION SERVICE
(Continued)
3. RATES (Continued)
3.1 Reservation Charge (Continued)
(e) Shipper's obligation to pay the Reservation Charge and
applicable Reservation Surcharge is independent of Shipper's
ability to obtain export authorization from the National
Energy Board of Canada, Canadian provincial removal authority,
and/or import authorization from the United States Department
of Energy, and shall begin with the execution of the Firm
Transportation Service Agreement by both parties. The
Reservation Charge and Reservation Surcharge due and payable
shall be computed beginning in the month in which service is
first available (prorated if beginning in the month in which
service is available on a date other than the first day of the
month). Thereafter, the monthly Reservation Charge and
Reservation Surcharge shall be due and payable each month
during the Initial (and Subsequent) Term(s) of the Shipper's
executed Firm Transportation Service Agreement and is
unaffected by the quantity of gas transported by GTN to
Shipper's delivery point(s) in any month except as provided
for in Paragraphs 3.10 and 3.11 of this rate schedule.
3.2 Delivery Charge
The Delivery Charge shall be the product of the Delivery Rate as set
forth on Effective Tariff Sheet No. 4, the quantities of gas delivered
in the month (in Dth) (excluding Authorized Overrun) at point(s) of
delivery on Mainline Facilities, and the distance, in pipeline miles,
from the point(s) of receipt to point(s) of delivery on Mainline
Facilities.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 34
Third Revised Volume No. 1-A
RATE SCHEDULE FTS-1
FIRM TRANSPORTATION SERVICE
(Continued)
3. RATES (Continued)
3.3 Extension Charge
If Shipper designates a Primary Point of delivery on an
Extension Facility, then in addition to all other charges that
are applicable, Shipper shall pay the Extension Charge, which
shall consist of a reservation and delivery component.
(a) The reservation component of the Extension Charge
shall be the product of Shipper's Maximum Daily
Quantity at the Primary Point(s) of delivery on the
Extension Facility, the applicable Extension
reservation rate as set forth on Effective Tariff
Sheet No. 4, and the distance, in pipeline miles,
from the Receipt Point(s) on the Extension Facility
to the Primary Point(s) of delivery.
(b) The delivery component of the Extension Surcharge
shall be the product of the quantities delivered at
the point(s) of delivery on the Extension Facility,
the applicable Extension delivery rate as set forth
on Effective Tariff Sheet No. 4, and the distance, in
pipeline miles, from the Receipt Point(s) on the
Extension Facility to the point(s) of delivery.
3.4 Authorized Overrun Charge
Quantities in excess of Shipper's MDQ shall be transported
when capacity is available on the GTN system and when the
provision of such Authorized Overruns shall not effect any
Shipper's rights on the GTN System. Authorized Overruns are
interruptible in nature. The rate charged shall be the same as
the rates and charges for interruptible transportation under
Rate Schedule ITS-1 as set forth on effective Tariff Sheet No.
4, and such Authorized Overruns shall be subject to the
priority of service provisions of Paragraph 19 of the
Transportation General Terms and Conditions.
3.5 Applicability of Surcharges
Shipper shall pay all reservation and usage surcharges
applicable to the service provided to such Shipper as set
forth in GTN's FERC Gas Tariff, Third Revised Volume No. 1-A.
such surcharges shall be deemed to be part of Shipper's
reservation and Delivery Charges.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 35
Third Revised Volume No. 1-A
RATE SCHEDULE FTS-1
FIRM TRANSPORTATION SERVICE
(Continued)
3. RATES (Continued)
3.6 Shipper shall pay the Maximum Reservation Charge, and the
Maximum Delivery Charge for service under this Rate Schedule
unless GTN offers to discount the Mileage Rate components or
the Non-Mileage Rate components of the Reservation Rate or the
Delivery Rate or the GRI surcharge under this rate schedule.
If GTN elects to discount any such rate, GTN shall, up to
forty-eight (48) hours prior to such discount, by written
notice, advise Shipper of the effective date of such charges
and the quantity of gas so affected; provided, however, such
discount shall not be anticompetitive or unduly discriminatory
between individual shippers. The rates for service under this
rate schedule shall not be discounted below the Minimum
Reservation Charge, the Minimum Delivery Rate, and applicable
ACA Surcharge.
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 36
Third Revised Volume No. 1-A
RATE SCHEDULE FTS-1
FIRM TRANSPORTATION SERVICE
(Continued)
3. RATES (Continued)
3.7 Reserved
3.8 Backhauls (as defined in Paragraph 1.30 of the Transportation
General Terms and Conditions) shall be subject to the same
charges as forward haul (as defined in Paragraph 1.29 of the
Transportation General Terms and Conditions) except that no
gas shall be retained by GTN for compressor station fuel, line
loss and other unaccounted-for gas. Backhauls are subject to
the operating conditions of GTN's pipeline and will not be
made available to Shipper if GTN determines, in its sole
discretion, that such transportation is operationally
infeasible or otherwise not available.
3.9 Reserved
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 37
Third Revised Volume No. 1-A
RATE SCHEDULE FTS-1
FIRM TRANSPORTATION SERVICE
(Continued)
3. RATES (Continued)
3.10 Capacity Release
(a) Releasing Shippers:
Shipper shall have the option to release capacity
pursuant to the provisions of GTN's capacity release
program as specified in the Transportation General
Terms and Conditions. Shipper may release its
capacity, up to Shipper's Maximum Daily Quantity
under this rate schedule, in accordance with the
provisions of Paragraph 28 of GTN's Transportation
General Terms and conditions of this FERC Gas Tariff,
Third Revised Volume No. 1-A. Shipper shall pay a fee
associated with the marketing of capacity by GTN (if
applicable) in accordance with Paragraph 28 of the
Transportation General Terms and Conditions. This fee
shall be negotiated between GTN and the Releasing
Shipper.
(b) Replacement Shippers:
Shipper may receive released capacity service under
this rate schedule pursuant to Paragraph 28 of the
Transportation General Terms and Conditions and is
required to execute a service agreement in the form
contained for capacity release under Rate Schedule
FTS-1 in this Third Revised Volume No. 1-A.
Shipper shall pay GTN each month for transportation
service under this rate schedule and as set forth in
GTN's current Statement of Effective Rates and
Charges in this Third Revised Volume No. 1-A. Charges
to be paid shall be the sum of the Reservation
Charge, Delivery Charge, and other applicable
surcharges or penalties.
The rates paid by Shipper receiving capacity release
transportation service shall be adjusted as provided
on Exhibit R in the executed Transportation Service
Agreement For Capacity Release between GTN and
Shipper.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 38
Third Revised Volume No. 1-A
RATE SCHEDULE FTS-1
FIRM TRANSPORTATION SERVICE
(Continued)
3.11 Reservation Charge Credit - Malin Primary Delivery Point
If GTN fails to deliver to Malin, Oregon ninety-five percent (95%) or
more of the aggregate Confirmed Daily Nominations (as hereinafter
defined) of all Shippers with a Malin primary delivery point receiving
service under this rate schedule (hereinafter referred to as the
"Non-Deficiency Amount") for more than twenty-five (25) days in any
given Contract Year, then for each day during that Contract Year in
excess of twenty-five (25) days that GTN so fails to deliver the
Non-Deficiency Amount (a "Credit Day") Shipper, as its sole remedy,
shall be entitled to a Reservation Charge Credit calculated in the
manner hereinafter set forth.
For the purpose of this Paragraph 3.10, Confirmed Daily Nomination
shall mean for any day, the lesser of (1) Shipper's Maximum Daily
Quantity or (2) the actual quantity of gas that the connecting pipeline
upstream of GTN is capable of delivering for Shipper's account to GTN
at Shipper's primary point of receipt(s) on GTN less Shipper's
requirement to provide compressor fuel and line losses under the
Statement of Effective Rates and Charges of GTN's FERC Gas Tariff,
Third Revised Volume No. 1-A or (3) the quantity of gas that Pacific
Gas And Electric Company (PG&E) is capable of accepting at Malin for
Shipper's account or (4) Shipper's nomination to GTN.
The Reservation Charge Credit for each Credit Day for a particular
Shipper shall be computed as follows:
Reservation Charge A B - C
Credit for Each ----- x ------
Credit Day = (30.4 ) ( B )
where A = Shipper's Monthly Reservation Charge
B = Shipper's confirmed daily nomination for the
Credit Day
C = Actual quantity of gas delivered by GTN to PG&E Malin
for Shipper's account for the Credit Day
Except as provided for in Paragraph 3.11 of this rate schedule, this
Reservation Charge Credit is Shipper's sole remedy for nondelivery of
gas by GTN.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 39
Third Revised Volume No. 1-A
RATE SCHEDULE FTS-1
FIRM TRANSPORTATION SERVICE
(Continued)
3.12 Reservation Charge Credit - Other than Malin Primary Delivery Point
If GTN fails to deliver Forward-haul service on a Primary Path to a
primary delivery point on its system other than Malin, Oregon,
ninety-five percent (95%) or more of the aggregate Confirmed Daily
Nominations (as hereinafter defined) of all Shippers at such primary
delivery point other than Malin receiving service under this rate
schedule (hereinafter referred to as the "Non-Deficiency Amount") for
more than twenty-five (25) days in any given Contract Year, then for
each day during that Contract Year in excess of twenty-five (25) days
that GTN so fails to deliver the Non-Deficiency Amount (a "Credit Day")
Shipper, as its sole remedy, shall be entitled to a Reservation Charge
Credit calculated in the manner hereinafter set forth.
For the purpose of this Paragraph 3.12, Confirmed Daily Nomination
shall mean for any day, the lesser of (1) Shipper's Maximum Daily
Quantity or (2) the quantity of gas that the connecting downstream
pipeline(s), local distribution company pipeline(s), or end-user(s)
is/are capable of accepting for Shipper's account at Shipper's point(s)
of primary delivery on GTN or (3) the quantity of gas that the
connecting pipeline upstream of GTN is capable of delivering to GTN for
Shipper's account to GTN at Shipper's primary point of receipt(s) on
GTN less Shipper's requirement to provide compressor fuel and line
losses under the Statement of Effective Rates and Charges of GTN's FERC
Gas Tariff, Third Revised Volume No. 1-A or (4) Shipper's nomination to
GTN.
The Reservation Charge Credit for each Credit Day for a particular
Shipper shall be computed as follows:
Reservation Charge A B - C
Credit for Each ----- x ------
Credit Day = (30.4 ) ( B )
where A = Shipper's Monthly Reservation Charge
B = Shipper's confirmed daily nomination for the
Credit Day
C = Actual quantity of gas delivered by GTN to a Shipper's
primary delivery point(s) (other than Malin) for
Shipper's account for the Credit Day
Except as provided for in Paragraph 3.10 of this rate schedule this
Reservation Charge Credit is Shipper's sole remedy for nondelivery of
gas by GTN.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 40
Third Revised Volume No. 1-A
Rate Schedule FTS-1
Firm Transportation Service
(Continued)
3. RATES (Continued)
3.13 NEGOTIATED RATES
Notwithstanding any provision of GTN's Tariff to the contrary,
GTN and Shipper may mutually agree in writing to a Negotiated
Rate (including a Negotiated Rate Formula) with respect to the
rates, rate components, charges, or credits that are otherwise
prescribed, required, established, or imposed by this Rate
Schedule or by any other applicable provision of GTN's Tariff.
Such Negotiated Rate shall be set forth in Attachment B to the
Firm Transportation Service Agreement and GTN shall make any
filings with the Commission necessary to effectuate such
Negotiated Rate.
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 41
Third Revised Volume No. 1-A
RATE SCHEDULE FTS-1
FIRM TRANSPORTATION SERVICE
(Continued)
4. FUEL AND LINE LOSS
For all Forward Hauls, Shipper shall furnish to GTN quantities of gas
for compressor station fuel, line loss and other utility purposes, plus
other unaccounted for gas used in the operation of GTN's combined
pipeline system between the International Boundary near Kingsgate,
British Columbia and the Oregon-California boundary for the
transportation quantities of gas delivered by GTN to Shipper, based
upon the effective fuel and line loss percentages in accordance with
Paragraph 37 of the General Terms and Conditions. No fuel charge shall
apply to transactions that do not involve a forward haul movement of
gas.
5. TRANSPORTATION GENERAL TERMS AND CONDITIONS
All of the Transportation General Terms and Conditions are applicable
to this rate schedule, unless otherwise stated in the executed Firm
Transportation Service Agreement between GTN and Shipper. Any future
modifications, additions or deletions to said Transportation General
Terms and Conditions, unless otherwise provided, are applicable to firm
transportation service rendered under this rate schedule, and by this
reference, are made a part hereof.
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 41
Third Revised Volume No. 1-A
Reserved For Future Use
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 100
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
TABLE OF CONTENTS
Paragraph No. Provision Sheet No.
1 Definitions 101
2 Gas Research Institute Charge Adjustment Provision 108
3 Quality of Gas 110
4 Measuring Equipment 112
5 Measurements 114
6 Inspection of Equipment and Records 116
7 Billing 117
8 Payment 118
9 Notice of Changes in Operating Conditions 119
10 Force Majeure 120
11 Warranty of Eligibility for Transportation 121
12 Possession of Gas and Responsibility 121
13 Indemnification 121
14 Arbitration 122
15 Governmental Regulations 122
16 Miscellaneous Provision 123
17 Transportation Service Agreement 123
18 Operating Provisions 125
19 Priority of Service, Scheduling and Nominations 142
20 Curtailment 159
21 Balancing 160
22 Annual Charge Adjustment (ACA) Provision 170
23 Shared Operating Personnel and Facilities 170
24 Complaint Procedures 171
25 Information Concerning Availability and Pricing
of Transportation Service and Capacity Available for
Transportation 172
26 Market Centers 173
27 Planned GTN Capacity Curtailments and Interruptions 174
28 Capacity Release 175
29 Flexible Receipt and Delivery Points 200
30 Gas Supply Restructuring Transition Costs 202
31 Negotiated Rates 208
32 Equality of Transportation Service 210
33 Right of First Refusal Upon Termination of
Firm Shipper's Service Agreement 211
34 Electronic Communications 216
35 Competitive Equalization Surcharge Revenue Credit 221
35A Crediting of Interruptible Transportation Revenues for
Extensions 222
36 Discount Policy 225
37 Adjustment Mechanism for Fuel, Line Loss and Other
Unaccounted For Gas Percentages 227
38 Reserved 229
39 Sales of Excess Gas 230
40 Gas Industry Standards 231
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 101
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
1. DEFINITIONS
1.1 Gas Day: In accordance with NAESB Standard 1.3.1, Version 1.5,
the term "Gas Day" shall be 9:00 a.m. to 9:00 a.m. Central
Clock Time (7:00 a.m. to 7:00 a.m. Pacific Clock Time).
1.1.1 Business Day: The term "Business Day" shall mean Monday
through Friday, excluding U.S.Federal Banking Holidays for
transactions in the United States and similar holidays for
transactions occurring in Canada and Mexico.
1.2 Month: The word "month" shall mean a period extending from the
beginning of the first day in a calendar month to the
beginning of the first day in the next succeeding calendar
month.
1.3 Maximum Daily Quantity: The term "Maximum Daily Quantity"
(MDQ)shall mean the maximum daily quantity in Dth of gas which
GTN agrees to deliver exclusive of an allowance for compressor
station fuel, line loss and other unaccounted for gas and
transport for the account of Shipper to Shipper's point(s) of
delivery on each day during each year during the term of
Shipper's Transportation Service Agreement with GTN.
1.4 Marketing Affiliate: The term "marketing affiliate" shall mean
Pacific Gas and Electric Company and CEG Energy Options Inc.
1.5 Gas: The word "gas" shall mean natural gas.
1.6 Cubic Foot of Gas: The term "cubic foot of gas" is defined in
accordance with NAESB Standard 2.3.9, Version 1.5, as that
quantity of gas which measures one (1) cubic foot at standard
conditions of 14.73 dry psia, 60 degrees F. For gas volumes
reported in cubic meters, the standard conditions are 101.325
kPa, 15 degrees C. Standard 2.3.9, Version 1.5 states in full
"Standardize the reporting basis for Btu as 14.73 psia and 60
degrees F (101.325 kPa and 15 degrees C, and dry). Standardize
the reporting basis for gigacalorie as 1.035646 Kg/cm2 and
15.6 degrees C and dry. Standardize the reporting basis for
gas volumes as cubic foot at standard conditions of 14.73
psia, 60 degrees, F and dry. For gas volumes reported in cubic
meters, the standard conditions are 101.325 kPa, 15 degrees C,
and dry."
1.7 Mcf: The term "Mcf" shall mean one thousand (1,000) cubic feet
of gas and shall be measured as set forth in Paragraph 5
hereof. The term "MMcf" shall mean one million (1,000,000)
cubic feet of gas.
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 102
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
1. DEFINITIONS (Continued)
1.8 Dekatherm: The term "Dekatherm" (or "Dth") is the quantity of
heat energy equivalent to one million (1,000,000 British
Thermal Units (MMBtu). Dth is the standard quantity for
Nominations, confirmations and Scheduled Quantities in the
United States. For purposes of this tariff and associated
Service Agreements, the terms MMBtu and Dth are synonymous.
1.9 Btu: The term "Btu" shall mean British Thermal Unit. The term
"MMBtu" shall mean one million (1,000,000) British Thermal
Units. The reporting basis for Btu shall be standardized as
14.73 dry psia and 60 degrees (60o) Fahrenheit (101.325 kPa
and 15.6 degrees C).
1.10 Gross Heating Value. The term "gross heating value" shall mean
the number of Btus in a cubic foot of gas at a temperature of
sixty degrees (600) Fahrenheit, saturated with water vapor,
and at an absolute pressure equivalent to thirty (30) inches
of mercury at thirty-two degrees (320) Fahrenheit.
1.11 Psig. The term "psig" shall means pounds per square inch
gauge.
1.12 Releasing Shipper: A firm transportation Shipper which intends
to post its service to be released to a Replacement Shipper,
has posted the service for release, or has released its
service.
1.13 Replacement Shipper: A Shipper which has contracted to utilize
a Releasing Shipper's service for a specified period of time.
1.14 Posting Period: The period of time during which a Releasing
Shipper may post, or have posted by the pipeline, all or a
part of its service for release to a Replacement Shipper.
1.15 Release Term: The period of time during which a Releasing
Shipper intends to release, or has released all or a portion
of its contracted quantity of service to a Replacement
Shipper.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 103
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
1. DEFINITIONS (Continued)
1.16 Bid Period: The period of time during which a Replacement
Shipper may bid to contract for a parcel which has been posted
for release by a Releasing Shipper.
1.17 Parcel: The term utilized to describe an amount of capacity,
expressed in Dth/d, from a specific receipt point to a
specific delivery point for a specific period of time which is
released and bid on pursuant to the capacity release
provisions contained in Paragraph 28 of these Transportation
General Terms and Conditions.
1.18 Primary Release: The term used to describe the release of
capacity by a Releasing Shipper receiving service under a Part
284 firm transportation rate schedule.
1.19 Secondary Release: The term used to describe the release of
capacity by a Replacement Shipper receiving service under a
Part 284 firm transportation rate schedule.
1.20 Bid Reconciliation Period: The period of time subsequent to
the Bid Period during which bids are evaluated by GTN.
1.21 Match Period: The period of time subsequent to the Bid
Reconciliation Period and before the notification deadline for
awarding capacity for Prearranged Deal C during which the
Prearranged Shipper may match any higher bids for the Parcel.
1.22 Mainline Facilities: The term "Mainline Facilities" shall mean
the 36-inch and 42-inch mains and appurtenant facilities
extending from the interconnection with the pipeline
facilities of Alberta Natural Gas Company and Foothills Pipe
Lines (South B.C.) Ltd., near Kingsgate, British Columbia to
the interconnection with the pipeline facilities of Pacific
Gas and Electric Company near Malin, Oregon.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 104
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
1. DEFINITIONS (Continued)
1.23 Extension Facilities: The term "Extension Facilities" shall
mean the 12-inch mains and appurtenant facilities extending
from GTN's mainline facilities at Milepost 304.25 and the
16-inch and 12-inch mains and appurtenant facilities extending
from GTN's Mainline Facilities at Milepost 599.20 that were
authorized in Docket No. CP93-618-000. The term "Extension
Facility" shall mean one of the Extension Facilities.
1.24 Subject Shipper: The term "Subject Shipper" shall mean the
Shippers identified in Appendix G of the Stipulation and
Agreement in Docket No. RP94-149-000, et al., and Shippers
that have obtained service rights from such Shippers.
1.25 Nominations: A "Nomination" shall be the provision of
information to GTN necessary to effectuate a transportation
transaction. Specific Nomination procedures are set forth in
Section 19.4 of the General Terms and Conditions of
Transporter's FERC Gas Tariff.
1.26 Intraday Nomination: An "Intraday Nomination" is a Nomination
submitted after the Nomination deadline whose effective time
is no earlier than the beginning of the Gas Day and runs
through the end of the Gas Day.
1.27 Gas Industry Standards Board Standards: The term "Gas Industry
Standards Board Standards" or "GISB Standards" shall mean the
standardized business practices and electronic communication
practices promulgated by the Gas Industry Standards Board from
time to time and incorporated in the Code of Federal
Regulations by the Federal Energy Regulatory Commission.
1.28 CES Capacity: The term "CES Capacity" shall mean the
additional firm capacity on GTN's Mainline Facilities between
the northernmost point near Kingsgate, British Columbia, and
points downstream thereof that was made available for
subscription on a firm basis as a result of the expansion of
GTN's system authorized in Docket No. CP98-167.
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 105
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
1. DEFINITIONS (Continued)
1.29 Forward Haul: The term "Forward Haul" shall refer to
transportation service on GTN's system in which the nominated
direction of flow from receipt point to delivery point is in
the same direction as physical gas flow on the GTN system.
1.30 Backhaul: The term "Backhaul" shall refer to transportation
service on GTN's system in the opposite direction of a Forward
Haul as defined in Section 1.29 above.
1.31 Primary Path: The term "Primary Path" shall mean the
transportation path established by the receipt and delivery
points as set forth in Shipper's executed Service Agreement. A
shipper's Primary Path may be either a Forward Haul or a
Backhaul as defined in Sections 1.29 and 1.30 above.
1.32 Reverse Path: The term "Reverse Path" shall mean the
transportation path that is in the opposite direction of that
Shipper's Primary Path as defined in Section 1.31 above. A
shipper's Reverse Path may be either a Forward Haul or a
Backhaul as defined in Sections 1.29 and 1.30 above. Reverse
Path transactions are subject to the operating conditions of
GTN's pipeline and will not be made available to Shipper if
GTN determines, in its sole discretion, that such
transportation is operationally infeasible or otherwise not
available.
1.33 Negotiated Rate. The term "Negotiated Rate" shall mean a rate
(including a Negotiated Rate Formula) that GTN and a Shipper
have agreed will be charged for service under Rate Schedules
FTS-1, LFS-1, ITS-1, AIS-1 or PS-1 where, for all or a portion
of the contract term, one or more of the individual components
of such rate may exceed the maximum rate, or be less than the
minimum rate, for such component set forth in GTN's tariff for
the given service. Any Agreement entered into after the
effective date of this subsection which provides for a rate
under Rate Schedules FTS-1, LFS-1, ITS-1, AIS-1 or PS-1 other
than the applicable maximum rate shall contain a provision
setting out the mutual agreement of the parties as to whether
the pricing terms represent a discounted rate or a negotiated
rate.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 106
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
1. DEFINITIONS (Continued)
1.34 Negotiated Rate Formula. The term "Negotiated Rate Formula"
shall mean a rate formula that GTN and a Shipper have agreed
will apply to service under a specific contract under Rate
Schedules FTS-1, LFS-1, ITS-1, AIS-1 or PS-1 which results in
a rate where, for all or a portion of the contract term, one
or more of the individual components of such rate may exceed
the maximum rate, or may be less than the minimum rate, for
such component set forth in GTN's Tariff for the given
service.
1.35 Recourse Rate. The term "Recourse Rate shall mean the
applicable maximum rate that would apply to a service but for
the rate flexibility allowed under Section 31 of this Gas
Tariff.
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Sheet No. 107
Third Revised Volume No. 1-A
Reserved For Future Use
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 108
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
2. GAS RESEARCH INSTITUTE CHARGE ADJUSTMENT PROVISION
2.1 Purpose: GTN has joined with other gas enterprises in the
formation of, and participation in, the activities and
financing of the Gas Research Institute (GRI), an Illinois Not
For Profit corporation. GRI has been organized for the purpose
of sponsoring Research, Development and Demonstration (RD&D)
programs in the field of natural and manufactured gas for the
purpose of assisting all segments of the gas industry in
providing adequate, reliable, safe, economic and
environmentally acceptable gas service for the benefit of gas
consumers and the general public.
For the purpose of funding GRI's approved expenditures, this
Paragraph 2 establishes a GRI Adjustment Charge to be
applicable to GTN's Rate Schedules ITS-1, AIS-1, PS-1 and
FTS-1 in this FERC Gas Tariff, Third Revised Volume No. 1-A;
provided, however, such charge shall not be applicable in the
event gas is delivered to a downstream interstate pipeline
that is a member of GRI.
2.2 Basis for the GRI Adjustment Charges: The rate schedule
specified in Paragraph 2.1 hereof shall include an increment
for a GRI Adjustment Charge for RD&D. Such GRI Adjustment
Charge shall be that increment, adjusted to GTN's pressure
base and heating value if required, which has been approved by
Federal Energy Regulatory Commission Orders approving GRI's
RD&D expenditures. The GRI Adjustment Charge shall be
reflected in the current Statement of Effective Rates and
Charges for Transportation of Natural Gas in this FERC Gas
Tariff, Third Revised Volume No. 1-A.
2.3 Filing Procedure: The notice period and proposed effective
date of filings pursuant to this paragraph shall be as
permitted under Section 4 of the Natural Gas Act; provided,
however, that any such filing shall not become effective
unless it becomes effective without suspension or refund
obligation.
2.4 Remittance to GRI: GTN shall remit to GRI, not later than
fifteen (15) days after the receipt thereof, all monies
received by virtue of the GRI Adjustment Charge or the Check
the Box procedure, less any amounts properly payable to a
Federal, State or Local authority relating to the monies
received hereunder.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 109
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
2. GAS RESEARCH INSTITUTE CHARGE ADJUSTMENT PROVISION (Continued)
2.5 A high load factor Shipper is a Shipper with a load factor
greater than fifty (50) percent. A low load factor Shipper is
a Shipper with a load factor equal to or less than fifty (50)
percent. A Shipper's load factor for each service agreement
shall be determined annually using the most recent twelve (12)
months of actual throughput available (including throughput
using capacity released pursuant to Paragraph 28 of the
Transportation General Terms and Conditions). The Shipper's
load factor shall remain in effect during the calendar year.
In the event twelve (12) months of actual data does not exist,
the Shipper's load factor shall be determined monthly based on
the latest recorded throughput data. The appropriate GRI
demand surcharge is applied monthly until such time as twelve
(12) months of actual data is accumulated. At such time the
Shipper's load factor shall remain in effect during the
calendar year.
2.6 For the purpose of funding GRI's approved expenditures, and
subject to the further terms and conditions set forth in the
Stipulation and Agreement Concerning the Post-1993 GRI Funding
Mechanism and the orders approving such Stipulation and
Agreement found at Gas Research Institute, 62 FERC P. 61,316
(1993) this Paragraph 2 establishes a GRI Funding Unit which
shall be collected for quantities of gas transported under
GTN's rate schedules provided, however, such charge shall not
be applicable to discounted transactions except where the
discounted rate is less than the GRI Funding Unit. In this
instance GTN shall remit that portion of the GRI Funding Unit
actually collected. For purposes of discounted transactions,
any GRI Funding Unit shall be considered to be the first
component of rates discounted. The GRI Funding Unit may be
discounted to zero and shall not be applied to the same
quantity of gas more than once.
2.7 Voluntary GRI Contributions. GTN has agreed to be a collection
agent for shippers that voluntarily choose to support GRI
through a "check the box" procedure on GTN's invoices. Amounts
collected will be remitted to GRI in accordance with the
requirements of Section 2.4 of this FERC Gas Tariff. The
amounts collected pursuant to this procedure will not be part
of GTN's rates.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 110
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
3. QUALITY OF GAS
3.1 Quality Standards: The gas which Shipper delivers hereunder to
GTN for transport (and the gas which GTN transports hereunder
for Shipper) shall be merchantable gas at all times complying
with the following quality requirements:
(a) Heating Value: The gas shall have a gross heating
value of not less than nine hundred ninety-five (995)
Btus per standard cubic foot on a dry basis, but with
the consent of Shipper, GTN may deliver gas at a
lower gross heating value.
(b) Freedom from Objectionable Matter: The gas:
(1) Shall be commercially free from sand, dust,
gums, crude oil, impurities and other
objectionable substances which may be
injurious to pipelines or which may
interfere with its transmission through
pipelines or its commercial utilization.
(2) Shall not have a hydrocarbon dew-point in
excess of fifteen degrees (15m) Fahrenheit
at pressures up to eight hundred (800) psig.
(3) Shall not contain more than one-quarter
(1/4) grain of hydrogen sulfide per one
hundred (100) standard cubic feet.
(4) Shall not contain more than ten(10) grains
of total sulphur per one hundred (100)
standard cubic feet.
(5) Shall not contain more than two percent (2%)
by volume of carbon dioxide.
(6) Shall not contain more than four (4) pounds
of water vapor per one million (1,000,000)
standard cubic feet.
(7) Shall not exceed one hundred ten degrees
(110m) Fahrenheit in temperature at the
point of measurement.
(8) Shall be as free of oxygen as it can be kept
through the exercise of all reasonable
precautions, and shall not in any event
contain more than four-tenths of one percent
(0.4%) by volume of oxygen.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 111
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
3. QUALITY OF GAS (Continued)
3.2 Quality Tests:
(a) The quality specifications of the gas received by GTN
hereunder shall be determined by tests which GTN
shall cause to be made at the International Boundary
or such other locations on GTN's system if required
accordance with this Paragraph 3.2.
(b) The gross heating value of gas delivered hereunder
shall be determined from read-outs of continuously
operating measuring instruments. The method shall
consist of one or more of the following:
(1) calorimeter
(2) gas chromatograph
(3) any other method mutually agreed upon by the
parties.
Measurement of gross heating value with the
calorimeters shall comply with the standards set
forth in the American Society for Testing and
Materials' ASTM D 1826. Analysis of gas with gas
chromatograph shall comply with the standards set
forth in ASTM D 1945. Calculation of the gross
heating value from compositional analysis by gas
chromatography shall comply with the standards set
forth in ASTM D 3588.
GTN or its agent shall calibrate and maintain the
gross heating value measurement device at intervals
as agreed upon by GTN and Shipper. Shipper shall have
access to GTN's devices and shall be allowed to
inspect the sevices and all charts or other records
of measurement at any reasonable time.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 112
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
3. QUALITY OF GAS (Continued)
3.2 Quality Tests (Continued)
(c) Tests shall be made to determine the total sulphur,
hydrogen sulfide, carbon dioxide and oxygen content
of the gas, by approved standard methods in general
use in the gas industry, and to determine the
hydrocarbon dew-point and water vapor content of such
gas by methods satisfactory to the parties. Tests
shall be made frequently enough to ensure that the
gas is conforming continuously to the quality
requirements. Shipper shall have the right to require
GTN to have remedied any deficiency in quality of the
gas and, in the event such deficiency is not
remedied, the right, in addition to all other
remedies available to it by law, to refuse to accept
such deficient gas until such deficiency is remedied.
4. MEASURING EQUIPMENT
4.1 Installation: Unless GTN and Shippers agree otherwise, all gas
volume measuring equipment, devices and materials at the
point(s) of receipt and/or delivery shall be furnished and
installed by GTN at Shipper's expense including the tax-on-tax
effect. All such equipment, devices and materials shall be
owned, maintained and operated by GTN. Shipper may install and
operate check measuring equipment provided it does not
interfere with the use of GTN's equipment.
4.2 Testing Meter Equipment: The accuracy of either GTN's or
Shippers measuring equipment shall be verified by test, using
means and methods acceptable to the other party, at intervals
mutually agreed upon, and at other times upon request. Notice
of the time and nature of each test shall be given by the
entity conducting the test to the other entity sufficiently in
advance to permit convenient arrangement for the presence of
the representative of the other entity. If, after notice, the
other entity 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 measuring equipment shall be made at the
expense of the entity conducting the same, except that the
other entity shall bear the expense of tests made at its
request if the inaccuracy is found to be two percent (2%) or
less.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 113
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
4. MEASURING EQUIPMENT (Continued)
4.3 Correction and Adjustment: If at any time any of the measuring
equipment is registering inaccurately by an amount exceeding
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 period definitely
known or agreed upon, or if not so known or agreed upon, the
lesser of one-half (1/2) of the elapsed time since the last
test or six months from the production month with a
three-month rebuttal period, provided, however, that this
limitation shall not apply in the case of a deliberate
omission or misrepresentation or mutual mistake of fact. The
parties' other statutory or contractual rights shall not
otherwise be diminished by this limitation. 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.
No correction shall be made in the recorded volumes
of gas delivered hereunder for measuring equipment
inaccuracies of two percent (2%) or less, and in no
event shall inaccuracies less than 25 Mcf be
considered for adjustment.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 114
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
5. MEASUREMENTS
5.1 Metering: The gas shall be metered by one or more orifice,
turbine, ultrasonic, displacement or other-type meters, at the
discretion of GTN. All meters shall be installed and
maintained, and volumes shall be measured,in accordance with
applicable A.G.A. standards for the meter in question.
5.2 Specific Gravity: The specific gravity of the gas delivered
hereunder shall be determined from the read-outs of
continuously operating measuring instruments. The method shall
consist of one of the following:
(a) gravitometer
(b) gas chromatography
(c) other instruments acceptable to both parties
Analysis of chromatograph shall comply with the standards set
forth in ASTM D 1945. Calculation of the specific gravity from
compositional analysis by gas chromatography shall comply with
the standards set forth in ASTM D 3588. Measurement of the
specific gravity with a gravitometer shall comply with the
standards set forth in ASTM D 1070.
5.3 Flowing Temperature: Flowing gas temperature shall be
continuously measured and used in flow calculations.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 115
Third Revised Volume No. 1-A
Reserved For Future Use
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 116
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
6. INSPECTION OF EQUIPMENT AND RECORDS
6.1 Inspection of Equipment and Data: GTN and Shipper 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 entity installing
or furnishing same. Unless GTN and Shipper otherwise agree,
each shall preserve all original test data, charts and other
similar records in such party's possession, for a period of at
least six (6) years.
6.2 Information for Billing: When information necessary for
billing by GTN is in the control of Shipper, Shipper shall
furnish such information, estimated if actual is not
available, to GTN on or before the third (3rd) working day of
the month following the month transportation service was
rendered. If shipper furnishes estimated information, the
actual information shall be furnished to GTN on or before the
fifth (5th) working day of the month following the month
transportation service was rendered.
6.3 Verification of Computations: GTN and Shipper shall have the
right to examine at reasonable times 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 Transportation General Terms and Conditions and to
the rate schedules to which they apply, within twelve (12)
months of any such statement, charge or computation. The time
limitation for disputing allocations shall be six (6) months
from the date of initial month-end allocation with a
three-month rebuttal period, provided, however, that this
limitation shall not apply in the case of a deliberate
omission or misrepresentation or mutual mistake of fact, and
shall not diminish the parties' other statutory or contractual
rights. In accordance with NAESB Standard 2.3.11, Version 1.5,
a meter adjustment or correction becomes a prior period
adjustment after the fifth (5th) business day following the
Business Month. Any measurement of prior period adjustments
are taken back to the production month. These provisions are
in accordance with NAESB Standard 2.3.7, Version 1.5, which
establishes a cutoff for the closing of measurement of 5
business days after business month.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 117
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
6. INSPECTION OF EQUIPMENT AND RECORDS (Continued)
6.3 Verification of Computations: (Continued)
In accordance with NAESB Standard 2.3.14, Version 1.5, measurement
data corrections should be processed within 6 months of the production
month with a 3-month rebuttal period. However, it is recognized that
this latter standard shall not apply in the case of deliberate
omission or misrepresentation or mutual mistake of fact. Parties'
other statutory or contractual rights shall not be diminished by this
standard.
7. BILLING
7.1 Billing under all Rate Schedules: On or before the ninth (9th)
business day of each month, GTN shall render a bill to each Shipper
under all applicable Rate Schedules for the service(s) rendered during
the preceding month, which is in accordance with NAESB Standard
3.3.14, Version 1.5, which provides that 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.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 118
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
8. PAYMENT
8.1 Payment under all Rate Schedules: On or before the tenth day following
the date GTN's bill is rendered in accordance with Paragraph 7.1 of
these General Terms and Conditions, each Shipper under all applicable
Rate Schedules shall pay to or upon the order of GTN in lawful money
of the United States at GTN's office in Portland, Oregon, the amount
of the bill rendered by GTN. In accordance with NAESB Standard 3.3.17,
Version 1.5, party making payment should submit supporting
documentation; party receiving payment should apply payment per
supporting documentation provided by the paying party; and if payment
differs from invoiced amount, remittance detail should be provided
with the payment except when payment is made by electronic funds
transfer (EFT), in which case, the remittance detail is due within two
Business Days of the payment due date. Shipper shall identify invoice
numbers on all payments. In the event a Shipper disputes any portion
of the invoice, Shipper shall pay that portion of the invoice not in
dispute and provide supporting documentation identifying the basis for
the dispute.
8.2 Interest on Unpaid Amounts: Should Shipper fail to pay the amount of
any bill rendered by GTN when such amount is due, interest thereon
shall accrue from the due date until paid at the rate of interest
effective from time to time under 18 CFR Section 154.67.
8.3 Remedies for Failure to Pay: If a Shipper's failure to pay the
undisputed portion of an invoice continues for thirty (30) days after
payment is due, GTN, in addition to any other remedy it may have, may
suspend further delivery of gas until such amount is paid.
If Shipper's failure to pay extends beyond thirty (30) days after
payment is due, in addition to suspending service under Shipper's
Transporation Service Agreement(s), Transporter shall have the right
to terminate service. To the extent that Transporter seeks to
terminate a Shipper's Transportation Service Agreement, Transporter
will provide written notice to Shipper, the Commission, and any
Replacement Shipper(s) that has obtained temporary release capacity
from Shipper, that if Shipper fails to make payment within fifteen
(15) days, Transporter will terminate Shipper's Transportation Service
Agreement(s) and may exercise any other remedy available to
Transporter hereunder, at law or in equity.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 119
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
8. PAYMENT (Continued)
8.3 Remedies for Failure to Pay: (Continued)
However, if Shipper, in good faith, disputes the amount of any bill or
part thereof by providing written notice of its dispute including
documentation identifying the basis of the dispute and 1) promptly
pays to Transporter the undisputed amount, and 2) furnishes to
Transporter a good and sufficient letter of credit in an amount and
with surety satisfactory to Transporter, or provides other assurance
acceptable to Transporter guaranteeing payment to Transporter of the
amount ultimately found due upon the bill after a final determination
that may be reached either by agreement or by judgement of the courts,
as may be the case, then Transporter shall not be entitled to
automatically suspend or terminate service under the Transportation
Service Agreement(s) unless and until a default is made in the
conditions of the letter of credit or other assurance; provided
further that should Shipper prevail on the dispute, Transporter shall
reimburse Shipper up to the reasonable and customary costs of the
letter of credit or other assurance provided.
8.4 Late Billing: If presentation of a bill by GTN is delayed after the
date specified in Paragraph 7.1 hereof, then the time for payment
shall be extended correspondingly unless Shipper is responsible for
such delay.
8.5 Adjustment of Billing Error: In accordance with NAESB Standard 3.3.15,
Version 1.5, prior period adjustment time limits should be 6 months
from the date of the initial transportation invoice and 7 months from
date of initial sales invoice with a 3-month rebuttal period,
excluding government-required rate changes. This standard shall not
apply in the case of deliberate omission or misrepresentation or
mutual mistake of fact. Parties' other statutory or contractual rights
shall not otherwise be diminished by this standard.
9. NOTICE OF CHANGES IN OPERATING CONDITIONS
GTN and Shipper shall each ensure that the other is notified 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, so that they may be accommodated when they
occur.
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 120
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
10. FORCE MAJEURE
10.1 If either party shall fail to perform any obligation imposed upon it
by these Transportation General Terms and Conditions or by an executed
Transportation Service Agreement, and such failure shall be caused, or
materially contributed to, by force majeure which means any acts of
God, strikes, lockouts, or other industrial disturbances, acts of
public enemies, sabotage, wars, blockades, insurrections, riots,
epidemics, landslides, lightning, earthquakes, floods, storms, fires,
washouts, extreme cold or freezing weather, arrests and restraints of
rulers and people, civil disturbances, explosions, breakage of or
accident to machinery or lines of pipe, hydrate obstructions of lines
of pipe, inability to obtain pipe, materials or equipment,
legislative, administrative or judicial action which has been resisted
in good faith by all reasonable legal means, any acts, omissions or
causes whether of the kind herein enumerated or otherwise not
reasonably within the control of the party invoking this paragraph and
which by the exercise of due diligence such party could not have
prevented, the necessity for making repairs to, replacing, or
reconditioning machinery, equipment, or pipelines not resulting from
the fault or negligence of the party invoking this paragraph, 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.
10.2 No such cause as described in Paragraph 10.1 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.
10.3 No cause whatsoever, including without limitation the failure of GTN
to perform including the causes specified in Paragraph 10.1, shall
relieve Shipper from its obligations to make payments due, including
the payments of reservation charges for the duration of such cause
except as provided for in Paragraphs 3.10 and 3.11 of Rate Schedule
FTS-1.
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 121
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
11. WARRANTY OF ELIGIBILITY FOR TRANSPORTATION
Any Shipper transporting gas on the GTN system under this FERC Gas Tariff,
Third Revised Volume No. 1-A warrants for itself, its successors and
assigns, that it will have at the time of delivery of the gas to GTN
hereunder good title to such gas and that all gas delivered to GTN for
transportation hereunder is eligible for the requested transportation in
interstate commerce under applicable rules, regulations or orders of the
FERC, or other agency having jurisdiction. Shipper will indemnify GTN and
save it harmless from all suits, actions, damages, costs, losses, expenses
(including reasonable attorney fees) costs connected with regulatory
proceedings, arising from breach of this warranty.
12. POSSESSION OF GAS AND RESPONSIBILITY
GTN shall be deemed to be in control and possession of, and responsible
for, all gas delivered from the time that such gas is received by it at the
point of receipt to the time that it is delivered at the point of delivery.
13. INDEMNIFICATION
Shipper agrees to indemnify and hold harmless GTN, its officers, agents,
employees and contractors against any liability, loss or damage whatsoever
occurring in connection with or relating in any way to the executed
Transportation Service Agreement, including costs and attorneys' fees,
whether or not such liability, loss or damage results from any demand,
claim, action, cause of action, or suit brought by Shipper or by any
person, association or entity, public or private, that is not a party to
the executed Transportation Service Agreement, where such liability, loss
or damage is suffered by GTN, its officers, agents, employees or
contractors as a direct or indirect result of any breach of the executed
Transportation Service Agreement or sole or concurrent negligence or gross
negligence or other tortious act(s) or comission(s) by Shipper, its
officers, agents, employees or contractors.
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 122
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
14. ARBITRATION
Any arbitration provided for or agreed to by Shipper and GTN shall be
conducted in accordance with the following procedures and principles: Upon
the written demand of either GTN or Shipper and within ten (10) days from
the date of such demand, each entity shall appoint an arbitrator and the
two arbitrators so appointed shall promptly thereafter appoint a third. If
either GTN or Shipper shall fail to appoint an arbitrator within ten (10)
days from the date of such demand, then the arbitrator shall be appointed
by a Superior Court of the State of California in accordance with the
California Code of Civil Procedure. If the two arbitrators shall fail
within ten (10) days from their appointment to agree upon and appoint the
third arbitrator, then upon the application of either GTN or Shipper such
third arbitrator shall be appointed by a Superior Court of the State of
California in accordance with the California Code of Civil Procedure.
The arbitrators shall proceed immediately to hear and determine the matter
in controversy. The award of the arbitrators, or a majority of them, shall
be made within forty-five (45) days after the appointment of the third
arbitrator, subject to any reasonable delay due to unforeseen
circumstances. The award of the arbitrators shall be drawn up in writing
and signed by the arbitrators, or a majority of them, and shall be final
and binding on both GTN and Shipper, and GTN and Shipper shall abide by the
award and perform the terms and conditions thereof. Unless otherwise
determined by the arbitrators, the fees and expenses of the arbitrator
named for each party shall be paid by that party and the fees and expenses
of the third arbitrator shall be paid in equal proportion by both GTN and
Shipper.
15. GOVERNMENTAL REGULATIONS
These Transportation General Terms and Conditions, the rate schedules to
which they apply, and any executed Transportation Service Agreement are
subject to valid laws, orders, rules and regulations of duly constituted
authorities having jurisdiction.
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 123
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
16. MISCELLANEOUS PROVISION
16.1 Waiver of Default: No waiver by either GTN or Shipper of any default
by the other in the performance of any provisions of an executed
Transportation Service Agreement shall operate as a waiver of any
continuing or future default, whether of a like or different
character.
16.2 Assignability: An executed Transportation Service Agreement shall bind
and inure to the respective successors and assignees of GTN and
Shipper thereto, but no assignment shall release either party thereto
from such party's obligations without the written consent of the other
party, which consent shall not be unreasonably withheld; provided,
however, nothing contained herein shall give Shipper the right to
reassign or broker its right to ship the quantities of gas specified
in the Transportation Service Agreement on GTN's system to others.
Further, nothing contained herein shall prevent either party from
pledging, mortgaging or assigning its rights as security for its
indebtedness and either party may assign to the pledgee or mortgagee
(or to a trustee for the holder of such indebtedness) any money due or
to become due under any service agreement.
16.3 Effect of Headings: The headings used throughout these Transportation
General Terms and Conditions, the rate schedules to which they apply,
and the executed Transportation Service Agreements are inserted for
reference purposes only and are not to be considered or taken into
account in construing the terms and provisions of any paragraph nor to
be deemed in any way to qualify, modify or explain the effects of any
such terms or provisions.
17. TRANSPORTATION SERVICE AGREEMENT
17.1 Form: Shipper shall enter into a contract with GTN utilizing GTN's
appropriate standard form of Transportation Service Agreement.
17.2 Term: The term of the Transportation Service Agreement shall be agreed
upon between Shipper and GTN at the time of the execution thereof.
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Sheet No. 124
Third Revised Volume No. 1-A
Reserved For Future Use
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 125
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
18 OPERATING PROVISIONS
18.0 Requests For Service:
(A) A prospective shipper desiring service on GTN's system must fully
complete the Service Request Form set out in GTN's EBB. Alternatively,
a prospective shipper may request a hard-copy of the Service Request
Form by contacting GTN's Service and Contract Coordinator at the
following location:
Gas Transmission Northwest Corporation
Services and Contract Coordinator
1400 SW Fifth Avenue, Suite 900
Portland, OR 97201
Phone: 503/833-4300, Option 2
(B) If Shipper requests service under Section 311(a), Shipper must provide
a certification that the service qualifies under 18 C.F.R. Section
284.102. To enable GTN to verify that the requested transportation
service will qualify under 18 C.F.R. Section 284.102, the
certification must provide facts showing that:
(a) the "On Behalf Of" party will have physical custody of and
transport the natural gas at some point; or
(b) the "On Behalf Of" party will hold title to the natural gas
at some point, which may occur prior to, during, or after
the time that the gas is transported by GTN, for a purpose
related to the "On Behalf Of" party's status and function as
an intrastate pipeline or its status and function as a local
distribution company; or
(c) the gas will be delivered to a customer that is either
located in the "On Behalf Of" party's service area, if the
"On Behalf Of" party is a local distribution company, or is
physically able to receive direct deliveries of gas from the
"On Behalf Of" party, if the "On Behalf Of" party is an
interstate pipeline, and that "On Behalf Of" party has
certified that it is on its behalf that GTN will be
providing the requested transportation service.
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 126
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
18 OPERATING PROVISIONS (Continued)
18.0 Requests For Service (Continued)
(C) Submission of this Service Request Form will allow GTN to begin
processing Shipper's Request For Service, but does not guarantee
service will be available. GTN will not provide service until Shipper
has executed a service contract. Shipper also shall be required to
meet other provisions of this FERC Gas Tariff, including the credit
requirements set out in Section 18.3 of this Tariff. Standard form
service contracts for each service offered by GTN are set out in the
Form of Service Agreement portion of this Tariff.
Shipper shall not be entitled to receive transportation service under
this FERC Gas Tariff, Third Revised Volume No. 1-A if Shipper is not
current in its payments to GTN for any charge, rate or fee authorized
by the Commission for transportation service; provided, however, if
the amount not current pertains to a bona fide dispute, including but
not limited to force majeure claims relating to this FERC Gas Tariff,
Shipper shall be entitled to receive or continue to receive
transportation service if Shipper posts a bond satisfactory to GTN to
cover the payment due GTN.
18.1 Firm Service
The provisions of this Paragraph 18.1 shall be applicable to firm
transportation service under Rate Schedules FTS-1 and LFS-1 contained
in this Third Revised Volume No. 1-A. Firm transportation service
under this Third Revised Volume No. 1-A shall be provided when, and to
the extent that, GTN determines that firm capacity is available on
GTN's existing facilities. GTN shall not be required to provide firm
transportation service in the event firm capacity is unavailable or to
construct new facilities to provide firm service.
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 127
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
18. OPERATING PROVISIONS (Continued)
18.1 Firm Service (Continued)
For capacity that becomes available other than through the
circumstances identified in Paragraphs 28 and 33, requests for firm
capacity shall be accommodated in the following manner and subject to
the following conditions and limitations:
(a) In order to be eligible for firm capacity, a party requesting
service (requestor) must be deemed credit-worthy per Paragraph
18.3 and submit a valid request in accordance with the provisions
herein.
(b) Pre-Arranged Capacity: GTN may enter into a pre-arranged service
agreement with any party for available unsubscribed capacity or
capacity that will become available and is not subject to a right
of first refusal; provided that GTN will post the terms of the
pre-arranged transaction and other parties will have an
opportunity to bid on the capacity. One year prior to the
commencement date of a pre-arranged agreement, GTN will post a
notice on its website that the pre-arranged capacity will be
subject to the bidding process. GTN will commence open bidding no
later than 3 months prior to the in-service date of the
pre-arranged agreement. If another party submits a bid with a
higher incremental economic value, the pre-arranged Shipper will
have a one-time right to match the higher bid in order to retain
the capacity. If the pre-arranged Shipper elects not to match a
higher competing bid, the capacity will be awarded to the highest
creditworthy bidder in accordance with Paragraph 18.1(e). If
there is an open season ongoing for certain capacity, GTN will
not enter into a pre-arranged deal for that capacity during the
open season.
GTN will not enter into pre-arranged service agreements with
commencement dates more than three years, or thirty-six months,
into the future. GTN will separately identify on its Internet
website all capacity that is anticipated to become available
within the next thirty-six months. GTN will not enter into any
pre-arranged deals for capacity that has not previously been
posted on its Internet website.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 128
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
18. OPERATING PROVISIONS (Continued)
18.1 Firm Service (Continued)
(c) Available Capacity:
GTN will post available capacity on its Internet website. A
requestor that submits a valid request may submit a bid via the
website for the available capacity subsequent to GTN's posting of
such capacity on the website. The Bid Period will be a minimum of
1 business day for capacity available for up to 1 month; a
minimum of 3 business days for capacity available for greater
than one month but less than one year; and a minimum of 5
business days for capacity available for one year or more. All
bids not withdrawn prior to the close of the Bidding Period shall
be binding. At the end of the Bidding Period, GTN will evaluate
the bids and determine the bid(s) having the greatest economic
value as determined in Paragraph 18.1(e).
If GTN determines that no bids satisfy the open season criteria,
GTN will post the capacity on its website as available
unsubscribed capacity. GTN will award such capacity on a
first-come, first-served basis to shippers that offer the maximum
recourse rate or an acceptable discounted or negotiated rate.
In addition to posting all currently available capacity, GTN will
separately identify on its Internet website all capacity that is
anticipated to become available within the next thirty-six
months.
(d) After the close of the Bidding Period, GTN may tender a Service
Agreement for execution to the requestor(s) submitting the bid(s)
having the greatest economic value for the capacity available,
subject to the provisions of Paragraph 18.1(f).
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 129
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
18. OPERATING PROVISIONS (Continued)
18.1 Firm Service (Continued)
(e) Valuation of Bids
Unless otherwise specified in its open season posting, the bid(s)
with the greatest economic value will be the bid(s) with the
highest net present value ("NPV") based on the reservation charge
and any proposed usage charge revenues guaranteed by a minimum
volume commitment or otherwise that requestor(s) would pay at the
rates the requestor(s) has bid, over the term of service
specified in the request. If the economic values of separate bids
are equal, then service shall be offered to such requestors on a
pro-rata basis. The NPV is the discounted cash flow of the bid
according to the following formula, net of revenues lost or
affected by the requests for service:
(1 + i)(n) -1
Present Value per = P * R * -------------
i (1 + i)(n)
where: P = percent of the rate or charge that the Shipper is
willing to pay.
R = Rate or charge calculated as: The applicable maximum
authorized reservation charge(s) per Dth in effect at
the time of the bid for service.
i = FERC's annual interest rate divided by 12.
n = number of periods for which the bidder wishes
to contract.
The NPV formula will be affected by the term and rate requested.
In the event GTN intends to entertain bids for service under
index-based or other Negotiated Rate Formulae, the future value
of which cannot be determined at the time of the bidding, GTN
shall estimate the future revenues to be received under the
Negotiated Rate Formula using currently available data.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 130
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
18. OPERATING PROVISIONS (Continued)
18.1 Firm Service (Continued)
(e) Valuation of Bids (Continued)
The specific bid evaluation methodology to be used, including,
where appropriate, the data to be used for evaluation of
Negotiated Rate Formula bids, will be included as part of GTN's
open season posting under Paragraph 18.1(c) with sufficient
specificity to allow a prospective shipper to calculate the value
of its bid and duplicate GTN's results.
Irrespective of whether a bid(s) has the highest NPV of the bids
received, GTN may reject bids for service that (i) may
detrimentally impact the operational integrity of Transporter's
system; (ii) do not satisfy all the terms of the specified
posting; or (iii) contain terms and conditions other than those
set forth in GTN's FERC Gas Tariff.
If the NPV of any Negotiated Rate revenues would exceed the NPV
of the revenue stream produced by paying the Maximum Rate over
the same period of time, then the Shipper bidding the Negotiated
Rate shall be considered to be paying the Maximum Rate for
purposes of determining the bid with the greatest economic value.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 131
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
18. OPERATING PROVISIONS (Continued)
18.1 Firm Service (Continued)
(f) If GTN accepts the winning bid(s) and tenders a Service
Agreement, requestor(s) shall complete and return the Service
Agreement within thirty (30) days.
(g) Except as provided in Paragraph 28, GTN shall not be obligated to
tender or execute a Service Agreement for service at any rate
less than the Maximum Rate set forth in the Statement of
Effective Rates and Charges applicable to the service requested.
(h) A Shipper receiving service under FTS-1 shall not lose its
priority for purposes of Paragraph 19 by the renewal or extension
of term of that service; provided, however, any renewal or
extension must be pursuant to a rollover or evergreen provision
of the Service Agreement. Shipper's preexisting priority shall
not apply, however, to any increase in transportation quantity or
new primary point of delivery.
18.2 Interruptible Service
The provisions of this Paragraph 18.2 shall be applicable to
interruptible transportation service under Rate Schedule ITS-1
contained in this Third Revised Volume No. 1-A.
(a) Interruptible transportation service under this Third Revised
Volume No. 1-A shall be provided when, and to the extent that,
capacity is available in GTN's existing facilities, which
capacity is not subject to a prior claim under a pre-existing
agreement pursuant to Rate Schedule FTS-1 or under another class
of firm service.
(b) In the event where natural gas tendered by Shipper to GTN at the
receipt point(s) for transportation, or delivered by GTN to
Shipper (or for Shipper's account) at the delivery point(s), is
commingled with other natural gas at the time of measurement, the
determination of deliveries applicable to Shipper shall be made
in accordance with operating arrangements satisfactory to
Shipper, GTN and any third party transporting to or from GTN's
system.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 132
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
18. OPERATING PROVISIONS (Continued)
18.2 Interruptible Service (Continued)
(c) GTN shall process requests for interruptible transportation
service on a non-discriminatory basis. Available interruptible
capacity shall be allocated by GTN first to the Shipper(s) paying
the highest rate, followed by a pro-rata tie breaker, as provided
for in Paragraph 19 of these General Terms and Conditions.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 133
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
18. OPERATING PROVISIONS (Continued)
18.3 Credit-worthiness
(A) Credit-worthiness for Firm Transportation Service
(1) GTN shall not be required to perform or to continue
transportation service under this FERC Gas Tariff, Third
Revised Volume 1-A on behalf of any Shipper who is or has
become insolvent or who, after GTN's request, fails within a
reasonable period to establish or confirm credit-worthiness.
Shippers shall provide, initially and on a continuing basis,
financial statements, evidence of debt and/or credit
ratings, and other such information as is reasonably
requested by GTN to establish or confirm Shipper's
qualification for service. Credit limits will be established
based on the level of requested service and Shipper
credit-worthiness as established by the following:
(a) Credit-worthiness must be evidenced by at least a long
term bond (or other senior debt) rating of BBB or an
equivalent rating.
Such rating may be obtained in one of three ways:
(i) The rating will be determined by Standard and
Poors or another recognized U.S. or Canadian debt
rating service;
(ii) If Shipper's debt is not rated by a recognized
debt rating service, an equivalent rating as
determined by GTN, based on the financial rating
methodology, criteria and ratios for the industry
of the Shipper as published by the above rating
agencies from time to time. In general, such
equivalent rating will be based on the audited
financial statements for the Shipper's two most
recent fiscal years, all interim reports, and any
other relevant information;
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 134
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
18. OPERATING PROVISIONS (Continued)
18.3 (A) Credit-worthiness for Firm Transportation Service (Continued)
(iii) Shipper may, at its own expense, obtain a
private rating from a recognized debt rating
service, or request that an independent
accountant or financial advisor, mutually
acceptable to GTN and the Shipper, prepare
an equivalent evaluation based on the
financial rating methodology, criteria, and
ratios for the industry of the Shipper as
published by the above rating agencies from
or
(b) Approval by GTN's lenders; or
(c) If Shipper is requesting credit to bid on a parcel
that is for one year (365 days) or less of service
through GTN's Capacity Release Program contained
in Paragraph 28, and this option is selected by
the Releasing Shipper, Shipper may demonstrate
credit-worthiness by providing two years of
audited financial statements for itself, or for
its parent company if it is a subsidiary which is
consolidated with its parent company and does not
issue stand-alone financial statements,
demonstrating adequate financial strength to
justify the amount of credit to be extended. GTN
shall apply consistent evaluation practices to
determine credit-worthiness.
(2) If Shipper does not establish or maintain
credit-worthiness as described above, Shipper has the
option of receiving transportation service under this
FERC Gas Tariff by providing to GTN one of the following
alternatives:
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 135
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
18. OPERATING PROVISIONS (Continued)
18.3 (A) Credit-worthiness for Firm Transportation Service (Continued)
(a) A guarantee of Shipper's financial performance in
a form satisfactory to GTN and for the term of the
Gas Transportation Agreement from a corporate
affiliate of the Shipper or a third party either
of which meets the credit-worthiness standard
discussed above.
(b) Other security acceptable to GTN's lenders.
18.3 (B) Credit-worthiness for Interruptible Transportation Service
(1) GTN shall not be required to perform or to continue
interruptible transportation service under this FERC Gas
Tariff, Third Revised Volume No. 1-A on behalf of any
Shipper who is or has become insolvent or who, at GTN's
request, fails within a reasonable period to demonstrate
credit-worthiness. Shipper's credit-worthiness shall be
determined by providing proof of least two of the items
listed below:
(a) A long-term bond or commercial paper rating from
Standard and Poors or Moody's equivalent to a "Ba"
or better, or a commercial paper rating from
Standard and Poors or Moody's equivalent to
Prime-3 or better.
(b) Audited financial statements for itself, or for
its parent company if it is a subsidiary which is
consolidated with its parent company and does not
issue stand-alone financial statements, for the
two preceding years showing good financial
strength.
(c) An estimated financial strength rating by Dun and
Bradstreet sufficient to cover the credit to be
extended and a corresponding Dun and Bradstreet
composite credit appraisal of "fair" or better.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 136
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
18. OPERATING PROVISIONS (Continued)
18.3 (B) Credit-worthiness for Interruptible Transportation Service
(Continued)
(d) A demonstration by the Shipper that the Company has
sufficient financial capacity or backing to warrant an
extension of credit. This demonstration could include
proof of banking relationships sufficient to cover the
service agreement, or a detailed listing of credit
references within the industry, exhibiting a good credit
history.
(2) If Shipper does not demonstrate credit-worthiness, Shipper has
the option of receiving interruptible transportation service
under this FERC Gas Tariff, Third Revised Volume No. 1-A if
Shipper provides GTN a letter of credit in an amount equal to
the cost of performing the maximum level of service requested
for a three (3) month period of time. The letter of credit
must be from a credit worthy financial institution and be in
place before the Transportation Service Agreement can be
signed. The Shipper also has the option of receiving
transportation service if Shipper prepays for transportation
services on a month-to-month basis pursuant to the following
terms:
(a) For a calendar month in which transportation service is
desired (delivery month), Shipper must notify GTN no
later than eight (8) business days prior to the
commencement of delivery month (estimation date) of its
estimation of the maximum, cumulative gas deliveries
(monthly estimation) desired for the delivery month.
(For Shipper's initial monthly estimation, the delivery
month, or remaining portion thereof, shall commence
eight (8) days after the estimation date.) Notice of
monthly estimation may be telephonic or written;
telephonic notices must be confirmed in writing and
received by GTN within five (5) business days. GTN will
advise Shipper within forty-eight (48) hours of the
estimation date of the exact dollar amount of the
prepayment. Shipper shall not deliver or receive gas in
excess of the monthly estimation during delivery
month.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 137
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
18. OPERATING PROVISIONS (Continued)
18.3 (B) Credit-Worthiness for Interruptible Transportation Service
(Continued)
(b) No later than three (3) business days (settlement
date) prior to commencement of delivery month,
Shipper shall pay to GTN and GTN shall have
received from Shipper lawful money of the United
States in an amount equal to the prepayment amount
provided to Shipper by GTN described above.
(c) On or before the twentieth (20th) day following
delivery month, GTN shall provide statement to
Shipper detailing the transportation service
provided during the delivery month. The statement
will reconcile the amount prepaid in accordance
with the monthly estimation, credit to Shipper, if
applicable. Any such credit will be deducted from
the prepayment for the following month. Should the
Shipper elect not to receive transportation
services for the following month, Shipper shall so
notify GTN in writing; GTN will issue a check to
the Shipper within seven (7) business days
following receipt by GTN of such notice.
18.3 (C) Credit-worthiness for Firm and Interruptible Transportation
Service
For purposes of this FERC Gas Tariff, Third Revised Volume No.
1-A the insolvency of a Shipper shall be evidenced by the
filing by such Shipper or any parent entity thereof
(hereinafter collectively referred in this paragraph to as
"the Shipper") of a voluntary petition in bankruptcy or the
entry of a decree or order by a court having jurisdiction in
the premises adjudging the Shipper as bankrupt or insolvent,
or approving as properly filed a petition seeking
reorganization, arrangement, adjustment or composition of or
in respect of the Shipper under the Federal Bankruptcy Act or
any Act or any other applicable federal or state law, or
appointing a receiver, liquidator, assignee, trustee,
sequestrator (or other similar official) of the Shipper
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 138
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
18. OPERATING PROVISIONS (Continued)
18.3 (C) Credit-worthiness for Firm and Interruptible Transportation
Service (Continued)
or composition of or in respect of the Shipper under the
Federal Bankruptcy Act or any Act or any other applicable
federal or state law, or appointing a receiver, liquidator,
assignee, trustee, sequestrator (or other similar official) of
the Shipper or of any substantial part of its property, or the
ordering of the winding-up liquidation of its affairs, with
said order or decree continuing unstayed and in effect for a
period of sixty (60) consecutive days.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 139
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
18. OPERATING PROVISIONS (Continued)
18.4 Upon request of GTN, Shipper shall from time to time submit
estimates of daily, monthly and annual quantities of gas to be
transported, including peak day requirements.
18.5 GTN shall not be obligated to install additional facilities, other
than those specified in Paragraph 4.1 herein, that are required to
provide service under this FERC Gas Tariff, Third Revised Volume No.
1-A; provided, however, GTN may install or Shipper may pay all of
the expenses incurred for installing additional facilities on a
nondiscriminatory basis and under terms that are mutually agreeable.
In the event GTN incurs the cost of installing additional facilities
on behalf of a Shipper, Shipper shall pay, in addition to the
rate(s) stated in the applicable rate schedule, the prorated (based
on Transportation Contract Demand) cost of service attributable to
any such additional facilities until such time as a different
allocation procedure is specified by Commission order.
18.6 Reserved
18.7 Reserved
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Sheet Nos. 140 - 141
Third Revised Volume No. 1-A
Reserved For Future Use
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 142
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. PRIORITY OF SERVICE, SCHEDULING, AND NOMINATIONS
19.1 Priority of Firm Service
Firm service shall have the highest priority on GTN's System. From
time to time, GTN may not have sufficient capacity to accommodate
all nominations for firm service through a given segment of its
pipeline, Receipt Point, or Delivery Point. In that event, GTN shall
schedule firm service using the following priorities.
19.1A FIRM SCHEDULING PRIORITIES THROUGH PIPELINE SEGMENTS.
GTN shall first schedule nominations for service within a shipper's
Primary Path. In the event GTN has insufficient capacity to schedule
all nominations for service within Shippers' Primary Paths, GTN
shall schedule service to Shippers nominating for service along
Primary Paths on a pro rata basis in accordance with each shipper's
MDQ.
GTN will next schedule nominations for service within a shipper's
Reverse Path. In the event GTN has insufficient capacity to schedule
all nominations for service within Shippers' Reverse Paths, GTN
shall schedule service to Shippers nominating for service along
Reverse Paths on a pro rata basis in accordance with each shipper's
MDQ.
19.1B FIRM SCHEDULING PRIORITIES THROUGH RECEIPT POINTS.
First, GTN shall schedule service to those shippers for whom the
constrained receipt point is a Primary Receipt Point, up to each
shipper's MDQ at that point (plus an allowance for fuel). In the
event full service cannot be provided to shippers holding Primary
Receipt Point rights, service will be scheduled on a pro rata basis
based on each shipper's primary MDQ at that point.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 143
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
19. PRIORITY OF SERVICE, SCHEDULING AND NOMINATIONS (Continued)
19.1B FIRM SCHEDULING PRIORITIES THROUGH RECEIPT POINTS. (Continued)
GTN shall then schedule service to those shippers for whom the constrained
receipt point is a Secondary Receipt Point. In the event full service
cannot be provided, service will be scheduled on a pro rata basis based on
each shipper's MDQ.
19.1C FIRM SCHEDULING PRIORITIES THROUGH DELIVERY POINTS.
GTN shall first schedule service to those shippers for whom the
constrained Delivery point is a Primary Delivery Point, up to each
shipper's MDQ at that point. In the event full service cannot be provided
to shippers holding Primary Delivery Point rights, service will be
scheduled on a pro rata basis based on each shipper's MDQ at that point.
GTN shall then schedule service to those shippers for whom the constrained
Delivery point is a Secondary Delivery Point. In the event full service
cannot be provided, service will be scheduled on a pro rata basis based on
each shipper's MDQ.
19.1D SCHEDULING PRIORITY FOR CAPACITY RELEASE
The Scheduling Priorities set out in this Section 19.1 also apply for
capacity released under GTN's capacity release program, and are subject to
the terms and conditions as specified in an executed firm service
agreement between GTN and Shipper. All service under the capacity release
program shall be considered firm for purposes of priority of service.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 144
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. PRIORITY OF SERVICE, SCHEDULING AND NOMINATIONS (Continued)
19.2 PRIORITY OF INTERRUPTIBLE SERVICE
Interruptible transportation service under this FERC Gas Tariff,
Third Revised Volume No. 1-A, shall be provided when and to the
extent that capacity is available in GTN's existing facilities,
subject to the priorities of service set forth herein. GTN will
provide interruptible transportation service first to the Shipper(s)
paying the highest rate. (Shippers paying a Negotiated Rate that
exceeds the maximum applicable tariff rate shall be considered to be
paying the maximum applicable tariff rate.) For the purposes of
Section 19.2, the term "highest rate" shall be determined by
multiplying the distance in pipeline miles (from the receipt point
to the delivery point) by the mileage component(s) of the ITS-1 rate
(including applicable surcharges), and then adding the non-mileage
component(s) of the ITS-1 rate (including applicable surcharges). In
the event of a tie, GTN shall allocate interruptible capacity among
interruptible Shippers on a pro-rata basis based on confirmable
nominations.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 145
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. PRIORITY OF SERVICE, SCHEDULING AND NOMINATIONS (Continued)
19.3 Priority of Authorized Overrun Service
Authorized overrun service shall have a priority lower than firm or
interruptible as defined above. Priority within the overrun class
shall be determined using a first-come, first-serve procedure.
19.4 Nominations
19.4(a) Information to be Provided with Nomination
A Shipper may nominate for transportation service on GTN
electronically in accordance with Section 34 of the General
Terms and Conditions of this Tariff. In accordance with NAESB
Standard 1.3.5, Version 1.5, all nominations should include
Shipper-defined begin dates and end dates. All nominations
excluding intraday nominations should have roll-over options.
Specifically, Shippers should have the ability to nominate for
several days, months, or years, provided the nomination begin
and end dates are within the term of Shipper's contract.
All nominations shall include, at a minimum:
a daily quantity of gas to be transported (expressed in
Dekatherms);
previously approved and valid receipt and delivery points; and
shipper defined begin dates and end dates.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 146
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. PRIORITY OF SERVICE, SCHEDULING AND NOMINATIONS (Continued)
19.4 Nominations (Continued)
19.4(a) Information to be Provided with Nomination (Continued)
Shipper shall provide as a component of its nomination such
business conditional data sets as may be required by GTN to
enable it to identify, confirm, and schedule the nomination.
Shipper shall also prioritize nominated receipts and
deliveries when there is more than one supplier and more than
one Shipper customer, respectively. Shipper designated
priorities will be used to allocate gas when upstream and
downstream nominations vary from GTN's Shipper nominations.
Shipper may nominate for any period of days, provided the
nomination begin and end dates are within the term of the
Shipper's Transportation Service Agreement or exhibit. Such
nominations shall be deemed "Standing Nominations." All types
of Nominations must be clearly and separately identified so
that priorities of service can be distinguished. As required
by NAESB Standard 1.3.19, Version 1.5, overrun quantities
should be requested on a separate transaction.
The receipt of the nomination is notice that all necessary
regulatory approvals have been received and that valid
upstream and downstream transportation and other contractual
arrangements are in place.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 147
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. PRIORITY OF SERVICE, SCHEDULING AND NOMINATIONS (Continued)
19.4 Nominations (Continued)
19.4(b) Nomination Cycles
In accordance with NAESB Standard 1.3.2, Version 1.5, GTN will
utilize the following standard nomination cycles:
(i) THE TIMELY NOMINATION CYCLE:
11:30 a.m. (CCT) (9:30 a.m. PCT) nominations leave control of
the nominating party;
11:45 a.m. (CCT) (9:45 a.m. PCT) receipt of nominations by GTN
(including from Title Transfer Tracking Service Providers
(TTTSPs));
12:00 noon (CCT) (2:00 p.m. PCT) GTN sends Quick Response;
3:30 p.m. (CCT) (1:30 p.m. PCT) receipt of completed
confirmations by GTN from upstream and downstream connected
parties;
4:30 p.m. (CCT) (2:30 p.m. PCT) receipt of scheduled
quantities by shipper and point operator (central clock time
on the day prior to flow).
(ii) THE EVENING NOMINATION CYCLE:
6:00 p.m. (CCT) (4:00 p.m. PCT) nominations leave control of
the nominating party;
6:15 p.m. (CCT) (4:15 p.m. PCT) receipt of nominations by GTN
(including from TTTSPs);
6:30 p.m. (CCT) (4:30 p.m. PCT) GTN sends Quick Response;
9:00 p.m. (CCT) (7:00 p.m. PCT) receipt of completed
confirmations by GTN from upstream and downstream connected
parties;
10:00 p.m. (CCT) (8:00 p.m. PCT) GTN provides scheduled
quantities to affected shippers and point operators, and
provides scheduled quantities and notice to bumped parties.
Advance notice to bumped parties shall be provided by
telephone, facsimile, or electronic mail, at the shipper's
option.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 148
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. PRIORITY OF SERVICE, SCHEDULING AND NOMINATIONS (Continued)
19.4 Nominations (Continued)
19.4(b) Nomination Cycles (continued)
Scheduled quantities resulting from an Evening Nomination will be
effective at 9:00 a.m. (CCT) (7:00 a.m. PCT) on gas day.
(iii) THE INTRADAY 1 NOMINATION CYCLE:
10:00 a.m. (CCT) (8:00 a.m. PCT) nominations leave control of the
nominating party;
10:15 a.m. (CCT) (8:15 a.m. PCT) receipt of nominations by GTN
(including from TTTSPs);
10:30 a.m. (CCT) (8:30 a.m. PCT) GTN sends Quick Response;
1:00 p.m. (CCT) (11:00 a.m. PCT) receipt of completed confirmations
by GTN from upstream and downstream connected parties;
2:00 p.m. (CCT) (12:00 noon PCT) GTN provides scheduled quantities
to affected shippers and point operators, and provides scheduled
quantities and notice to bumped parties. Advance notice to bumped
parties shall be provided by telephone, facsimile, or electronic
mail, at the shipper's option.
Scheduled quantities resulting from Intraday 1 Nominations should be
effective at 5:00 p.m. (CCT) (3:00 P.M. PCT) on gas day.
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 149
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. PRIORITY OF SERVICE, SCHEDULING AND NOMINATIONS (Continued)
19.4 Nominations (Continued)
19.4(b) Nomination Cycles
(iv) THE INTRADAY 2 NOMINATION CYCLE:
5:00 p.m. (CCT) (3:00 p.m. PCT) nominations leave control of the
nominating party;
5:15 p.m. (CCT) (3:15 p.m. PCT) receipt of nominations by GTN
(including from TTTSPs);
5:30 p.m. (CCT) (3:30 p.m. PCT) GTN sends Quick Response;
8:00 p.m. (CCT) (6:00 p.m. PCT) receipt of completed confirmations
by GTN from upstream and downstream connected parties;
9:00 p.m. (CCT) (7:00 p.m. PCT) GTN provides scheduled quantities to
affected shippers and point operators.
Scheduled quantities resulting from Intraday 2 Nominations should be
effective at 9:00 p.m. (CCT) (7:00 p.m. PCT) on gas day.
Firm intraday nominations during the Intraday 2 Nomination Cycle may
not bump nominated and scheduled interruptible volumes.
(v) For purposes of GISB Standards 1.3.2 ii, iii, and iv (reflected in
Paragraphs 19.4(b)(ii) through 19.4(b)(iv) above), "provide" shall
mean, for transmittals pursuant to GISB Standards 1.4.x, receipt at
the designated site, and for purposes of other forms of transmittal,
it shall mean send or post.
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 150
Third Revised Volume No. 1-A
[TIME LINE]
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 151
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. PRIORITY OF SERVICE, SCHEDULING AND NOMINATIONS (Continued)
19.4 Nominations (Continued)
19.4(b) Scheduling Timelines (Continued)
Transporter shall, at the end of each business day, make
available to each Shipper information containing
scheduled quantities including scheduled intraday
nominations and any other scheduling changes.
GTN shall have the discretion to accept nominations at
such later times as operating conditions permit and
without detrimental impact to other shippers and upon
confirmation that corresponding upstream and downstream
arrangements in a manner satisfactory to GTN have been
made. In the event later nominations are accepted, GTN
will schedule those nominations after the nominations
received before the nominations deadline, which is in
accordance with NAESB Standard 1.3.6, Version 1.5, that
states nominations received after nomination deadline
should be scheduled after the nominations received
before the nomination deadline.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 152
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. PRIORITY OF SERVICE, SCHEDULING AND NOMINATIONS (Continued)
19.4 Nominations (Continued)
19.4(c) Changes to Nominations
(1) Changes to Standing Nominations
In accordance with NAESB Standard 1.3.7, Version
1.5, all nominations should be considered original
nominations and should be replaced to be changed.
When a nomination for a date range is received,
each day within that range is considered an
original nomination. When a subsequent nomination
is received for one or more days within that
range, the previous nomination is superseded by
the subsequent nomination only to the extent of
the days specified. The days of the previous
nomination outside the range of the subsequent
nomination are unaffected. Nominations have a
prospective effect only. A nomination for a period
within the start and end dates of a Standing
Nomination replaces the Standing Nomination for
the specific gas day(s) only and does not replace
the remainder of the Standing Nomination.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 153
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. PRIORITY OF SERVICE, SCHEDULING AND NOMINATIONS (Continued)
19.4 Nominations (Continued)
19.4(c) Changes to Nominations (Continued)
Such nominations must be received by GTN's Transportation
Department in accordance with the scheduling timelines set
out in Section 19.4(b).
In the event GTN does not receive information of upstream or
downstream adjustments, GTN shall use the lesser of the new
nomination or the previous nomination.
(2) Intraday Nominations
In accordance with NAESB Standard 1.3.8, Version 1.5,
all transportation service providers should allow for
intraday nominations. Requests to amend previously
scheduled nominations may be accepted during the gas
day, subject to operational conditions and, further
that corresponding upstream and downstream adjustments
in a manner satisfactory to GTN can be confirmed. In
accordance with NAESB Standard 1.3.11, Version 1.5,
such 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. A request to increase a nomination for
firm transportation up to the MDQ specified in the
Service Agreement will be accommodated to the extent
operating conditions permit. Firm intraday nominations
other than during the Intraday 2 Nomination Cycle
shall have priority over nominated and scheduled
interruptible volumes. A request to increase a
nomination for interruptible transportation shall be
permitted only to the extent that capacity is
available and that no displacement of other
interruptible transportation occurs. Such changes will
become effective only when system operating
conditions, as determined by GTN, permit changes to
occur.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 154
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. PRIORITY OF SERVICE, SCHEDULING AND NOMINATIONS (Continued)
19.4 Nominations (Continued)
19.4(c) Changes to Nominations (Continued)
Intraday Nominations do not have roll-over options and
will replace the Standing Nomination only for the
duration of the Gas Day. Quantities for Intraday
Nominations will be expressed in Dekatherms, and
represent the total quantities to be delivered prior to
the end of the effective Gas Day.
(3) In accordance with NAESB Standard 1.3.9, Version
1.5, all nominations, including Intraday
Nominations, should be based on a daily quantity;
thus, an Intraday Nominator need not submit an
hourly nomination. Intraday nominations should
include an effective date and time. The
interconnected parties should agree on the hourly
flows of the Intraday Nomination, if not otherwise
addressed in transporter's contract or tariff.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 155
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. PRIORITY OF SERVICE, SCHEDULING AND NOMINATIONS (Continued)
19.4 Nominations (Continued)
19.4(d) Information Reliability
GTN shall be allowed to rely conclusively on the
information submitted as part of the nomination in
confirming the nomination for scheduling and allocation.
Shipper must provide electronically to GTN Shipper's
current designated contact, after hours and emergency
telephone numbers. Such information must be updated as
often as changes to such information occurs. GTN may
rely solely upon the information provided by Shipper and
will not be liable to Shipper if Shipper's contact
information is outdated and communication attempts with
such Shipper are unsuccessful.
19.4(e) Uniform Hourly Rates
Scheduled quantities will be received and delivered at a
uniform hourly rate of confirmed quantity divided by 24,
unless as determined by GTN, variance from the hourly
rate will not be detrimental to the operation of the
pipeline or adversely affect other GTN Shippers.
19.4(f) North American Energy Standards Board Standards:
Nominations for service on GTN shall be further governed
by the following standards adopted by the North American
Energy Standards Board. Unless otherwise specified, all
standards are Version No. 1.5:
1.3.13; 1.3.14; 1.3.16; 1.3.22; and 1.3.23.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 156
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. PRIORITY OF SERVICE, SCHEDULING AND NOMINATIONS (Continued)
19.5 Priority of Parking and Authorized Imbalance Service
Parking and Authorized Imbalance Service shall have the lowest
priority on GTN's system. All other transportation service,
including rectification of imbalances, have superior priority to
these services.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Sheet Nos. 157 - 158
Third Revised Volume No. 1-A
Reserved For Future Use
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 159
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
20. CURTAILMENT
GTN shall have the right to curtail, interrupt, or discontinue
Transportation Service on any portion of its system at any time for
reasons of Force Majeure or when capacity, supply, or operating conditions
so require or it is necessary or desirable to make modifications, repairs,
or operating changes to its system. GTN shall provide notice of such
occurrences as is reasonable under the circumstances.
Capacity may become constrained at individual receipt points, delivery
points or on segments of the pipeline. GTN shall exercise this curtailment
provision only at the point(s) or segment(s) of the pipeline affected by
the constraint. When capacity is constrained or otherwise insufficient to
serve all the transportation requirements which are scheduled to receive
service, GTN shall curtail Authorized Imbalance Service; followed by
Interruptible Service, and finally Firm service.
Curtailment of Authorized Imbalance Service, if necessary, shall be
performed in the opposite order of scheduling as set forth in Section 19.3
of this Tariff.
Curtailment of Interruptible Service, if necessary, will be performed in
the opposite order of scheduling set forth in Section 19.2 of this Tariff
Curtailment of firm service if necessary, will be performed pro rata based
on the MDQ across the contracts scheduled to use the capacity at the
applicable receipt points, delivery point(s)or mainline segment(s) of
pipeline.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 160
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
21. BALANCING
Balancing of thermally equivalent quantities of gas received and delivered
by GTN shall be achieved as nearly as feasible on a daily basis, with any
cumulative imbalance accounted for on a monthly basis. Correction of
imbalances shall be the responsibility of the Shipper whether or not
notified by GTN at the time of incurrence of the imbalance. Correction of
imbalances shall be scheduled with GTN using the nomination process as
soon as an imbalance is known to exist based on the best available current
data. Nominations to correct imbalances shall have the lowest priority for
scheduling purposes and shall be subject to the availability of capacity
and other operational constraints for imbalance correction. If on any day
capacity is insufficient to schedule all imbalance nominations, all such
nominations shall be prorated accordingly. To maintain the operational
integrity of its system, GTN shall have the right to balance any Shipper's
account as conditions may warrant.
Imbalances shall exist as defined below and be subject to the applicable
charges and penalties if not corrected.
a) Actual delivered quantity exceeds MDQ
An imbalance shall exist if the actual delivered quantity on any day
exceeds the MDQ and the delivered quantity in excess of the MDQ has
not been authorized by GTN (authorized Overrun).
Penalty: A Shipper shall be assessed $5/Dth for the quantity that is
greater than 10% of the MDQ or 1000 Dth, whichever is greater.
In addition, the quantity delivered in excess of the MDQ shall be
charged the Authorized Overrun charge as provided in the applicable
rate schedule of Shipper.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 161
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
21. BALANCING (Continued)
(b) Actual delivered quantity exceeds receipt quantity
A net positive imbalance shall exist if the difference between the
delivered quantity and the quantity received, taking into account
the reduction in quantity for compressor fuel use, yields a positive
result. Commencing upon notification by GTN of the existence of the
imbalance, Shipper shall have 3 days to correct the imbalance.
Penalty: If, at the end of the 3 day period the difference between
the actual delivered quantity and the receipt quantity is in excess
of 10% of the delivered quantity or 1000 Dth, whichever is greater,
the Shipper shall be assessed a charge of $5/Dth applied to the
excess quantities. If the imbalance is not corrected within 45 days
of GTN's notice of an imbalance, the Shipper shall be assessed an
additional charge of $5/Dth, applied to the net imbalance remaining
at the end of the 45 day balancing period.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 162
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
21. BALANCING (Continued)
(c) Actual quantity received exceeds delivered quantity
A net negative imbalance shall exist if the difference between the
delivered quantity and the quantity received taking into account the
reduction in quantity for compressor fuel use, yields a negative
result. Commencing upon notification by GTN of the existence of the
imbalance, Shipper shall have 3 days to correct the imbalance.
Penalty: If, at the end of the 3 day period the difference between
the actual quantity received and the delivered quantity is in excess
of 10% of the delivered quantity or 1000 Dth, whichever is greater,
the Shipper shall be assessed a penalty of $2/Dth applied to the
excess quantity. If the imbalance is not corrected within 45 days of
GTN's notice of an imbalance, GTN shall be able to retain the
remaining imbalance quantity without compensation to the Shipper and
free and clear of any adverse claim.
(d) Scheduled delivery quantity exceeds actual delivered quantity
An imbalance shall exist when the quantity scheduled (nominated and
confirmed) for delivery exceeds the actual delivered quantity.
Penalty: When the difference between the scheduled delivery quantity
and actual delivered quantity is in excess of 10% of the actual
deliveries, or 1000 Dth, whichever is greater, the Shipper shall be
assessed the maximum applicable interruptible transportation rate
applied to the excess quantities.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 163
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
21. BALANCING (Continued)
(e) Actual delivered quantity exceeds scheduled delivery quantity
An imbalance shall exist when the quantity delivered exceeds the
quantity scheduled (nominated and confirmed).
Penalty: When the difference between the actual delivered quantity
and the scheduled delivery quantity is in excess of 10% of the
scheduled quantity or 1000 Dth whichever is greater, the Shipper
shall be assessed a charge of $5/Dth applied to the excess quantity.
Imbalance determinations as described above will be performed on a
daily basis and each daily occurrence will constitute a separate
incident. It is recognized and understood that more than one penalty
provision may apply to each imbalance incident.
In the event that any penalty would otherwise be applicable under
these provisions as a direct consequence of any action or failure to
take action by GTN or the failure of any facility under GTN's
control, or an event of force majeure as defined in these
Transportation General Terms and Conditions, said penalty shall not
apply.
Interruptible Shippers will be notified whether penalties will apply
on the day their volumes are reduced. GTN shall waive non-critical
penalties for bumped shippers on the day of the bump. Waiver of
non-critical penalties shall not relieve the shipper from the
obligation to take corrective action to eliminate ongoing
imbalances.
The payment of a penalty in dollars pursuant to Paragraph 21 shall
under no circumstances be considered as giving any Shipper the right
to deliver or take overrun quantities.
Upon termination of a Service Agreement, Shipper shall have 60 days
to correct any remaining imbalances. After his period has elapsed,
GTN shall have the right to retain any negative imbalance quantity
without compensation to the Shipper and shall assess a charge of
$5/Dth for any positive imbalance quantity as applicable.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Sheet No. 164
Third Revised Volume No. 1-A
Reserved For Future Use
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 165
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
21. BALANCING (Continued)
(f) Imbalance Netting: A Shipper may net imbalances between its service
agreements, provided that GTN will be reimbursed for any transportation
and fuel necessary to effectuate such netting. Resolution of imbalances by
netting the Shipper's service agreements shall be scheduled with GTN using
the nomination process.
(g) Imbalance Trading:
(1) A Shipper, or its agent, may trade imbalances with other Shippers,
their agents or other third-party firms that may conduct imbalance
trading for Shippers, provided that GTN will be reimbursed for any
transportation and fuel necessary to effectuate such trading.
Resolution of imbalances by trading imbalances between Shippers
shall be scheduled with GTN using the nomination process.
(2) Any trading of imbalances must result in each Shipper's imbalance
decreasing.
(3) GTN shall process all imbalance trades at no additional
administrative charge.
(h) Posting Imbalance Trades:
(1) GTN shall provide free of charge an "Imbalance Trading" location on
its Internet website to allow posting of imbalances to facilitate
trading.
(2) GTN shall post a Shipper's imbalance if the Shipper provides written
authorization to GTN authorizing it to post such imbalance
information on the "Imbalance Trading" section of its Internet
website.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Sheet Nos. 166 - 169
Third Revised Volume No. 1-A
Reserved For Future Use
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 170
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
22. ANNUAL CHARGE ADJUSTMENT (ACA) PROVISION
22.1 Purpose: GTN shall recover from Shippers the annual charge assessed
to GTN by the Federal Energy Regulatory Commission for budgetary
expenses pursuant to Section 154.38(d)(6) of the Commission's
regulations and Order No. 472 issued May 29, 1987. GTN shall recover
this charge by means of an Annual Charge Adjustment (ACA); a per
unit rate equivalent to the unit rate assessed against GTN by the
Commission shall be included in GTN's transportation rates. (During
the period that this ACA provision is in effect, GTN shall not
recover in a Natural Gas Act Section 4 rate case annual charges
recorded in FERC Account No. 928 assessed to GTN by the Commission
pursuant to Order No. 472.)
22.2 Filing Procedure: The notice period and proposed effective date of
filings pursuant to this paragraph shall be as permitted under
Section 4 of the Natural Gas Act; provided, however, that any such
filing shall not become effective unless they become effective
without suspension or refund obligation.
22.3 ACA Unit Rate Adjustment: GTN's ACA unit rate shall be the unit rate
used by the Commission to determine the annual charge assessment to
GTN, and shall be reflected in the Statement of Effective Rates and
Charges of this FERC Gas Tariff, Third Revised Volume No. 1-A.
22.4 Affected Rate Schedules: The ACA provision shall apply to all rate
schedules contained in GTN's FERC Gas Tariff, Third Revised Volume
No. 1-A.
23. SHARED OPERATING PERSONNEL AND FACILITIES
GTN does not share any operating personnel or facilities with its
Marketing Affiliates. To the extent PG&E elects service under Rate
Schedule USS-1, GTN employees involved with the implementation of
USS-1 service will operate independently from GTN's pipeline
operating employees.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 171
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
24. COMPLAINT PROCEDURES
24.1 Any Shipper or potential Shipper may register a complaint regarding
requested or provided transportation service. The complaint may be
communicated to GTN primarily by use of GTN's Electronic Bulletin
Board (EBB) and secondarily either orally, and/or in writing. Oral
complaints should be made to GTN's Manager of Gas Transportation and
Services, telephone (503) 833-4300. Written complaints should be
sent via registered or certified mail, facsimile (FAX No. (503)
833-4395), or hand delivered to:
Gas Transmission Northwest Corporation
1400 SW Fifth Avenue, Suite 900
Portland, OR 97201
Attention: Manager of Gas Transportation and Services
Oral, written and EBB-submitted complaints must contain the
following minimum information:
- Shipper or potential Shipper's name, address, and FAX and
telephone numbers;
- Shipper or potential Shipper's contact representative;
- A clear, concise statement of the complaint.
Each complaint will be recorded in GTN's Transportation Service
Complaint Log maintained by GTN's Gas Transportation and Services
Department located in Portland. Complaints will be logged by date
and time received by GTN.
24.2 GTN will initially respond to each complaint within forty- eight
(48) hours after GTN receives it. GTN will provide a written
response to each complaint within thirty (30) days after GTN
receives it. GTN's written response will be sent to Shipper or
potential Shipper by certified or registered mail. If the complaint
was filed by the EBB, then GTN shall respond via the EBB. A copy of
all complaints will be filed in the Transportation Service Complaint
Log.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 172
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
25. INFORMATION CONCERNING AVAILABILITY AND PRICING OF TRANSPORTATION SERVICE
AND CAPACITY AVAILABLE FOR TRANSPORTATION
25.1 Any affiliated or nonaffiliated Shipper or potential Shipper may
obtain information concerning the availability and pricing of GTN's
transportation services and the pipeline capacity available for
transportation by:
(a) Contacting GTN at:
Gas Transmission Northwest Corporation
Marketing and Transportation Department
1400 SW Fifth Avenue, Suite 900
Portland, OR 97201
Telephone: (503) 833-4300
Inquiries may be made orally or in writing. Upon request, GTN
will provide to any Shipper or potential Shipper a copy of its
FERC Gas Tariff, Third Revised Volume No. 1-A, as well as any
published notices concerning discounts then available to
existing Shippers on the GTN system.
(b) Subscribing to GTN's twenty-four (24) hour Electronic Bulletin
Board by calling 1-503-833-4310. The Electronic Bulletin Board
provides current information concerning the availability and
pricing of transportation service on the GTN system, including
all effective rates and discount notices, and capacity
available for transportation.
(c) Accessing GTN's Internet Web site through
WWW.PGE-NW.COM/OPERATIONS. This web site provides the same
information as available on GTN's Electronic Bulletin Board.
25.2 The procedures to be followed by a potential Shipper requesting
transportation service from GTN or by an existing Shipper requesting
an amendment to its existing service or additional service from GTN
are specified in Paragraph 18 of these Transportation General Terms
and Conditions.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 173
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
25. INFORMATION CONCERNING AVAILABILITY AND PRICING OF TRANSPORTATION SERVICE
AND CAPACITY AVAILABLE FOR TRANSPORTATION (Continued)
25.3 The procedures to be followed by Shippers for submitting nominations
for transportation service are specified in Paragraph 19 of these
Transportation General Terms and Conditions.
26. MARKET CENTERS
The Market Center is defined as a point of interconnection between GTN and
other pipelines and local distribution companies. GTN shall provide for
Market Centers on GTN. Parties wishing to use Market Centers on the GTN
system shall contact GTN for this service. At these Market Centers,
entities may trade gas quantities without actively shipping the gas either
upstream or downstream of the Market Center. Such entities must nominate
for the gas transactions in accordance with the nomination procedures of
the Transportation General Terms and Conditions of Third Revised Volume
No. 1-A. An entity's nomination for upstream supply and downstream
delivery must match the corresponding upstream Shipper nomination and the
downstream customer request.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 174
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
27. PLANNED GTN CAPACITY CURTAILMENTS AND INTERRUPTIONS
27.1 When GTN needs to temporarily curtail or interrupt service to any
Shipper hereunder for the purpose of making planned alterations or
repairs, GTN shall give Shipper as much notice as possible of the
process so that each Shipper's firm transportation requirements are
taken into account in the planning process.
27.2 In the spring of each year GTN shall publish on its Internet Web
Site and its electronic bulletin board (EBB) to all Shippers a
schedule of planned major maintenance and repairs which affect
system capacity. The schedule shall show the estimated delivery
point capacity for the next 12 months.
27.3 On a daily basis GTN shall post, on its Internet Web Site and its
EBB, capacity for each forthcoming gas day plus the estimated
capacity for the next two gas days.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 175
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE
28.1 Eligibility to Release
Any firm Shipper which contracts for firm transportation
service under Part 284 of the Commission's regulations
(Releasing Shipper) is eligible to release all or part of its
capacity (Parcel) for use by another party (Replacement
Shipper). Any Replacement Shipper which has previously
contracted for a Parcel may also release its capacity to
another party as a secondary release subject to the terms and
conditions described herein.
Upon releasing a Parcel, consistent with the terms and
conditions described herein, all Releasing Shippers shall
remain ultimately liable for all reservation charges billable
for the originally contracted service. The Releasing Shipper,
whether a primary or secondary capacity holder, must post the
capacity it seeks to release on GTN's Electronic Bulletin
Board (EBB) prior to the close of the Posting Period defined
herein.
A Releasing Shipper may release all or a portion of its
capacity for the remainder of the term of its contract and
extinguish its contractual obligations to GTN with respect to
that portion provided that: 1) the Replacement Shipper for
this capacity is creditworthy pursuant to GTN's credit
standards; and 2) that the rate paid by the Replacement
Shipper be no less than the rate contracted between the
Releasing Shipper and GTN for the maximum volume, for the
remaining term of the contract or the Releasing Shipper's
maximum tariff rate. The release may be structured such that
the right of first refusal may transfer to the Replacement
Shipper even if the release has recall provisions and has been
recalled by the Releasing Shipper at the end of the service
agreement.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 176
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITION
(Continued)
28. CAPACITY RELEASE (Continued)
28.2 Types of Release
A Releasing Shipper may release a Parcel for a term (Release Term)
up to or equivalent to the remaining term under its service
agreement with GTN. Types of releases include:
NON-PREARRANGED - BIDDING REQUIRED
(1) Greater than or equal to one day, is not prearranged and
requires bidding.
PREARRANGED RELEASES - BIDDING REQUIRED
(1) Greater than thirty-one days at a rate less than the
maximum applicable tariff rate. This type of release is
prearranged, allows for bidding up to the maximum
applicable tariff rate and allows for the right of first
refusal. Bidding is pursuant to the methodology selected
by the Releasing Shipper.
PREARRANGED RELEASES - BIDDING NOT REQUIRED
(1) Less than or equal to thirty-one days at a rate less
than the maximum applicable tariff rate. This type of
release is prearranged and does not require bidding.
This release cannot be rolled-over, renewed or otherwise
extended beyond the term described above unless the
Releasing Shipper follows the posting and bidding
procedures that apply to the particular term sought
contained in this Paragraph 28. The Releasing Shipper
may not re-release this Parcel to the same Replacement
Shipper until 28 days after the term of the initial
release has ended. Rollovers are permitted without
bidding or a waiting period provided the Prearranged
Shipper agrees to pay the maximum rate and meet all the
other terms and conditions of the release.
(2) Greater than or equal to one day at the maximum
applicable tariff rate. This type of release is
prearranged and does not require bidding.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 177
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.3 Notice Requirements
Any Releasing Shipper electing to release capacity shall submit a
notice via GTN's EBB that it elects to release firm capacity. The
notice shall set forth the following information:
(a) Releasing Shipper's legal name, contract number, and the name,
title, address, telephone number, and fax number of the
individual responsible for authorizing the release of
capacity.
(b) Rate schedule of the Releasing Shipper.
(c) In accordance with NAESB Standard 5.3.26, Version 1.5,
Releasing Shipper has choice to specify dollars and cents or
percents of maximum tariff rate in the denomination of bids
and all transportation service providers should support this.
Once the choice is made by the Releasing Shipper, the bids
should comport with the choice. In accordance with NAESB
Standard 5.3.27, Version 1.5, for purposes of bidding and
awarding, maximum/minimum rates specified by the Releasing
Shipper should include the tariff reservation rate and all
demand surcharges, as a total number or as stated separately.
If a volumetric rate is used, Releasing Shipper must indicate
whether bids on a reservation charge basis will be accepted as
well and if so must specify the method of evaluating the two
types of bids. Releasing Shipper also should indicate whether
bids will be accepted on a dollar basis or as a percentage of
the Releasing Shipper's as-billed rate.
(d) Daily quantity of capacity to be released, expressed in Dth/d,
at the designated delivery point(s). (This must not exceed
Releasing Shipper's maximum contract demand available for
capacity release and shall state the minimum quantity
expressed in Dth/d acceptable for release.)
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 178
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.3 Notice Requirements (Continued)
(e) The term of the release, identifying the date release is to
begin and terminate. The minimum release term acceptable to
GTN shall be one day.
(f) Whether the Releasing Shipper is willing to consider release
for a shorter period of time than that specified in (e) above
and if so, the minimum acceptable period of release.
(g) The receipt and delivery point.
(h) Whether Option 1, 2, or 3 shall be used to determine the
highest valued bid (see Section 28.7(a) for a description of
bid evaluation options 1, 2 and 3).
(i) Whether the Releasing Shipper wants GTN to market its released
capacity.
(j) Whether the Releasing Shipper requests to waive the
creditworthiness requirements and agrees in such event to
remain liable for all charges, or, if the release is for one
year (365 days) or less, whether Releasing Shipper requests
that the creditworthiness provisions of Paragraph
18.3(A)(1)(c) shall apply.
(k) Whether Releasing Shipper is a marketing or other affiliate of
GTN.
(l) If release is a prearranged release, the Prearranged Shipper
must be qualified pursuant to the criteria of Paragraph
28.6(a) unless waived above. Releasing Shipper shall include
the Prearranged Shipper bid information pursuant to Paragraph
28.6(b) with its release information and shall indicate
whether the Prearranged Shipper is affiliated with GTN or the
Releasing Shipper.
(m) Any special nondiscriminatory terms and conditions applicable
to the release.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 179
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.3 Notice Requirements (Continued)
(n) Tie-breaker method preferred: (1) pro rata, (2) lottery, (3)
order of submission (first-come/first-serve). If none are
selected, the system defaults to pro rata.
(o) Recall provisions. These provisions must be objectively
stated, nondiscriminatory, applicable to all bidders,
operationally and administratively feasible as determined by
GTN and in accordance with GTN's tariff.
(p) The minimum rate (percentage of: reservation charge or a
volumetric equivalent of the maximum reservation charge
applicable to the Parcel on a 100% load-factor basis)
acceptable to Releasor for this Parcel. Releasing Shipper also
should indicate whether bids will be accepted on a dollar
basis or as a percentage of the Releasing Shipper's as-billed
rate.
(q) Whether the Releasing Shipper is willing to accept contingent
bids that extend beyond the close of the Bid Period and, if
so, any nondiscriminatory terms and conditions applicable to
such contingencies including the date by which such
contingency must be satisfied (which date shall not be later
than the last day upon which GTN must award capacity) and
whether, or for what time period, the next highest bidder(s)
will be obligated to acquire the capacity should the winning
contingent bidder be unable to satisfy the contingency
specified in its bid.
(r) Whether the Releasing Shipper wants to specify a longer
bidding period for its Parcel than specified at Paragraph
28.8.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 180
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.4 Marketing of Capacity Fee
GTN may act as a facilitator between a Releasing Shipper and a
Replacement Shipper(s) that wishes to contract for that Releasing
Shipper's capacity. All such Parcels must be posted on the EBB
initially. A posting of a Parcel facilitated by GTN will include
both the Parcel by the Releasing Shipper and the bid by the
Prearranged Shipper. A marketing of capacity fee shall be negotiated
between GTN and Releasing Shipper in a nondiscriminatory manner.
Such a fee will apply when: a Releasing Shipper requests GTN to
market released capacity, GTN actively markets such capacity beyond
posting on the EBB, and such marketing results in capacity being
released to a Replacement Shipper.
28.5 Posting of a Parcel
The posting of a Parcel constitutes an offer to release the capacity
provided a willing Replacement Shipper submits a valid bid
consistent with GTN's Transportation General Terms and Conditions.
The posting must contain the information contained in Paragraph
28.3. Any specific conditions posted by the Releasing Shipper must
be operationally feasible, nondiscriminatory to other shippers, and
in conformance with GTN's tariffs. If the Parcel is being released
as a secondary release, then any recall provisions included in the
primary release which may affect the re-release of this capacity
must be included in the terms and conditions of the secondary
release. Each Parcel will be reviewed by GTN prior to posting on the
EBB for bidding The receipt of a valid release will be acknowledged
by the issuance of a release confirmation to the Releasing Shipper's
EBB mailbox by GTN.
It is the Releasing Shipper's sole responsibility to provide release
and Prearranged Shipper bid information in advance of the close of
the Posting Period.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 181
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.5 Posting of a Parcel (Continued)
Releasing Shippers who elect to release capacity based on
nondiscriminatory recall provisions and/or special terms and
conditions are required to submit their request to release capacity
by at least two business days before the close of the Posting Period
as stated in Section 28.8. This is to ensure adequate time for GTN
to review and validate that any recall and/or special terms and
conditions are not discriminatory.
All Prearranged Shipper bids are subject to the Prearranged
Shipper(s) meeting the preliminary qualifications as defined in
Paragraph 28.6(a) for Replacement Shippers.
A Parcel may be revised or withdrawn by the Releasing Shipper at any
time prior to the close of the Posting Period. A Parcel cannot be
revised after the close of the Posting Period. In accordance with
NAESB Standard 5.3.14, Version 1.5 offers should be binding until
written or electronic notice of withdrawal is received by the
capacity release service provider. Parcels may be withdrawn
subsequent to the close of the Posting Period and up until the close
of the Bid Period only in situations where the Releasing Shipper has
an unanticipated need for the capacity. In such instances, Releasing
Shipper shall notify GTN electronically of its need to withdraw the
Parcel due to an unanticipated need for the capacity. The withdrawal
or revision of a Parcel will terminate all bids submitted for that
Parcel to date. Replacement Shippers will need to resubmit their
bids for the Parcel if the Parcel is resubmitted for release.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Sheet No. 182
Third Revised Volume No. 1-A
Reserved For Future Use
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 183
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.6 Bidding for a Parcel
(a) Preliminary Qualification
Replacement Shippers are encouraged to pre-qualify in advance
of any postings on GTN's EBB as credit requirements will take
differing amounts of time to process depending on the
particular financial profile of Replacement Shippers. The
pre-qualification process will authorize a pre-set maximum
monthly financial exposure level for the Replacement Shipper.
Such exposure levels may be adjusted by GTN periodically
re-evaluating a Replacement Shipper's credit-worthiness.
Releasing Shippers may exercise their option to waive the
credit requirements for any Replacement Shipper wishing to bid
on a Parcel posted by that Releasing Shipper. Such waiver must
be made on a nondiscriminatory basis. GTN must be informed of
such waiver via the EBB before it will authorize such
Replacement Shipper's participation with respect to that
particular Parcel. In this instance, no pre-set maximum
monthly financial exposure level is applicable.
Should a Releasing Shipper waive the credit requirements for a
Replacement Shipper, the Releasing Shipper shall be liable for
all charges incurred by the Replacement Shipper in the event
such Replacement Shipper defaults on payment to GTN for such
capacity release service.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 184
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.6 Bidding for a Parcel (Continued)
(a) Preliminary Qualification (Continued)
Any potential Replacement Shipper may submit a bid for parcels
posted for release. GTN will determine the highest valued bid,
based on the bid evaluation method selected by the Releasing
Shipper, and verify that the Shipper placing the bid meets
GTN's credit requirements before awarding the parcel. Upon
notification by GTN of an award of a Parcel, GTN shall
complete a new FTS-1 or LFS-1 contract with the particulars of
the awarded Parcel and Replacement Shipper shall execute this
new contract electronically through the use of an
authorization code procedure on the EBB.
Once a Replacement Shipper has acquired capacity, authority is
granted to the Replacement Shipper to release that capacity,
unless the Releasing Shipper has specified that the Parcel
cannot be re-released.
The execution of the FTS-1 or LFS-1 service agreement will
constitute an obligation on the part of the Replacement
Shipper to be bound by the terms and conditions of GTN's
capacity release program as set forth in these Transportation
General Terms and Conditions.
(b) Submitting a Bid
All bids must be submitted through the use of GTN's EBB. Such
bids shall be "open" for all participants to review. The
particulars of all bids will be available for review but not
the identity of bidders. GTN will post the identity of the
winning bidder(s) only.
A Replacement Shipper cannot request that its bid be "closed",
nor can a Releasing Shipper specify that "closed" bids be
submitted on its releases. A Replacement Shipper may submit
only one bid per Parcel posted at any one point in time. Bids
received after the close of the Bid Period shall be invalid.
The Replacement Shipper may bid for no more than the quantity
of the Parcel posted by the Releasing Shipper. Simultaneous
bids for more than one Parcel are permitted.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 185
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.6 Bidding for a Parcel (Continued)
(b) Submitting a Bid (Continued)
A valid bid to contract for a Parcel must contain the
following information:
(1) Replacement Shipper's legal name, address, telephone and
fax numbers and the name and title of the individual
responsible for authorizing the bid.
(2) The identification of the Parcel bid on.
(3) Term of service requested. The term of service must not
exceed the term included in the Parcel.
(4) Percentage of the applicable maximum rate, as identified
in the Parcel, that Replacement Shipper is willing to
pay, or price in dollars and cents per Dth/d, that the
Replacement Shipper is willing to pay. A Replacement
Shipper may not bid below the minimum applicable charge
or rate.
(5) The quantity desired not to exceed the quantity
contained in the Parcel, expressed on a Dth/d delivered
basis and greater than the minimum quantity acceptable
to Replacement Shipper.
(6) Whether or not Replacement Shipper is an affiliate of
the Releasing Shipper.
(7) A statement as to whether or not Replacement Shipper is
an affiliate of the Releasing Shipper.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 186
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.6 Bidding for a Parcel (Continued)
(b) Submitting a Bid (Continued)
(8) An affirmative statement that Replacement Shipper agrees
to be bound by the terms and conditions of Rate Schedule
FTS-1 and GTN's capacity release provisions in its
tariff.
(9) Whether the bid is a contingent bid and the
contingencies which must be satisfied by the date
specified by the Releasing Shipper in its posting of the
Parcel.
(c) Confirmation of Bids
The receipt of a valid bid by GTN will be Shipper's EBB
mailbox by GTN. It is the Replacement Shipper's sole
responsibility to verify the correctness of the submitted bid
and to take any corrective action necessary by resubmitting a
bid when notified of an invalid or incomplete bid by GTN via
the EBB. This must be done before the close of the Bid Period.
(d) Withdrawn or Revision of Bids
A previously submitted bid may be withdrawn or revised and
resubmitted at any time prior to the close of the Bid Period
with no obligation on the Replacement Shipper's part. In
accordance with NAESB Standard 5.3.15, Version 1.5, bids
cannot be withdrawn after the bid period ends. Resubmitted
bids must be equal to or greater in value than the initial
bids. Lower valued bids will be invalid. In accordance with
NAESB Standard 5.3.13, Version 1.5, bids should be binding
until written or electronic notice of withdrawal is received
by the capacity release service provider.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 187
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.7 Allocation of Parcels
(a) Primary Allocation
In accordance with NAESB Standard 5.3.3, Version 1.5, winning
bids for Parcels shall be awarded based on one of the
following three (3) options to be selected by the Releasing
Shipper when posting a Parcel:
Option 1 - Highest Rate Equivalent
Bids will be given priority based on the maximum rate bid as
represented by (1) a Replacement Shipper's bid of the
percentage of the maximum authorized reservation charge or a
volumetric equivalent of the maximum reservation charge
applicable to the Parcel on a 100% load factor basis, or (2) a
Replacement Shipper's bid in terms of absolute dollars and
cents per Dth. A bid queue will be maintained for each
individual Parcel.
Option 2 - Present Value
Bids will be given priority based on the net present value of
the bid according to the following formula:
(1 + i) (n) -1
Present Value per = P * R * --------------
i (1 + i) (n)
where: P = percent of the rate or charge that the Replacement
Shipper is willing to pay.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 188
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.7 Allocation of Parcels (Continued)
(a) Primary Allocation (Continued)
R = Rate or charge calculated as: The applicable maximum
authorized reservation charge(s) per Dth (or a volumetric
equivalent of the maximum reservation charge(s) applicable to
the Parcel on a 100% load factor basis) in effect at the time
of the bid for service from the same receipt point to the same
delivery point under the Releasing Shipper's rate schedule.
i = FERC's annual interest rate divided by 12.
n = number of periods for which the bidder wishes to contract,
not to exceed the maximum periods to be released by the
Releasing Shipper. For releases greater than or equal to one
month, the period is the number of months. For releases less
than one month the period is the number of days.
A bid queue will be maintained for each individual Parcel.
Option 3 - Net Revenue. Bids will be given priority based on
the net revenue for the term of the bid.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 189
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.7 Allocation of Parcels (Continued)
(a) Primary Allocation (Continued)
If Releasing Shipper does not specify an option for
determining best bid, Option 2 will be the default option
used.
Under all options, GTN will evaluate and rank all bids for
Parcels.
(b) Right of First Refusal
In the case of a Prearranged Shipper's bid for a Parcel with a
term equal to one month or greater, at a rate other than at
the highest valued bid, pursuant to the methodology specified
by the Releasing Shipper, if the bid submitted by a subsequent
Replacement Shipper exceeds the value of the Prearranged
Shipper's bid, the Prearranged Shipper will be allowed to
match the higher valued bid. The Prearranged Shipper will be
allowed a match period, as specified in Section 28.8, to match
the higher valued bid, otherwise, the allocation will be
awarded to subsequent Replacement Shipper(s) in accordance
with the primary and secondary allocation mechanisms.
(c) Secondary Allocation
To the extent there is more than one Replacement Shipper
submitting a winning bid, the Parcel shall be allocated based
on one of the following tie-breaker methodologies to be
selected by the Releasing Shipper: pro rata, lottery, or order
of submission (first come/first serve).
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 190
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.7 Allocation of Parcels (Continued)
(d) Confirmation of Allocation
Upon each completion of an allocation, the successful
Replacement Shipper(s) will be notified of the terms under
which they have contracted for the awarded Parcel. The
notification will be provided in the form of an e-mail to the
Replacement Shipper(s). The notice will include the
Replacement Shipper's Rate Schedule FTS-1 or LFS-1 service
agreement number and the pertinent terms of the Replacement
Shipper's bid as well as any additional terms specified by the
Releasing Shipper. The Releasing Shipper will be notified of
the terms under which its Parcel has been awarded. The
notification will be provided in the form of an e-mail to the
Releasing Shipper. The notification will include all of the
pertinent terms of the Releasing Shipper's parcel.
(e) Purging of Expired Bids
All unfulfilled bids, as well as any unfulfilled portions of
bids which receive a partial award, will become ineffective as
of the completion of bid reconciliation and the close of the
Bid Period. Each unsuccessful Replacement Shipper which has
bid shall receive a notice by e-mail indicating the
ineffectiveness of the bid.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 191
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.7 Allocation of Parcels (Continued)
(e) Purging of Expired Bids (Continued)
Information regarding all bids for all Parcels shall be
archived off-line before being purged from the system.
28.8 Scheduling of Parcels, Bids and Notifications
In accordance with NAESB Standard 5.3.2, Version 1.6, the following
timelines apply to capacity release transactions.
For biddable releases (less than 1 year):
- offers should be tendered by 12:00 P.M. CCT (10:00 A.M. PCT)
on a Business Day;
- open season ends no later than 1:00 P.M. CCT (11:00 A.M. PCT)
on a Business Day (evaluation period begins at 1:00 P.M. CCT
(11:00 A.M. PCT) during which contingency is eliminated,
determination of best bid is made, and ties are broken);
- evaluation period ends and award posting if no match required
at 2:00 P.M. CCT (12:00 P.M. PCT);
- match or award is communicated by 2:00 P.M. CCT (12:00 P.M.
PCT);
- match response by 2:30 P.M. CCT (12:30 P.M. PCT);
- where match is required, award posting by 3:00 P.M. CCT (1:00
P.M. PCT);
- contract issued within one hour of award posting (with a new
contract number, when applicable); nomination possible
beginning at the next available nomination cycle for the
effective date of the contract.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 192
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.8 Scheduling of Parcels, Bids and Notifications (Continued)
For biddable releases (1 year or more):
- offers should be tendered by 12:00 P.M. CCT (10:00 A.M.
PCT) four Business Days before award;
- open season ends no later than 1:00 P.M. CCT (11:00 A.M.
PCT) on the Business Day before timely nominations are
due (open season is three Business Days);
- evaluation period begins at 1:00 P.M. CCT (11:00 A.M.
PCT) during which contingency is eliminated,
determination of best bid is made, and ties are broken;
- evaluation period ends and award posting if no match
required at 2:00 P.M. CCT (12:00 P.M. PCT);
- match or award is communicated by 2:00 P.M. CCT (12:00
P.M. PCT);
- match response by 2:30 P.M. CCT (12:30 P.M. PCT);
- where match required, award posting by 3:00 P.M. CCT
(1:00 P.M. PCT);
- contract issued within one hour of award posting (with a
new contract number, when applicable); nomination
possible beginning at the next available nomination
cycle for the effective date of the contract.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 193
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.8 Scheduling of Parcels, Bids and Notifications (Continued)
For non-biddable releases:
Timely Cycle
- posting of prearranged deals not subject to bid are due
by 10:30 A.M. CCT (12:30 P.M. PCT);
- contract issued within one hour of award posting (with a
new contract number, when applicable); nomination
possible beginning at the next available nomination
cycle for the effective date of the contract.
Evening Cycle
- posting of prearranged deals not subject to bid are due
by 5:00 P.M. CCT (3:00 P.M. PCT);
- contract issued within one hour of award posting (with a
new contract number, when applicable); nomination
possible beginning at the next available nomination
cycle for the effective date of the contract.
Intraday 1 Cycle
- posting of prearranged deals not subject to bid are due
by 9:00 A.M. CCT (7:00 A.M. PCT);
- contract issued within one hour of award posting (with a
new contract number, when applicable); nomination
possible beginning at the next available nomination
cycle for the effective date of the contract.
Intraday 2 Cycle
- posting of prearranged deals not subject to bid are due
by 4:00 P.M. CCT (2:00 P.M. PCT);
- contract issued within one hour of award posting (with a
new contract number, when applicable); nomination
possible beginning at the next available nomination
cycle for the effective date of the contract.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 194
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.9 Capacity Recall and Reput
28.9(a) Capacity Recall
Releasing Shipper(s) may, to the extent permitted as a
condition of capacity release, recall released capacity
(scheduled or unscheduled) at the Timely Nomination
cycle and the Evening Nomination cycle, and recall
unscheduled released capacity at the Intra-Day 1 and
Intra-Day 2 Nomination cycles by providing notice to the
Transporter by the following times for each cycle: 8:00
A.M. CCT (6:00 A.M. PCT) for the Timely Nomination
cycle; 5:00 P.M. CCT (3:00 P.M. PCT) for the Evening
Nomination cycle; 8:00 A.M. (6:00 A.M. PCT) for the
Intra-Day 1 Nomination cycle; and 3:00 P.M. (1:00 P.M.
PCT) for the Intra-Day 2 Nomination cycle. Notification
to replacement shippers shall be provided by Transporter
within one hour of receipt of recall notification.
28.9(b) Capacity Reput
In accordance with NAESB Standard 5.3.7, Version 1.5,
capacity that has been recalled by the Releasing Shipper
may be reput to the Replacement Shipper in accordance
with the reput provisions of the release (See Section
28.3(o)). Shipper seeking to reput capacity shall notify
GTN of the reput by 8:00 A.M. Central Clock Time (6:00
A.M. PCT). It is the Releasing Shipper's obligation to
notify and secure any necessary agreement by the
Replacement Shipper to accept the reput under the terms
of the release prior to notifying GTN.
28.9(c) In accordance with NAESB Standard 5.3.8, Version 1.5,
reput method and rights should be specified at the time
of the deal. Reput method and rights are individually
negotiated between the Releasing Shipper and Replacement
Shipper.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 195
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.10 Crediting, Billing Adjustments and Refunds
(a) Eligibility
GTN shall provide revenue credits to any Releasing Shipper
which releases capacity to a Replacement Shipper pursuant to
the provisions of Paragraph 28. GTN and Shipper may, in
connection with a Negotiated Rate Agreement under a firm rate
schedule, agree upon payment obligations and crediting
mechanisms in the event of a capacity release that vary from,
or are in addition to, those set forth in this Section 28.10;
provided, however, that terms and conditions of service may
not be negotiated.
(b) Monthly Crediting Procedure
Revenue credits for released capacity shall be credited
monthly as an offset to a Releasing Shipper's reservation
charge (or the volumetric equivalent of the reservation charge
on a 100% load-factor basis applicable to the Releasing
Shipper. This shall also be referred to in this Paragraph 28.9
as the equivalent volumetric rate) payable to GTN under the
applicable rate schedule for the service that has been
released. GTN shall credit each month to the Releasing
Shipper's account 100% of the revenues from the charges
invoiced to the Replacement Shipper(s) for the reservation
charge (or equivalent volumetric rate).
(c) Billing Adjustments
GTN shall apply the revenues received from Replacement
Shippers first to the reservation charge (or equivalent
volumetric rate), next to the GRI reservation surcharge.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 196
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.10 Crediting, Billing Adjustments and Refunds (Continued)
(c) Billing Adjustments (Continued)
Should Replacement shipper default on payment to GTN of the
reservation charge (or equivalent volumetric rate) GTN shall
bill Releasing Shipper for such unpaid charges and apply
interest to such adjustments in accordance with the provisions
of Paragraph 8 of the Transportation General Terms and
Conditions.
(d) Excess Revenue Credits
Releasing Shipper is entitled to excess revenue credits
resulting when the reservation charge (or equivalent
volumetric rate) revenues actually received by GTN from the
Replacement Shipper(s) exceed the reservation charge (or
equivalent volumetric rate) revenues which would have been
received by GTN from the Releasing Shipper if capacity was not
released.
(e) Refunds
GTN shall track all changes in its rates approved by the
Commission. In the event the Commission orders refunds of any
such rates charged by GTN and previously approved, GTN shall
make corresponding refunds to all affected Shippers including
Shippers receiving capacity release service
In such instances when rates to Replacement Shippers are
reduced, GTN shall make corresponding adjustments to the
crediting of revenues to Releasing Shippers for the period
such refunds are payable.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 197
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.10 Crediting, Billing Adjustments and Refunds (Continued)
(f) In the event Releasing Shipper's Transportation Service
Agreement is terminated pursuant to these Transportation
General Terms and Conditions, and thirty (30) days notice has
been provided to Replacement Shipper(s), a Replacement Shipper
that currently holds temporary release capacity has the right
to elect to contract with GTN at the Replacement Shipper's MDQ
for the remaining term of its release contract and at the
lesser of (1) the Releasing Shipper's original contract rate,
or (2) the maximum recourse rate, provided that the
Replacement Shipper meets GTN's credit-worthiness standards
for Firm Transportation Service. The Replacement Shipper shall
make its election by the end of the thirty (30) day notice
period.
If a Replacement Shipper does not elect to contract with GTN
at its replacement MDQ for the remaining term of its release
contract and at the rate level that the Releasing Shipper
originally contracted for, GTN shall have the right to
terminate the Replacement Shipper's Transportation Service
Agreement following the election period and offer such
capacity through an open season posting that will subject the
capacity to competitive bidding. In the event Transporter
terminates service, Transporter may exercise all remedies
available to it hereunder, at law or in equity.
Replacement Shippers with prospective claims to temporary
release capacity will not have rights to such capacity.
Prospective claims to permanent releases of capacity will be
honored to the extent that a Replacement Shipper meets GTN's
credit-worthiness standards for Firm Transportation Service.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 198
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.11 Adoption of NAESB Capacity Release Standards
The following NAESB Standards are adopted by, and clarify, the
capacity release provisions set forth in this Section 28. Unless
otherwise specified, all standards are Version 1.5:
5.3.1, 5.3.4; 5.3.5; 5.3.9; 5.3.11; 5.3.12; 5.3.16; and 5.3.19.
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Sheet No. 199
Third Revised Volume No. 1-A
Reserved For Future Use
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 200
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
29. FLEXIBLE RECEIPT AND DELIVERY POINTS
29.1 Firm Service
(a) Addition of a Receipt Point
Any firm Shipper receiving service under Part 284 of the
Commission's regulations is entitled to use the receipt point
specified in its service agreement as a primary receipt point.
A firm Shipper may add a secondary receipt point at any time
during the life of the contract provided that secondary
receipt point is within the Shipper's Primary Path.
Firm Shippers who are billed under a reservation charge and a
delivery rate will continue to be billed reservation charges
based on the primary receipt point while delivery rates,
including fuel, will be calculated on the receipt point
actually used.
To the extent additional meter station capacity or other
facilities are required to effect the receipt point change,
GTN will construct the additional capacity consistent with
Paragraph 18.5.
(b) Changing a Receipt Point
A firm Shipper may change primary receipt points to a
different receipt point within its Original Primary Path but
will continue to be billed reservation charges based on the
original primary receipt point. Changes in receipt points will
be permitted provided sufficient receipt point capacity exists
at the receiving meter station and subject to any operating
constraints. To the extent additional meter station capacity
or other facilities are required to effect the receipt point
change, GTN will construct the additional capacity at the firm
Shipper's expense consistent with Paragraph 18.5.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 201
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
29. FLEXIBLE RECEIPT AND DELIVERY POINTS (Continued)
29.1 Firm Service (Continued)
(c) Addition of a Delivery Point
Each firm Shipper is entitled to an allocation of its MDQ to a
delivery point(s) as its primary delivery point(s).
A firm Shipper may add secondary delivery points at any time
during the life of the contract provided that the secondary
delivery points are within the Shipper's Primary Path. In this
case, the firm Shipper will continue to be billed any
applicable reservation charges based on the primary delivery
point; however, delivery rates, including fuel, will be
calculated based on the delivery point actually used.
A firm Shipper with primary deliveries allocated to a minor
delivery point may add secondary delivery points to its
contract provided that the addition of the secondary delivery
point does not materially impact service to other firm
Shippers.
To the extent additional meter station capacity is required to
effect the delivery point(s) change, and subject to any
operating constraints GTN will construct the additional
capacity consistent with Paragraph 18.5.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 202
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
29. FLEXIBLE RECEIPT AND DELIVERY POINTS (Continued)
29.1 Firm Service (Continued)
(d) Changing a Delivery Point
A firm Shipper may change primary delivery points to a
different delivery point within its Primary Path but will
continue to be billed reservation charges based on the
original primary delivery point. A firm shipper may not change
its Primary Delivery Point to a location that would change the
direction of flow of the Shipper's Primary Path as defined in
Section 1.31 of this Gas Tariff. Changes in delivery points
will be permitted provided sufficient delivery point capacity
exists at the delivery meter station. To the extent additional
meter station and subject to any operating constraints
capacity is required to effect the delivery point change, GTN
will construct the additional capacity at the firm Shipper's
expense consistent with Paragraph 18.5.
A firm Shipper with primary deliveries allocated to a minor
delivery point may change primary delivery points in its
contract provided that the change of primary delivery point
does not materially impact service to other firm Shippers.
29.2 Interruptible Service
(a) Change of a Receipt/Delivery Point
Interruptible Shippers will have the right to flexible receipt
and delivery points, at a lower priority than firm or released
services.
(b) Addition of a Receipt or Delivery Point
Except as otherwise provided in this paragraph, Shippers
receiving service under any Part 284 interruptible
transportation rate schedule shall be deemed to have access to
all receipt and delivery points available under the
interruptible transportation rate schedule under which that
Shipper is taking service.
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Sheet Nos. 203 - 207
Third Revised Volume No. 1-A
Reserved For Future Use
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 208
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
31. NEGOTIATED RATES
31.1 Availability. Notwithstanding anything to the contrary contained in
this Tariff, including the provisions of the rate schedules
contained herein, GTN and Shipper may mutually agree to a Negotiated
Rate under any Agreement, provided that Shipper has not acquired its
capacity on a temporary basis under the capacity release provisions
of Paragraph 28 of these Transportation General Terms and
Conditions. If a portion of the capacity under any existing
Agreement is agreed to be priced at Negotiated Rates, the existing
maximum or discounted tariff rates will continue to apply to the
capacity not subject to the Negotiated Rates. As a recourse to the
Negotiated Rates, any Shipper may receive service at applicable
maximum tariff rates, including surcharges. The Negotiated Rate may
be less than, equal to, or greater than the maximum and minimum
applicable tariff rate; may be based on a rate design other than
straight-fixed variable; and may include a minimum quantity. GTN's
Recourse Rates shall be available to any Shipper that does not agree
to a Negotiated Rate. Recourse Rates are set forth on the Rate
Sheets within this Tariff.
GTN and a Shipper may agree to a Negotiated Rate for the entire term
of a Transportation Service Agreement, or may agree to a Negotiated
Rate for some portion of the term of a Transportation Agreement. GTN
and Shipper may agree to apply the Negotiated Rate to all or a
portion of capacity under Shipper's Firm Transportation Service
Agreement.
During the period a Negotiated Rate is in place, the Negotiated Rate
shall govern and apply to the Shipper's service under the Negotiated
Rate Agreement and the otherwise applicable rate, rate component,
charge or credit which the parties have agreed to replace with the
Negotiated Rate shall not apply to, or be available to, the Shipper.
Only those rates, rate components, charges or credits identified by
GTN and Shipper in writing as being superceded by a Negotiated Rate
shall be ineffective during the period that the Negotiated Rate is
effective; all other rates, rate components, charges, or credits
prescribed, required, established or imposed by this Rate Schedule
or Tariff shall remain in effect. At the end of the period during
which the Negotiated Rate is in effect, the otherwise applicable
tariff rates or charges shall govern any service provided to
Shipper.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 209
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
31. NEGOTIATED RATES (Continued)
31.2 Filing requirement. Unless GTN executes and files a non-conforming
agreement, GTN will submit to the Commission on or before the
commencement of service under a Negotiated Rate Contract a tariff
sheet stating the exact legal name of the Shipper, Negotiated Rate,
the rate schedule, the receipt and delivery points, the contract
quantities and, where applicable, the Negotiated Rate Formula
underlying a Negotiated Rate for any Negotiated Rate Agreement. The
filing will contain a provision that the Negotiated Rate Agreement
does not deviate any material respect from the Form of Agreement in
the tariff for the applicable rate schedule.
31.3 Rate Treatment. GTN shall have the right to seek in future general
rate proceedings discount-type adjustments in the design of its
rates related to Negotiated Rate Agreements that were converted from
pre-existing discount Agreements to Negotiated Rate Agreements. In
those situations, GTN may seek a discount-type adjustment based upon
the greater of: (a) the Negotiated Rate revenue received; or (b) the
discounted tariff rate revenues which otherwise would have been
received.
31.4 Limitations. This Paragraph 31 does not authorize GTN to negotiate
terms and conditions of service.
31.5 Capacity Release. Negotiated Rates do not apply as the price cap for
capacity release transactions. Further, capacity release bids must
conform to GTN's applicable tariff rates, as further described in
Section 28.6(b)(4) of these Transportation General Terms and
Conditions.
31.6 Accounting Treatment. GTN shall maintain separate records for all
revenues associated with Negotiated Rate transactions. Transactions
related to Negotiated Rate Agreements which originated as a
pre-existing discounted service and were subsequently converted will
be recorded separately from those originating as Negotiated Rate
Agreements. GTN shall record each volume transported, billing
determinants, rate component, surcharge, and the revenue associated
with its Negotiated Rates so that this information can be filed,
separately identified, and separately totaled, as part of and in the
format of Statements G, I, and J in GTN's next general rate change
application.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 210
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITION
(Continued)
32. EQUALITY OF TRANSPORTATION SERVICE
GTN hereby states that the terms and conditions of service for all
unbundled sales and transportation services provided in GTN's FERC Gas
Tariff, Third Revised Volume No. 1-A, are provided on a basis that is
equal in quality for all Shippers. All Shippers can access all sellers of
gas and receive the same quality of service on GTN whether their gas
supplies are purchased from GTN or any other seller. Furthermore, no
preference is accorded to any affiliate of GTN for sales and
transportation services provided by GTN.
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 211
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
33. RIGHT OF FIRST REFUSAL UPON TERMINATION OF FIRM SHIPPER'S SERVICE
AGREEMENT
Firm Shippers (original capacity holders) under GTN's firm transportation
rate schedules of Third Revised Volume No. 1-A who hold capacity for terms
greater than or equal to one year at the maximum authorized reservation
charge or rate shall have the right of first refusal at the expiration of
their service agreements, subject to the following procedures. Original
capacity holders must notify GTN one year prior to the primary expiration
date of their service agreements whether they elect to terminate or not to
terminate the service agreements.
One year prior to the expiration of the service agreement, GTN will post a
notice on its EBB that the original capacity holder's service agreement
will expire and whether the original capacity holder has either elected or
not elected to terminate.
33.1 In the event original capacity holder elects termination, GTN shall
subject this capacity to a bidding process. GTN will commence open
bidding no later than 3 months prior to the service agreement
expiration. The bid period will be no less than 5 business days in
duration. GTN will announce the bid winner(s) as soon as practicable
after the close of the bid period, provided, however, that GTN will
have no obligation to accept any bid(s) at rates less than the
maximum applicable rate in effect. Tied bids will be awarded on a
pro rata basis. Winning Shipper(s) and GTN must execute a new firm
transportation service agreement prior to service commencement. New
long-term Shippers will be subject to the highest incremental fuel
rate on the GTN system where such fuel rate otherwise applies to
expansion Shippers on the GTN system.
33.2 In the event original capacity holder does not elect termination,
GTN will commence open bidding no later than 3 months prior to the
service agreement expiration. The bid period will be no less than 5
business days in duration. GTN will notify the original capacity
holder of the highest bid(s) as soon as practicable, provided,
however, that GTN will have no obligation to accept any bid(s) at
rates less than the maximum applicable rate in effect. In the event
that GTN does not receive any acceptable bids, the original capacity
holder shall not be entitled to continue to receive transportation
service upon the expiration of its contract except by agreeing to
pay the maximum applicable tariff rate. If GTN accepts any bid(s)
the original capacity holder will have 2 weeks from the date of
notice
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 212
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
33. RIGHT OF FIRST REFUSAL UPON TERMINATION OF FIRM SHIPPER'S SERVICE
AGREEMENT (Continued)
33.2 (Continued)
to match the highest bid(s), provided that the original capacity
holder shall not have to match any bid rate higher than the maximum
applicable rate and shall not be subject to the highest incremental
rate on the GTN system. GTN will announce the winning bid(s) as soon
as practicable after the close of the match period. If the original
capacity holder matches the highest bid(s), the capacity is awarded
to the original capacity holder. If the original capacity holder
does not match the highest bid(s), the capacity shall be awarded to
the highest acceptable bid(s). If there is more than one winning
bid, GTN shall award capacity on a pro rata basis. New long-term
Shippers will be subject to the highest incremental fuel rate on the
GTN system where such fuel rate otherwise applies to expansion
shippers on the GTN system. New Shippers must execute a firm
transportation service agreement with GTN prior to service
commencement. Original capacity holder is allowed to retain a
portion of its capacity by matching price and term according to the
procedure outlined in this provision, provided that the original
contract path is maintained.
33.3 Bids shall be evaluated on the net present value incorporating price
and term. The net present value of revenues to be received from a
Shipper bidding a Negotiated Rate shall be calculated using the
proposed reservation charge revenues and any proposed usage charge
revenues guaranteed by a minimum volume commitment or otherwise.
Where the Negotiated Rate is based on a Negotiated Rate Formula, the
future value of which cannot be determined at the time of the
bidding, GTN shall estimate the future revenues to be received under
the Negotiated Rate Formula using currently available data.
33.4 If there are no competing bids other than that of the original
capacity holder, the rate and terms of continuing service is to be
negotiated between existing capacity holder and GTN. In addition, in
this instance, if the existing capacity holder agrees to pay the
maximum authorized rate, the existing capacity holder may determine
the term it desires and GTN must extend its contract to the existing
capacity holder accordingly.
33.5 Shippers who terminate their service agreements are not liable for
any reservation charges or other charges applicable to the new
Shipper contracting for this capacity.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff First Revised Sheet No. 213
Third Revised Volume No. 1-A Superseding
Original Sheet No. 213
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
33. RIGHT OF FIRST REFUSAL UPON TERMINATION OF FIRM SHIPPER'S SERVICE
AGREEMENT (Continued)
33.6 Only bona fide bids will be accepted. A bona fide bid offer shall
be: (a) submitted via GTN's EBB; (b) accepted in principle; and (c)
pursuant to an arms-length transaction. If the Service Agreement is
not executed within 30 days, the request for capacity shall expire
without prejudice to the prospective Shipper's right to submit a new
request for capacity. GTN shall then notify the Shipper via the EBB
of the acceptable offer, if any, having the next greatest economic
value in accordance with the provisions of this Paragraph. If there
is no other acceptable offer, the Shipper may continue service in
accordance with this Paragraph.
33.7 Right of first refusal rights held by Shipper continue to apply
following an election of termination pursuant to existing evergreen
language contained in Shipper's Firm Transportation Service
Agreement. A Shipper that holds evergreen rights in addition to a
right of first refusal under a Firm Transportation Service Agreement
must first elect termination under the evergreen provision in order
to initiate the right of first refusal process. When either GTN or
Shipper elects termination under an evergreen provision, GTN shall
not be obligated to continue Shipper's evergreen rights on a
contract extended through the right of first refusal process.
Shippers may exercise their right of first refusal rights consistent
with this Paragraph 33.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 22, 2003 Effective on: November 21, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Sheet Nos. 214 - 215
Third Revised Volume No. 1-A
Reserved For Future Use
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 216
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
34. ELECTRONIC COMMUNICATIONS
34.1 Electronic Bulletin Board
GTN shall maintain an Electronic Bulletin Board (EBB) which will provide a
range of electronic pipeline services and information to all parties on a
nondiscriminatory basis. The EBB is available to any party that has
compatible equipment for electronic communication and transmission of
data. Access to the EBB is obtained by contacting GTN's EBB Administrator
at 503/833-4310 and requesting a user identification. The EBB will operate
24 hours a day; however, certain functions may be limited to specific
operating times during the business day. There is no usage fee associated
with or charged by GTN for using the EBB.
GTN shall exercise reasonable efforts to ensure the accuracy and security
of information presented on the EBB.
34.2 Services Available through the EBB.
GTN's EBB provides information and services to allow shippers to perform a
variety of business functions on GTN's system. Information and services
include:
(a) Capacity Release
The EBB provides the functionality for all capacity release
activities, allowing a Shipper to post capacity for release, review
capacity available for release, bid on capacity posted for release,
and similar activities. Capacity Release activities include:
- Posting capacity release offers
- Bidding on posted capacity release offers
- Review/download available parcel data
- Review/download historic capacity release data.
(b) Nominations and Confirmations
The EBB provides the functionality for a shipper to create or modify
a nomination, receive confirmations, and gain information about the
status of the shipper's account.
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 217
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
34. ELECTRONIC COMMUNICATIONS (Continued)
34.2 Services Available Through the EBB (Con't).
(c) Shipper Account Information
The EBB allows a shipper to obtain a variety of information about
its account.
(d) Operations, Information and Bulletins
The EBB provides operational bulletins and maintenance schedules,
capacity availability, and credit information.
(e) Want Adds
The EBB provides a forum for Shippers to solicit interest in
acquiring or releasing capacity.
(f) Requests For Service
The EBB provides the transportation service request form. This form
must be completed in order for a shipper to request new service or
receive authorization to bid for capacity posted for release.
(g) Tariff and Rates
The EBB provides GTN's Tariff in searchable form, as well as a
summary of GTN's rates for service at major paths.
(h) Available Firm Service
The EBB provides information about GTN's available firm service.
(i) Marketing Affiliate Information
The EBB provides the marketing affiliate information required by the
Commission's regulations.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 218
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
34. ELECTRONIC COMMUNICATIONS (Continued)
34.2 Services Available Through the EBB (Con't)
(j) Complaint Procedures
The EBB outlines procedures for filing complaints.
(k) File Download Area
The EBB allows a shipper to directly download a variety of
information, as required by Commission Regulations or as
otherwise made available by GTN from time to time.
(l) Help & Contact Information
The EBB provides help and contact information.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 219
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
34. ELECTRONIC COMMUNICATIONS (Continued)
34.3 Historical Information
GTN will back up daily transaction information on the EBB. This
historical information shall be kept for a three-year period and may
be archived off-line. Information that may be accessed includes
Parcel information and bid information associated with that Parcel,
including the identity of the winning bid and bidder.
GTN will provide access to historical data in one of the following
manners:
(a) Direct access by parties via the EBB. In such cases, data may
be viewed, down loaded to a computer or printed by the party.
(b) GTN may elect to archive historical data off-line. Parties may
access this data by sending a written or an electronic mail
request to the GTN Capacity Release System Administrator
requesting such historical data. GTN will make such
information available to Shippers.
34.4 GTN Internet Web Site
GTN maintains an Internet Web Site at WWW.PGE-NW.COM.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 220
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
34. ELECTRONIC COMMUNICATIONS (Continued)
34.5 Electronic Data Interface
GTN shall maintain an electronic data interface ("EDI") as required
by the standards for electronic delivery mechanisms promulgated by
GISB and incorporated in Paragraph 40 of this tariff. EDI is
available to any party with access to compatible equipment for
electronic communication and transmission of data in accordance with
the GISB standards. Access to GTN's EDI system is obtained by
contacting GTN's Gas Transportation Department at 503-833-4300.
35. Reserved
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 221
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
35. Competitive Equalization Surcharge Revenue Credit
(a) Applicability. Competitive Equalization Surcharge ("CES") revenues
received by GTN will be credited to Eligible Shippers as set forth
below.
(b) Eligible Shippers. A Shipper shall be eligible to receive a credit
of CES revenues if it takes service under Rate Schedule FTS-1,
LFS-1, or ITS-1.
(c) Timing of Credits. Within 45 days after November 1st of each year,
GTN shall determine the total amount of the CES revenues received
during the previous 12-month period and the portion of such amount
to be credited to each Eligible Shipper as described below. Such
revenue credits shall be reflected as a credit billing adjustment on
the next bills rendered to the Eligible Shippers. In the event that
such credit billing adjustment would result in a net credit on the
total bill to any Shipper, or in the event the Eligible Shipper no
longer is a shipper on GTN's system, GTN will pay to such Shipper
its share of the CES revenues within 15 days after determination of
the amount of the credit due to the Shipper.
(d) Allocation Method. CES revenues shall be credited to each Eligible
Shipper based on the proportion of the revenues received during the
12-month period from each Eligible Shipper for service rendered
under Rate Schedules FTS-1, LFS-1 and ITS-1 (exclusive of service
rendered on the Extensions) divided by the total revenue received
from Eligible Shippers during such period.
(e) Payment of Interest. GTN shall pay interest to Eligible Shippers on
any revenue credits from the date such credits accrue. Such interest
shall be calculated based upon the methodology of interest specified
in Section 154.501(d) of the Commission's Regulations.
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 222
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
35A. CREDITING OF INTERRUPTIBLE TRANSPORTATION REVENUES ON EXTENSIONS
(1) Interruptible Transportation Revenue Credits on Coyote Springs
Extension
(a) Applicability. Revenue credits from interruptible
transportation revenues received by GTN from Rate Schedule
ITS-1 (E-3) Shippers shall be provided to GTN's firm Shippers
under Rate Schedules FTS-1 (E-3) ("Eligible Shippers"),
excluding Shippers receiving service under a Capacity Release
Service Agreement.
(b) Crediting Percentage. GTN shall credit to Eligible Shippers 90
percent of interruptible transportation revenues received
during each 12-month period, commencing November 1st of each
year, but only to the extent that such transportation revenues
exceed the amount of fixed costs which were allocated to
interruptible transportation (Cost Allocation Amount) by GTN
as part of designing GTN's effective transportation rates
during such 12-month period. To the extent that GTN is
required to provide interruptible transportation revenue
credits during any period during which this Paragraph 35A
shall be or shall have been in effect for less than 12
months,a "Short Period", GTN shall pro rate the Cost
Allocation Amount by the number of days during such Short
Period as compared to the total number of days in such 12
months. To calculate the interruptible transportation
revenue credit due under the provisions of this paragraph,
where applicable, such pro rated Cost Allocation Amount shall
be compared to GTN's actual interruptible revenues for the
Short Period.
(c) Timing of Credits. Within 45 days after November 1st of each
12-month period or after the end of a Short Period, if
applicable, GTN shall determine the total amount of the
applicable Rate Schedule ITS-1 (E-3) revenues received during
the 12-month period or Short Period and the distribution of
the interruptible revenue credits due to Eligible Shippers as
described below. Such revenue credits shall be reflected as a
credit billing adjustment in the next invoices rendered to the
Eligible Shippers. In the event that such credit billing
adjustment would result in a credit total invoice to any
Shipper, GTN will refund the excess credit billing adjustment
to the Shipper in cash within 15 days after determination of
the amount of the credit due to the Shipper.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 223
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
35A. CREDITING OF INTERRUPTIBLE TRANSPORTATION REVENUES ON EXTENSIONS
(Continued)
(1) Interruptible Transportation Revenue Credits on Coyote Springs
Extension (Continued)
(d) Exclusion. Revenue credits shall not be awarded for that
portion of interruptible revenues that are attributable to:
(1) the recovery by GTN of variable costs, which portion shall
be equal to the minimum usage charge for Rate Schedule ITS-1
(E-3), and (2) relate to other volumetric surcharges such as
GRI and ACA.
(e) Distribution Method. Interruptible transportation revenue
credits shall be credited to each Eligible Shipper on a pro
rata basis in proportion to the reservation revenues received
during the 12-month period or Short Period from each Eligible
Shipper divided by the total reservation revenue for each
Eligible Shipper received during such period. The reservation
revenues shall include the reservation charges which the
Eligible Shippers actually pay prior to the distribution of
all revenue credits, and including reservation charges
applicable to capacity which was released into GTN's Capacity
Release Programs during the 12-month period year or Short
Period by the Eligible Shipper.
(f) GTN shall pay interest to Eligible Shippers on any revenue
credits from the date such credits accrue. Such interest shall
be calculated based upon the rate of interest specified in
Section 154.67(c) of the Commission's regulations.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 224
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
35A. CREDITING OF INTERRUPTIBLE TRANSPORTATION REVENUES ON EXTENSIONS
(Continued)
(2) Interruptible Transportation Revenue Credits on Medford Extension
(a) Applicability. Revenue credits from interruptible
transportation revenues received by GTN from Rate Schedule
ITS-1 (E-1) Shippers shall be credited to the deferred account
for Washington Water Power Company's WP Natural Gas subsidiary
in accordance with the mechanism approved by Order of June 1,
1995, 71 FERC Paragraph 61,268.
(b) Crediting Percentage. GTN shall credit to the deferred account
90 percent of interruptible transportation revenues received
during each 12-month period, commencing November 1st of each
year, but only to the extent that such transportation revenues
exceed the amount of fixed costs which were allocated to
interruptible transportation (Cost Allocation Amount) by GTN
as part of designing GTN's effective transportation rates
during such 12-month period. To the extent that GTN is
required to provide interruptible transportation revenue
credits during any period during which this Paragraph 35A
shall be or shall have been in effect for less than 12 months,
a "Short Period", GTN shall pro rate the Cost Allocation
Amount by the number of days during such Short Period as
compared to the total number of days in such 12 months. To
calculate the interruptible transportation revenue credit due
under the provisions of this paragraph, where applicable, such
pro rated Cost Allocation Amount shall be compared to GTN's
actual interruptible revenues for the Short Period.
(c) Exclusion. Revenue credits shall not be awarded for that
portion of interruptible revenues that are attributable to the
recovery by GTN of variable costs, which portion shall be
equal to the minimum usage charge for Rate Schedule ITS-1
(E-1).
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 225
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
36. DISCOUNT POLICY
36.1 GTN may from time to time offer a discount from the maximum applicable
rate for service under any service agreement governed by this FERC Gas
Tariff. If and when GTN offers a discount, such discount shall first be
applied to the GRI Surcharge and last to the base tariff rate.
36.2 Types Of Discounts
From time to time, GTN and Shipper may agree in writing on a level of
discount of the otherwise applicable rates and charges in addition to a
basic discount from the maximum rates. For example, GTN may provide a
specific discount rate based on:
1) achievement of a specified quantity levels (including quantity
levels above, below, or equal to a specified level);
2) specified time periods;
3) specified points of receipt, points of delivery, supply areas,
defined geographic areas; or transportation paths; or
4) a specified relationship to the quantities actually transported
(i.e., that the rates shall be adjusted in a specified relationship
to the quantities actually transported).
In all circumstances the discounted rate shall be between the maximum rate
and the minimum rate applicable to the service provided.
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Sheet No. 226
Third Revised Volume No. 1-A
Reserved For Future Use
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 227
Third Revised Volume No. 1-A
GENERAL TERMS AND CONDITIONS
(Continued)
37. ADJUSTMENT MECHANISM FOR FUEL, LINE LOSS, AND OTHER UNACCOUNTED FOR GAS
PERCENTAGES
The effective fuel and line loss percentages under Rate Schedules FTS-1
and ITS-1 shall be adjusted downward to reflect reductions and may be
adjusted upward to reflect increases in fuel usage and line loss in
accordance with this Section 37.
37.1 Computation of Effective Fuel and Line Loss Percentage
The effective fuel and line loss percentage shall be the sum of the
current fuel and line loss percentage and the fuel and line loss
surcharge percentage.
37.2 The Current Fuel and Line Loss Percentage
(a) For each month, the current fuel and line loss percentage
shall be determined in accordance with Section 37.2(c) hereof.
The current fuel and line loss shall be effective from the
first day of such month and shall remain in effect for the
month.
(b) The current fuel and line loss percentage to be applicable for
the month shall be posted on GTN's Electronic Bulletin Board
not less than seven (7) days prior to the beginning of the
month.
(c) The current fuel and line loss percentage for the month shall
be determined on the basis of (1) the estimated quantities of
gas to be received by GTN for the account of Shippers during
such month and (2) the projected quantities of gas that shall
be required for fuel and line loss during such month, adjusted
for overrecoveries or underrecoveries of fuel and line loss
during such month preceding the month in which the current
fuel and line loss percentage is posted; provided, that the
percentage shall not exceed the maximum current fuel and line
loss percentage and shall not be less than the minimum current
fuel and line loss percentage set forth on the Statement of
Effective Rates and Charges.
(Continued)
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 228
Third Revised Volume No. 1-A
GENERAL TERMS AND CONDITIONS
(Continued)
37. ADJUSTMENT MECHANISM FOR FUEL, LINE LOSS AND OTHER UNACCOUNTED FOR GAS
PERCENTAGES (Continued)
37.2 The Current Fuel and Line Loss Percentage (Continued)
(d) At least thirty (30) days prior to July 1 and January 1, GTN
shall file with the Commission schedules supporting the
current fuel and line loss percentages applicable during the
six (6) months ending April 30 and October 31, respectively.
37.3 The Fuel and Line Loss Surcharge Percentage
(a) For each six (6) month period beginning July 1 and January 1,
the fuel and line loss surcharge percentage shall be
determined in accordance with Section 37.3(c) hereof. The fuel
and line loss surcharge percentage shall become effective on
July 1 and January 1 and shall remain in effect for the six
(6) month period ending December 31 and June 30, respectively.
(b) At least thirty (30) days prior to each July 1 and January 1,
GTN shall file with the Commission and post, as defined by
Section 154.2(d) of the Commission's regulations, the fuel and
line loss surcharge percentage, together with supporting
documentation.
(c) The fuel and line loss percentage shall be computed by (i)
determining GTN's actual fuel and line loss for the six (6)
month period ending April 30, if the effective date is July 1,
or October 31, if the effective date is January 1, (ii)
subtracting the actual quantities retained by GTN during such
six (6) month period, and (iii) dividing the result by the
estimated quantities of gas to be delivered by GTN for the
account of Shippers during the six month period beginning with
the effective date of the fuel and line loss surcharge
percentage. If the percentage so determined is 0.0001% or
less, the fuel and line loss surcharge percentage shall be
deemed to be zero.
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 229
Third Revised Volume No. 1-A
GENERAL TERMS AND CONDITIONS
(Continued)
38. INCREMENTAL FUEL REALLOCATION MECHANISM
When at least one incremental fuel surcharge is currently in effect on the
GTN system under this FERC Gas Tariff, new Shippers, taking either
long-term firm (LTF) capacity that is available on the GTN system or LTF
capacity that is permanently released pursuant to Paragraph 28 of these
General Terms and Conditions, will be subject to the highest incremental
fuel rate where such fuel rate otherwise applies to expansion Shippers on
the GTN system. LTF capacity that is available on the GTN system includes,
but is not limited to: capacity that is subject to the right of first
refusal process where the existing Shipper has elected to terminate its
contract pursuant to Paragraph 33.1 of these General Terms and Conditions;
capacity that is subject to the right of first refusal process where the
existing Shipper elects not match the highest bid(s) pursuant to Paragraph
33.2; and capacity that has returned to the pipeline because of Shipper
default or other contract termination.
The fuel rate that applies to new LTF Shipper(s) will be determined by the
following formula, where Incremental Fuel represents the fuel assumption
(in Dth) supporting the original incremental fuel rate associated with a
particular expansion project and Incremental Dth-miles represents all
capacity currently subject to the associated incremental fuel surcharge.
Incremental Fuel (Dth)
-------------------------------------------------
Incremental Dth-miles + New LTF Shipper Dth-miles
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 230
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
39. SALES OF EXCESS GAS
GTN may from time to time purchase or sell gas on an interruptible basis
at its Stanfield or Kingsgate receipt points as necessary to manage system
pressure and maintain system integrity Prior to purchasing or selling gas
pursuant to this section, GTN shall post notice of its intent to purchase
or sell gas through its EBB. Purchase or sale of gas shall be made on a
nondiscriminatory basis.
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 231
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
40. Gas Industry Standards
In addition to the NAESB standards incorporated within the text of other
provisions of this FERC Gas Tariff, GTN incorporates by reference the
following standards. NAESB Standards 1.3.54, 1.3.61, 1.3.63, and 2.3.34
are Version 1.4. NAESB Datasets 1.4.6, 5.4.1, 5.4.2, 5.4.3, 5.4.4, 5.4.7,
5.4.8, 5.4.9, 5.4.13, 5.4.14, 5.4.15, 5.4.18, and 5.4.19 are Version 1.5.
Unless otherwise specified, all other standards listed below are Version
1.6:
0.3.1; 1.2.13; 1.2.14; 1.2.15; 1.2.16; 1.2.17; 1.2.18; 1.2.19; 1.3.3;
1.3.4; 1.3.15; 1.3.17; 1.3.18; 1.3.20; 1.3.21; 1.3.24; 1.3.25; 1.3.26;
1.3.27; 1.3.28; 1.3.29; 1.3.30; 1.3.31; 1.3.32; 1.3.33; 1.3.34; 1.3.35;
1.3.36; 1.3.37; 1.3.38; 1.3.39; 1.3.40; 1.3.41; 1.3.42; 1.3.43; 1.3.44;
1.3.45; 1.3.46; 1.3.47; 1.3.48; 1.3.49; 1.3.50; 1.3.51; 1.3.52; 1.3.53;
1.3.54; 1.3.55; 1.3.56; 1.3.57; 1.3.58; 1.3.59; 1.3.60; 1.3.61; 1.3.62;
1.3.63; 1.3.64; 1.3.65; 1.3.66; 1.3.67; 1.3.68; 1.3.69; 1.3.70; 1.3.71;
1.3.72; 1.3.73; 1.3.74; 1.3.75; 1.3.76; 1.3.77; 1.3.78; 1.3.79; 1.4.1;
1.4.2; 1.4.3; 1.4.4; 1.4.5; 1.4.6; 1.4.7; 2.1.5; 2.2.2; 2.2.3; 2.3.1;
2.3.2; 2.3.3; 2.3.4; 2.3.5; 2.3.6; 2.3.8; 2.3.10; 2.3.12; 2.3.13; 2.3.15;
2.3.16; 2.3.17; 2.3.18; 2.3.19; 2.3.20; 2.3.21; 2.3.22; 2.3.23; 2.3.24;
2.3.25; 2.3.26; 2.3.27; 2.3.28; 2.3.31; 2.3.32; 2.3.33; 2.3.34; 2.3.35;
2.3.36; 2.3.37; 2.3.38; 2.3.39; 2.3.40; 2.3.41; 2.3.42; 2.3.43; 2.3.44;
2.3.45; 2.3.46; 2.3.47; 2.3.48; 2.3.49; 2.3.50; 2.4.1; 2.4.3; 2.4.4;
2.4.5; 2.4.6; 2.4.7; 2.4.8; 2.4.9; 2.4.10; 2.4.11; 2.4.12; 2.4.13; 2.4.14;
2.4.15; 2.4.16; 3.3.1; 3.3.2; 3.3.3; 3.3.4; 3.3.5; 3.3.6; 3.3.7; 3.3.8;
3.3.9; 3.3.10; 3.3.11; 3.3.12; 3.3.13; 3.3.16; 3.3.18; 3.3.19; 3.3.20;
3.3.21; 3.3.22; 3.3.23; 3.3.24; 3.3.25; 3.3.26; 3.4.1; 3.4.2; 3.4.4;
4.2.20; 4.3.1; 4.3.2; 4.3.3; 4.3.5; 4.3.6; 4.3.7; 4.3.8; 4.3.9; 4.3.10;
4.3.11; 4.3.12; 4.3.13; 4.3.14; 4.3.15; 4.3.16; 4.3.17; 4.3.18; 4.3.19;
4.3.20; 4.3.21; 4.3.22; 4.3.23; 4.3.24; 4.3.25; 4.3.26; 4.3.27; 4.3.28;
4.3.29; 4.3.30; 4.3.31; 4.3.32; 4.3.33; 4.3.34; 4.3.35; 4.3.36; 4.3.37;
4.3.38; 4.3.39; 4.3.40; 4.3.41; 4.3.42; 4.3.43; 4.3.44; 4.3.45; 4.3.46;
4.3.47; 4.3.48; 4.3.49; 4.3.50; 4.3.51; 4.3.52; 4.3.53; 4.3.54; 4.3.55;
4.3.56; 4.3.57; 4.3.58; 4.3.59; 4.3.60; 4.3.61; 4.3.62; 4.3.63; 4.3.64;
4.3.65; 4.3.66; 4.3.67; 4.3.68; 4.3.69; 4.3.70; 4.3.71; 4.3.72; 4.3.73;
4.3.74; 4.3.75; 4.3.76; 4.3.78; 4.3.79; 4.3.80; 4.3.81; 4.3.82; 4.3.83;
4.3.84; 4.3.85; 4.3.86; 4.3.87; 4.3.88; 5.3.10; 5.3.17; 5.3.18; 5.3.20;
5.3.21; 5.3.22; 5.3.23; 5.3.24; 5.3.25; 5.3.28; 5.3.29; 5.3.30; 5.3.31;
5.3.32; 5.3.33; 5.3.34; 5.3.35; 5.3.36; 5.3.37; 5.3.38; 5.3.39; 5.3.40;
5.3.41; 5.3.42; 5.3.43; 5.3.44; 5.3.45; 5.3.46; 5.3.47; 5.3.48; 5.3.49;
5.3.50; 5.3.51; 5.3.52; 5.3.53; 5.3.54; 5.3.55; 5.3.56; 5.3.57; 5.3.58;
5.4.1; 5.4.2; 5.4.3; 5.4.4; 5.4.5; 5.4.6; 5.4.7; 5.4.8; 5.4.9; 5.4.10;
5.4.12; 5.4.13; 5.4.14; 5.4.15; 5.4.16; 5.4.17; 5.4.18 and 5.4.19.
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003
Gas Transmission Northwest Corporation
FERC Gas Tariff Original Sheet No. 231
Third Revised Volume No. 1-A
Reserved For Future Use
Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003 Effective on: October 6, 2003