1
Exhibit 10.5
TRANSPORTATION SERVICE AGREEMENT AS AMENDED AND RESTATED
(Conversion from Firm Sales Service)
THIS AGREEMENT was made and entered into as of the 10th day of
October, 1990, and is amended and restated as of this 1st day of November,
1993, by and between EL PASO NATURAL GAS COMPANY, a Delaware corporation,
hereinafter referred to as "El Paso," and PACIFIC GAS AND ELECTRIC COMPANY, a
California corporation, hereinafter referred to as "Shipper."
WHEREAS, El Paso owns and operates a natural gas transmission system;
and
WHEREAS, Shipper owns and operates a natural gas distribution system
situated within the State of California; and
WHEREAS, El Paso has a blanket certificate authorizing transportation
pursuant to Subpart G of Part 284 of the Regulations promulgated by the Federal
Energy Regulatory Commission ("Commission"); and
WHEREAS, El Paso and Shipper now desire to amend and restate this
Agreement so as to remove those provisions which provide for intermediate
third-party transportation; and
WHEREAS, this Agreement, as amended and restated, provides for the
transportation on a firm basis by El Paso of certain quantities of natural gas
for Shipper from points of receipt located in various states to an existing
delivery point located at the borderline between the States of Arizona and
California near Topock, Arizona, pursuant to Subpart G of Part 284 of the
Commission's Regulations;
NOW THEREFORE, in consideration of the representations, covenants and
conditions herein contained, El Paso and Shipper agree as of the date first
above written as follows:
ARTICLE I
GAS TO BE TRANSPORTED
1.1 Subject to the terms and provisions of this Agreement and of
El Paso's Rate Schedule T-3, El Paso agrees to receive on each day at each
Receipt Point, such quantity of natural gas, if any, up to the Maximum Daily
Quantity specified for each Receipt Point on Exhibit A, not to exceed the
physical capacity of such point, as may be tendered to El Paso by Shipper (or
for Shipper's account), and to transport such quantity on a firm basis for
Shipper. The sum of the Maximum Daily Quantities reflected on Exhibit A shall
constitute Shipper's Transportation Contract Demand reflected on Exhibit B.
1.2 In addition to the quantity which Shipper may tender or cause
to be tendered to El Paso at each Receipt Point each day for firm
transportation in accordance with paragraph 1.1, Shipper shall tender or cause
to be tendered to El Paso at that point that quantity of natural
2
gas as may be required from time to time to compensate El Paso for fuel
consumption, shrinkage, and lost and unaccounted for volumes associated with
such transportation. Such additional quantity is additive to (and shall not be
considered as constituting a part of) Shipper's Maximum Daily Quantity at such
Receipt Point.
1.3 In accordance with Section 4.1 of the General Terms and
Conditions incorporated by reference in Rate Schedule T-3, El Paso shall
deliver and Shipper shall accept or cause to be accepted at the Delivery
Point(s) referenced in paragraph 2.2 of Article II, a quantity of natural gas
equivalent, on a dth basis, to the sum of the quantities of natural gas
received by El Paso at the Receipt Points for transportation hereunder in
accordance with paragraph 1.1; provided, however, that in no event shall El
Paso be obligated to deliver on any day a quantity in excess of Shipper's
Transportation Contract Demand set forth on Exhibit B.
1.4 Upon request of Shipper, El Paso, at its reasonable
discretion, may receive, transport, and deliver natural gas in excess of
Shipper's Transportation Contract Demand. If El Paso elects to transport said
excess gas, Shipper shall pay El Paso pursuant to the terms and conditions set
forth in El Paso's Rate Schedule T-3.
1.5 In addition to transportation through El Paso's mainline
system, the service contemplated herein includes:
(a) Field Transportation
(b) Dehydration
(c) Purification
(d) Products Extraction
1.6 If on any day El Paso should determine that the transportation
capacity of its facilities is insufficient to transport all volumes of natural
gas up to the Transportation Contract Demand tendered for transportation under
this Agreement and by other shippers under similar, firm transportation
agreements, El Paso shall allocate the available transportation capacity on the
basis set forth in the General Terms and Conditions incorporated by reference
in El Paso's Rate Schedule T-3.
ARTICLE II
RECEIPT POINT(S), DELIVERY POINT(S)
AND DELIVERY PRESSURES
2.1 The Receipt Point(s) at which Shipper shall cause natural gas
to be tendered to El Paso for transportation hereunder are described in Exhibit
A to this Agreement. The delivery pressure and other pertinent factors are
also set forth in Exhibit A.
2.2 The Delivery Point(s) at which El Paso shall deliver
hereunder, are described in Exhibit B to this Agreement. The delivery pressure
and other pertinent factors applicable to the Delivery Point(s) are also set
forth in Exhibit B.
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ARTICLE III
RATE, RATE SCHEDULE(S) AND GENERAL TERMS AND CONDITIONS
3.1 Shipper shall pay El Paso for services rendered hereunder in
accordance with El Paso's Rate Schedule T-3, or superseding rate schedule(s),
on file with and subject to the jurisdiction of the Commission and lawfully in
effect from time to time.
3.2 The parties hereto agree that El Paso shall have the right
from time to time to propose and file with the Commission, in accordance with
Section 4 of the Natural Gas Act, changes, amendments, revisions and
modifications in:
(a) the rate(s) and Rate Schedule incorporated by reference
as a part of this Agreement pursuant to this Article III; and
(b) the General Terms and Conditions incorporated by
reference in said Rate Schedule, which are applicable hereto;
provided, however, that Shipper shall have the right to protest any such
changes before the Commission (or successor governmental agency) or other
authorities and to exercise any other rights that Shipper may have with respect
thereto.
3.3 This Agreement in all respects is subject to the provisions of
El Paso's Rate Schedule T-3, or superseding rate schedule(s), and applicable
provisions of the General Terms and Conditions included by reference in said
transportation rate schedule filed by El Paso with the Commission, all of which
are by reference made a part hereof.
3.4 Certain of the General Terms and Conditions may be adjusted for
the purpose of this Agreement and any such adjustments shall be set forth in
Exhibit C to this Agreement.
ARTICLE IV
REGULATORY REQUIREMENTS AND CONDITIONS PRECEDENT
4.1 The transportation arrangements provided for in this Agreement
are subject to the provisions of Subpart G of Part 284 of the Commission's
Regulations, as amended from time to time, except as expressly waived in
paragraph 5.3 hereof.
4.2 Transportation of natural gas provided for under the terms and
provisions of this Agreement shall not commence until the following conditions
have been met:
(NOT APPLICABLE)
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ARTICLE V
TERM
5.1 This Agreement shall become effective, as amended and
restated, on November 1, 1993.
5.2 After this Agreement becomes effective, it shall continue in
full force and effect for a primary term ending December 31, 1997, and
thereafter from year to year until terminated by written notice so stating
given no less than twelve (12) months in advance by either party to the other.
5.3 El Paso agrees to waive its rights to effect pre-granted
abandonment of transportation service upon the expiration of transportation
service agreements. As of the date of this Agreement, such right is codified
in Section 284.221(d) of the Commission's Regulations.
5.4 Without limitation of paragraph 5.3, prior to terminating
service under this Agreement, El Paso agrees to file for such authorization, if
any, as may be required for the abandonment of the transportation service
contemplated hereunder pursuant to Section 7(b) of the Natural Gas Act or any
successor statute, and not to terminate such service unless and until it shall
have received such abandonment authorization. Shipper shall have the right to
oppose such abandonment. El Paso will not apply for or otherwise seek
Commission approval for abandonment of Shipper's Transportation Contract Demand
as set forth in Exhibit B, or any portion thereof, prior to the date El Paso
notifies Shipper of its intent to terminate this Agreement as provided herein.
5.5 Termination of this Agreement shall not relieve El Paso or
Shipper of the obligation to correct any volume imbalances hereunder, or
Shipper of the obligation, if any, to pay monies due hereunder to El Paso.
ARTICLE VI
CANCELLATION OF PRIOR CONTRACTS
6.1 When this Agreement becomes effective, it supersedes and
cancels as of the effective date hereof the following contracts between the
parties hereto:
(NOT APPLICABLE)
ARTICLE VII
NOTICES
7.1 Any formal notice, request or demand that either party gives
to the other respecting this Agreement shall be in writing and shall be mailed
by registered or certified mail or delivered in hand to the following address
of the other party:
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El Paso: El Paso Natural Gas Company
Post Office Box 1492
El Paso, Texas 79978
Attention: Director, Marketing Services Department
Shipper: Pacific Gas and Electric Company
444 Market Street, Suite 6203
Post Office Box 770000
San Francisco, California 94177
Attention: Vice President, Gas Services and Operations
or to such other address as a party shall designate by formal written notice.
Routine communications may be mailed by ordinary mail. Operating
communications by telephone, facsimile or other mutually agreeable means shall
be considered as duly delivered without subsequent written confirmation.
Payments to El Paso for services rendered hereunder shall be made in accordance
with Section 6 of the General Terms and Conditions incorporated by reference in
Rate Schedule T-3.
ARTICLE VIII
OTHER OPERATING PROVISIONS
8.1 The natural gas liquids expressly reserved by Shipper are all,
and only, those liquid hydrocarbons recovered and allocated by El Paso to
Shipper as the result of Products Extraction, whether in El Paso's plants or in
another plant performing Products Extraction on behalf of El Paso.
8.2 In the event both parties agree in writing that additional
facilities are necessary primarily for Shipper in order to implement the
transportation service provided hereunder, Shipper hereby agrees to reimburse
El Paso for all expenditures associated with the construction and installation
of such facilities, which shall be owned, operated and maintained by El Paso,
unless otherwise agreed to in writing.
8.3 Except as provided in paragraphs 5.3 and 5.4 hereof, the
parties hereto acknowledge that this Agreement or any operation conducted
pursuant thereto does not constitute an implied waiver or intentional
forfeiture of any rights of either party otherwise available under the
Commission's Order Nos. 436, et seq.; 451, et seq.; 500, et seq.; or 636, et
seq.
8.4 El Paso shall only be obligated to deliver the quantities of
natural gas hereunder at pressures that exist in El Paso's systems from time to
time, using all appropriate facilities available, unless a minimum pressure is
stated on Exhibit B to this Agreement. El Paso reserves the right to deliver
the quantities at higher pressures, up to any maximum pressure indicated on
Exhibit B to this Agreement.
8.5 The gas delivered by El Paso to Shipper at the Topock Delivery
Point shall have a heating value of not less than 995 Btu per cubic foot.
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ARTICLE IX
MISCELLANEOUS
9.1 El Paso and Shipper expressly agree that the laws of the State
of Texas shall govern the validity, construction, interpretation and effect of
this Agreement and of the General Terms and Conditions incorporated by
reference in El Paso's Rate Schedule T-3.
9.2 All substances, whether or not of commercial value, including
all liquid hydrocarbons of whatever nature, except substances expressly
reserved for Shipper, that El Paso recovers in the course of transporting the
quantities of natural gas tendered hereunder to Shipper shall be El Paso's sole
property and El Paso shall not be obligated to account to Shipper for any
value, whether or not realized by El Paso, that may attach or be said to attach
to such substances.
9.3 Exhibits A, B and C, attached to this Agreement, are hereby
incorporated by reference as part of this Agreement. The parties may amend
Exhibits A, B or C by mutual agreement, which amendments shall be reflected in
a revised Exhibit A, B or C and shall be incorporated by reference as part of
this Agreement.
IN WITNESS HEREOF, the parties have caused this Agreement to be
executed in two (2) original counterparts, by their duly authorized officers,
the day and year first set forth herein.
ATTEST: EL PASO NATURAL GAS COMPANY
By __________________________ By A. W. Clark
Assistant Secretary Vice President
ATTEST: PACIFIC GAS AND ELECTRIC COMPANY
By B. L. McGrath By William R. Mazotti
Assistant Secretary Vice President
Gas Services and Operations
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EXHIBIT A
To The Transportation Service Agreement
Dated October 10, 1990
As Amended and Restated
Between El Paso Natural Gas Company
and Pacific Gas and Electric Company
Maximum Type of Field
Delivery Daily Field Shrinkage
Pressure(s) Quantity Service(s) Factor(s)
Receipt Point(s) (psig) (Mcf) (3) (3)
---------------- ----------- --------- ---------- ---------
El Paso System
(EPNG Code STANDARD)
Any point of inter-
connection existing
from time to time
on El Paso's
facilities, except
those requiring
transportation by
others to provide
service under As As
this Agreement (1) (2) Required Published
(1) Necessary pressure to enter the El Paso System and, except as
otherwise noted, not in excess of the MAOP of that facility.
(2) El Paso shall be obligated to receive hereunder, in accordance with
paragraph 1.1 of the Agreement and Section 4.2 of the General Terms and
Conditions contained in El Paso's Volume No. 1-A Tariff, or superseding
tariff, up to 1,140,000 Mcf per day of natural gas in the aggregate
from all Receipt Points plus applicable fuel, shrinkage and lost and
unaccounted for volumes as provided in paragraph 1.2 of the Agreement.
(3) Purification, Products Extraction and Dehydration may include
performance of these services by others on behalf of El Paso.
(4) Field Shrinkage Factor(s) includes all field fuel and other field
shrinkage.
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EXHIBIT A
(Continued)
A. Effective Date of this Exhibit A: November 1, 1993.
B. Supersedes Exhibit A Effective: September 1, 1991.
PACIFIC GAS AND ELECTRIC COMPANY EL PASO NATURAL GAS COMPANY
By William R. Mazotti By A. W. Clark
Vice President Vice President
Date December 17, 1993 Date October 25, 1993
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EXHIBIT B
To The
Transportation Service Agreement
Dated October 10, 1990
As Amended and Restated
Between El Paso Natural Gas Company
and Pacific Gas and Electric Company
Maximum
Daily
Quantity
Delivery Point(s) (Mcf)
- ----------------- --------
Topock
(EPNG Code 32001 82)
Interconnection between
the facilities of El Paso
and Pacific Gas and
Electric Company located
at the borderline between
the States of Arizona and Delivery Pressure
California near Topock, not less than
Arizona 600 psig *
Topock
(EPNG Code 32003 22)
Interconnection between
the facilities of El Paso
and Southern California Gas
Company located at the
borderline between
the States of Arizona and
California near Topock,
Arizona *
Mojave Pipeline Company
(EPNG Code IMOJAVE)
Interconnection between
the facilities of El Paso
and Mojave Pipeline Company
located at the borderline
between the States of Arizona
and California near Topock,
Arizona *
Shipper's Transportation
Contract Demand 1,140,000 Mcf
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EXHIBIT B
(Continued)
Unless otherwise specified on this exhibit, the Delivery Pressure(s) for the
point(s) listed above shall be the pressure existing from time to time at the
metering facility; however, El Paso reserves the right to deliver quantities at
pressures up to the MAOP of that facility.
* El Paso shall be obligated to deliver hereunder, in accordance with
paragraph 1.3 of the Agreement and Section 4.2 of the General Terms
and Conditions contained in El Paso's Volume No. 1-A Tariff, or
superseding tariff, up to the mainline MDQ of 1,140,000 Mcf per day of
natural gas in the aggregate at all Delivery Points, provided however,
that El Paso shall be obligated to deliver hereunder only Shipper's
quantities of natural gas received pursuant to this Agreement in the
aggregate at all Delivery Point(s).
A. Effective Date of this Exhibit B: November 1, 1993.
B. Supersedes Exhibit B Effective: September 1, 1991.
PACIFIC GAS AND ELECTRIC COMPANY EL PASO NATURAL GAS COMPANY
By William R. Mazotti By A. W. Clark
Vice President Vice President
Date October 17, 1993 Date October 25, 1993
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EXHIBIT C
To The
Transportation Service Agreement
Dated October 10, 1990
As Amended and Restated
Between El Paso Natural Gas Company
and Pacific Gas and Electric Company
The following shall apply in substitution for the identified
provisions of the General Terms and Conditions of El Paso's Tariff:
Section of
General Terms
and Conditions Substitute Provision
- -------------- --------------------
Substitution Any company which shall succeed by purchase, merger or
for Section 15 consolidation to the properties, substantially as an entirety,
of El Paso or of Shipper, as the case may be, shall be
entitled to the rights and shall be subject to the obligations
of its predecessor in title thereunder. Either Shipper or El
Paso may, without relieving itself of its obligations
hereunder, assign any of its rights thereunder to a company
with which it is affiliated, but otherwise no assignment of
the executed Transportation Service Agreement or any of the
rights or obligations thereunder shall be made unless there
first shall have been obtained the consent thereto of El Paso,
in the event of any asssignment by Shipper, or consent thereto
of Shipper, in the event of an assignment by El Paso. Such
consent shall not be unreasonably withheld.
Either party may assign its right, title and interest
in and to and under the executed Transportation Service
Agreement to a trustee or trustees, individual or corporate,
as security for bonds or other obligations or securities
without the necessity of obtaining such consent and without
such trustee or trustees assuming or becoming in any respect
obligated to perform the obligations of the assignor and, if
any such trustee be a corporation, without its being required
to qualify to do business in any state in which any
performance of the executed Transportation Service Agreement
may occur.
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EXHIBIT C
(Continued)
A. Effective Date of this Exhibit C: November 1, 1993.
B. Supersedes Exhibit C Effective: September 1, 1991.
PACIFIC GAS AND ELECTRIC COMPANY EL PASO NATURAL GAS COMPANY
By William R. Mazotti By A. W. Clark
Vice President Vice President
Date October 17, 1993 Date October 25, 1993
13
EXHIBIT 10.5
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff First Revised Sheet No. 110
First Revised Volume No. 1-A Superseding
Original Sheet No. 110
RATE SCHEDULE T-3
Firm Transportation Service
1. AVAILABILITY
This Rate Schedule is available to any party (hereinafter referred to
as "Shipper") for the transportation of natural gas on a firm basis by
El Paso Natural Gas Company (herein-after referred to as "El Paso")
under the following conditions:
(a) El Paso determines it has available capacity to render the firm
transportation service; and
(b) Shipper and El Paso have executed a Transportation Service
Agreement, in the form contained in this Volume No. 1-A Tariff, for
such firm transportation service.
2. APPLICABILITY AND CHARACTER OF SERVICE
This Rate Schedule shall apply to all natural gas transported by El
Paso for Shipper pursuant to the executed Transportation Service
Agreement.
Transportation service hereunder shall be firm, subject to the
provisions of the executed Transportation Service Agreement and to the
Transportation General Terms and Conditions incorporated herein by
reference.
Transportation service hereunder shall consist of the acceptance by El
Paso of natural gas on behalf of Shipper for transportation at the
Receipt Point(s) specified in the executed Transportation Service
Agreement, the transportation of that natural gas through El Paso's
pipeline system, and the delivery of that gas, after appropriate
reductions as provided for in this Rate Schedule, to Shipper or for
Shipper's account at the Delivery Point(s) specified in the executed
Transportation Service Agreement.
3. DEFINITIONS
3.1 Transportation Contract Demand: A Shipper's Transportation
Contract Demand shall be the maximum quantity of gas El Paso is
obligated to deliver to Shipper (or for Shipper's account) at the
Delivery Point(s) under this Rate Schedule. The Transportation
Contract Demand shall be specified on Exhibit B of the executed
Transportation Service Agreement, except that the Transportation
Contract Demand shall not apply to full requirements agreements.
Issued by: A. W. Clark, Vice President
Issued on: August 29, 1991 Effective: September 1, 1991
14
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Fourth Revised Sheet No. 111
First Revised Volume No. 1-A Superseding
Substitute Third Revised Sheet No. 111
RATE SCHEDULE T-3
Firm Transportation Service
3. DEFINITIONS (Continued)
3.2 Maximum Daily Quantity: The maximum quantity that El Paso is
obligated to receive at each Receipt Point or deliver at each Delivery
Point as specified in the executed Transportation Service Agreement;
provided, however, that the Maximum Daily Quantity for a full
requirements customer on any day shall be its full requirements on
that day.
4. RATE
Shipper shall pay to El Paso each month the charges set forth below as
such charges are designated to be applicable to the transportation
service rendered by El Paso for Shipper under the executed
Transportation Service Agreement. The quantity of natural gas to
which the charges shall apply is set forth below.
4.1 Transportation Charges: As compensation for the use of El Paso's
facilities in the transportation of natural gas under the executed
Transportation Service Agreement, Shipper shall pay the following
rate(s):
(a) Mainline Transportation Reservation Charges: The maximum unit
amount in dollars per dth, unless otherwise provided, applicable to
the production area or state(s) in which deliveries are made as set
forth from time to time on the currently effective Sheet No. 21 of
this Volume No. 1-A Tariff, or superseding tariff, multiplied by
Shipper's Transportation Contract Demand, except for those Shippers
who have converted their existing sales entitlements to full
requirements firm transportation service in which case the applicable
Transportation Reservation Charge will be multiplied by each Shipper's
respective Billing Determinant, as specified in Section 9(b) of this
Rate Schedule.
(b) Usage Charges: Except as otherwise provided below, in addition
to the applicable Reservation Charge, Shipper shall pay an amount
determined as the quantity of natural gas delivered in dth multiplied,
as applicable, by the following:
(i) Mainline Transportation Usage Charges: The maximum rate(s) per
dth, unless otherwise provided, applicable from the production
basin(s) in which natural gas is received to the production area(s)
within such basin or
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
15
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Fourth Revised Sheet No. 112
First Revised Volume No. 1-A Superseding
Third Revised Sheet No. 112
RATE SCHEDULE T-3
Firm Transportation Service
(Continued)
4. RATE (Continued)
4.1 Transportation Charges (continued)
state(s) in which deliveries are made set forth from time to time on
currently effective Sheet No. 21 of this Volume No. 1-A Tariff, or
superseding tariff; or
(ii) Mainline Shorthaul Usage Charge: The maximum rate(s) per dth,
unless otherwise provided, as set forth from time to time on currently
effective Sheet No. 21 of this Volume No. 1-A Tariff, or superseding
tariff, if the transportation service rendered by El Paso pursuant to
the executed Transportation Service Agreement is a forward haul of one
hundred miles or less; or
(iii) Mainline Backhaul Usage Charge: The maximum rate(s) per dth,
unless otherwise provided, as set forth from time to time on currently
effective Sheet No. 21 of this Volume No. 1-A Tariff, or superseding
tariff, if the transportation service rendered by El Paso pursuant to
the executed Transportation Service Agreement is by backhaul.
(iv) Comparable Discounts: If El Paso agrees to provide its
marketing affiliate a discount for any pipeline service, El Paso shall
make such discounted rate contemporaneously available to similarly
situated unaffiliated Shippers. For those agreements in which
transportation by El Paso is provided in two steps, with intermediate
transportation service in between provided by a third party, the
quantity of natural gas to which the charges set forth in Section
4.1(b) shall apply is determined by the quantity delivered by El Paso
to the intermediate third-party.
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
16
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff First Revised Sheet No. 112A
First Revised Volume No. 1-A Superseding
Original Sheet No. 112A
RATE SCHEDULE T-3
Firm Transportation Service
(Continued)
4. RATE (Continued)
4.2 Field Transportation Usage Charges:
In addition to the maximum "Mainline Transportation Usage Charges,"
"Mainline Shorthaul Usage Charge," or "Mainline Backhaul Usage
Charge," the maximum "Field Transportation Usage Charges," unless
otherwise provided, applicable to deliveries either onshore or
offshore as set forth on Sheet No. 21 of this Volume No. 1-A Tariff,
or superseding tariff, will be charged if the natural gas received at
the Receipt Point(s) requires field transportation services. The
quantity of natural gas to (This space intentionally left blank)
Issued by: A. W. Clark, Vice President
Issued on: April 30, 1993 Effective: April 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-002 and 003 dated December 17, 1992
17
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Substitute Second Revised Sheet No. 113
First Revised Volume No. 1-A Superseding
1st Sub First Revised Sheet No. 113
RATE SCHEDULE T-3
Firm Transportation Service (Continued)
4. RATE (Continued)
4.2 Field Transportation Usage Charges (Continued)
which these charges shall apply is determined at the end of the field
transportation system, or the products extraction plant inlet, when
applicable.
4.3 Production Area Charges: In addition to the applicable charges
set forth in Sections 4.1 and 4.2 above, if the natural gas received
at the Receipt Point(s) receives any production area services, Shipper
shall pay El Paso an amount determined as the maximum charge for
"Dehydration," "Purification," and/or "Products Extraction," unless
otherwise provided, as set forth on Sheet No. 22 of this Volume No.
1-A Tariff, or superseding tariff, multiplied by the quantity of
natural gas receiving such service(s). The quantity of natural gas to
which these charges shall apply is determined at the end of the field
transportation system, or the products extraction plant inlet, when
applicable. All volumes receiving production area services in the Jal
Plant Complex (consisting of El Paso's Jal Plants, the Sid Richardson
Plant, the Warren Eunice Plant, the Warren Monument Plant and the
Texaco Eunice Plant) shall pay the applicable production area charge
specified herein for any services received, irrespective of which
plant provides such service, plus a pro rata share of any charge,
whether in cash or in-kind, assessed by a third-party plant operator
in the Jal Complex. Such production area charges shall not apply if a
Shipper provides to El Paso, fifteen (15) days before initial
deliveries of natural gas under an executed Transportation Service
Agreement and thereafter fifteen (15) days before each annual
anniversary date of such initial deliveries, the results from tests
conducted within the previous thirty (30) days by an independent
testing firm demonstrating that the gas is in conformance
("conformance gas") with El Paso's quality specifications set forth in
Section 5.1 of the Transportation General Terms and Conditions
contained in this Volume No. 1-A Tariff. Shipper may have subsequent
tests conducted anytime after its gas fails the annual conformance
test. In the event the results of such test proves conformance with
the applicable quality specifications of El Paso's tariff and are
provided to El Paso fifteen (15) days prior to the first day of any
calendar month, then production area charges shall not
Issued by: A. W. Clark, Vice President
Issued on: April 30, 1993 Effective: April 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-002 and 003 dated December 17, 1992
18
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Third Revised Sheet No. 114
First Revised Volume No. 1-A Superseding
Substitute Second Revised Sheet No. 114
RATE SCHEDULE T-3
Firm Transportation Service
(Continued)
4. RATE (Continued)
4.3 Production Area Charges (Continued)
apply effective the first day of the following calendar month after El
Paso receives such notice. Additionally, if the purification and/or
products extraction charge(s) are applicable but such test results
demonstrate that the gas is being dehydrated to conform to said
Section 5.1, then no dehydration charge shall apply. However, if El
Paso, through independent field inspections, verifies that the
dehydrator is not operating, then the Shipper either shall install and
pay for real time measurement and communication equipment enabling El
Paso to monitor continuously such source or, at Shipper's election,
shall pay the dehydration charge for all gas received by El Paso from
that source. In the event conformance gas is processed at an
extraction plant or other facility operated by a third party, Shipper
shall pay any charge assessed against Shipper's conformance gas by
such third party in accordance with the provisions of this paragraph.
If there is insufficient capacity available at any production area
service facility for all gas scheduled for such facility, then
conformance and non-conformance gas shall be curtailed pro rata on a
non-discriminatory basis based on Shipper's scheduled conformance and
non-conformance gas to the total scheduled gas. For the purpose of
computing the Reservation Charges specified herein, if Shipper's
Transportation Contract Demand or Maximum Daily Quantity is expressed
in Mcf, it shall be converted to dth's by multiplying the number of
Mcf by the heating value conversion factor of 1.030 which is the
factor utilized in designing such charges.
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
19
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff First Revised Sheet No. 114A
First Revised Volume No. 1-A Superseding
Sheet No. 114A
Reserved Sheet
Second Revised Sheet No. 114A has been reserved.
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
20
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Third Revised Sheet No. 115
First Revised Volume No. 1-A Superseding
Substitute Second Revised Sheet No. 115
RATE SCHEDULE T-3
Firm Transportation Service
(Continued)
4. RATE (Continued)
El Paso, at its sole discretion, may from time to time and at any time
selectively adjust any or all of the rates stated above applicable to
any individual Shipper; provided, however, that such adjusted rate(s)
shall not exceed the applicable Maximum Rate(s) nor shall they be less
than the Minimum Rate(s) set forth on Sheet Nos. 21 and 22 of this
Volume No. 1-A Tariff, or superseding tariff. If El Paso so adjusts
any rates to any Shipper, El Paso shall file with the Federal Energy
Regulatory Commission any and all required reports respecting such
adjusted rates.
5. MINIMUM MONTHLY BILL The Reservation Charge(s) for the month.
6. SCHEDULED OVERRUN TRANSPORTATION Upon request of Shipper, El Paso, at
its reasonable discretion, may receive, transport and deliver natural
gas in excess of Shipper's Transportation Contract Demand specified in
the executed Transportation Service Agreement. Payments and fuel for
any excess quantity shall be equivalent to the maximum "Mainline
Transportation Charge" applicable from the production basin(s) in
which the natural gas is received to the production area(s) within
such basin or state(s) in which deliveries are made for service under
El Paso's Rate Schedule T-1, as such rate is in effect and reflected
from time to time on Sheet No. 20 of this Volume No. 1-A Tariff, or
superseding tariff.
7. FUEL AND/OR SHRINKAGE In addition to the payments made pursuant to
Section 4 of this Rate Schedule, Shipper shall provide fuel and be
responsible for shrinkage that occurs in transporting natural gas and
rendering
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
21
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Substitute Original Sheet No. 116
RATE SCHEDULE T-3
Firm Transportation Service
(Continued)
7. FUEL AND/OR SHRINKAGE (Continued)
other services provided pursuant to Shipper's executed Transportation
Service Agreement as set forth below:
(a) Mainline Transportation - 5% of quantity received Fuel for
shorthaul and backhaul transportation may be discounted by El Paso
between 0% and 5%; however, the discounted percentage applied shall
not be less than actual.
(b) Field Transportation ) actual fuel/shrinkage as
(c) Dehydration ) calculated at the end of
(d) Purification ) the production month
(e) Products Extraction )
Prior to the beginning of each month, El Paso shall post estimated
fuel and shrinkage factors for individual wellheads, gathering systems
and plant complexes based on historical values for use by Shippers in
the scheduling process. The actual fuel and/or shrinkage allocable
to each Shipper's Transportation Service Agreement shall be determined
after the end of the production month and shall be reflected in
Shipper's accounting statements.
8. GENERAL TERMS AND CONDITIONS
Except as otherwise expressly indicated in this Rate Schedule or by
the executed Transportation Service Agreement, all of the
Transportation General Terms and Conditions contained in this Volume
No. 1-A Tariff, including (from and after their effective date) any
future modifications, additions or deletions to said General Terms and
Conditions, are applicable to transportation service rendered under
this Rate Schedule and, by this reference, are made a part hereof.
9. PROVISIONS APPLICABLE TO SHIPPERS THAT CONVERTED TO FIRM
TRANSPORTATION
(a) Any Shipper that converted firm sales entitlements to firm
transportation in accordance with the settlement of the proceeding at
Docket No. RP88-44-000, et al., shall be entitled to receive firm
transportation of the quantities specified by its Transportation
Service Agreement with El Paso
Issued by: A. W. Clark, Vice President
Issued on: November 13, 1991 Effective: September 1, 1991
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RP88-44-019, dated October 30, 1991
22
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Fifth Revised Sheet No. 117
First Revised Volume No. 1-A Superseding
Substitute Fourth Revised Sheet No. 117
RATE SCHEDULE T-3
Firm Transportation Service
(Continued)
9. PROVISIONS APPLICABLE TO SHIPPERS THAT CONVERTED TO FIRM
TRANSPORTATION (Continued)
(a) (continued) for a period, unless otherwise agreed, which is at
least as long as the period El Paso's Gas Inventory Charge certificate
remains in effect. Following such period, El Paso shall not be
authorized, in the absence of written concurrence by the affected
Shipper, to avail itself of the "pre-granted" abandonment authority
granted by the Commission's Regulations (currently codified at Section
284.221(d)).
(b) The Billing Determinants to be utilized in determining the
Transportation Reservation Charges set forth in Section 4.1(a) for
those Shippers who are full requirements Shippers are as follows:
Shipper Billing Determinants
Production Area
Gas Company of New Mexico 6,664
Navajo Tribal Utility Authority 9,275
Southern Union Gas Company 4,949
Texas
ASARCO Inc. 6,589
El Paso Electric Company 30,751
Southdown, Inc. 3
Southern Union Gas Company 70,277
New Mexico
El Paso Electric Company 0
Gas Company of New Mexico 71,618
Las Cruces, New Mexico, City of 14,578
Lordsburg, New Mexico, City of 747
Phelps Dodge Corporation 16,962
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
23
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Fourth Revised Sheet No. 118
First Revised Volume No. 1-A Superseding
Substitute Third Revised Sheet No. 118
RATE SCHEDULE T-3
Firm Transportation Service
(Continued)
9. PROVISIONS APPLICABLE TO SHIPPERS THAT CONVERTED TO FIRM TRANSPORTATION
(Continued)
Shipper Billing Determinants
Arizona
Arizona Electric Power Cooperative, Inc. 53,217
Arizona Public Service Company 62,364
ASARCO Inc. 3,526
Citizens Utilities Company 59,395
Cyprus Miami Mining Corporation 4,527
Magma Copper Company 14,219
Mesa, Arizona, City of 17,818
Navajo Tribal Utility Authority 2,970
Petroleos Mexicanos 8,748
Phelps Dodge Corporation 4,455
Salt River Project Agricultural
Improvement and Power District 57,910
Southwest Gas Corporation 399,698
Nevada
Southwest Gas Corporation 180,000
(c) Shipper, at its option, may elect to pay El Paso the annual
charges so determined from the Billing Determinants specified above
allocated with two-thirds (2/3) of the total amount divided and
payable in six (6) equal amounts for each of the winter months of
November through April and one-third (1/3) of the total amount divided
and payable in six (6) equal amounts for each of the summer months of
May through October. Shipper, in concurrence with El Paso, may elect
an allocation methodology different from that specified above if its
seasonal profile so dictates. This provision applies only to Category
B Customers as defined at Docket No. RP72-6, et al., except Southwest
Gas Corporation, Southern Union Gas Company, Gas Company of New Mexico
and Citizens Utilities Company.
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
24
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 119
RATE SCHEDULE T-3
Firm Transportation Service
(Continued)
10. MAINLINE TRANSPORTATION RESERVATION CHARGE CREDIT
If during any one-year period (the first such one-year period
beginning with the effectiveness of the Stipulation and Agreement at
Docket No. RS92-60-000, et al., is in effect and the last such period
or partial period ending the day before El Paso's next general rate
case is effective), El Paso collects more than the dollar amount set
forth in Article 2.7(b) of said Stipulation and Agreement,
attributable to costs allocated to interruptible transportation
service, each Shipper paying the maximum Mainline Transportation
Reservation Charge under this Rate Schedule shall be eligible to
receive a credit to its Mainline Transportation Reservation Charge.
The determination as to whether any credit is due shall be calculated
as described below:
(a) From the revenues received for interruptible mainline
transportation service under Rate Schedule T-1, El Paso shall first
deduct and retain revenues equal to the sum of the mainline
transportation usage rate component of Rate Schedule T-3 and all rate
surcharges.
(b) El Paso shall retain all remaining interruptible transportation
revenues received under Rate Schedule T-1 until such time as the total
dollar amount set forth in Article 2.7(b) of the Stipulation and
Agreement for the applicable one-year period or partial period has
been received.
(c) El Paso shall retain 10% of any revenues remaining after
performing steps (a) and (b) of the allocation. The remaining 90%
shall be credited to firm Shippers as follows:
(i) During the amortization period applicable to Washington Ranch
Facility costs described in Section 31 of this tariff, such remaining
90% shall be allocated among firm Shippers paying the maximum Mainline
Transportation Reservation Charge under this Rate Schedule based on
the proportion of each Shipper's Mainline Transportation
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
25
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 120
RATE SCHEDULE T-3
Firm Transportation Service
(Continued)
10. MAINLINE TRANSPORTATION RESERVATION CHARGE CREDIT (Continued)
Reservation revenue responsibility to the total Mainline
Transportation Reservation revenue responsibility for all such
Shippers paying the maximum Mainline Transportation Reservation
Charge; and (ii) Commencing with the expiration of the amortization
period of the Washington Ranch Facility costs described in Section 31
of this tariff, such remaining 90% shall be allocated among all firm
Shippers, without regard to whether a Shipper is paying the maximum
Mainline Transportation Reservation Charge, based on each such
Shippers billed Transportation Reservation Charge under this Rate
Schedule in proportion to the total Mainline Transportation
Reservation Charges billed. The revenues to be credited as described
above, if any, shall be credited to Shippers under this Rate Schedule
within ninety (90) days following the date such revenues are received.
In the event a credit amount cannot be applied to a Shipper under
Section 10(c) above, then El Paso shall flow such amount through by
means of a refund. In no event shall any Shipper receive a credit or
refund under this provision that exceeds the Mainline Transportation
Reservation Charges paid under this Rate Schedule by such Shipper
during each one-year period or partial period.
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
26
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Sheet Nos. 121 through 124
Reserved Sheets
Original Sheet Nos. 121 through 124 have been reserved
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
27
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Fifth Revised Sheet No. 200
First Revised Volume No. 1-A Superseding
1st Sub Fourth Revised Sheet No. 200
TRANSPORTATION GENERAL TERMS AND CONDITIONS
Table of Contents
1 Definitions 201
2 Method of Measurement 203
3 Measurement Equipment 205
4 Scheduling and Capacity Allocation 208
5 Quality 211
6 Billing and Payment 213
7 Force Majeure 216
8 Control and Possession of Natural Gas 217
9 Adverse Claims to Natural Gas 218
10 Indemnification 219
11 Odorization 220
12 Non-Waiver of Future Default 221
13 Service Conditions 222
14 Statutory Regulation 223
15 Assignments 224
16 Descriptive Headings 225
17 Taxes 226
18 Gas Research Institute General 227
Research Development and Demonstration
Funding Unit Adjustment Provision
19 Operating Provision for Interruptible 229
Transportation Service
20 Operating Provisions for Firm 235
Transportation Service
21 Annual Charge Adjustment Provision 241
22 Take-or-Pay Buyout and Buydown Cost 242
Recovery
23 Compliance Plan for Transportation 243
Services and Affiliate Transactions
24 Order No. 636 Electronic Bulletin Board 258
25 Reserved 260
26 Reserved 270
27 Unauthorized Gas 277
28 Capacity Release Program 281
29 Compliance Plan for Unbundled Sales 298
Division
30 Assignment of Firm Capacity on 299
Upstream Pipelines
31 Washington Ranch Facility Stranded 299C
Investment Cost Recovery
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
28
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 201
TRANSPORTATION GENERAL TERMS AND CONDITIONS
1. DEFINITIONS
1.1 Day - A period of twenty-four (24) consecutive hours commencing
at seven (7:00) a.m., Mountain Standard Time, or such other period as
the parties may agree upon.
1.2 Month - A period commencing on the first day of the
corresponding calendar month and ending on the first day of the next
following calendar month.
1.3 Year - A period of three hundred sixty-five (365) consecutive
days commencing on the date to be specified in the executed
Transportation Service Agreement; provided, however, that any such
year which contains the date of February 29 shall consist of three
hundred sixty-six (366) consecutive days.
1.4 British Thermal Unit ("Btu") - One (1) Btu shall mean one
British thermal unit and is defined as the amount of heat required to
raise the temperature of one (1) pound of water from fifty-nine
degrees Fahrenheit (59 degrees F) to sixty degrees Fahrenheit
(60 degrees F) at a constant pressure of fourteen and seventy-three
hundredths pounds per square inch absolute (14.73 psia). Total
Btu's shall be determined by multiplying the total volume of
natural gas delivered times the gas heating value expressed in Btu's
per cubic foot of gas adjusted on a dry basis.
1.5 Dekatherm ("dth") - One (1) dth shall mean a quantity of gas
containing one million (1,000,000) Btu's.
1.6 Heating Value - The quantity of heat, measured in Btu, produced
by combustion in air of one (1) cubic foot of anhydrous gas at a
temperature of sixty degrees Fahrenheit (60 degrees F) and a constant
pressure of fourteen and seventy-three hundredths pounds per square
inch absolute (14.73 psia), the air being at the same temperature and
pressure as the gas, after the products of combustion are cooled to
the initial temperature of the gas and air, and after condensation of
the water formed by combustion.
1.7 Operator - The person or entity that controls the flow of gas
into El Paso's system.
1.8 Natural Gas - Any mixture of hydrocarbons or of hydrocarbons and
noncombustible gases, in a gaseous state, consisting essentially of
methane.
Issued by: A. W. Clark, Vice President
Issued on: April 26, 1990 Effective: May 1, 1990
29
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 202
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
1. DEFINITIONS (Continued)
1.9 One Thousand Cubic Feet ("Mcf") The quantity of natural gas
occupying a volume of one thousand (1,000) cubic feet at a temperature
of sixty degrees Fahrenheit (60 degrees F) and at a pressure of
fourteen and seventy-three hundredths pounds per square inch absolute
(14.73 psia).
1.10 El Paso System - The El Paso System is displayed on the map set
forth on Sheet No. 11 of this FERC Gas Tariff.
Issued by: A. W. Clark, Vice President
Issued on: April 26, 1990 Effective: May 1, 1990
30
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 203
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
2. METHOD OF MEASUREMENT
2.1 Unit of Measurement - The unit of measurement for the purpose of
receipt and delivery of natural gas for transportation shall be one
(1) dth. The number of dth's delivered shall be determined by
multiplying the number of Mcf of gas delivered by the total heating
value of such gas in Btu's per cubic foot, and multiplying the product
by 0.001. The unit of volume for the purpose of measurement shall be
one (1) Mcf at a pressure of fourteen and seventy-three hundredths
pounds per square inch absolute (14.73 psia) and at a temperature of
sixty degrees Fahrenheit (60 degrees F). All readings and
registrations of the metering equipment shall be computed into such
unit of volume.
2.2 Basis - All orifice meter volumes shall be computed in
accordance with applicable American Gas Association reports. Where
measurement is by other than orifice meters, all necessary factors for
proper volume determination shall be applied. All orifice meter
volumes shall be corrected for deviations from the ideal gas laws
(supercompressibility) in accordance with the applicable American Gas
Association reports. Where displacement meters are used, the square
of the orifice meter supercompressibility factor shall be applied.
For the purpose of measurement, the atmospheric pressure shall be the
barometric pressure calculated for the elevation at the point of
measurement.
2.3 Determination of Heating Value - The heating value of gas shall
be determined from time to time by analysis of samples obtained from
continuous sampling devices. The samples shall be run on a recording
calorimeter, employing the Thomas principle of calorimetry, located at
the measuring station or at any other point on the pipeline where
there will be no commingling thereafter of gas, or by means of some
other recognized method. The arithmetic average heating value of the
gas during the chart period shall be used in computing any deficiency
in Btu content of gas delivered during such period.
Issued by: A. W. Clark, Vice President
Issued on: April 26, 1990 Effective: May 1, 1990
31
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 204
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
2. METHOD OF MEASUREMENT (Continued)
2.4 Determination of Flowing Temperature - The temperature of the
gas flowing through a meter station shall be obtained by the use of a
recording thermometer. The arithmetic average temperature of the gas
during the chart period shall be used in computing the delivery of gas
during such period. Where the quantities of gas metered will not be
materially affected by so doing, the temperature at delivery shall be
assumed to be sixty degrees Fahrenheit (60 degrees F) when not
regularly measured.
2.5 Determination of Specific Gravity - The specific gravity of the
gas flowing through orifice meter stations, when used, shall be
determined by taking samples of such gas by means of a recording
gravitometer located at the measuring station or at any other point on
the pipeline where there will be no commingling thereafter of gas, or
by any other recognized method which may be practical in the
circumstances. The arithmetic average specific gravity of the gas at
such points during the chart period shall be used in computing the
delivery of gas during such period at such points.
2.6 Chromatographic Analysis - If the heating value and/or the
specific gravity is determined by chromatographic analysis of the gas
sample, the values of the physical constants for the gas compounds and
the procedure for determining the gross heating value and/or the
specific gravity of the gas from them shall be as set forth in the
American Gas Association reports where available.
Issued by: A. W. Clark, Vice President
Issued on: April 26, 1990 Effective: May 1, 1990
32
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 205
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
3. MEASUREMENT EQUIPMENT
3.1 Installation and Operation of Measuring Facilities - All
measuring facilities shall be installed, if necessary, owned,
maintained and operated, at or near the Receipt Point(s) and Delivery
Point(s), as mutually agreed to by El Paso and Shipper. The parties
agree that new measurement equipment and techniques which may be
developed from time to time, including electronic flow measurement
equipment and techniques, may be utilized by either party to measure
the quantity of gas delivered to or by El Paso without additional
authorization from the other party provided such new equipment or
technique is recognized as generally acceptable for the intended
purpose by recognized industry authorities, provides audit data
acceptable by El Paso, and is installed and operated in accordance
with generally accepted industry practices. Unless otherwise agreed
to between the parties, orifice meters shall be utilized and shall
employ flange taps and shall be installed and operated in accordance
with the applicable American Gas Association reports.
3.2 Installation and Operation of Check Meters - Either party may
install, maintain and operate at its own expense, at or near the
Receipt Point(s) and the Delivery Point(s), check meters and other
necessary equipment by which the quantity of gas delivered to or by El
Paso may be measured, provided that such equipment is installed so as
not to interfere with the operation of the primary measuring
facilities provided for in Section 3.1 hereof. Unless otherwise
agreed to between the parties, orifice meters shall be utilized and
shall employ flange taps and shall be installed and operated in
accordance with the applicable American Gas Association reports.
3.3 Non-interference - Measuring equipment applying to or affecting
deliveries shall be installed in such manner as to permit an accurate
determination of the quantity of gas delivered and ready verification
of the accuracy of measurement. The parties shall exercise care in
the installation, maintenance and operation of check measuring or
pressure regulating equipment or gas compressors so as to prevent any
inaccuracy in the determination of the quantity of gas being measured.
Issued by: A. W. Clark, Vice President
Issued on: April 26, 1990 Effective: May 1, 1990
33
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff First Revised Sheet No. 206
First Revised Volume No. 1-A Superseding
Original Sheet No. 206
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
3. MEASUREMENT EQUIPMENT (Continued)
3.4 Calibration and Test of Measurement Equipment - Each party shall
have the right to have representatives present at the time of any
installing, cleaning, changing, repairing, inspecting, testing,
calibrating or adjusting done in connection with the other party's
measuring equipment, including calorimeters, used in the measurement
of deliveries of gas. The accuracy of the measuring equipment,
including calorimeters, shall be verified at reasonable intervals but
not more frequently than once in any thirty (30) day period. In the
event either party shall notify the other that it desires a special
test of said measuring equipment or of the check measuring equipment,
as the case may be, the parties shall cooperate to secure prompt
verification of the accuracy of such equipment. Each party shall
give to the other party sufficient advance notice of the time of all
such special tests so that the other party may conveniently have its
representatives present.
3.5 Charts and Records - Upon request of either party, the other
shall submit the records and charts from its measuring equipment used
in the measurement and billing of gas, including records resulting
from electronic flow measurement, chartless custody transfers or any
other improved measurement technology, together with calculations
therefrom, for inspection and verification, subject to return within
thirty (30) days after receipt. The parties shall preserve all test
data, charts and other required data pertaining to the measurement of
gas by their respective measurement equipment for a period of three
(3) years or such other period or periods as may be prescribed with
respect to them by regulatory bodies having jurisdiction.
3.6 Correction of Metering Errors - If, upon test, the measuring
equipment is found to be in error by not more than two percent (2%),
previous recordings of such equipment shall be considered accurate in
computing deliveries, but such equipment shall be adjusted at once to
record accurately.
Issued by: A. W. Clark, Vice President
Issued on: August 29, 1991 Effective: September 1, 1991
34
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff First Revised Sheet No. 207
First Revised Volume No. 1-A Superseding
Original Sheet No. 207
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
3. MEASUREMENT EQUIPMENT (Continued)
3.6 Correction of Metering Errors - (Continued)
If, upon test, the measuring equipment shall be found to be inaccurate
by an amount exceeding two percent (2%), at a recording corresponding
to the average hourly rate of flow for the period since the last
preceding test, then any previous recordings of such equipment shall
be corrected to zero error for any period that is known definitely or
agreed upon. In case the period is not known or agreed upon, such
correction shall be for a period equal to the lesser of one-half of
the time elapsed since the date of the last test or sixteen (16) days.
3.7 Failure of Meters - In the event a meter is out of service or
registering inaccurately, the quantity of gas delivered shall be
determined:
(i) By correcting the error if the percentage of error is
ascertainable by calibration, test or mathematical calculations; or in
the absence of (i), then
(ii) By using the registration of any check meter or meters, if
installed and accurately registering; or in the absence of both (i)
and (ii), then
(iii) By estimating the quantity of delivery during periods under
similar conditions when the meter was registering accurately.
3.8 Right-of-Way and Rural Consumers - El Paso shall install,
maintain and operate at its own expense, all main line taps and
high-pressure regulators necessary for the delivery of natural gas by
El Paso to Shipper for resale to right-of-way consumers as well as to
rural consumers situated remotely from Shipper's general distribution
system. For measurement of gas delivered by El Paso to Shipper for
resale to such right-of-way consumers, Shipper shall install, maintain
and operate at Shipper's own expense, adjacent to El Paso's pipeline,
the meters, low-pressure regulators and other equipment required.
Issued by: A. W. Clark, Vice President
Issued on: August 29, 1991 Effective: September 1, 1991
35
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 207A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
3. MEASUREMENT EQUIPMENT (Continued)
3.8 Right-of-Way and Rural Consumers - (Continued)
For measurement of gas delivered by El Paso to Shipper for resale to
such rural consumers, El Paso may, at its option, require Shipper to
install, maintain and operate at Shipper's own expense, adjacent to El
Paso's high-pressure regulators, the meters, low-pressure regulators
and other equipment required. Notwithstanding the other provisions of
these General Terms and Conditions and unless other operating
arrangements mutually agreeable to Shipper and El Paso are employed,
the following arrangements shall apply to deliveries of gas by El Paso
to Shipper for resale to right-of-way consumers as well as to
deliveries of gas by El Paso to Shipper for resale to rural consumers
where, pursuant to the immediately preceding paragraph, Shipper
installs meters, low-pressure regulators and other equipment. Shipper
will service all equipment installed by it and the consumers served by
use thereof, including handling of all complaints and/or service
calls. The reading of said meters shall be performed by the party
most conveniently able to do so as mutually agreed upon by El Paso and
Shipper. If the meters are read by Shipper, then Shipper shall
furnish a copy of the meter readings to the El Paso, all without
expense to El Paso; provided, however, that El Paso shall have the
right to read said meters at any reasonable time upon giving notice to
Shipper. All pipe, meters and other equipment shall remain the
property of the person or corporation paying for same. Shipper at
its own expense will from time to time check the accuracy of the
meters measuring said gas and shall give El Paso reasonable notice in
writing of its intention to do so. The provisions of Sections 3.6 and
3.7 hereof shall apply to the accuracy of Shipper's measuring
equipment. El Paso may at its option have a representative present at
such test. The frequency of meter reading and the billing for gas
delivered by El Paso to Shipper for resale to such right-of-way and
rural consumers shall be in accordance with such operating
arrangements as may be mutually satisfactory to El Paso and Shipper.
Issued by: A. W. Clark, Vice President
Issued on: August 29, 1991 Effective: September 1, 1991
36
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 207B
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
3. MEASUREMENT EQUIPMENT (Continued)
3.9 Access to Measuring Equipment - Whenever any point of delivery
provided for is on the premises of one party, the other party shall
have the right of free use and ingress and egress at all reasonable
times for the purpose of installation, operation, repair or removal of
measuring equipment.
In the event check measuring equipment is installed, the other party
shall have access to the same at all reasonable times, but the
reading, calibration and adjusting thereof and the changing of charts
shall be done only by the party installing the check measuring
equipment.
Issued by: A. W. Clark, Vice President
Issued on: August 29, 1991 Effective: September 1, 1991
37
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Fourth Revised Sheet No. 208
First Revised Volume No. 1-A Superseding
Substitute Third Revised Sheet No. 208
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
4. SCHEDULING AND CAPACITY ALLOCATION
This Section 4 applies to the operation of El Paso's system and sets
forth the procedures for scheduling of receipts and deliveries and
allocation of pipeline system capacity or any portion thereof among
Shippers receiving transportation service from El Paso under executed
Transportation Service Agreements pursuant to this Tariff and
transportation arrangements included in El Paso's FERC Gas Tariff,
Volume No. 2.
4.1 Scheduling of Receipts and Deliveries
(a) For scheduling purposes, Day 1 shall be utilized only for
scheduling firm requests using primary receipt points and primary
delivery points and Day 2 shall be utilized, where additional
capacity exists, first for scheduling any additional firm requests
using primary receipt points and primary delivery points, secondly for
scheduling firm requests using either alternate receipt points or
alternate delivery points and third for scheduling any interruptible
requests. The following procedure shall be utilized to schedule
transportation on El Paso's system:
Day 1 - On Day 1, Shippers shall verify their requests for firm
transportation from primary receipt points to primary delivery points
and cause the Operators to make confirmations of supply. El Paso
shall utilize confirmed volumes, not to exceed requests, to determine
capacity requirements; and, where necessary, the capacity allocation
procedure set forth in Section 4.2 hereof shall be followed. However,
when the confirmation from the last well causes the total confirmation
to exceed the request, El Paso shall alter the confirmation on the
last well as required for the total confirmation to equal requested
volumes in accordance with the prioritized list of wells, if any,
provided by each Shipper. El Paso shall then communicate
electronically or via facsimile to the Shippers and Operators the
scheduled quantities and any additional capacity availability. Such
notification normally shall be completed prior to the beginning of
business on Day 2.
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
38
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff 1st Sub Second Revised Sheet No. 209
First Revised Volume No. 1-A Superseding
First Revised Sheet No. 209
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
4. SCHEDULING AND CAPACITY ALLOCATION (Continued)
4.1 Scheduling of Receipts and Deliveries (Continued)
Day 2 - Where additional capacity exists, Shippers shall have the
opportunity, in accordance with the allocation procedures set forth in
Section 4.2 of this Section, to request firm transportation for
additional quantities of gas using primary receipt points and primary
delivery points, then for firm requests using either alternate receipt
points or alternate delivery points, or both, and then for requests
for interruptible transportation. Shippers shall cause the Operator
to make corresponding confirmations of supply. Such scheduling shall
apply only to the additional capacity and shall not cause any change
in the prior sequencing of deliveries. El Paso shall then normally
communicate electronically or via facsimile the final scheduling of
gas to Shippers and Operators prior to the beginning of business on
Day 3.
Day 3 - Shippers shall cause the Operators to tender the scheduled
quantities of natural gas to El Paso at Receipt Points, plus volumes
retained by El Paso for fuel and shrinkage as provided for in the
applicable transportation rate schedule and El Paso shall deliver the
scheduled quantities of natural gas, for Shippers' accounts, at
Delivery Points. However, in the event an unexpected capacity
constraint occurs, then El Paso shall allocate capacity in accordance
with the applicable provisions of Section 4.2(d).
(b) Operating conditions may, from time to time, cause a temporary
and unintentional imbalance between the quantities (in dth's) of
natural gas that El Paso receives and the quantities of natural gas
that Shipper takes under the executed Transportation Service
Agreement. Shipper shall schedule gas attributable to imbalances when
El Paso, in its reasonable discretion and in a nondiscriminatory
manner, determines that it can practicably receive or deliver such
imbalance.
(c) El Paso shall not be obligated to accept, for the account of
Shipper, from any receipt point, a quantity of gas that is less than
fifteen (15) dth per day, so as to avoid measurement problems relative
to small volumes and disproportionate administrative burdens.
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: April 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
39
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff First Revised Sheet No. 209A
First Revised Volume No. 1-A Superseding
1st Substitute Original Sheet No. 209A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
4. SCHEDULING AND CAPACITY ALLOCATION (Continued)
4.1 Scheduling of Receipts and Deliveries (Continued)
(d) With respect to its own natural gas supplies, El Paso shall be
obligated to pool its supplies by basin, and schedule its own sales
gas from such pools in the same manner as it schedules gas from pools
for other Shippers.
(e) In the event that, on any day, a Shipper's initial request for
transportation on El Paso's system is unsuccessful due to lack of
access to downstream transportation at any delivery point, which El
Paso shall confirm by contacting the downstream operator, such
condition shall have no adverse effect on the scheduling of other
Shipper's rights at receipt or delivery points.
(f) In the event of any occurrence which prevents El Paso from
utilizing the process set forth above (e.g., computer failure), for
the duration of such occurrence, all scheduling shall be done on the
same day subject to the priority limitations applicable on Day 2.
Notice of the commencement and termination of any such occurrence
shall be posted on El Paso's EBB. The provisions of Section 4.2(d)
below shall not apply to occurrences subject to this Section 4.1(f).
(g) During Day 3, a Shipper moving gas pursuant to Rate Schedule T-3
of this Volume No. 1-A Tariff may divert scheduled volumes to a point
that is within the same rate zone or in an upstream zone. A Releasing
Shipper, as a term of release, may utilize such flow day diversion as
a means of recalling capacity on an expeditious basis. Additionally,
an Acquiring Shipper also may utilize flow day diversion for the same
day return of such recalled capacity. Any diversion pursuant to this
Section 4.1(g) is subject to the following conditions:
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
40
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
Original Volume No. 1-A Original Sheet No. 209B
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
4. SCHEDULING AND CAPACITY ALLOCATION (Continued)
4.1 Scheduling of Receipts and Deliveries (Continued)
(i) The Shipper who desires to divert gas to an alternate delivery
point must: (1) Contact the Operator of the delivery point to which
the gas was originally scheduled and arrange for that Operator to
decrease the quantity to be received from El Paso, and (2) Arrange
with the Operator of the alternate delivery point to receive the gas.
(ii) The Operator of the delivery point from which the gas is to be
diverted must notify El Paso, via El Paso's electronic scheduling
system, which Shipper's gas is to be diverted and to whom and where it
is to be diverted.
(iii) The Operator of the alternate delivery point must notify El
Paso, via El Paso's electronic scheduling system, that said Operator
has agreed to receive the diverted gas and must specify the quantities
to be diverted to each delivery point.
(iv) El Paso shall compare the notifications to verify that the
transactions correspond and shall determine if all or part of the
requested transaction can be accommodated given the current and
anticipated pipeline loading and operating conditions. A flow day
diversion shall not have the effect of bumping a Shipper moving gas
under Rate Schedule T-1 of this Volume No. 1-A Tariff.
(v) If all or part of the transaction can be accommodated, El Paso
shall notify the Shipper and Operators involved what portion of the
transaction has been accepted.
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
41
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 209C
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
4. SCHEDULING AND CAPACITY ALLOCATION (Continued)
4.1 Scheduling of Receipts and Deliveries (Continued)
(vi) The volumes scheduled to be diverted shall be assumed to have
flowed such that no imbalance exists as a result of the diversion
transactions at the end of the day of flow. Any imbalance resulting
from the difference between the total scheduled quantities (including
diversion volumes) and the actual measured volumes shall be accounted
for at the delivery point or on a transportation service agreement, as
appropriate.
(vii) As a result of the diversion, Shipper shall not experience any
change to the originally scheduled volumes and shall be invoiced as
though the gas had been delivered to the originally scheduled point.
4.2 Capacity Allocation Procedure - If, on any day, El Paso
determines that the capacity of its pipeline system, or any portion of
such system, is insufficient to serve all transportation confirmed on
Day 1 or Day 2, then El Paso will schedule transportation in
accordance with the sequencing procedures set forth below until all
available capacity at the constrained location is allocated. Priority
to capacity on the mainline system controls priority to the capacity
upstream of any mainline receipt point. Further, capacity shall be
allocated among Shippers on a nondiscriminatory basis. Subject to the
foregoing, capacity shall be allocated among Shippers in accordance
with the following:
Firm Allocation
(a) First, Shippers receiving service under Rate Schedule FTS-S for
delivery to primary delivery point(s), shall
(This space intentionally left blank)
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
42
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff 1st Sub Second Revised Sheet No. 210
First Revised Volume No. 1-A Superseding
First Revised Sheet No. 210
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
4. SCHEDULING AND CAPACITY ALLOCATION (Continued)
4.2 Capacity Allocation Procedure (Continued) receive their full
requirements before all other Shippers without any requirements or
restrictions as to where the gas is received. Such service shall be
based on confirmed quantities not to exceed the capacity of the
facility to receive or deliver gas; then
(b) Second, pro rata among firm transportation Shippers, including
Acquiring Shippers receiving released capacity on a firm or firm
recallable basis under El Paso's Capacity Release Program, for
delivery from primary receipt to primary delivery point(s) based on
confirmed quantities not to exceed any applicable maximum contract
quantities; then
(c) Third, pro rata among all other firm transportation Shippers
utilizing either an alternate receipt or an alternate delivery point,
or both, based on confirmed volumes not to exceed the capacity of the
facility to receive or deliver gas nor to exceed any Shipper's
applicable maximum contract quantities.
(d) If, on Day 3, an interruption of service occurs which requires
an allocation of previously scheduled capacity, El Paso shall allocate
pursuant to this Section 4.2, but shall treat categories (b) and (c)
above equally for allocation purposes. After serving all firm
requirements, then capacity shall be allocated to interruptible
service as follows:
Interruptible Allocation
(a) First, pro rata among Shippers who contracted prior to October
9, 1985 for interruptible transportation service, according to the
provisions of the applicable transportation contracts; then
(b) Second, among Shippers utilizing El Paso's interruptible
transportation service on a first-come/first-served basis as set forth
in Section 19 of these General Terms and Conditions; then
(c) Pro rata among Shippers receiving scheduled overrun
transportation.
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: April 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
43
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Substitute Original Sheet No. 210A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
4. SCHEDULING AND CAPACITY ALLOCATION (Continued)
4.3 Adjustments to Confirmed Volumes Received by El Paso in the
Event of Supply Underperformance
(a) If, on any day, El Paso determines in its reasonable discretion
that underdelivery of natural gas into El Paso's system (supply
underperformance), from a gathering system or other receipt point, if
allowed to continue, could adversely affect system integrity, El Paso
shall have the right, after providing as much advance notice as
possible, to make adjustments at such point to Operators' Day 1
confirmations to reflect more accurately such Operators' previous
actual deliveries of supply into El Paso's system. An adjustment
pursuant to this Section 4.3 shall not eliminate Shippers' rights
pursuant to the Day 2 scheduling procedures set forth in Section
4.1(a). The provisions of this Section 4.3 shall apply either until
the underdelivery is eliminated or until this threat to system
integrity no longer exists.
(b) El Paso shall identify potential threats to system integrity by
utilizing criteria such as: weather forecast for the market area and
producing area; system conditions, including outages, maintenance,
equipment availability and line pack; overall projected pressures at
various locations; and storage conditions.
(c) When supply underperformance occurs and the deficient source of
supply is immediately identifiable, El Paso shall make adjustments to
that Operator's confirmed volumes. Those supplies that are
independently verifiable by El Paso and which match the Operator's
confirmation shall not be subject to the provisions of this Section
4.3. When the deficient source of supply is not immediately
identifiable, the smallest affected area by wellhead, gathering
system, interconnect or residue plant, shall be identified and these
procedures apply only to that portion of the system. The following
procedures shall be used to adjust Operators' confirmed volumes of
natural gas in the event of supply underperformance.
Issued by: A. W. Clark, Vice President
Issued on: April 29, 1993 Effective: May 1, 1993
44
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Substitute Original Sheet No. 210B
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
4. SCHEDULING AND CAPACITY ALLOCATION (Continued)
4.3 Adjustments to Confirmation Volumes Received by El Paso in the
Event of Supply Underperformance (Continued)
(i) Wellhead Nonperformance - El Paso shall reduce to zero (0) a
well's confirmed volume on Day 1 when El Paso determines that such
well is not producing. The confirmation shall be restored after El
Paso determines that the well is producing.
(ii) Gathering System Underperformance - If supply underperformance
exists, gathering system monitoring shall be performed by El Paso on a
daily basis utilizing the most current data available. El Paso shall
compare the most recent total actual production to Operators'
confirmed volumes for each gathering system. When supply is expected
to be less than Operator confirmations and the shortfall in receipts
threatens the integrity of El Paso's system, El Paso shall notify
Operators promptly and attempt to attain balancing in the affected
gathering system. After being notified by El Paso, Operators may
voluntarily reduce confirmed volumes to the actual supply level. If
Operators volunteer collectively to reduce confirmations to the actual
supply level, thereby eliminating the supply underperformance, no
further action will be required by El Paso. However, if Operators
collectively fail to eliminate the supply underperformance, then
performance factors shall be used by El Paso to adjust the otherwise
confirmed volumes as set forth below.
(1) Calculation of Performance Factors - El Paso shall calculate
performance factors applicable to each Operator in each gathering
system based on a history of actual performance versus final scheduled
volumes. When there is no history on which to calculate an Operator's
performance factor in a particular gathering system, such Operator
shall be included in the provisions contained in this Section
4.3(c)(ii) with a factor that does not indicate underperformance,
until such time as data become available. El Paso shall use the
three most current
Issued by: A. W. Clark, Vice President
Issued on: April 29, 1993 Effective: May 1, 1993
45
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Substitute Original Sheet No. 210C
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
4. SCHEDULING AND CAPACITY ALLOCATION (Continued)
4.3 Adjustments to Confirmation Volumes Received by El Paso in the
Event of Supply Underperformance (Continued)
(1) Calculation of Performance Factors - (Continued)
available months of data. The absolute value of the difference
between final scheduled volumes and actual received volumes for such
three (3) month period shall be divided by each Operator's final
scheduled volumes, as adjusted for any past system change data
available, to arrive at that Operator's gross performance factor. El
Paso shall reduce each Operator's performance factor by 2 percentage
points.
(2) Application of Performance Factors - The following procedure
shall be used by El Paso to calculate an Operator's expected
underperformance and allocate its share of supply shortfall for the
targeted gathering system. El Paso shall apply the adjusted
performance factor against an Operator's confirmed volumes to estimate
the Operator's expected volume underperformance. The Operator's
expected volume underperformance shall be compared with the sum of all
Operators' expected volume underperformance to determine each
Operator's proportionate share (percentage) of the total expected
volume underperformance. Each Operator's proportionate share shall be
applied against the total supply shortfall for the gathering system to
determine the adjustment to each Operator's confirmed volumes. El
Paso shall communicate all adjusted confirmed volumes that have been
scheduled to the appropriate parties in accordance with Section 4.1(a)
of this FERC Gas Tariff. El Paso shall make available electronically
to each Operator its applicable performance factor within each
gathering system prior to each month.
Issued by: A. W. Clark, Vice President
Issued on: April 29, 1993 Effective: May 1, 1993
46
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Substitute Original Sheet No. 210D
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
4. SCHEDULING AND CAPACITY ALLOCATION (Continued)
4.3 Adjustments to Confirmation Volumes Received by El Paso in the
Event of Supply Underperformance (Continued)
(iii) Interconnection or Residue Plant Underperformance Receipts
from interconnecting pipelines and third party plants shall be
monitored by El Paso on a daily basis where real time data is
available. When actual receipts are less than confirmed volumes and
the shortfall in receipts threatens the integrity of El Paso's system,
El Paso shall notify the interconnect and plant Operators and request
Operators to increase deliveries or reduce confirmed volumes
prospectively.
In the event interconnect or third party plant Operators fail to make
adjustments, El Paso shall limit, on a pro rata basis, prospective
confirmed volumes to actual receipts of supply on the day in question.
Higher confirmations shall be allowed prospectively only when the
Operator increases volumes of gas into El Paso's system.
Issued by: A. W. Clark, Vice President
Issued on: April 29, 1993 Effective: May 1, 1993
47
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff First Revised Sheet No. 211
First Revised Volume No. 1-A Superseding Original Sheet No. 211
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
5. QUALITY
5.1 All natural gas received by El Paso at any mainline Receipt
Point(s) shall conform to the following specifications and must be, in
El Paso's reasonable judgment, otherwise merchantable:
(a) Liquids - The gas shall be free of water and hydrocarbons in
liquid form at the temperature and pressure at which the gas is
received. The gas shall in no event contain water vapor in excess of
seven (7) pounds per million standard cubic feet.
(b) Hydrocarbon Dew Point - The hydrocarbon dew point of the gas
received shall not exceed twenty degrees Fahrenheit (20 degrees F) at
normal pipeline operating pressures.
(c) Total Sulfur - The gas shall not contain more than five (5)
grains of total sulfur per one hundred (100) standard cubic feet,
which includes hydrogen sulfide, carbonyl sulfide, carbon disulfide,
mercaptans, and mono-, di- and poly-sulfides. The gas shall also
meet the following individual specifications for hydrogen sulfide,
mercaptan sulfur or organic sulfur:
(i) Hydrogen Sulfide - The gas shall not contain more than
one-quarter (0.25) grain of hydrogen sulfide per one hundred (100)
standard cubic feet.
(ii) Mercaptan Sulfur - The mercaptan sulfur content shall not
exceed more than three-quarters (0.75) grain per one hundred (100)
standard cubic feet.
(iii) Organic Sulfur - The organic sulfur content shall not exceed
one and one-quarter (1.25) grains per one hundred (100) standard cubic
feet, which includes mercaptans, mono-, di- and poly-sulfides, but it
does not include hydrogen sulfide, carbonyl sulfide or carbon
disulfide.
(d) Oxygen - The oxygen content shall not exceed two-tenths of one
percent (0.2%) by volume and every reasonable effort shall be made to
keep the gas delivered free of oxygen.
Issued by: A. W. Clark, Vice President
Issued on: August 29, 1991 Effective: September 1, 1991
48
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff First Revised Sheet No. 212
First Revised Volume No. 1-A Superseding
Original Sheet No. 212
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
5. QUALITY (Continued)
(e) Carbon Dioxide - The gas shall not have a carbon content in
excess of two percent (2%) by volume, except for gas applicable to
Sections 5.2 and 5.3.
(f) Diluents - The gas shall not at any time contain in excess of
three percent (3%) total diluents (the total combined carbon dioxide,
nitrogen, helium, oxygen, and any other diluent compound) by volume,
except for gas applicable to Sections 5.2 and 5.3.
(g) Dust, Gums and Solid Matter - The gas shall be commercially free
of dust, gums and other solid matter.
(h) Heating Value - The gas shall have a heating value of not less
than 967 Btu per cubic foot.
(i) Temperature - The gas received by El Paso shall be at
temperatures not in excess of one hundred twenty degrees Fahrenheit
(120 degrees F) nor less than fifty degrees Fahrenheit (50 degrees F).
Any party tendering gas at a temperature standard less than fifty
degrees Fahrenheit (50 degrees F) shall receive a waiver of such
standard only if a test has been conducted in accordance with
procedures set forth in Section 5.12(b) hereof and the results from
such test demonstrate that the particular segment of the pipeline
tested can be safely operated below the fifty degrees Fahrenheit
(50 degrees F) temperature standard.
(j) Deleterious Substances - The gas shall not contain deleterious
substances in concentrations that are hazardous to health, injurious
to pipeline facilities or adversely affect merchantability.
5.2 El Paso agrees that plant Receipt Points on El Paso's system,
where gas does not conform to the carbon dioxide and/or the total
diluent specification set forth in Sections 5.1(e) and (f) above,
shall be grandfathered based on the highest non-conforming monthly
average percentages of carbon dioxide and total diluents for a month
during the twelve (12) month base period ended July 31, 1990. El
Paso shall accept gas with carbon dioxide and/or total diluents at
percentages up to the non-conforming specifications at volumes up to
the residue volume at the plant design capacity as it exists on July
31, 1990; provided, however, to
Issued by: A. W. Clark, Vice President
Issued on: August 29, 1991 Effective: September 1, 1991
49
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 212A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
5. QUALITY (Continued)
the extent El Paso must curtail non-conforming volumes to meet El
Paso's delivery point specifications for carbon dioxide and/or total
diluents, El Paso shall curtail volumes at these plants down to 125%
of historical volumes in accordance with Section 5.5. Historical
volumes for non-conforming plants shall be deemed to be the daily
average for the highest monthly tailgate volume delivered to El Paso
during the twelve (12) month base period ended July 31, 1990 and in
the event a non-conforming plant or plants are closed, El Paso shall
transfer the applicable historical volumes to another plant. To the
extent a Shipper and/or a plant operator can demonstrate to El Paso
that the specifications and/or historical volumes set forth below are
in error or that any other plant located on El Paso's system has not
historically met the carbon dioxide and the total diluents
specifications set forth in Sections 5.1(e) and (f) above, El Paso
shall either modify accordingly these specifications and/or historical
volumes set forth below or grandfather such other plants on the same
basis as the plants identified above, as appropriate. The
identification of the non-conforming plants, the grandfathered
specifications and the historical volumes are set forth on the table
below.
Non-Conforming Plants
--------------------------------------
Grandfathered
Specifications
-------------------------- Historical
Meter Total Diluents Volume
Location Code CO2MOL % MOL% (MCF/D)
-------- ------ -------- -------------- ----------
Amoco Slaughter Plant
(IAMSLAUG) 77-039 - 11.89 6,915
Barnhart Plant (J.L.Davis)
(IBARNHRT) 77-002 - 3.55 6,149
Big Lake Texon Plant
(Damson Oil Corp.)
(ITEXON) 77-055 - 9.67 2,362
Chevron Puckett Plant
(TPUCKETT) 14-261 3.55 4.09 37,390
Conoco Ramsey Plant
(IRAMSEY) 77-095 - 6.38 4,579
Exxon Snyder Plant
(Oryx Energy)
(IEXSNYDR) 77-009 - 7.42 696
Issued by: A. W. Clark, Vice President
Issued on: August 29, 1991 Effective: September 1, 1991
50
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 212B
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
5. QUALITY (Continued)
Non-Conforming Plants
---------------------
(Continued)
Grandfathered
Specifications
--------------------------
Historical
Meter Total Diluents Volume
Location Code CO2MOL % MOL% (MCF/D)
-------- -------- -------- -------------- ----------
Jameson Plant (Oryx Energy)
(ISUNJAME) 77-078 - 7.02 2,823
Meridian Benedum Plant
(MOHI)(IHYBENDM) 02-304 - 3.18 75,585
Midkiff Plant
(TMIDKIFF) 01-079 - 4.95 39,371
Midway Lane Plant
(Apache Gas Corporation)
(IMIDWAY) 03-933 - 4.45 4,617
Permian Corp. CPD #2
(IPERTOD2) 14-082 - 6.03 6,620
Phillips Goldsmith Plant
(IPHGOLDS) 03-105)
03-927) - 5.23 62,267
02-381)
Phillips Lee Plant
(IPHLEE) 77-025 - 7.34 27,484
Phillips Eunice Plant
(IPHEUNIC) 77-287 - 5.15 57,672
Phillips Fullerton Plant
(IPHFULTN) 77-289 - 6.18 28,200
Phillips Spraberry Plant
(IPHSPBRY) 77-248 - 4.64 11,277
Phillips Crane Plant
(IPHCRANE) 77-285 - 3.86 8,706
San Juan River Plant
(TBKRDOMN) 01-125 - 4.35 32,827
Shell TXL Plant (ISHTXL) 77-029 - 6.17 12,054
Shell Wasson Plant
(ISHWASON) 01-106 - 5.98 8,682
Terrell Plant
(TTERRELL) 01-596 2.89 4.53 102,708
Texaco Fuller
(ITEXFULR) 77-036 - 7.66 661
Issued by: A. W. Clark, Vice President
Issued on: August 29, 1991 Effective: September 1, 1991
51
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 212C
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
5. QUALITY (Continued)
Non-Conforming Plants
---------------------
(Continued)
Grandfathered
Specifications
-------------------------- Historical
Meter Total Diluents Volume
Location Code CO2MOL % MOL% (MCF/D)
------------ ------- --------- -------------- ----------
Texaco Vealmoor Plant
(IVEALMOR) 77-028 - 6.32 10,204
Tipperary Denton Plant
(J.L. Davis)(IDENTON) 77-001 - 5.02 2,554
Union of California
Dollarhide Plant
(IUTDOLHD) 77-027 - 6.42 2,056
Union Texas Perkins Plant
(IUTPERKN) 77-068 - 10.19 9,178
Val Verde
(IMOIIRKA) 14-136 2.13 - 195,985
Warren Monument
(IWARMONU) 77-045 - 4.04 31,576
Warren Saunders Plant
(IWARSAUD) 77-046 - 5.75 12,421
5.3 El Paso agrees that interconnect Receipt Points on El Paso's
system, where gas does not conform to the carbon dioxide and/or the
total diluent specification set forth in Sections 5.1(e) and (f)
above, shall be grandfathered based on the twelve (12) month average
non-conforming percentages of carbon dioxide and total diluents for
the twelve (12) month base period ended July 31, 1990. El Paso shall
accept gas with carbon dioxide and/or total diluents at percentages up
to the grandfathered non-conforming specifications at volumes up to
the historical volume. The historical volume is deemed to be the
daily average volume received by El Paso at each of the non-conforming
interconnect Receipt Points for the twelve (12) month base period
ended July 31, 1990. The identification of the non-conforming
interconnects, the grandfathered specifications and the historical
volumes are set forth on the following table:
Issued by: A. W. Clark, Vice President
Issued on: August 29, 1991 Effective: September 1, 1991
52
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 212D
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
5. QUALITY (Continued)
Non-Conforming Interconnects
----------------------------
Historical
Meter Total Diluents Volume
Location Code CO2MOL % MOL% (MCF/D)
------------- ------ -------- -------------- ----------
Big Blue Receipt Point
(Colorado Interstate)
(IBIGBLUE) 14-091 - 9.50 11,900
Howe Ranch Discharge
(Meridian) 02-721 4.12 5.20 3,480
Northern Natural Plains
(INNPLAIN) 01-094 - 4.22 111,072
Plains Compressor
(Westar-Felmac)
(IW40-043) 40-043 - 4.50 8,464
5.4 In addition, El Paso agrees to grandfather the sulfur
specifications set forth in Section 5.1(c) above for natural gas
received at the tailgate of the Terrell and Puckett Plants, based on
the actual monthly highest non-conforming concentrations during the
twelve (12) month base period ending July 31, 1990. The sulfur
specifications El Paso shall accept for natural gas at volumes up to
the residue volume at plant design capacity received at the tailgate
of the Terrell and Puckett Plants are identified below. To the
extent a Shipper can demonstrate to El Paso that any other plant
located on El Paso's system has not historically met the sulfur
specifications set forth in Section 5.1(c) above, El Paso shall
grandfather such plant on the same basis as the Terrell and Puckett
Plants; provided, however, a plant shall not qualify if such plant has
changed the method of processing the gas in the last five (5) years.
Grandfathered Non-conforming Sulfur
(grains per 100 standard cubic feet)
Total Hydrogen Mercaptan Organic
Location Sulfur Sulfide Sulfur Sulfur
Terrell Plant - 0.45 - -
Puckett Plant - 0.45 - -
Issued by: A. W. Clark, Vice President
Issued on: August 29, 1991 Effective: September 1, 1991
53
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 212E
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
5. QUALITY (Continued)
5.5 El Paso agrees to accept natural gas (including volumes in
excess of the volumes identified in Sections 5.2 and 5.3) which does
not conform to the quality specifications set forth in Sections 5.1(e)
and (f) at the Receipt Point(s), but only until such time as El Paso,
in its reasonable discretion and judgement, determines that such
natural gas must conform to the quality specifications set forth above
to maintain prudent operation of part or all of El Paso's system. In
exercising its discretion to discontinue accepting nonconforming
natural gas under this Section, El Paso will consider only the volume,
compositions and location of the gas, and the impact of its continued
introduction into El Paso's system on El Paso's operations and an
ability to meet its obligations to third parties, and will
appropriately document the basis for its decision. Upon determining
that it will no longer accept non-conforming volumes, El Paso will
notify Shippers and/or plant operators that all prospective deliveries
must comply with the quality specifications set forth above and that
the provisions of Section 5.8 below shall be applicable to all natural
gas tendered for transportation which does not so comply. In the
event the aforementioned occurrences cause El Paso to curtail volumes
at plant and/or interconnect Receipt Points such curtailment shall
exclude those plant and/or interconnect volumes identified in Sections
5.2 and 5.3, provided, however, if El Paso determines that it must
further curtail volumes of non-conforming gas to meet El Paso's
delivery specifications for carbon dioxide and/or total diluents, El
Paso shall curtail volumes down to 125% of the historical volumes for
those plants identified in Section 5.2 on the following basis:
(a) First, volumes of natural gas that did not meet the 967 Btu
standard would be curtailed in order of lowest Btu to highest down to
the level of 125% of historical volumes;
(b) Second, plants with pipeline interconnects in addition to El
Paso would be curtailed down to the level of 125% of historical
volumes on a pro rata basis; and
(c) Third, all other volumes would be curtailed on a pro rata basis,
based on a percentage of such volumes that are out of compliance as to
the particular substance that is causing the problem, down to 125% of
historical volumes.
Issued by: A. W. Clark, Vice President
Issued on: August 29, 1991 Effective: September 1, 1991
54
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 212F
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
5. QUALITY (Continued)
Based on the curtailment procedure as documented above, El Paso will
determine the volume of gas, not to be less than 125% of historical
volumes, that will be allowed to enter El Paso's system at the
grandfathered carbon dioxide and/or total diluent specifications for
each non-conforming plant and will notify the plant operator of such
volumes. Following such initial notification to plant operators, El
Paso shall provide a written notice accompanied by a verification of
non-compliance and provide audit rights to all affected Shippers and
operators, in order to ensure compliance with the above curtailment
procedures.
5.6 Gas delivered to El Paso at Receipt Point(s) which receives any
Production Area services shall conform to those specifications
established herein.
5.7 The quality specifications for each gathering system connected
to El Paso's mainline system shall be no more stringent than those
specifications set forth in Section 5.1. All natural gas received at
a gathering system Receipt Point shall conform to the specifications
set forth in the table below:
(Gathering System Specifications shall be waived
by El Paso on a non-discriminatory basis)
(THIS SPACE INTENTIONALLY LEFT BLANK)
Issued by: A. W. Clark, Vice President
Issued on: August 29, 1991 Effective: September 1, 1991
55
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 212G
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
5. QUALITY (Continued)
Hydro- Total Sulfur/
Water Carbons H2S Mercaptan Sulfur/
Vapor Dew GR/100 Organic Sulfur 3/
Location #/MMCF Point Scf GR/100 Scf
------------ ------ ----- ------ --------------
San Juan Basin
Sweet Gas 25 1/ 0.25 5/.75/1.25
(GSANJUAN)
La Jara
(ILAJARA) 25 1/ 0.25 5/.75/1.25
Tapacito Field
(ITAPACIT) 25 1/ 0.25 5/.75/1.25
Kutz (Exchange
Point No. 13)
(IEXCPT13) 25 1/ 0.25 5/.75/1.25
Kutz (Exchange Point
No. 18)
(IEXCPT18) 25 1/ 0.25 5/.75/1.25
Gas Company of New
Mexico (Exchange
Point No. 47)
(IEXCPT47) 25 1/ 0.25 5/.75/1.25
San Juan Ignacio
Dry (GIGNACIO) 25 20 degrees F 0.25 5/.75/1.25
Bondad (WestGas)
(IBONDAD) 25 20 degrees F 0.25 5/.75/1.25
WestGas
(IWESTGAS) 25 20 degrees F 0.25 5/.75/1.25
San Juan Barker
Dome (GBKRDOMN) 25 20 degrees F 2/ 4/
Dust, Minimum
Total Gums and Heating
CO2 Diluents Oxygen Solid Value
Location MOL % MOL % % Matter Btu Temperature
-------- ----- --------- ------ -------- ------- -----------
San Juan Basin Max 120 degrees F
Sweet Gas 2 3 .2 Free of 967 Min 50 degrees F
(GSANJUAN)
La Jara Max 120 degrees F
(ILAJARA) 2 3 .2 Free of 967 Min 50 degrees F
Tapacito Field Max 120 degrees F
(ITAPACIT) 2 3 .2 Free of 967 Min 50 degrees F
Kutz (Exchange
Point No. 13) Max 120 degrees F
(IEXCPT13) 2 3 .2 Free of 967 Min 50 degrees F
Kutz (Exchange Point
No. 18) Max 120 degrees F
(IEXCPT18) 2 3 .2 Free of 967 Min 50 degrees F
Gas Company of New
Mexico (Exchange
Point No. 47) Max 120 degrees F
(IEXCPT47) 2 3 .2 Free of 967 Min 50 degrees F
San Juan Ignacio Max 120 degrees F
Dry (GIGNACIO) 2 3 .2 Free of 967 Min 50 degrees F
Bondad (WestGas) Max 120 degrees F
(IBONDAD) 2 3 .2 Free of 967 Min 50 degrees F
WestGas Max 120 degrees F
(IWESTGAS) 2 3 .2 Free of 967 Min 50 degrees F
San Juan Barker Max 120 degrees F
Dome (GBKRDOMN) 5/ 4.35 6/ .2 Free of 967 7/ Min 50 degrees F
Issued by: A.W. Clark, Vice President Effective: September 1, 1991
Issued on: August 29, 1991
56
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 212H
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
5. QUALITY (Continued)
Hydro- Total Sulfur/
Water Carbons H2S Mercaptan Sulfur/
Vapor Dew GR/100 Organic Sulfur 3/
Location #/MMCF Point Scf GR/100 Scf
------------- ------ ----- ------ ----------------
Western Gas
Processors CPD#1
(IWGPCPD1) 15 20 degrees F 0.25 5/.75/1.25
Lockridge
(GLOCKRID) 20 20 degrees F 2/ 4/
Worsham
(GWORSHAM) 20 20 degrees F 2/ 4/
Waha
(GWAHA) 20 20 degrees F 2/ 4
West Waha
(GWSTWAHA) 20 20 degrees F 2/ 4/
Gomez
(GGOMEZ) 20 20 degrees F 2/ 4/
Toro
(GTORO) 20 20 degrees F 2/ 4/
Rojo Caballos
(GROJOCAB) 20 20 degrees F 2/ 4/
Carlsbad
(GCARLSBAD) 7 20 degrees F 0.25 5/.75/1.25
Terrell
(GTERRELL) 15 20 degrees F 2/ 5/.75/1.25
Dust, Minimum
Total Gums and Heating
CO2 Diluents Oxygen Solid Value
Location MOL % MOL % % Matter Btu Temperature
-------- ----- --------- ------ -------- ------- -----------
Western Gas
Processors CPD#1 Max 120 degrees F
(IWGPCPD1) 2 3 .2 Free of 967 Min 50 degrees F
Lockridge Max 120 degrees F
(GLOCKRID) 5/ 3 6/ .2 Free of 967 Min 50 degrees F
Worsham Max 120 degrees F
(GWORSHAM) 5/ 3 6/ .2 Free of 967 Min 50 degrees
Waha Max 120 degrees F
(GWAHA) 5/ 3 6/ .2 Free of 967 Min 50 degrees F
West Waha Max 120 degrees F
(GWSTWAHA) 5/ 3 6/ .2 Free of 967 Min 50 degrees F
Gomez Max 120 degrees F
(GGOMEZ) 5/ 3 6/ .2 Free of 967 Min 50 degrees F
Toro Max 120 degrees F
(GTORO) 5/ 3 6/ .2 Free of 967 Min 50 degrees F
Rojo Caballos Max 120 degrees F
(GROJOCAB) 5/ 3 6/ .2 Free of 967 Min 50 degrees F
Carlsbad Max 120 degrees F
(GCARLSBAD) 2 3 .2 Free of 967 Min 50 degrees F
Terrell Max 120 degrees F
(GTERRELL) 5/ 4.53 6/ .2 Free of 967 7/ Min 50 degrees F
Issued by: A.W. Clark, Vice President Effective: September 1, 1991
Issued on: August 29, 1991
57
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 212I
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
5. QUALITY (Continued)
Hydro- Total Sulfur/
Water Carbons H2S Mercaptan Sulfur/
Vapor Dew GR/100 Organic Sulfur 3/
Location #/MMCF Point Scf GR/100 Scf
-------------- ------ ----- ------ ----------------
Dewey County Gathering
System OK (GDEWEY) 6 20 degrees F 0.25 5/.75/1.25
Beckham County
(GBECKHAM) 7 20 degrees F 0.25 5/.75/1.25
San Juan Mainline
(GSJMNLIN) 7 20 degrees F 0.25 5/.75/1.25
26" Eunice to Pecos
(GEU-PECS) 7 20 degrees F 0.25 5/.75/1.25
Plains to San Juan
(GSJXOVER) 7 20 degrees F 0.25 5/.75/1.25
Terrell to Puckett
(GTER-PUK) 7 20 degrees F 0.25 5/.75/1.25
Culberson County
(GCULBERS) 7 20 degrees F 0.25 5/.75/1.25
20" Goldsmith to Plains
(G20G0-PL) 7 20 degrees F 0.25 5/.75/1.25
Texas to 16" C
(GTX-16C) 7 20 degrees F 0.25 5/.75/1.25
16" C Line
(G16C-LIN) 7 20 degrees F 0.25 5/.75/1.25
Dust, Minimum
Total Gums and Heating
CO2 Diluents Oxygen Solid Value
Location MOL % MOL % % Matter Btu Temperature
-------- ----- --------- ------ -------- ------- -----------
Dewey County Gathering Max 120 degrees F
System OK (GDEWEY) 2 3 .2 Free of 967 Min 50 degrees F
Beckham County Max 120 degrees F
(GBECKHAM) 2 3 .2 Free of 967 Min 50 degrees F
San Juan Mainline Max 120 degrees F
(GSJMNLIN) 2 3 .2 Free of 967 Min 50 degrees F
26" Eunice to Pecos Max 120 degrees F
(GEU-PECS) 2 3 .2 Free of 967 Min 50 degrees F
Plains to San Juan Max 120 degrees F
(GSJXOVER) 2 3 .2 Free of 967 Min 50#
Terrell to Puckett Max 120 degrees F
(GTER-PUK) 2 3 .2 Free of 967 Min 50 degrees F
Culberson County Max 120 degrees F
(GCULBERS) 2 3 .2 Free of 967 Min 50 degrees F
20" Goldsmith to Plains Max 120 degrees F
(G20G0-PL) 2 3 .2 Free of 967 Min 50 degrees F
Texas to 16" C Max 120 degrees F
(GTX-16C) 2 3 .2 Free of 967 Min 50 degrees F
16" C Line Max 120 degrees F
(G16C-LIN) 2 3 .2 Free of 967 Min 50 degrees F
Issued by: A.W. Clark, Vice President Effective: September 1, 1991
Issued on: August 29, 1991
58
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 212J
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
5. QUALITY (Continued)
Hydro- Total Sulfur/
Water Carbons H2S Mercaptan Sulfur/
Vapor Dew GR/100 Organic Sulfur 3/
Location #/MMCF Point Scf GR/100 Scf
--------------- ------ ------- ------ ----------------
Yucca Butte
(GYUCBUTE) 7 20 degrees F 0.25 5/.75/1.25
McKay Creek
(GMCKAYCR) 7 20 degrees F 0.25 5/.75/1.25
20" Sonora to Benedum
(GSON-BEN) 7 20 degrees F 0.25 5/.75/1.25
Hobart (Phillips)
(GHOBART) 7 20 degrees F 0.25 5/.75/1.25
Hobart - Zybach
(GHOB-ZYB) 7 20 degrees F 0.25 5/.75/1.25
ANR No. 1
(IANR#1AN) 7 20 degrees F 0.25 5/.75/1.25
ANR No. 2
(IANR#2AN) 7 20 degrees F 0.25 5/.75/1.25
BP Gas Transmission
(Roger Mills County)
(ICHEY-CP) 7 20 degrees F 0.25 5/.75/1.25
NGPL Beckham #3
(INGLPB#3) 7 20 degrees F 0.25 5/.75/1.25
Lea County (100#)
(GLEA100#) 8/ 1/ 2/ 4/
Dust, Minimum
Total Gums and Heating
CO2 Diluents Oxygen Solid Value
Location MOL % MOL % % Matter Btu Temperature
-------- ----- --------- ------ -------- ------- -----------
Yucca Butte Max 120 degrees F
(GYUCBUTE) 2 3 .2 Free of 967 Min 50 degrees F
McKay Creek Max 120 degrees F
(GMCKAYCR) 2 3 .2 Free of 967 Min 50 degrees F
20" Sonora to Benedum Max 120 degrees F
(GSON-BEN) 2 3 .2 Free of 967 Min 50 degrees F
Hobart (Phillips) Max 120 degrees F
(GHOBART) 2 3 .2 Free of 967 Min 50 degrees F
Hobart - Zybach Max 120 degrees F
(GHOB-ZYB) 2 3 .2 Free of 967 Min 50 degrees F
ANR No. 1 Max 120 degrees F
(IANR#1AN) 2 3 .2 Free of 967 Min 50 degrees F
ANR No. 2 Max 120 degrees F
(IANR#2AN) 2 3 .2 Free of 967 Min 50 degrees F
BP Gas Transmission
(Roger Mills County) Max 120 degrees F
(ICHEY-CP) 2 3 .2 Free of 967 Min 50 degrees F
NGPL Beckham #3 Max 120 degrees F
(INGLPB#3) 2 3 .2 Free of 967 Min 50 degrees F
Lea County (100#) Max 120 degrees F
(GLEA100#) 5/ 3 6/ .2 Free of 967 Min 50 degrees F
Issued by: A.W. Clark, Vice President Effective: September 1, 1991
Issued on: August 29, 1991
59
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 212K
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
5. QUALITY (Continued)
Total
Hydro- Sulfur/
Water Carbons H2S Mercaptan Sulfur/
Vapor Dew GR/100 Organic Sulfur 3/
Location #/MMCF Point Scf GR/100 Scf
------------- ------ ----- ------ ---------------
Lea County (Low
Pressure) 8/ 1/ 2/ 4/
(GLEA/LP)
Texas to Lea (Low
Pressure)
(GTX-LEAL) 8/ 1/ 2/ 4/
Texas to Lea 100#
(GTX-LEAH) 8/ 1/ 2/ 4/
16" A Line
(G16A-LIN) 8/ 1/ 2/ 4/
Wilshire
(GWILSHIR) 8/ 1/ 2/ 4/
Jack Herbert
(GJACKHER) 8/ 1/ 2/ 4/
Lusk
(GLUSK) 8/ 1/ 0.25 5/.75/1.25
Midkiff
(GMIDKIFF) 8/ 1/ 9/ 5/.75/1.25
Sealy Smith
(GSLYSMITH) 8/ 1/ 2/ 4/
Peyton
(GPEYTON) 8/ 1/ 2/ 4/
Dust, Minimum
Total Gums and Heating
CO2 Diluents Oxygen Solid Value
Location MOL % MOL % % Matter Btu Temperature
-------- ----- --------- ------ -------- ------- -----------
Lea County (Low Max 120 degrees F
Pressure) (GLEA/LP) 5/ 3 6/ .2 Free of 967 Min 50 degrees F
Texas to Lea (Low Max 120 degrees F
Pressure) (GTX-LEAL) 5/ 3 6/ .2 Free of 967 Min 50 degrees F
Texas to Lea 100# Max 120 degrees F
(GTX-LEAH) 5/ 3 6/ .2 Free of 967 Min 50 degrees F
16" A Line Max 120 degrees F
(G16A-LIN) 5/ 3 6/ .2 Free of 967 Min 50 degrees F
Wilshire Max 120 degrees F
(GWILSHIR) 5/ 3 6/ .2 Free of 967 Min 50 degrees F
Jack Herbert Max 120 degrees F
(GJACKHER) 5/ 3 6/ .2 Free of 967 Min 50 degrees F
Lusk Max 120 degrees F
(GLUSK) 2 3 .2 Free of 967 Min 50 degrees F
Midkiff Max 120 degrees F
(GMIDKIFF) 2 4.95 .2 Free of 967 Min 50 degrees F
Sealy Smith Max 120 degrees F
(GSLYSMITH) 2 3 6/ .2 Free of 967 Min 50 degrees F
Peyton Max 120 degrees F
(GPEYTON) 2 3 6/ .2 Free of 967 Min 50 degree F
Issued by: A.W. Clark, Vice President Effective: September 1, 1991
Issued on: August 29, 1991
60
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 212L
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
5. QUALITY (Continued)
Hydro- Total Sulfur/
Water Carbons H2S Mercaptan Sulfur/
Vapor Dew GR/100 Organic Sulfur 3/
Location #/MMCF Point Scf GR/100 Scf
---------------- ------ ----- ------ ------------------
Pecos Valley
(GPECVALY) 8/ 1/ 2/ 4/
Fort Stockton
(GFTSTOCK) 8/ 1/ 2/ 4/
South Andrews 8/ 1/ 2/ 4/
(GSOANDRW)
Sweetie Peck 8/ 1/ 2/ 4/
(GSWETPCK)
Beaver 8/ 1/ 0.25 5/.75/1.25
(GBEAVER)
Dust, Minimum
Total Gums and Heating
CO2 Diluents Oxygen Solid Value
Location MOL % MOL % % Matter Btu Temperature
-------- ----- --------- ------ -------- ------- -----------
Pecos Valley Max 120 degrees F
(GPECVALY) 2 3 6/ .2 Free of 967 Min 50 degrees F
Fort Stockton Max 120 degrees F
(GFTSTOCK) 5/ 3 6/ .2 Free of 967 Min 50 degrees F
South Andrews Max 120 degrees F
(GSOANDRW) 2 3 6/ .2 Free of 967 Min 50 degrees F
Sweetie Peck Max 120 degrees F
(GSWETPCK) 2 3 6/ .2 Free of 967 Min 50 degrees F
Beaver Max 120 degrees F
(GBEAVER) 2 3 .2 Free of 967 Min 50 degrees F
____________________
1/ Free of hydrocarbons in liquid form.
2/ El Paso will accept natural gas with hydrogen sulfide at levels above 0.25
grains per 100 Scf in these gathering systems. The hydrogen sulfide level
will be used as a basis to curtail gas in these gathering systems only if
the treating plant facilities are limited as a result of, but not limited
to, the following reasons; treating capacity limitation, sulfur emissions
limitations, high residue gas hydrogen sulfide concentration.
Issued by: A.W. Clark, Vice President
Effective: September 1, 1991
Issued on: August 29, 1991
61
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 212M
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
5. QUALITY (Continued)
____________________
3/ El Paso shall accept a total sulfur, mercaptan sulfur, and organic
sulfur as specified in Sections 5.1(c), 5.1(c)(ii) and 5.1(c)(iii)
above until such time that El Paso cannot blend the gas to conform to
El Paso's delivery point specifications set forth in Section 5.10. In
the event such situation occurs, El Paso will refuse acceptance of gas
received by curtailing quantities commencing with the quantities of
gas containing the highest total sulfur, mercaptan sulfur or organic
sulfur down to a level that would permit El Paso to deliver gas at
specifications required at the delivery points.
4/ El Paso will accept natural gas with total sulfur at levels above 5
grains per 100 Scf, mercaptans at levels above 0.75 grains per 100 Scf
and organic sulfur at levels above 1.25 grains per 100 Scf only to the
extent that the processing plant operations is not adversely impacted
by these sulfur compounds and the residue gas from these processing
plants meets the sulfur specifications listed under Section 5.1(c)
above.
5/ El Paso will accept natural gas with carbon dioxide at levels above 2%
in these gathering systems. The carbon dioxide level will be used as
a basis to curtail gas in these gathering systems only if the treating
plant facilities are limited as a result of, but not limited to, the
following reasons; treating capacity limitation, carbon dioxide
emissions limitations, high residue gas carbon dioxide concentration.
6/ El Paso will accept natural gas in these gathering systems that
exceeds the total diluent percentage listed in the table only if the
gas at the tailgate of the treating plant where the gas is processed
does not exceed the total diluent percentage listed in the table.
7/ El Paso will accept natural gas in these gathering systems that is
less than the minimum heating value of 967 Btu only if the gas at the
tailgate of the treating plant where the gas is processed exceeds the
minimum heating value of 967 Btu.
8/ Free of water in liquid form.
9/ El Paso shall accept natural gas with hydrogen sulfide at levels above
0.25 grains per 100 Scf only to the extent that the processing plant
or gathering system operations and the natural gas liquids product
quality are not adversely impacted by the hydrogen sulfide and the
residue gas from these processing plants meets the hydrogen sulfide
specification listed under Section 5.1(c)(i) above.
Issued by: A.W. Clark, Vice President Effective: September 1, 1991
Issued on: August 29, 1991
62
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 212N
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
5. QUALITY (Continued)
5.8 If, at any time, gas tendered by Shipper for transportation
shall fail to substantially conform to any of the applicable quality
specifications set forth in Section 5.1 above and El Paso notifies
Shipper of such deficiency and Shipper fails to remedy any such
deficiency within a reasonable period of time (immediately in those
situations which threaten the integrity of El Paso's system), El Paso
may, at its option, refuse to accept delivery pending correction of
the deficiency by Shipper or continue to accept delivery and make such
changes necessary to cause the gas to conform to such specifications,
in which event Shipper shall reimburse El Paso for all reasonable
expenses incurred by El Paso in effecting such changes, including
operational and gas costs associated with purging and/or venting the
pipeline. Failure by Shipper to tender quantities that conform to any
of the applicable quality specifications shall not be construed to
eliminate, or limit in any manner, the obligations of Shipper existing
under any other provisions of the executed Transportation Service
Agreement. In the event natural gas is delivered into El Paso's
system that would cause the natural gas in a portion of El Paso's
pipeline to become unmerchantable, then El Paso is permitted to act
expediently to make the gas merchantable again by any and all
reasonable methods, including, without limitation, to venting the
pipeline of whatever quantity of natural gas necessary to achieve a
merchantable stream of gas. Shipper shall reimburse El Paso for all
reasonable expenses incurred by El Paso to obtain merchantable natural
gas again, including operational and gas costs associated with venting
the pipeline. In such cases, El Paso shall promptly notify Shipper of
the non-conforming supply and any steps taken to protect the
merchantability of the gas.
5.9 After giving sufficient notice to a Shipper, El Paso shall have
the right to collect from all Shippers delivering gas to El Paso at a
common Receipt Point their volumetric pro rata share of the cost of
any additional hydrogen sulfide analysis and/or water vapor analysis
equipment which El Paso, at its reasonable discretion, determines is
required to be installed at such Receipt Point to monitor the quality
of gas delivered.
5.10 Except as otherwise provided below, all natural gas delivered
by El Paso shall conform to the following specifications:
Issued by: A. W. Clark, Vice President
Issued on: August 29, 1991 Effective: September 1, 1991
63
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 212O
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
5. QUALITY (Continued)
(a) Liquids - The gas shall be free of water and hydrocarbons in
liquid form at the temperature and pressure at which the gas is
delivered. The gas shall in no event contain water vapor in excess of
seven (7) pounds per million standard cubic feet.
(b) Hydrocarbon Dew Point - The hydrocarbon dew point of the gas
delivered shall not exceed twenty degrees Fahrenheit (20 degrees F) at
a pressure of 600 psig.
(c) Total Sulfur - The gas shall not contain more than
three-quarters (0.75) grain of total sulfur per one hundred (100)
standard cubic feet, which includes hydrogen sulfide, carbonyl
sulfide, carbon disulfide, mercaptans, and mono-, di- and
poly-sulfides. The gas shall also meet the following individual
specifications for hydrogen sulfide, mercaptan sulfur or organic
sulfur:
(i) Hydrogen Sulfide - The gas shall not contain more than
one-quarter (0.25) grain of hydrogen sulfide per one hundred (100)
standard cubic feet.
(ii) Mercaptan Sulfur - The mercaptan sulfur content shall not
exceed more than three-tenths (0.3) grain per one hundred (100)
standard cubic feet.
(iii) Organic Sulfur - The organic sulfur content shall not exceed
five-tenths (0.5) grain per one hundred (100) standard cubic feet,
which includes mercaptans, mono-, di- and poly-sulfides, but it does
not include hydrogen sulfide, carbonyl sulfide or carbon disulfide.
(d) Oxygen - The oxygen content shall not exceed two-tenths of one
percent (0.2%) by volume and every reasonable effort shall be made to
keep the gas delivered free of oxygen.
(e) Carbon Dioxide - The gas shall not have a carbon dioxide content
in excess of three percent (3%) by volume.
Issued by: A. W. Clark, Vice President
Issued on: August 29, 1991 Effective: September 1, 1991
64
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 212P
TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued)
5. QUALITY (Continued)
Shipper or its designee in effecting such changes.
(f) Diluents - The gas shall not at any time contain in excess of
four percent (4%) total diluents (the total combined carbon dioxide,
nitrogen, helium, oxygen, and any other diluent compound) by volume.
(g) Dust, Gums and Solid Matter - The gas shall be commercially free
from solid matter, dust, gums, and gum forming constituents, or any
other substance which interferes with the intended purpose or
merchantability of the gas, or causes interference with the proper and
safe operation of the lines, meters, regulators, or other appliances
through which it may flow.
(h) Heating Value - The gas shall have a heating value of not less
than 967 Btu per cubic foot. For natural gas delivered at the border
between the States of Arizona and California, the gas shall have a
heating value of not less than 995 Btu per cubic foot.
(i) Temperature - The gas shall be delivered at temperatures not in
excess of one hundred five degrees Fahrenheit (105 degrees F) nor less
than fifty degrees Fahrenheit (50 degrees F) except where, due to
normal operating conditions and ambient temperatures on the pipeline
system the temperature may periodically drop below such lower limit.
(j) Deleterious Substances - The gas shall not contain any toxic or
hazardous substance, in concentrations which, in the normal use of the
gas, may be hazardous to health, injurious to pipeline facilities or
be a limit to merchant-ability. If, at any time, gas tendered for
delivery by El Paso shall fail to substantially conform to any of the
specifications set forth in this Section 5.10, Shipper or its designee
agrees to notify El Paso of such deficiency and if El Paso fails to
promptly remedy any such deficiency within a reasonable time, then
Shipper or its designee may, at its option, refuse to accept delivery
pending correction of the deficiency by El Paso or continue to accept
delivery and make such changes as necessary to cause the gas to
conform to such specifications, in which event El Paso shall reimburse
Shipper or its designee for all reasonable expenses incurred by
Issued by: A. W. Clark, Vice President
Issued on: August 29, 1991 Effective: September 1, 1991
65
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 212Q
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
5. QUALITY (Continued)
5.11 The quality specifications set forth in Section 5.10 above
shall not apply to natural gas delivered by El Paso at delivery points
in production areas designated as "Field Gas" on Exhibits A and/or B
of an executed Transportation Service Agreement or any delivery point
in production areas receiving gas delivered by El Paso on July 31,
1990 that did not meet the quality specifications set forth in Section
5.10 above. Gas so designated shall be of such quality as may exist
in El Paso's pipeline from time to time at such points and El Paso
makes no warranty of merchantability or fitness for any purpose with
respect to such gas.
5.12 Testing Procedures - The following test procedures shall be
utilized by El Paso. (a) To determine whether specified sulfur
compound limitations are being met as stated under Section 5.1(c) and
5.10(c) hereof, El Paso shall use the appropriate American Society for
Testing Materials Procedures (as revised) Volume 05.05 Gaseous Fuels;
Coal and Coke and/or accepted industry practices such as sulfur
titrators and chromatographs. (b) To determine whether specific
points on El Paso's system can operate below the fifty degree
Fahrenheit (50 degree F) tolerance as stated in Section 5.1(i), El
Paso shall use the Charpy impact and drop-weight tear tests in
accordance with API-5L Supplemental Requirements 5 and 6,
respectively. Inasmuch as this test requires the shutdown of the
specific segment of the system being tested, El Paso shall conduct
such test only at a time when operations on such segments are not
affected or the safety of the system is not put in jeopardy.
Issued by: A. W. Clark, Vice President
Issued on: August 29, 1991 Effective: September 1, 1991
66
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 213
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
6. BILLING AND PAYMENT
6.1 Billing - On or before the fifteenth (15th) day of each month El
Paso shall mail to Shipper an invoice evidencing the bill for services
rendered to Shipper under the executed Transportation Service
Agreement during the preceding month. When Shipper is in control of
information required by El Paso to prepare invoices, Shipper shall
cause such information to be received by El Paso on or before the
tenth (10th) day of the month immediately following the month to which
the information applies.
6.2 Payment by Wire Transfer - Payment to El Paso for services
rendered during the preceding month shall be due on the twenty-sixth
(26th) day of the calendar month next succeeding that month for which
such service was rendered and shall be paid by Shipper on or before
such due date. Subject to the provisions of Section 6.3 below,
Shipper shall make such payment to El Paso by wire transfer in
immediately available funds to a depository designated by El Paso.
When the due date falls on a day that the designated depository is not
open in the normal course of business to receive Shipper's payment,
Shipper shall cause such payment to be actually received by El Paso on
or before the first business day on which the designated depository is
open after such due date.
6.3 Payment Other Than by Wire Transfer - In the event in any month,
that Shipper does not make payment by wire transfer, then payment to
El Paso for services rendered during the preceding month shall be due
on the twenty-fifth (25th) day of the calendar month next succeeding
that month for which such service was rendered. Shipper shall cause
payment for such bill to be actually received by El Paso at its
offices in El Paso, Texas, directed to the attention of General
Accounting, on or before such due date. When the due date falls on a
day that El Paso's offices located in El Paso, Texas, are not open in
the normal course of business to receive Shipper's payment, Shipper
shall cause such payment to be actually received by El Paso on or
before the last business day on which El Paso's offices located in El
Paso, Texas, are open prior to such due date.
Issued by: A. W. Clark, Vice President
Issued on: April 26, 1990 Effective: May 1, 1990
67
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Substitute First Revised Sheet No. 214 First
First Revised Volume No. 1-A Superceding
Original Sheet No. 214
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
6. BILLING AND PAYMENT (Continued)
6.4 Failure to Pay Bills - Should Shipper fail to pay all of the
amount of any bill for gas delivered under the executed Transportation
Service Agreement when such amount is due, as herein provided, Shipper
shall pay El Paso interest on the unpaid balance that shall accrue on
each calendar day from the twenty-fifth (25th) day of the month during
which payment was due at a rate equal to two percent (2%) above the
then effective prime commercial lending rate per annum announced from
time to time by The Chase Manhattan Bank (N.A.) at its principal
office in New York City, provided that for any period that such
interest exceeds any applicable maximum rate permitted by law, the
interest shall equal said applicable maximum rate. The interest
provided for by this Section 6.4 shall be compounded monthly. Unless
otherwise mutually agreed between the parties, if either principal or
interest are due, any payments thereafter received shall first be
applied to the interest due, then to the previously outstanding
principal due and, lastly, to the most current principal due. Subject
to requirements of regulatory bodies having jurisdiction and without
prejudice to any other rights and remedies available to El Paso under
the law and the executed Transportation Service Agreement, El Paso
shall have the right to suspend transportation service without
obtaining additional prior approval from the Commission if any amount
billed to Shipper remains unpaid for more than thirty (30) days after
the due date thereof; provided, however, prior to suspension El Paso
shall follow these notification procedures:
(a) First Notice: On or about ten (10) days after the due date of
any payment, El Paso shall contact Shipper by telephone or other
routine communication means to advise that unpaid bills may lead to
suspension of transportation service when more than thirty (30) days
past due;
(b) Second Notice: On or about twenty (20) days after the due date
of any payment, El Paso shall notify Shipper by written correspondence
to advise that continued failure to pay bills can lead to suspension
of transportation service when the bill becomes more than thirty (30)
days past due;
Issued by: A. W. Clark, Vice President
Issued on: July 16, 1992 Effective: July 3, 1992
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RP92-185-000, dated July 2, 1992
68
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Substitute First Revised Sheet No. 215 First
First Revised Volume No. 1-A Superseding
Original Sheet No. 215
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
6. BILLING AND PAYMENT (Continued)
6.4 Failure to Pay Bills (Continued)
(c) Final Notice: Not less than five (5) days prior to the thirtieth
(30th) day after the due date of any payment or five (5) days before
El Paso intends to suspend service under this Section 6.4, if such
suspension will occur more than thirty (30) days after the due date,
El Paso shall inform the Commission, interested State utility
regulators, and Shipper in writing and delivered by any reliable and
expeditious means available, that transportation service shall be
suspended; provided further, however, that in the event of a bona fide
dispute between the parties concerning the amount billed of the unpaid
bill, El Paso shall not suspend transportation service under the
notification procedure outlined above when Shipper acts in a timely
manner to provide additional information and security for El Paso in
accordance with the following procedures.
(d) Identify Dispute: Within fifteen (15) days after the due date of
any payment, Shipper shall notify El Paso by written correspondence of
the amount billed that is in bona fide dispute and of all reasons and
documentation why Shipper believes full payment is not now
appropriate; and
(e) Payment Security: Within thirty (30) days after the due date of
any payment, Shipper shall either pay in full the total amount billed
without prejudice to Shipper's rights to dispute all or part of said
amount and subject to return by El Paso of the disputed amount so
identified, with interest calculated in accordance with this Section
6.4, after resolution of that dispute in favor of Shipper, or pay the
undisputed portion of the amount billed in full and furnish good and
sufficient surety bond, guaranteeing payment to El Paso of all amounts
ultimately found due after resolution of the dispute, including the
amount now in dispute plus the estimated interest calculated in
accordance with this Section 6.4 that accrues until resolution of the
dispute, which may be reached either by agreement or judgment of a
court of competent jurisdiction; provided, however, neither El Paso
nor Shipper shall calculate or pay interest on
Issued by: A. W. Clark, Vice President
Issued on: July 16, 1992 Effective: July 3, 1992
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RP92-185-000, dated July 2, 1992
69
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Substitute Original Sheet No. 215A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
6. BILLING AND PAYMENT (Continued)
6.4 Failure to Pay Bills (Continued) any amounts of less than
$10,000. If resolution of the dispute is in favor of Shipper and the
Shipper furnished a surety bond instead of paying the disputed amount,
then El Paso shall refund to Shipper the costs incurred in securing
that surety bond for this dispute. This section does not apply to
ordinary adjustments of overcharges and undercharges in accordance
with Section 6.5.
6.5 Adjustment of Overcharge and Undercharge - If it shall be
found that at any time or times, within the time limits of Section 6.7
below, Shipper has been overcharged or undercharged in any form
whatsoever under the provisions hereof as a result of an error in
billing for which El Paso is solely responsible and Shipper shall have
actually paid the bill containing such overcharge or undercharge,
then, unless mutually agreed otherwise, within thirty (30) days after
the final determination thereof, and except where otherwise required
by statute, rule, regulation or order, El Paso shall refund the amount
of any such overcharge, with interest thereon at the then effective
rate computed in the same manner as set forth in Section 6.4 above,
and Shipper shall pay the amount of any such undercharge, with
interest thereon at the then effective rate computed in the same
manner as set forth in Section 6.4 above. Interest on overcharges or
undercharges shall be calculated from the time such overcharge or
undercharge was paid to the date of refund or payment, respectively;
provided, however, neither El Paso nor Shipper shall calculate or pay
interest on any amounts of less than $10,000. This section does not
apply to payments subject to a billing dispute in accordance with
Section 6.4.
6.6 Delayed Bill or Notice - If El Paso fails to render or
otherwise fails to mail any bill by the fifteenth (15th) day of the
month then the time of payment shall be extended by one (1) day for
each day that the rendering of said bill is delayed unless Shipper is
responsible for such delay. If El Paso fails to render or otherwise
fails to mail any notice within the time specified in this Billing and
Payment Section, then the time for Shipper's response to such notice
shall be extended by one (1) day for each day that the rendering of
said notice is delayed unless Shipper is responsible for such delay.
Issued by: A. W. Clark, Vice President
Issued on: July 16, 1992 Effective: July 3, 1992
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RP92-185-000, dated July 2, 1992
70
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 215B
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
6. BILLING AND PAYMENT (Continued)
6.7 Adjustment of Errors - In the event an error is discovered in
any invoice that El Paso renders, such error shall be adjusted within
thirty (30) days of the determination thereof; provided, however, that
any claim for adjustment must be made within twelve (12) months from
the date of such invoice.
6.8 Fees - Shipper shall reimburse El Paso for all filing and
other fees actually paid by El Paso pursuant to the Commission's
Regulations which are attributable to an executed Transportation
Service Agreement.
Issued by: A. W. Clark, Vice President
Issued on: July 16, 1992 Effective: July 3, 1992
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RP92-185-000, dated July 2, 1992
71
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 216
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
7. FORCE MAJEURE
7.1 Effect of Force Majeure - In the event of either El Paso or Shipper
being rendered unable by force majeure to wholly or in part carry out
its obligations under the provisions of the executed Transportation
Service Agreement, it is agreed that the obligations of the party
affected by such force majeure, other than to make payments due, shall
be suspended without liability for breach of contract during the
continuance of any inability so caused but for no longer period, and
such cause shall, so far as possible, be remedied with all reasonable
dispatch. A force majeure event affecting the performance by either
party shall not relieve it of liability in the event of its concurring
negligence, where such negligence was a cause of the force majeure
event, or in the event of its failure to use reasonable diligence to
remedy the situation and remove the cause in an adequate manner and
with all reasonable dispatch, nor shall such causes or contingencies
relieve either party of liability unless such party shall give notice
and full particulars of the same in writing to the other party as soon
as possible after the occurrence relied on.
7.2 Definition of Force Majeure - The term "force majeure" as
employed herein shall mean acts of God, strikes, lockouts or other
industrial disturbances, failure of any third parties necessary to the
performance by either El Paso or Shipper under the executed
Transportation Service Agreement, inability to obtain pipe or other
material or equipment or labor, wars, riots, insurrections, epidemics,
landslides, lightning, earthquakes, fires, storms, floods, washouts,
arrests and restraint of rulers and people, interruptions by
government or court orders, present or future orders of any regulatory
body having proper jurisdiction, civil disturbances, explosions,
breakage or accident to machinery or lines of pipe, freezing of wells
or pipelines, and any other cause whether of the kind herein
enumerated or otherwise, not within the control of the party claiming
suspension and which, by the exercise of due diligence, such party is
unable to overcome. Nothing contained herein, however, shall be
construed to require either party to settle a strike against its will.
Issued by: A. W. Clark, Vice President
Issued on: April 26, 1990 Effective: May 1, 1990
72
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 217
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
8. CONTROL AND POSSESSION OF NATURAL GAS
8.1 As between El Paso and Shipper, El Paso shall be deemed to be
in control and possession of the natural gas from the time it is
delivered to El Paso at the Receipt Point(s) until it is redelivered
to Shipper at the Delivery Point(s), and Shipper shall be deemed to be
in control and possession of the natural gas at all other times.
Issued by: A. W. Clark, Vice President
Issued on: April 26, 1990 Effective: May 1, 1990
73
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 218
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
9. ADVERSE CLAIMS TO NATURAL GAS
9.1 Notwithstanding Section 10.1 herein, Shipper agrees to
indemnify and hold harmless El Paso, its officers, agents, employees
and contractors against any liability, loss or damage whatsoever,
including litigation expenses, court costs and attorneys' fees,
suffered by El Paso, its officers, agents, employees or contractors,
where such liability, loss or damage arises directly or indirectly out
of any demand, claim, action, cause of action or suit brought by any
person, association or entity, public or private, asserting ownership
of or an interest in the natural gas tendered for transportation or
the proceeds resulting from any sale of that natural gas. The receipt
and delivery of natural gas under the executed Transportation Service
Agreement shall not be construed to affect or change title to the
natural gas.
Issued by: A. W. Clark, Vice President
Issued on: April 26, 1990 Effective: May 1, 1990
74
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 219
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
10. INDEMNIFICATION
10.1 Each party to the executed Transportation Service Agreement
shall bear responsibility for all of its own breaches, tortious acts,
or tortious omissions connected in any way with the executed
Transportation Service Agreement causing damages or injuries of any
kind to the other party or to any third party, unless otherwise
expressly agreed in writing between the parties. Therefore, the
offending party as a result of such offense shall hold harmless and
indemnify the non-offending party against any claim, liability, loss,
or damage whatsoever suffered by the non-offending party or by any
third party. As used herein: the term "party" shall mean a
corporation or partnership entity or individual and its officers,
agents, employees and contractors; the phrase "damages or injuries of
any kind" shall include without limitation litigation expenses, court
costs, and attorneys' fees; and the phrase "tortious acts or tortious
omissions" shall include without limitation sole or concurrent simple
negligence, gross negligence, recklessness, and intentional acts or
omissions.
Issued by: A. W. Clark, Vice President
Issued on: April 26, 1990 Effective: May 1, 1990
75
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 220
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
11. ODORIZATION
11.1 As between El Paso and Shipper, El Paso shall have no
obligation whatsoever to odorize the natural gas delivered, nor to
maintain any odorant levels in such natural gas. Notwithstanding
Section 10.1 herein, Shipper agrees to indemnify and hold harmless El
Paso, its officers, agents, employees and contractors against any
liability, loss or damage, including litigation expenses, court costs
and attorneys' fees, whether or not such liability, loss or damage
arises out of any demand, claim, action, cause of action, and/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 El
Paso, its officers, agents, employees and/or contractors as a direct
or indirect result of any actual or alleged sole or concurrent
negligent failure by El Paso or any actual or alleged act or omission
of any nature by Shipper to odorize the natural gas or product
delivered under the executed Transportation Service Agreement or to
maintain any odorant levels in such natural gas or product.
Issued by: A. W. Clark, Vice President
Issued on: April 26, 1990 Effective: May 1, 1990
76
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 221
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
12. NON-WAIVER OF FUTURE DEFAULT
12.1 No waiver by either El Paso or Shipper of any one or more
defaults by the other in performance of any of the provisions of the
executed Transportation Service Agreement shall operate or be
construed as a waiver of any other existing or future default or
defaults, whether of a like or of a different character.
13. SERVICE CONDITIONS
13.1 Interruptible transportation service provided under this
Volume No. 1-A Tariff is subject to and conditioned upon the
availability of capacity sufficient to provide the transportation
service without detriment or disadvantage to El Paso's firm sales and
firm transportation customers.
Issued by: A. W. Clark, Vice President
Issued on: April 26, 1990 Effective: May 1, 1990
77
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 222
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
13. SERVICE CONDITIONS (Continued)
13.2 El Paso and Shipper acknowledge that the executed
Transportation Service Agreement does not prohibit either party from
selling or transferring its own facilities; therefore, neither El Paso
nor Shipper shall have any obligation to provide services under the
executed Transportation Service Agreement that requires the use of any
facilities sold or transferred; provided, however, El Paso first shall
seek abandonment authorization for any jurisdictional facilities or
jurisdictional services and Shipper shall have the right to protest
such abandonment as inconsistent with the present or future public
convenience and necessity.
13.3 Unless otherwise provided in the executed Transportation
Service Agreement, in the event El Paso and Shipper agree in writing
that additional facilities are necessary in order to implement the
service provided under the executed Transportation Service Agreement,
Shipper agrees to reimburse El Paso for all expenditures associated
with the construction and installation of such facilities which shall
be owned, operated and maintained by El Paso.
13.4 Unless otherwise agreed to in writing, El Paso shall only be
responsible for the maintenance and operation of its own properties
and facilities and shall not be responsible for the maintenance or
operation of any other properties or facilities connected in any way
with the transportation of natural gas.
13.5 El Paso shall have the right to interrupt the transportation
of natural gas when necessary to test, alter, modify, enlarge or
repair any facility or property comprising a part of, or appurtent to,
the El Paso System, or otherwise related to the operation thereof. El
Paso shall endeavor to cause a minimum of inconvenience to Shipper
and, except in cases of emergency, shall give Shipper advance notice
of its intention to so interrupt the transportation of gas and of the
expected magnitude of such interruptions.
Issued by: A. W. Clark, Vice President
Issued on: April 26, 1990 Effective: May 1, 1990
78
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Substitute Original Sheet No. 222A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
13. SERVICE CONDITIONS (Continued)
13.6 As a condition to providing service under Section 284.102(d)
of the Commission's Regulations for any Shipper under this Volume No.
1-A Tariff, Shipper shall provide certification including sufficient
information to verify that its services qualify under said section.
Prior to commencing transportation service described in Section
284.102(d)(3) of the Commission's Regulations, El Paso must receive
the certification required from a local distribution company or an
intrastate pipeline pursuant to Section 284.102(d)(3).
Issued by: A. W. Clark, Vice President
Issued on: January 22, 1992 Effective: January 17, 1992
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RP92-58-000, dated January 8, 1992
79
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 223
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
14. STATUTORY REGULATION
14.1 The respective obligations of El Paso and Shipper under the
executed Transportation Service Agreement are subject to the laws,
orders, rules and regulations of duly constituted authorities having
jurisdiction.
Issued by: A. W. Clark, Vice President
Issued on: April 26, 1990 Effective: May 1, 1990
80
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 224
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
15. ASSIGNMENTS
15.1 Shipper shall make no sale or assignment of the executed
Transportation Service Agreement or any of the rights or obligations
thereunder unless there first shall have been obtained the written
consent thereto of El Paso; provided, however, that Shipper may,
without the necessity of obtaining the consent of El Paso, assign any
of its rights, but not its obligations thereunder to a trustee or
trustees, individual or corporate, as security for bonds or other
obligations or securities without such trustee or trustees becoming
obligated to perform the obligations of the assignor thereunder and,
if any such trustee be a corporation, without its being required to
qualify to do business in any State in which performance of the
executed Transportation Service Agreement may occur.
Issued by: A. W. Clark, Vice President
Issued on: April 26, 1990 Effective: May 1, 1990
81
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 225
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
16. DESCRIPTIVE HEADINGS
16.1 The descriptive headings of the provisions of the executed
Transportation Service Agreement and of these Transportation General
Terms and Conditions are formulated and used for convenience only and
shall not be deemed to affect the meaning or construction of any such
provision.
Issued by: A. W. Clark, Vice President
Issued on: April 26, 1990 Effective: May 1, 1990
82
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 226
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
17. TAXES
17.1 Shipper shall pay or cause to be paid all taxes and
assessments imposed on Shipper with respect to natural gas transported
prior to and including its delivery to El Paso, and El Paso shall pay
or cause to be paid all taxes and assessments imposed on El Paso with
respect to natural gas transported after its receipt by El Paso and
prior to redelivery to Shipper, provided however, that Shipper shall
pay to El Paso all taxes, levies or charges which El Paso may by law
be required to collect from Shipper by reason of all services
performed for Shipper.
17.2 Neither party shall be responsible or liable for any taxes or
other statutory charges levied or assessed against any of the
facilities of the other party used for the purpose of carrying out the
provisions of the executed Transportation Service Agreement.
Issued by: A. W. Clark, Vice President
Issued on: April 26, 1990 Effective: May 1, 1990
83
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Second Revised Sheet No. 227
First Revised Volume No. 1-A Superseding
First Revised Sheet No. 227
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
18. GAS RESEARCH INSTITUTE GENERAL RESEARCH, DEVELOPMENT AND
DEMONSTRATION FUNDING UNIT ADJUSTMENT PROVISION
18.1 Purpose - El Paso has joined with other enterprises in the
formation of and participation in the activities and financing of the
Gas Research Institute ("GRI"), an Illinois non-profit corporation.
GRI has been organized to sponsor 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. This Section 18 provides for a
volumetric surcharge and, as specified herein, a reservation surcharge
applicable to the Program Funding Services comprising transportation
services rendered by El Paso, under the rate schedules contained in
this FERC Gas Tariff. Such surcharges are necessary to produce
revenues required to fund El Paso's allocable pro rata share of the
RD&D expenditures of GRI, as approved by the Commission.
18.2 Applicability - This Section 18 establishes El Paso's GRI
General RD&D Funding Unit Adjustment to be included in El Paso's rates
for transportation services rendered for Shippers, except other
pipeline companies which include in their respective tariffs a charge
for the GRI funding requirement, under rate schedules contained in
this FERC Gas Tariff. This Section 18 also specifies the procedures
to be utilized in changing El Paso's GRI General RD&D Funding Unit
Adjustment under each such applicable rate schedule in order to
reflect changes in El Paso's allocable share of GRI's approved RD&D
expenditures. For the period commencing January 1, 1994 through
December 31, 1994 the Commission approved a GRI funding mechanism
designed to collect 50 percent of GRI's budget through reservation
surcharges, and 50 percent through usage surcharges. Under such
funding mechanism, the reservation and usage surcharges are applicable
to volumes of natural gas transported by El Paso. In the event El
Paso discounts its reservation and/or usage rates, the applicable
surcharges shall be considered as the first rate increment to be
discounted for purposes of this Section 18. If the discount is less
than the reservation and/or usage surcharges, then the difference
between the reservation and/or usage surcharges and the discount shall
be remitted to GRI. The reservation surcharge is divided into two
load factor categories at two distinct rates: (1) high load factor
Shippers and (2) low load factor Shippers. The load factor is
calculated yearly using the firm Shipper's most recent twelve (12)
month throughput divided by its annual contract demand or billing
determinant. The load factor for a new firm Shipper shall be
calculated using the new Shipper's estimated annual volumes to be
Issued by: A. W. Clark, Vice President
Issued on: November 29, 1993 Effective: January 1, 1994
84
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Second Revised Sheet No. 228
First Revised Volume No. 1-A Superseding
First Revised Sheet No. 228
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
18. GAS RESEARCH INSTITUTE GENERAL RESEARCH, DEVELOPMENT AND
DEMONSTRATION FUNDING UNIT ADJUSTMENT PROVISION (Continued)
18.2 Applicability (Continued)
transported, divided by the Shipper's contract demand or billing
determinant. For the purposes of this Section only and as set forth
in Section 18.7 hereof, Shippers with a load factor exceeding 50
percent are classified as high load factor Shippers, and those
Shippers with a load factor of 50 percent or less are classified as
low load factor Shippers.
18.3 The GRI General RD&D Funding Unit Adjustment - The rates
charged under each of the rate schedules applicable hereunder shall
include, as appropriate, surcharge(s) for the GRI General RD&D Funding
Unit Adjustment. Such surcharge(s) shall be that General RD&D Funding
Unit amount proposed from time to time by GRI for its RD&D
expenditures and approved by the Commission. The GRI General RD&D
Funding Unit Adjustment surcharge(s) shall be effective on the
applicable Adjustment Date provided in Section 18.4 hereof without
suspension, or refund obligations.
18.4 Adjustment Date - The Adjustment Date under this Section 18
shall be the date as approved by the Commission. On and after the
Adjustment Date El Paso shall, in accordance with the provisions of
this Section 18, increase or decrease the rate applicable to each
affected rate schedule so as to include the approved GRI General RD&D
Funding Unit Adjustment to be collected during the period preceding
the next Adjustment Date.
18.5 Time and Manner of Filing and Related Report - El Paso shall
file changes in the GRI General RD&D Funding Unit Adjustment at least
thirty (30) days prior to the proposed effective date by means of
revised tariff sheets to those rate schedules contained in this FERC
Gas Tariff. Such filing shall identify the amount of said adjustment
i.e., the GRI General RD&D Funding Unit as approved by the Commission)
and the resulting currently effective tariff rates under each
applicable rate schedule. Such filing shall be posted as defined by
the Commission and shall be served upon each of El Paso's affected
Shippers under rate schedules contained in this FERC Gas Tariff, and
upon interested state regulatory agencies.
18.6 Disposition of GRI Funding Unit Adjustment Surcharge Revenues
- El Paso shall remit to GRI the total revenues resulting from the GRI
General RD&D Funding Unit Adjustment provided by this Section 18
within fifteen (15) days following the receipt thereof from El Paso's
affected Shippers.
Issued by: A. W. Clark, Vice President
Issued on: November 29, 1993 Effective: January 1, 1994
Tariff Sheet Subject
to Further Modifications
85
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 228A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
18. GAS RESEARCH INSTITUTE GENERAL RESEARCH, DEVELOPMENT AND
DEMONSTRATION FUNDING UNIT ADJUSTMENT PROVISION (Continued)
18.7 Identification of High and Low Load Factor Shippers by
Agreement
High Load Factor (in excess of 50%) Shippers
Agreement
Description Code
----------- ---------
Amoco Energy Trading Corporation 97JB
ASARCO Inc. 9834
ASARCO Inc. 982A
Cyprus Miami Mining Corporation 982G
El Paso Electric Company 9827
Los Angeles Department of Water and Power 9836
Magma Copper Company 97ZU
Meridian Oil Marketing Inc. 97YW
Meridian Oil Marketing Inc. 97YG
Meridian Oil Trading Inc. 97J4
Meridian Oil Trading Inc. 97J5
Mobil Natural Gas Inc. 97YK
PEMEX Gas y Petroquimica Basica 97ZZ
Pacific Gas and Electric Company 97VU
Phelps Dodge Corporation 97Z7
Saguaro Power Company 97YE
San Diego Gas and Electric Company 9844
Southern California Edison Company 97YV
Southern California Gas Company 97VT
Southern Union Gas Company 97VX
Sunrise Energy Company 97YL
Texaco, Inc. 97YF
U.S. Borax and Chemical Corporation 97YH
West Texas Gas, Inc. 982V
Low Load Factor (50% or less) Shippers
--------------------------------------
Arizona Electric Power Cooperative, Inc. 9838
Arizona Public Service Company 97ZC
Citizens Utilities Company 97ZH
Gas Company of New Mexico 97VW
Las Cruces, New Mexico, City of 982M
Lordsburg, New Mexico, City of 982N
Meridian Oil Trading Inc. 97YM
Mesa, Arizona, City of 97ZV
Mission Energy Fuel Company 97YX
Natural Gas Processors Company 97YR
Navajo Tribal Utility Authority 97ZY
Salt River Project Agricultural 9826
Improvement and Power District
Southdown, Inc. (SW Portland) 982Q
Southwest Gas Corporation 97ZL
Southwest Gas Corporation 97ZK
Issued by: A. W. Clark, Vice President
Issued on: November 29, 1993 Effective: January 1, 1994
86
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 229
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. OPERATING PROVISIONS FOR INTERRUPTIBLE TRANSPORTATION SERVICE
Interruptible transportation service under this FERC Gas Tariff shall
be provided when, and to the extent that, El Paso determines that
capacity is available in El Paso's existing facilities, which capacity
is not subject to a prior claim by another customer or another class
of service under a pre-existing contract, service agreement or
certificate. Available interruptible capacity shall be allocated by
El Paso on a first come/first served basis, as determined by El Paso,
and interruptible transportation service hereunder shall be provided
in accordance with such allocation. The provisions of this Section 19
shall also be applicable to interruptible service under special rate
schedules contained in El Paso's Volume No. 2 Tariff.
19.1 A valid request for interruptible transportation service under
this FERC Gas Tariff made after the effectiveness of Section 23 hereof
shall be in accordance with, and contain the data required by the
provisions contained in such Section 23. 19.2 With respect to all
requests for interruptible service by a Shipper who had not contracted
for service prior to October 9, 1985, the provisions of Sections 19.3
through 19.6 and Section 23.6 shall govern.
19.3 On any day that sufficient capacity is not available in El
Paso's system to provide transportation for all gas tendered under
executed Transportation Service Agreements with Shippers referred to
in Section 19.2 above, El Paso shall allocate its available capacity
among such Shippers on a first come/first served basis. For purposes
of allocating such capacity, any Shipper holding an effective
Transportation Service Agreement or any Shipper who has furnished El
Paso with a valid request complying with the requirements contained in
Section 19.4 and in Section 23, when accepted by El Paso in an
executed Transportation Service Agreement, will be entitled to
priority over any Shipper furnishing El Paso with a valid request on a
later date and shall be unaffected by and shall have priority over
subsequent requests for service under Rate Schedule T-1.
Issued by: A. W. Clark, Vice President
Issued on: April 26, 1990 Effective: May 1, 1990
87
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Second Revised Sheet No. 230
First Revised Volume No. 1-A Superseding
First Revised Sheet No. 230
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. OPERATING PROVISIONS FOR INTERRUPTIBLE TRANSPORTATION SERVICE
(Continued)
19.4 Requests for transportation under this FERC Gas Tariff will be
invalid and will not be considered if service is requested to commence
later than six (6) months after the information specified in Section
23.6 of this FERC Gas Tariff is provided to El Paso.
19.5 Upon receipt of all of the information required in Section 23
for a valid request for transportation service, El Paso shall prepare
and tender to Shipper for execution a Transportation Service Agreement
in the form contained in this Volume No. 1-A Tariff. If Shipper fails
to execute the Transportation Service Agreement or any amendment
thereto within thirty (30) days of the date tendered, Shipper's
request shall be deemed null and void.
19.6 If a Shipper that has executed a Transportation Service
Agreement fails, on the later of the date service is to commence or
fifteen (15) days after the Shipper executes the Transportation
Service Agreement, or the completion of construction of any necessary
facilities or the issuance of any necessary certificate authorization,
to nominate pursuant to Section 4.1 of these General Terms and
Conditions any quantity of gas for transportation or fails, having
nominated a quantity of gas and El Paso having scheduled the quantity
for transportation, to tender any gas for transportation, the
Shipper's Transportation Service Agreement shall be terminated and the
Shipper's request for service shall be deemed null and void; provided,
however, that the Shipper's Transportation Service Agreement shall not
be terminated nor shall the Shipper's request for service be deemed
null and void if the Shipper's failure to nominate or tender is caused
by an event of force majeure as defined in Section 7 of these General
Terms and Conditions.
19.7 El Paso shall not be required to perform or continue service
on behalf of any Shipper that fails to comply with the terms contained
in Sections 19 and 23 and any and all terms of the applicable rate
schedule and the terms of Shipper's Transportation Service Agreement
with El Paso. El Paso shall have the right to waive any one or more
specific defaults by any Shipper under Sections 19.8 through 19.13,
inclusive, or any
Issued by: A. W. Clark, Vice President
Issued on: March 20, 1992 Effective: May 15, 1992
88
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff 1st Revised First Revised Sheet No. 231
First Revised Volume No. 1-A Superseding
Original Sheet No. 231
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19 OPERATING PROVISIONS FOR INTERRUPTIBLE TRANSPORTATION SERVICE
(Continued)
provision of the applicable rate schedule or Transportation Service
Agreement; provided, however, that no such waiver shall operate or be
construed as a waiver of any other existing or future default or
defaults, whether of a like or different character.
19.8 Upon request of El Paso, Shipper shall from time to time
submit estimates of daily, monthly and annual quantities of gas to be
transported, including peak day requirements.
19.9 Shipper shall endeavor to deliver and receive natural gas in
uniform hourly quantities during any day with operating variations to
be kept to the minimum feasible.
19.10 El Paso shall not be required to perform or to continue
interruptible service under this FERC Gas Tariff on behalf of any
Shipper who is or has become insolvent, or fails to meet payment
obligations in accordance with Sections 6.2 or 6.3 of this FERC Gas
Tariff, or who, at El Paso's request, fails, within a reasonable
period to demonstrate creditworthiness or fails to provide adequate
assurances of performance as such are defined in the Texas version of
the Uniform Commercial Code (See, Vernon's Texas Codes Annotated,
Business and Commerce Code, Acts 1967, 60th Leg., Ch. 785, H.B. No.
293, UCC effective September 1, 1967). However, such Shipper may
receive interruptible service under this FERC Gas Tariff if Shipper
prepays for such service or furnishes good and sufficient security, as
determined by El Paso in its reasonable discretion, an amount equal to
the cost of performing the service requested by Shipper for a three
(3) month period to include the cost of gas for permissible imbalance
quantities. For purposes of this FERC Gas Tariff, the insolvency of a
Shipper shall be evidenced by the filing by such Shipper or any parent
entity thereof (hereinafter collectively referred 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 other applicable federal or state law, or
appointing a receiver, liquidator, assignee, trustee, sequestrator (or
Issued by: A. W. Clark, Vice President
Issued on: December 29, 1992 Effective: February 1, 1993
89
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
Original Sheet No. 231A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. OPERATING PROVISIONS FOR INTERRUPTIBLE TRANSPORTATION SERVICE
(Continued)
other similar official) of the Shipper or of any substantial part of
its property, or the ordering of the winding-up or liquidation of its
affairs, with said order or decree continuing unstayed and in effect
for a period of sixty (60) consecutive days. Notwithstanding the
above and Section 6.4 of this FERC Gas Tariff, El Paso shall not
suspend service to any Shipper, who is or has become insolvent, in a
manner that is inconsistent with the Federal Bankruptcy Code.
(This space intentionally left blank)
Issued by: A. W. Clark, Vice President
Issued on: December 29, 1992 Effective: February 1, 1993
90
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff 1st Rev Sub Second Revised Sheet No. 232
First Revised Volume No. 1-A Superseding
First Revised Sheet No. 232
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. OPERATING PROVISIONS FOR INTERRUPTIBLE TRANSPORTATION SERVICE
(Continued)
19.11 El Paso shall have no responsibility prior to its acceptance
of natural gas at the receipt point(s) and after delivery at the
delivery point(s), and Shipper shall have sole responsibility for all
arrangements necessary for delivery of natural gas to El Paso at the
receipt point(s) for transportation, and for all arrangements
necessary for receipt of natural gas for the account of Shipper at the
delivery point(s), which arrangements otherwise meet the provisions
set forth in these General Terms and Conditions.
19.12 Resolution of Imbalances
For purposes of this Section 19.12 "Shipper" shall include any party
utilizing El Paso's system and services including, without limitation,
any party tendering or receiving gas under Shipper's contract but
excluding any operator of interconnecting facilities and any volume
subject to a written assistance agreement with El Paso. El Paso and
the operator of any interconnecting facilities may cash-out
imbalances, pursuant to a written agreement between them.
(a) Imbalances Prior to Effective Date of this Provision -
Imbalances existing prior to the effective date of this provision will
be corrected in kind, as described below, unless El Paso and Shipper
agree to correct such imbalances in cash. El Paso and Shipper shall
attempt, in good faith, to agree upon the historical imbalance and the
time period to correct such historical imbalance. If, despite such
good faith efforts, El Paso and Shipper fail to reach written
agreement upon the appropriate corrective action within six (6) months
from the effectiveness of this section, then Shipper shall be required
to correct any remaining imbalance within sixty (60) days, subject to
operational constraints on El Paso's system. El Paso shall extend the
sixty (60) day balancing period by one (1) day for each day that El
Paso is unable to receive or deliver scheduled imbalance gas due to
operational constraints on El Paso's system. If after the sixty (60)
day balancing period or extension due to operational constraints
Shipper has not corrected the imbalance, then El Paso shall (i) for
any remaining imbalances where deliveries exceed receipts ("negative
imbalance") charge Shipper per dth based upon
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
91
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff 1st Rev Sub Second Revised Sheet No. 233
First Revised Volume No. 1-A Superseding
First Revised Sheet No. 233
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. OPERATING PROVISIONS FOR INTERRUPTIBLE TRANSPORTATION SERVICE
(Continued)
19.12 Resolution of Imbalances (Continued)
the arithmetic average of the System Weighted Index Price for each
quarter of the twelve (12) months ending December 31, 1992 (the System
Weighted Index Price for each quarter shall be based on the method set
forth in Section 19.12(e)(i) below); or (ii) for any remaining
imbalances where receipts exceed deliveries ("positive imbalance")
retain the imbalance at no cost and free and clear of any adverse
claims by any party or any obligation to account for such gas;
provided however, that in the event of a bona fide dispute by Shipper
of the amount of the imbalance, El Paso shall not take the action
outlined above when Shipper acts in a timely manner to provide
additional information and security for El Paso in accordance with the
following procedures.
(i) Identify Dispute: Within fifteen (15) days after El Paso's
notification of an imbalance, Shipper shall notify El Paso by written
correspondence of the imbalance that is inbona fide dispute and of all
reasons and documentation why Shipper believes El Paso's calculation
of the imbalance is not correct; and
(ii) Payment Security: Within thirty (30) days after El Paso's
notification of an imbalance, Shipper shall either agree to the
imbalance calculated by El Paso without prejudice to Shipper's rights
to dispute all or part of said imbalance and subject to return of the
disputed imbalance so identified after resolution of that dispute or
Shipper shall take the necessary actions to correct the imbalances it
concedes to be correct and furnish good and sufficient surety bond,
guaranteeing the correction of any imbalance ultimately found owed to
El Paso after resolution of the dispute, including late payment
charges which accrue until resolution of the dispute with respect to
any negative imbalances, which resolution may be reached either by
agreement or judgment of a court of competent jurisdiction. If
resolution of the dispute is in favor of Shipper and the Shipper
furnished a surety bond then El Paso
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
92
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff 1st Rev Sub Second Revised Sheet No. 234
First Revised Volume No. 1-A Superseding
Substitute First Revised Sheet No. 234
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. OPERATING PROVISIONS FOR INTERRUPTIBLE TRANSPORTATION SERVICE
(Continued)
19.12 Resolution of Imbalances (Continued)
shall pay to Shipper the costs incurred in securing that surety bond
for this dispute including any late payment charges actually paid to
El Paso.
b) Calculation of an Imbalance Subsequent to the Effectiveness of
this Provision - El Paso and Shippers shall resolve an over-delivery
or under-delivery of gas to El Paso each month in accordance with this
Section 19.12. Each month, El Paso will calculate a percentage
imbalance for each individual contract for each Shipper by dividing
the total cumulative imbalance quantities in excess of 1,000 dth,
attributable to the imbalance amount for such contract (numerator) by
the most recent calendar year monthly average of quantities actually
delivered (denominator). Such average is derived by dividing the
quantities delivered during the calendar year by the number of months
the quantities were delivered; provided however, if no quantities have
been delivered during the last calendar year to Shipper, the monthly
average shall be Shipper's total Transportation Service Agreement
Maximum Daily Quantity multiplied by 30 days. The result of such
calculation will be included on El Paso's imbalance statement to
Shipper, or its designee, and shall serve as notification to the
Shipper of an imbalance. If an imbalance is equal to or greater than
+/-5%, the Shipper is provided additional notice on said statement
that if such imbalance continues and becomes equal to or greater than
+/-10%, the Shipper is subject to cash-out of the imbalance pursuant
to this Section 19.12; provided, however, that in no event shall
cash-out be assessed when the amount of the imbalance does not exceed
1,000 dth, unless the parties mutually agree otherwise; provided,
further, if it is determined that El Paso has caused in any month an
imbalance equal to or greater than +/- 10% of the denominator
determined above, El Paso will cash-out that portion of the imbalance
at 100% of the Index Price. In addition, cash-out of imbalances will
not be mandatory if the parties have reached written agreement on the
resolution of the imbalance provided such agreement is final prior to
the triggering of cash-out as specified in Section 19.12(c)
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
93
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff 1st Rev Sub First Revised Sheet No. 234A
First Revised Volume No. 1-A Superseding
Substitute Original Sheet No. 234A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. OPERATING PROVISIONS FOR INTERRUPTIBLE TRANSPORTATION SERVICE
(Continued)
19.12 Resolution of Imbalances (Continued)
below. Written agreements may consist of, but are not limited to the
following provisions (i) offsetting of imbalances; (ii) extension of a
payback period within a set time period; and (iii) negotiated price
other than the cash-out prices reflected herein.
(c) Triggering of Cash-Out - Except for those contracts without
activity for a period of six (6) months, as discussed in Section
19.12(d), any cumulative imbalance at the end of any month that is
within a tolerance level less than +/-5% shall not be subject to this
Section 19.12 during such month. Such imbalance shall be forwarded to
the next month's imbalance calculation. If the cumulative imbalance
for any month is equal to or greater than +/-5%, El Paso shall notify
Shipper, as indicated in Section 19.12(b), that it is approaching a
cash-out situation for an imbalance equal to or in excess of +/-10%.
For any month that a cumulative imbalance is equal to or in excess of
+/-10%, cash-out of the imbalance will take place provided Shipper has
received a minimum of two (2) consecutive monthly notices (minimum of
45 days from date of first notice) alerting Shipper to an imbalance
equal to or in excess of +/-5%. El Paso shall extend the 45-day grace
period by one (1) day for each day that El Paso is unable to receive
or deliver scheduled imbalance gas for a given contract due to
operational constraints on El Paso's system. If the parties have not
reached written agreement otherwise, the imbalance will be reduced to
+/-5% by "cash-out" the month following the last notice, at the dollar
value calculated with the cumulative imbalance and an established
monthly price, referred to herein as the Index Price, as determined in
Section 19.12(e) below. The Index Price shall be calculated as of the
month the imbalance first equals or exceeds the +/-10% level.
(d) Six-Month Resolution of Inactive Contracts - El Paso will notify
Shipper after three (3) consecutive months of inactivity that at the
end of any six (6) month period that a contract between Shipper and El
Paso has been inactive and has maintained an imbalance of less than
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
94
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff 1st Rev Sub First Revised Sheet No. 234B
First Revised Volume No. 1-A Superseding
Substitute Original Sheet No. 234B
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. OPERATING PROVISIONS FOR INTERRUPTIBLE TRANSPORTATION SERVICE
(Continued)
19.12 Resolution of Imbalances (Continued)
+/-10%, for which no cash-out was applicable and before the next
invoice and balance statement date, such imbalance shall be reduced to
zero (0) by cash-out utilizing the Index Price for the month after the
end of six (6) month period reflected in Section 19.12(e).
(e) Index Prices and Cash Out
(i) Cash-out shall be based on one of four calculated price indices,
depending on whether Shipper has one or more of the three supply
basins (i.e., San Juan, Permian or Anadarko Basins) included in its
agreement. A single price index calculated only for a specific supply
basin will be used if Shipper has only that one supply basin in its
agreement. A System Weighted Index Price calculated for all supply
basins will be used if Shipper has more than one supply basin in its
agreement. The calculation of each price index is set forth below:
(1) The Anadarko Basin Index Price shall be computed using a simple
average of reported prices as delivered to El Paso's Mainline System
at Washita, Anadarko, Oklahoma, or the Texas Panhandle from the
publications identified in Section 19.12(e)(ii);
(2) The Permian Basin Index Price shall be computed using a simple
average of reported prices as delivered to El Paso's Mainline System
at West Texas, Permian or Waha from the publications identified in
Section 19.12(e)(ii); and
(3) The San Juan Basin Index Price shall be computed using a simple
average of reported prices as delivered to El Paso's Mainline System
at Ignacio, San Juan or New Mexico from the publications identified in
Section 19.12(e)(ii).
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
95
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
1st Rev Sub Original Sheet No. 234C
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. OPERATING PROVISIONS FOR INTERRUPTIBLE TRANSPORTATION SERVICE
(Continued)
19.12 Resolution of Imbalances (Continued)
(4) The System Weighted Index Price shall be computed monthly by
using the weighted average of the Anadarko Basin Index Price, the
Permian Basin Index Price, and the San Juan Basin Index Price. The
weighting is based on the volumes entering El Paso's system in each
basin during the previous quarter and will be updated quarterly.
(ii) The four trade publications referenced above are Inside FERC
Gas Market Report (Prices of Spot Gas Delivered to Pipelines), Natural
Gas Week (Spot Prices on Natural Gas Pipeline Systems, Delivered to
Pipelines), Gas Daily (Natural Gas Survey), and Natural Gas
Intelligence Gas Price Index (Spot Gas Prices Delivered to Pipeline,
30 Day Supply Transactions).
In the event any of the publications cease publication or to the
extent a publication fails to report spot prices, then El Paso shall
reserve the right to substitute prices reported in a similar
independent publication or continue the pricing formula using the
average of the remaining publications. Changes in the name, format or
other method of reporting by the publications in (e) above that do not
materially affect the content shall not affect their use hereunder.
(iii) El Paso shall post the Index Price monthly on its electronic
bulletin board on or before the 15th day of each month applicable to
the prior business month. (iv) For any contract where total deliveries
by El Paso for a Shipper exceed the total receipts from Shipper, after
appropriate reductions, such imbalance shall be "cashed out" based on
the percentages provided below. Further, the Index Price shall be
adjusted to reflect the point at which the imbalance is held.
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
96
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
1st Rev Sub Original Sheet No. 234D
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. OPERATING PROVISIONS FOR INTERRUPTIBLE TRANSPORTATION SERVICE
(Continued)
19.12 Resolution of Imbalances (Continued)
(1) For any contract subject to Section 19.12(d), or by mutual
agreement any contract with an imbalance up to and including +5%, the
quantity will be invoiced at 100% of the Index Price;
(2) For any contract subject to Section 19.12(d) or any contract
with an imbalance greater than +5% but less than or equal to +10%, the
quantity in excess of +5% will be invoiced at 110% of the Index Price;
(3) For any contract with an imbalance greater than +10% but less
than or equal to +15%, the volume in excess of +10% will be invoiced
at 120% of the Index Price;
(4) For any contract with an imbalance greater than +15% but less
than or equal to +20%, the volume in excess of +15% will be invoiced
at 130% of the Index Price; and
(5) For any contract with an imbalance greater than +20%, the volume
in excess of +20% will be invoiced at 140% of the Index Price.
(v) For any contract where total receipts by El Paso from a Shipper,
after appropriate reductions, exceed total deliveries for that
Shipper, such imbalance shall be "cashed out" based on the percentages
provided below. Further, the Index Price shall be adjusted to reflect
the point at which the imbalance is held.
(1) For any contract subject to Section 19.12(d) or subject to any
other mutually agreeable terms, with an imbalance up to and including
-5%, the quantity will be purchased by El Paso at 100% of the Index
Price;
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
97
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
1st Rev Sub Original Sheet No. 234E
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. OPERATING PROVISIONS FOR INTERRUPTIBLE TRANSPORTATION SERVICE
(Continued)
19.12 Resolution of Imbalances (Continued)
(2) For any contract subject to Section 19.12(d) or any contract
with an imbalance greater than -5% but less than or equal to -10%, the
quantity in excess of -5% will be purchased by El Paso at 90% of the
Index Price;
(3) For any contract with an imbalance greater than -10% but less
than or equal to -15%, the volume in excess of -10% will be purchased
by El Paso at 80% of the Index Price;
(4) For any contract with an imbalance greater than -15% but less
than or equal to -20%, the volume in excess of -15% will be purchased
by El Paso at 70% of the Index Price; and
(5) For any contract with an imbalance greater than -20%, the volume
in excess of -20% will be purchased by El Paso at 60% of the Index
Price.
(vi) At the time a Shipper is in a cash-out position requiring
payment to El Paso at the appropriate rate set forth in Section
19.12(e)(iv) above and such Shipper also has an Unauthorized Gas
balance, as such term is defined in Section 27.1 of these General
Terms and Conditions, such Unauthorized Gas balance may be offset
against the quantities due El Paso within the same production basin
and adjusted to reflect the point at which the imbalance is held. At
the time of invoicing for the net imbalance, El Paso shall
appropriately invoice or account for any production area charges and
liquid credits applicable to the unauthorized gas used as an offset.
This provision is not applicable to the Unauthorized Gas retained as a
penalty pursuant to Section 27 of these General Terms and Conditions.
Prior to any offsets, El Paso at its option may first offset any under
or over-deliveries between contracts with such Shipper.
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
98
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
1st Rev Original Sheet No. 234F
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. OPERATING PROVISIONS FOR INTERRUPTIBLE TRANSPORTATION SERVICE
(Continued)
19.12 Resolution of Imbalances (Continued)
Shipper or its suppliers shall be responsible for reporting and
payment of any royalty, tax, or other burdens on natural gas volumes
received by El Paso and El Paso shall not be obligated to account for
or pay such burdens.
(f) Crediting of Revenues - For any net dollar amount received net
of gas and administrative costs from cash-out assessed on El Paso or
an affiliate of El Paso, El Paso shall credit such net amount within
90 days of the payment date to other Shippers on a pro rata basis in
accordance with the volumes transported for each Shipper.
(g) Netting of Contracts - For purposes of resolving an imbalance
with a Shipper, El Paso is willing to negotiate, on a
non-discriminatory basis, netting of gas imbalances, adjusted to
reflect a common point at which the imbalance is held, between
contracts with such Shipper pursuant to the following conditions:
(i) Netting between gathering and pooling agreement imbalances is
negotiable as long as the imbalances were generated in the same basin.
(ii) Netting between upstream interconnects and pooling agreements
is negotiable if the pooling agreement has that interconnect point as
a receipt point.
(iii) Netting between downstream interconnect and mainline agreement
imbalances is negotiable if the agreement has the interconnect point
as a delivery point.
(iv) Netting between Unauthorized Gas and mainline or
pooling/gathering agreement imbalances is negotiable if both the
Unauthorized Gas and imbalance were generated in the same basin.
(v) Netting between mainline agreement imbalances (for similar
transportation service) is negotiable.
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
99
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
1st Rev Original Sheet No. 234G
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. OPERATING PROVISIONS FOR INTERRUPTIBLE TRANSPORTATION SERVICE
(Continued)
19.12 Resolution of Imbalances (Continued)
(vi) Netting between gathering/pooling and mainline agreements is
negotiable if the gathering/pooling basin is a receipt point on the
mainline agreement.
For any specific situation not discussed above, El Paso is willing to
negotiate a transportation transaction which could have the effect of
netting imbalances.
19.13 Unauthorized Overpull Penalty
(a) A penalty shall be levied by El Paso and paid in dollars by any
receiving party (any Shipper, Local Distribution Company, Direct Sales
Customer or other party who operates the facilities that receive the
gas transported by El Paso) who exceeds the limits specified below.
Such penalty is applicable when, in times of capacity constraints, or
when, due to unforeseen circumstances beyond El Paso's control, El
Paso has determined that its ability to maintain scheduled deliveries
to all receiving parties is materially threatened due to insufficient
pressures in El Paso's system and El Paso so notifies said receiving
parties. Nothing herein shall limit El Paso's right to take any
further actions required to maintain the integrity of its system
operations.
(b) On any day El Paso determines that it is unable to deliver the
total volumes of gas scheduled for delivery for the account of all
Shippers, it shall have the right to notify all receiving parties that
an Unauthorized Overpull Penalty situation exists. Contemporaneously
with, or shortly following such notice, El Paso shall give notice to
any receiving party who is taking volumes at a level that would
subject such party to an Unauthorized Overpull Penalty as provided
below.
(c) The quantity of gas subject to such penalty is that quantity of
gas taken by the receiving party which exceeds the quantity of gas
scheduled by El Paso for delivery to such party on any day.
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
100
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
1st Rev Sub Original Sheet No. 234H
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. OPERATING PROVISIONS FOR INTERRUPTIBLE TRANSPORTATION SERVICE
(Continued)
19.13 Unauthorized Overpull Penalty (Continued)
(d) Upon receipt of a notification from El Paso, such party shall
within twenty-four (24) hours reduce takes to a level no more than 3%
above its scheduled volume for such day or 1,000 dth, whichever is
larger. Such twenty-four (24) hour notice period shall commence at
seven (7:00) a.m. Mountain Standard Time on the day after notice is
actually provided. If after the twenty-four (24) hour notice period
the receiving party continues to take volumes of gas that exceed the
foregoing threshold, an Unauthorized Overpull Penalty shall be levied
by El Paso and paid in dollars by any receiving party as follows:
(i) A penalty of $5.00 per dth shall apply to all unauthorized
overrun volumes which exceed the 3% or 1,000 dth tolerance level,
whichever is larger, up to the first 5% of scheduled volumes; and
(ii) A penalty of $10.00 per dth shall apply to daily unauthorized
overrun volumes in excess of 5% of scheduled volumes. El Paso shall
notify Shippers each day during an Unauthorized Overpull Penalty
situation, via El Paso's Electronic Bulletin Board, that the situation
continues to exist. Such notice does not constitute notification of a
new penalty period pursuant to this Section 19.13(d) and does not
begin a new twenty-four (24) hour correction period.
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
101
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
Original Sheet No. 235
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE
Firm transportation service under this FERC Gas Tariff shall be
provided when, and to the extent that, El Paso determines that firm
capacity is available in El Paso's existing facilities, which firm
capacity is not subject to a prior claim by another customer or
another class of service. Firm capacity which becomes available on and
after the effective date of this Section 20, other than capacity which
becomes available through the installation of new mainline
transmission facilities (other than minor tap), and which is not
converted or subject to conversion to firm transportation capacity
pursuant to Section 284.10 of the Commission's Regulations, shall be
made available to potential Shippers to support new firm
transportation agreements on a first come/first served basis.
The provisions of this Section 20 shall also be applicable to firm
service under special rate schedules contained in El Paso's Volume No.
2 Tariff.
20.1 A valid request for firm transportation service under this
FERC Gas Tariff made after the effectiveness of Section 23 hereof
shall be in accordance with, and contain the data required by the
provisions contained in such Section 23.
20.2 With respect to all requests for firm transportation service
by a Shipper made on and after the effective date of this Section 20,
the provisions of Sections 20.3 through 20.5 and 23.6 shall govern.
20.3 (a) The availability of firm capacity for contract shall be
determined by the time and date El Paso receives a valid request for
service under this FERC Gas Tariff, which conforms to Section 20.4
below and the provisions contained in Section 23 upon effectiveness of
such section. El Paso shall consider all valid requests in the order
received, and when a request for service is accepted in writing by El
Paso. Allocation of contracted firm capacity will be on a pro rata
basis.
Issued by: A. W. Clark, Vice President
Issued on: April 26, 1990 Effective: May 1, 1990
102
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
Original Sheet No. 236
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (Continued)
(b) In the event that two or more Shippers seek to obtain the firm
capacity that one or more Shippers offer to relinquish on the Outer
Continental Shelf, such capacity shall be allocated as follows:
(i) during the open season conducted in accordance with Order No.
509, et seq., firm capacity will be reallocated in accordance with
Section 284.304(a) of the Commission's Regulations; and
(ii) after the open season within ten (10) days of receiving a
complete and valid request for firm transportation, El Paso will
provide the requesting Shipper a list of all firm Shippers under
contract with El Paso. If the requesting Shipper finds an existing
Shipper willing to relinquish voluntarily all or a portion of its firm
capacity, El Paso will reallocate that capacity on a first come/first
served basis. The relinquishing Shipper and the new Shipper shall
advise El Paso in writing of their mutual agreement. In the event
there is more than one valid request for service on a given day, and
such requests exceed the available firm capacity, such capacity shall
be allocated among the requesting Shippers on a pro rata basis. Any
capacity which is relinquished by an existing Shipper and subsequently
assumed by the requesting Shipper must have compatible receipt and
delivery point obligations, unless El Paso has capacity available at
other requested receipt and delivery points. In the event El Paso has
uncommitted firm capacity available, it may assign part or all of that
capacity before it reallocates the capacity of existing Shippers.
Upon execution of the new Transportation Service Agreement with the
new Shipper, El Paso shall be absolved of all service obligations to
the relinquishing Shipper and shall be deemed to have received
pregranted abandonment authorization for such relinquishing Shipper.
Issued by: A. W. Clark, Vice President
Issued on: April 26, 1990 Effective: May 1, 1990
103
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff 1st Revised First Revised Sheet No. 237
First Revised Volume No. 1-A Superseding
Original Sheet No. 237
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (Continued)
20.4 Requests for firm transportation hereunder shall be
accompanied by a prepayment, not to exceed $10,000.00, of the total
Reservation Charge provided by Section 4.1 of Rate Schedule T-3 of
this FERC Gas Tariff.
20.5 Upon receipt of all of the information required in Section 23
for a valid request for transportation service, El Paso shall prepare
and tender to Shipper for execution a Transportation Service Agreement
in the form contained in this Volume No. 1-A Tariff. If Shipper fails
to execute the Transportation Service Agreement or any amendment
thereto within thirty (30) days of the date tendered, Shipper's
request shall be deemed null and void.
20.6 El Paso shall not be required to perform or continue service
on behalf of any Shipper that fails to comply with the terms contained
in Sections 20 and 23 and any and all terms of the applicable rate
schedule and the terms of Shipper's Transportation Service Agreement
with El Paso. El Paso shall have the right to waive any one or more
specific defaults by any Shipper under Sections 20.7 through 20.12,
inclusive, or any provision of the applicable rate schedule or
Transportation Service Agreement; provided, however, that no such
waiver shall operate or be construed as a waiver of any other existing
or future default or defaults, whether of a like or different
character.
20.7 Upon request of El Paso, Shipper shall from time to time
submit estimates of daily, monthly and annual quantities of gas to be
transported, including peak day requirements. 20.8 Shipper shall
endeavor to deliver and receive natural gas in uniform hourly
quantities during any day with operating variations to be kept to the
minimum feasible.
20.9 El Paso shall not be required to perform or to continue firm
service under this FERC Gas Tariff on behalf of any Shipper who is or
has become insolvent, or fails to meet payment obligations in
accordance with Sections 6.2 or 6.3 of this FERC Gas Tariff, or who,
at El Paso's request, fails, within a reasonable period to demonstrate
creditworthiness or fails to provide adequate assurances of
performance as such are defined in the Texas version of the Uniform
Commercial Code(See, Vernon's Texas Codes Annotated, Business and
Commerce Code,
Issued by: A. W. Clark, Vice President
Issued on: December 29, 1992 Effective: February 1, 1993
104
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Third Revised Sheet No. 238
First Revised Volume No. 1-A Superseding
Substitute Second Revised Sheet No. 238
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (Continued)
Acts 1967, 60th Leg., Ch. 785, H.B. No. 293, UCC effective September
1, 1967). However, such Shipper may receive firm service under this
FERC Gas Tariff if Shipper prepays for such service or furnishes good
and sufficient security, as determined by El Paso in its reasonable
discretion, an amount equal to the cost of performing the service
requested by Shipper for a three (3) month period to include the cost
of gas for permissible imbalance quantities. For purposes of this
FERC Gas Tariff, the insolvency of a Shipper shall be evidenced by the
filing by such Shipper or any parent entity thereof (hereinafter
collectively referred 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 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 or liquidation of its affairs, with said order or
decree continuing unstayed and in effect for a period of sixty (60)
consecutive days. Notwithstanding the above and Section 6.4 of this
FERC Gas Tariff, El Paso shall not suspend service to any Shipper, who
is or has become insolvent, in a manner that is inconsistent with the
Federal Bankruptcy Code.
20.10 El Paso shall have no responsibility prior to its acceptance
of natural gas at the receipt point(s) and after delivery at the
delivery point(s), and Shipper shall have sole responsibility for all
arrangements necessary for delivery of natural gas to El Paso at the
receipt point(s) for transportation, and for all arrangements
necessary for receipt of natural gas for the account of Shipper at the
delivery point(s), which arrangements otherwise meet the provisions
set forth in these General Terms and Conditions.
Issued by: A. W. Clark, Vice President
Issued on: December 29, 1992 Effective: February 1, 1993
105
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff 1st Rev Sub Second Revised Sheet No. 239
First Revised Volume No. 1-A Superseding
First Revised Sheet No. 239
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (Continued)
20.11 Resolution of Imbalances
For purposes of this Section 20.11 "Shipper" shall include any party
utilizing El Paso's system and services including, without limitation,
any party tendering or receiving gas under Shipper's contract but
excluding any operator of interconnecting facilities and any volume
subject to a written assistance agreement with El Paso. El Paso and
the operator of any interconnecting facilities may cash-out
imbalances, pursuant to a written agreement between them.
(a) Imbalances Prior to Effective Date of this Provision -
Imbalances existing prior to the effective date of this provision will
be corrected in kind, as described below, unless El Paso and Shipper
agree to correct such imbalances in cash. El Paso and Shipper shall
attempt, in good faith, to agree upon the historical imbalance and the
time period to correct such historical imbalance. If, despite such
good faith efforts, El Paso and Shipper fail to reach written
agreement upon the appropriate corrective action within six (6) months
from the effectiveness of this section, then Shipper shall be required
to correct any remaining imbalance within sixty (60) days, subject to
operational constraints on El Paso's system. El Paso shall extend the
sixty (60) day balancing period by one (1) day for each day that El
Paso is unable to receive or deliver scheduled imbalance gas due to
operational constraints on El Paso's system. If after the sixty (60)
day balancing period or extension due to operational constraints
Shipper has not corrected the imbalance, then El Paso shall (i) for
any remaining imbalances where deliveries exceed receipts ("negative
imbalance") charge Shipper per dth based upon the arithmetic average
of the System Weighted Index Price for each quarter of the twelve (12)
months ending December 31, 1992 (the System Weighted Index Price for
each quarter shall be based on the method set forth in Section
20.11(e)(i) below); or (ii) for any remaining imbalances where
receipts exceed deliveries ("positive imbalance") retain the imbalance
at no cost and free and clear of any adverse claims by any party or
any obligation to account for such gas; provided however, that in the
event of a bona fide dispute by Shipper of
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
106
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff 1st Rev Sub Second Revised Sheet No. 240
First Revised Volume No. 1-A Superseding
Substitute First Revised Sheet No. 240
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (Continued)
20.11 Resolution of Imbalances (Continued)
the amount of the imbalance, El Paso shall not take the action
outlined above when Shipper acts in a timely manner to provide
additional information and security for El Paso in accordance with the
following procedures.
(i) Identify Dispute: Within fifteen (15) days after El Paso's
notification of an imbalance, Shipper shall notify El Paso by written
correspondence of the imbalance that is inbona fide dispute and of all
reasons and documentation why Shipper believes El Paso's calculation
of the imbalance is not correct; and
(ii) Payment Security: Within thirty (30) days after El Paso's
notification of an imbalance, Shipper shall either agree to the
imbalance calculated by El Paso without prejudice to Shipper's rights
to dispute all or part of said imbalance and subject to return of the
disputed imbalance so identified after resolution of that dispute or
Shipper shall take the necessary actions to correct the imbalances it
concedes to be correct and furnish good and sufficient surety bond,
guaranteeing the correction of any imbalance ultimately found owed to
El Paso after resolution of the dispute, including late payment
charges which accrue until resolution of the dispute with respect to
any negative imbalances, which resolution may be reached either by
agreement or judgment of a court of competent jurisdiction. If
resolution of the dispute is in favor of Shipper and the Shipper
furnished a surety bond then El Paso shall pay to Shipper the costs
incurred in securing that surety bond for this dispute including any
late payment charges actually paid to El Paso.
(b) Calculation of an Imbalance Subsequent to the Effectiveness of
this Provision - El Paso and Shippers shall resolve an over-delivery
or under-delivery of gas to El Paso each month in accordance with this
Section
20.11. Each month, El Paso will calculate a percentage
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
107
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff 1st Rev Sub First Revised Sheet No. 240A
First Revised Volume No. 1-A Superseding
Substitute Original Sheet No. 240A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (Continued)
20.11 Resolution of Imbalances (Continued)
imbalance for each individual contract for each Shipper by dividing
the total cumulative imbalance quantities in excess of 1,000 dth,
attributable to the imbalance amount for such contract (numerator) by
Shipper's Transportation Contract Demand multiplied by 30 days
(denominator) or, with respect to those Shippers with an executed
Transportation Service Agreement which requires the delivery by El
Paso of "Full Requirements," the average non-coincidental three (3)
day peak over the most recent five (5) year period multiplied by 30
days (denominator). The result of such calculation will be included
on El Paso's imbalance statement to Shipper, or its designee, and
shall serve as notification to the Shipper of an imbalance. If an
imbalance is equal to or greater than +/-5%, the Shipper is provided
additional notice on said statement that if such imbalance continues
and becomes equal to or greater than +/-10%, the Shipper is subject to
cash-out of the imbalance pursuant to this Section 20.11; provided,
however, that in no event shall cash-out be assessed when the amount
of the imbalance does not exceed 1,000 dth, unless the parties
mutually agree otherwise; provided, further, if it is determined that
El Paso has caused in any month an imbalance equal to or greater than
+/- 10% of the denominator determined above, El Paso will cash-out
that portion of the imbalance at 100% of the Index Price. In
addition, cash-out of imbalances will not be mandatory if the parties
have reached written agreement on the resolution of the imbalance
provided such agreement is final prior to the triggering of cash-out
as specified in Section 20.11(c) below. Written agreements may
consist of, but are not limited to the following provisions (i)
offsetting of imbalances; (ii) extension of a payback period within a
set time period; and (iii) negotiated price other than the cash-out
prices reflected herein.
(c) Triggering of Cash-Out - Except for those contracts without
activity for a period of six (6) months, as discussed in Section
20.11(d), any cumulative imbalance at the end of any month that is
within a tolerance level less than +/-5% shall not be subject to this
Section 20.11 during such month. Such imbalance shall be
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
108
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff 1st Rev Sub First Revised Sheet No. 240B
First Revised Volume No. 1-A Superseding
Original Sheet No. 240B
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (Continued)
20.11 Resolution of Imbalances (Continued)
forwarded to the next month's imbalance calculation. If the cumulative
imbalance for any month is equal to or greater than +/-5%, El Paso
shall notify Shipper, as indicated in Section 20.11(b), that it is
approaching a cash-out situation for an imbalance equal to or in
excess of +/-10%. For any month that a cumulative imbalance is equal
to or in excess of +/-10%, cash-out of the imbalance will take place
provided Shipper has received a minimum of two (2) consecutive monthly
notices (minimum of 45 days from date of first notice) alerting
Shipper to an imbalance equal to or in excess of +/-5%. El Paso shall
extend the 45-day grace period by one (1) day for each day that El
Paso is unable to receive or deliver scheduled imbalance gas for a
given contract due to operational constraints on El Paso's system. If
the parties have not reached written agreement otherwise, the
imbalance will be reduced to +/-5% by "cash-out" the month following
the last notice, at the dollar value calculated with the cumulative
imbalance and an established monthly price, referred to herein as the
Index Price, as determined in Section 20.11(e) below. The Index Price
shall be calculated as of the month the imbalance first equals or
exceeds the +/-10% level.
(d) Six-Month Resolution of Inactive Contracts - El Paso will notify
Shipper after three (3) consecutive months of inactivity that at the
end of any six (6) month period that a contract between Shipper and El
Paso has been inactive and has maintained an imbalance of less than
+/-10%, for which no cash-out was applicable and before the next
invoice and balance statement date, such imbalance shall be reduced to
zero (0) by cash-out utilizing the Index Price for the month after the
end of six (6) month period reflected in Section 20.11(e).
(e) Index Prices and Cash Out
(i) Cash-out shall be based on one of four calculated price indices,
depending on whether Shipper has one or more of the three supply
basins (i.e., San Juan,
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
109
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff 1st Rev Sub First Revised Sheet No. 240C
First Revised Volume No. 1-A Superseding
1st Substitute Original Sheet No. 240C
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (Continued)
20.11 Resolution of Imbalances (Continued)
Permian or Anadarko Basins) included in its agreement. A single price
index calculated only for a specific supply basin will be used if
Shipper has only that one supply basin in its agreement. A System
Weighted Index Price calculated for all supply basins will be used if
Shipper has more than one supply basin in its agreement. The
calculation of each price index is set forth below:
(1) The Anadarko Basin Index Price shall be computed using a simple
average of reported prices as delivered to El Paso's Mainline System
at Washita, Anadarko, Oklahoma, or the Texas Panhandle from the
publications identified in Section 20.11(e)(ii);
(2) The Permian Basin Index Price shall be computed using a simple
average of reported prices as delivered to El Paso's Mainline System
at West Texas, Permian or Waha from the publications identified in
Section 20.11(e)(ii); and
(3) The San Juan Basin Index Price shall be computed using a simple
average of reported prices as delivered to El Paso's Mainline System
at Ignacio, San Juan or New Mexico from the publications identified in
Section 20.11(e)(ii).
(4) The System Weighted Index Price shall be computed monthly by
using the weighted average of the Anadarko Basin Index Price, the
Permian Basin Index Price, and the San Juan Basin Index Price. The
weighting is based on the volumes entering El Paso's system in each
basin during the previous quarter and will be updated quarterly.
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
110
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff 1st Rev Sub First Revised Sheet No. 240D
First Revised Volume No. 1-A Superseding
1st Substitute Original Sheet No. 240D
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (Continued)
20.11 Resolution of Imbalances (Continued)
(ii) The four trade publications referenced above are Inside FERC
Gas Market Report (Prices of Spot Gas Delivered to Pipelines), Natural
Gas Week (Spot Prices on Natural Gas Pipeline Systems, Delivered to
Pipelines), Gas Daily (Natural Gas Survey), and Natural Gas
Intelligence Gas Price Index (Spot Gas Prices Delivered to Pipeline,
30 Day Supply Transactions).
In the event any of the publications cease publication or to the
extent a publication fails to report spot prices, then El Paso shall
reserve the right to substitute prices reported in a similar
independent publication or continue the pricing formula using the
average of the remaining publications. Changes in the name, format or
other method of reporting by the publications in (e) above that do not
materially affect the content shall not affect their use hereunder.
(iii) El Paso shall post the Index Price monthly on its electronic
bulletin board on or before the 15th day of each month applicable to
the prior business month.
(iv) For any contract where total deliveries by El Paso for a
Shipper exceed the total receipts from Shipper, after appropriate
reductions, such imbalance shall be "cashed out" based on the
percentages provided below. Further, the Index Price shall be
adjusted to reflect the point at which the imbalance is held.
(1) For any contract subject to Section 20.11(d), or by mutual
agreement any contract with an imbalance up to and including +5%, the
quantity will be invoiced at 100% of the Index Price;
(2) For any contract subject to Section 20.12(d) or any contract
with an imbalance greater than +5% but less than or equal to +10%, the
quantity in excess of +5% will be invoiced at 110% of the Index Price;
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
111
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A 1st Rev Sub Original Sheet No. 240E
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (Continued)
20.11 Resolution of Imbalances (Continued)
(3) For any contract with an imbalance greater than +10% but less
than or equal to +15%, the volume in excess of +10% will be invoiced
at 120% of the Index Price;
(4) For any contract with an imbalance greater than +15% but less
than or equal to +20%, the volume in excess of +15% will be invoiced
at 130% of the Index Price; and
(5) For any contract with an imbalance greater than +20%, the volume
in excess of +20% will be invoiced at 140% of the Index Price.
(v) For any contract where total receipts by El Paso from a Shipper,
after appropriate reductions, exceed total deliveries for that
Shipper, such imbalance shall be "cashed out" based on the percentages
provided below. Further, the Index Price shall be adjusted to reflect
the point at which the imbalance is held.
(1) For any contract subject to Section 20.11(d) or subject to any
other mutually agreeable terms, with an imbalance up to and including
-5%, the quantity will be purchased by El Paso at 100% of the Index
Price;
(2) For any contract subject to Section 20.11(d) or any contract
with an imbalance greater than -5% but less than or equal to -10%, the
quantity in excess of -5% will be purchased by El Paso at 90% of the
Index Price;
(3) For any contract with an imbalance greater than -10% but less
than or equal to -15%, the volume in excess of -10% will be purchased
by El Paso at 80% of the Index Price;
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
112
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
1st Rev Sub Original Sheet No. 240F
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (Continued)
20.11 Resolution of Imbalances (Continued)
(4) For any contract with an imbalance greater than -15% but less
than or equal to -20%, the volume in excess of -15% will be purchased
by El Paso at 70% of the Index Price; and
(5) For any contract with an imbalance greater than -20%, the volume
in excess of -20% will be purchased by El Paso at 60% of the Index
Price.
(vi) At the time a Shipper is in a cash-out position requiring
payment to El Paso at the appropriate rate set forth in Section
20.11(e)(iv) above and such Shipper also has an Unauthorized Gas
balance, as such term is defined in Section 27.1 of these General
Terms and Conditions, such Unauthorized Gas balance may be offset
against the quantities due El Paso within the same production basin
and adjusted to reflect the point at which the imbalance is held. At
the time of invoicing for the net imbalance, El Paso shall
appropriately invoice or account for any production area charges and
liquid credits applicable to the unauthorized gas used as an offset.
This provision is not applicable to the Unauthorized Gas retained as a
penalty pursuant to Section 27 of these General Terms and Conditions.
Prior to any offsets, El Paso at its option may first offset any under
or over-deliveries between contracts with such Shipper. Shipper or its
suppliers shall be responsible for reporting and payment of any
royalty, tax, or other burdens on natural gas volumes received by El
Paso and El Paso shall not be obligated to account for or pay such
burdens.
(f) Crediting of Revenues - For any net dollar amount received net
of gas and administrative costs from cash-out assessed on El Paso or
an affiliate of El Paso, El Paso shall credit such net amount within
90 days of the payment date to other Shippers on a pro rata basis in
accordance with the volumes transported for each Shipper.
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
113
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
1st Rev Sub Original Sheet No. 240G
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (Continued)
20.11 Resolution of Imbalances (Continued)
(g) Netting of Contracts - For purposes of resolving an imbalance
with a Shipper, El Paso is willing to negotiate, on a
non-discriminatory basis, netting of gas imbalances, adjusted to
reflect a common point at which the imbalance is held, between
contracts with such Shipper pursuant to the following conditions:
(i) Netting between downstream interconnect and mainline agreement
imbalances is negotiable if the agreement has the interconnect point
as a delivery point.
(ii) Netting between mainline agreement imbalances (for similar
transportation service) is negotiable.
(iii) Netting between gathering/pooling and mainline agreements is
negotiable if the gathering/pooling basin is a receipt point on the
mainline agreement.
For any specific situation not discussed above, El Paso is willing to
negotiate a transportation transaction which could have the effect of
netting imbalances.
20.12 Unauthorized Overpull Penalty
(a) A penalty shall be levied by El Paso and paid in dollars by any
receiving party (any Shipper, Local Distribution Company, Direct Sales
Customer or other party who operates the facilities that receive the
gas transported by El Paso) who exceeds the limits specified below.
Such penalty is applicable when, in times of capacity constraints, or
when, due to unforeseen circumstances beyond El Paso's control, El
Paso has determined that is ability to maintain scheduled deliveries
to all receiving parties is materially threatened due to insufficient
pressures in El Paso's system and El Paso so notifies said receiving
parties. Nothing herein shall limit El Paso's right to take any
further actions required to maintain the integrity of its system
operations.
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
114
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
1st Rev Sub Original Sheet No. 240H
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (Continued)
20.12 Unauthorized Overpull Penalty (Continued)
(b) On any day El Paso determines that it is unable to deliver the
total volumes of gas scheduled for delivery for the account of all
Shippers, it shall have the right to notify all receiving parties that
an Unauthorized Overpull Penalty situation exists. Contemporaneously
with, or shortly following such notice, El Paso shall give notice to
any receiving party who is taking volumes at a level that would
subject such party to an Unauthorized Overpull Penalty as provided
below.
(c) The quantity of gas subject to such penalty is that quantity of
gas taken by the receiving party which exceeds the quantity of gas
scheduled by El Paso for delivery to such party on any day.
(d) Upon receipt of a notification from El Paso, such party shall
within twenty-four (24) hours reduce takes to a level no more than 3%
above its scheduled volume for such day or 1,000 dth, whichever is
larger. Such twenty-four (24) hour notice period shall commence at
seven (7:00) a.m. Mountain Standard Time on the day after notice is
actually provided. If after the twenty-four (24) hour notice period
the receiving party continues to take volumes of gas that exceed the
foregoing threshold, an Unauthorized Overpull Penalty shall be levied
by El Paso and paid in dollars by any receiving party as follows:
(i) A penalty of $5.00 per dth shall apply to all unauthorized
overrun volumes which exceed the 3% or 1,000 dth tolerance level,
whichever is larger, up to the first 5% of scheduled volumes; and
(ii) A penalty of $10.00 per dth shall apply to daily unauthorized
overrun volumes in excess of 5% of scheduled volumes. El Paso shall
notify Shippers each day during an Unauthorized Overpull Penalty
situation, via El Paso's Electronic Bulletin Board, that the situation
continues
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
115
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
1st Rev Sub Original Sheet No. 240I
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (Continued)
20.12 Unauthorized Overpull Penalty (Continued)
to exist. Such notice does not constitute notification of a new
penalty period pursuant to this Section 20.12(d) and does not begin a
new twenty-four (24) hour correction period.
(e) El Paso shall establish an Unauthorized Overpull Penalty account
for each month that El Paso receives such penalty payments for the
benefit of all qualified Shippers as provided below:
(i) A qualified Shipper is defined as a Shipper that did not receive
its scheduled volumes due to El Paso's inability, for any reason, to
make such deliveries on days when El Paso has provided notice that an
Unauthorized Overpull Penalty situation exists, as defined in Section
20.12(a) above.
(ii) Payments for Unauthorized Overpull Penalties shall be credited
to the Unauthorized Overpull Penalty account. The disposition of the
total dollars paid unconditionally to El Paso in any month, as
determined in (iii) below, shall be made on a quarterly basis as
determined in (iv) below.
(iii) The Unauthorized Overpull Penalty amounts attributable to each
day shall be allocated on apro rata basis to all qualified Shippers
that receive less than their scheduled quantities of gas on that day.
(iv) Each qualified Shipper shall be entitled to receive their share
of the Unauthorized Overpull Penalty account determined in accordance
with (iii) above as a credit adjustment to the transportation service
invoice rendered by El Paso in any month in the following calendar
quarter after the penalty payment is received by El Paso.
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
116
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
Substitute Original Sheet No. 240J
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (Continued)
20.13 Flexible Receipt and Delivery Point(s)
(a) Any Shipper that has a Rate Schedule T-3 firm Transportation
Service Agreement applicable to mainline or field transportation shall
have the right to tender gas to El Paso at any designated receipt
point physically located on that part of El Paso's system to which
such Shipper's Transportation Service Agreement applies. Shipper's
Transportation Service Agreement shall designate the "primary receipt
point(s)." Any other receipt point(s) utilized by such Shipper shall
be referred to as an "alternate receipt point(s)."
(b) In addition to a Rate Schedule T-3 Shipper's point(s) of delivery
as established in its effective firm Transportation Service Agreement,
hereinafter referred to as the "primary delivery point(s)," such
Shipper may utilize alternate delivery point(s) under such agreement
pursuant to the following conditions:
(i) the alternate delivery point(s) on El Paso's system is located
within the same delivery zone as Shipper's primary delivery point(s)
or is located upstream of the delivery zone containing Shipper's
primary delivery point(s), or for those contracts in which the
direction of service is counter to the flow order specified below, the
alternate delivery point(s) is located along the route over which
service is provided and for which a reservation charge(s) is paid. The
flow order in which the delivery zones are arranged from the furthest
downstream to the furthest upstream zones are as follows: California;
Nevada; Arizona; New Mexico; and Texas; and
(ii) the total quantity of gas transported by El Paso to Shipper's
primary delivery point(s) and alternate delivery point(s) shall not
exceed Shipper's Transportation Contract Demand unless otherwise
agreed to by El Paso. For any Shipper who is a full requirements
Shipper, for purposes of this Section 20.13(b), such Shipper's
Transportation Contract Demand shall be deemed to
Issued by: A. W. Clark, Vice President
Issued on: April 7, 1993 Effective: April 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-002, et al., dated March 31, 1993
117
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff First Revised Sheet No. 240K
First Revised Volume No. 1-A Superseding
Substitute Original Sheet No. 240K
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (Continued)
20.13 Flexible Receipt and Delivery Point(s) (Continued)
be Shipper's Billing Determinant as set forth in Rate Schedule T-3 of
this FERC Gas Tariff; provided, however, such Billing Determinant
limitation shall not apply when a full requirements Shipper utilizes
only its primary delivery point(s).
20.14 Rate Application for Alternate Receipt and Delivery
Point(s) - In the event Shipper uses an alternate receipt point(s) or
delivery point(s) located in an upstream delivery zone, Shipper shall
continue to be billed the reservation charge(s) and reservation
surcharge(s) applicable to the delivery zone in which Shipper's
primary delivery point(s) is located. In addition, Shipper shall pay
the maximum usage charge(s), unless otherwise provided, applicable to
the production basin(s) and delivery point(s) actually used for the
transportation service. Notwithstanding the applicability of any
contractually agreed-upon lower rate for services using primary
receipt and delivery points, all transportation services using either
an alternate receipt point or alternate delivery point, or both, shall
be subject to the maximum transportation rate for such service, as set
forth in this FERC Gas Tariff, unless El Paso otherwise agrees in
writing at the time the service using such alternate point(s) is
requested.
20.15 Abandonment of Transportation Service - Unless otherwise
provided in the applicable Transportation Service Agreement and
subject to Section 20.16 below, El Paso shall be entitled to avail
itself of the pregranted abandonment authority under Section 7(b) of
the Natural Gas Act of long-term (twelve (12) months or more) firm
transportation services, as authorized by Section 284.221(d) of the
Commission's Regulations, upon the expiration of the contractual term
or upon termination of each individual transportation arrangement and
shall seek offers from competing Shippers interested in receiving such
firm transportation service, as provided below.
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
118
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
Original Sheet No. 240L
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE
20.16 Right-of-First-Refusal
(a) Upon expiration of the term of the Transportation Service
Agreement of a long term Shipper, such Shipper shall have a
"right-of-first-refusal" as prescribed in this Section 20.16. In
order to avail itself of its right-of-first-refusal, the Shipper must
give El Paso its written notice of intent to exercise such right of
first refusal not later than (i) the date of the notice period
provided for in Shipper's contract; or (ii) twelve (12) months prior
to the expiration of the term of the contract, whichever shall first
occur.
(b) El Paso shall post on its electronic bulletin board the terms and
conditions of the available capacity under the expiring contract as
follows:
(i) firm daily quantities stated in Mcf/d;
(ii) the delivery point(s) at which capacity is available and the
firm quantities at such point(s);
(iii) effective date;
(iv) term;
(v) the rate (i.e., Reservation Charge(s) and Usage Charge(s)
applicable to each delivery point);
(vi) minimum conditions; and
(vii) the criteria by which bids are to be evaluated.
(c) Capacity will be made available on a nondiscriminatory basis and
will be assigned on the basis of an open season for a period of not
less than ninety (90) days duration.
(i) Shipper(s) desiring to acquire such available capacity shall
notify El Paso, via its electronic bulletin board, during the open
season. Such notice shall be binding once received by El Paso and
shall not be revocable by such Shipper.
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
119
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
Original Sheet No. 240M
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (Continued)
20.16 Right-of-First-Refusal (Continued)
(ii) Shipper's bid must include:
(a) Shipper's legal name and, if applicable, the contract number
under which it desires to acquire capacity;
(b) the quantity of capacity to be acquired at each delivery point(s);
(c) the term of the acquisition (the maximum term used for bid
evaluation will be twenty (20) years); and
(d) the maximum rate Shipper is willing to pay for the capacity.
(iii) The potential Shipper must satisfy the other provisions of this
Tariff applicable to requests for firm transportation.
(d) El Paso shall not be obligated to accept any offer for such
capacity at less than the maximum applicable tariff rate. In the event
El Paso accepts an offer, however, El Paso shall inform the existing
Shipper of the terms of such offer. The existing Shipper shall have
seven (7) days in which to inform El Paso that it agrees to match such
offer. Such agreement shall be irrevocable. The existing Shipper or
the offering Shipper, as appropriate, shall execute a Transportation
Service Agreement containing the terms offered or matched.
(e) In the event there are no competing offers, then the existing
Shipper shall not be entitled to continue to receive transportation
service upon the expiration of its contract except by agreeing to pay
the maximum tariff rate unless El Paso and such Shipper shall enter
into a new firm transportation service agreement providing otherwise.
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
120
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Substitute Second Revised Sheet No. 241
First Revised Volume No. 1-A Superseding
First Revised Sheet No. 241
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
21. ANNUAL CHARGE ADJUSTMENT PROVISION
21.1 Purpose - This Section 21 establishes an Annual Charge
Adjustment Provision ("ACA") which will permit El Paso to recover from
its Shippers the annual charges assessed to El Paso by the Commission
under Part 382 of the Commission's Regulations.
21.2 Applicable Customers - The ACA is applicable to each rate
schedule contained in Volume Nos. 1-A and Volume No. 2 FERC Gas Tariff
as identified on Sheet Nos. 20 and 21, and Sheet Nos. 1-D.2 and 1-D.3.
21.3 Adjustment Date - The ACA unit charge shall be filed with the
Commission by El Paso at least thirty (30) days prior to the proposed
Adjustment Date unless a shorter period is specifically requested and
permitted by the Commission. The Adjustment Date shall be October 1 of
each year or as directed by an order of the Commission. On the
Adjustment Date, El Paso shall increase or decrease the ACA unit
charge to each of the applicable rate schedules as authorized by the
Commission to be recovered by El Paso. For those rate schedules with
a two-part rate, the ACA unit charge shall only apply to the usage
component of such rate.
21.4 Effective Date - The ACA unit charge shall become effective
October 1 of each year or as directed by an order of the Commission
if:
(a) El Paso has paid the applicable annual charge in compliance with
Section 382.103 of the Commission's Regulations; and
(b) the ACA unit charge is not subject to suspension or refund
obligation.
21.5 Accounting for Annual Charges Paid Under Part 382 - El Paso
shall account for annual charges paid by charging the amount to
Account No. 928, Regulatory Commission Expenses, of the Commission's
Uniform System of Accounts. Any annual charges recorded in Account
No. 928 shall not be recovered by El Paso in a Natural Gas Act
Section 4 rate case.
Issued by: A. W. Clark, Vice President
Issued on: April 30, 1993 Effective: April 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-002 and 003 dated December 17, 1992
121
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
Original Sheet No. 242
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
22. TAKE-OR-PAY BUYOUT AND BUYDOWN COST RECOVERY
The provisions for this Section 22 are contained in Section 21 of the
General Terms and Conditions of El Paso's Volume No. 1 Tariff and are
incorporated herein by reference with respect to those provisions
applicable to the Throughput Surcharge. Such Throughput Surcharge is
applicable to all Shippers subject to El Paso's mainline
transportation rates and/or Rate Schedules contained in this Volume
No. 1-A Tariff.
Issued by: A. W. Clark, Vice President
Issued on: April 26, 1990 Effective: May 1, 1990
122
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Second Revised Sheet No. 243
First Revised Volume No. 1-A Superseding
First Revised Sheet No. 243
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
23. COMPLIANCE PLAN FOR TRANSPORTATION SERVICES AND AFFILIATE TRANSACTIONS
23.1 The operating personnel and facilities shared by El Paso and
its marketing affiliate(s):
Marketing
El Paso Affiliate(s)
------- ------------
William A. Wise President and Chief President
Executive Officer
H. Brent Austin Senior Vice President Vice President
and Chief Financial and Treasurer
Officer
Thomas S. Jensen Vice President Vice President
(in charge of gas
merchant operations)
Other than those persons listed above, there are no other operating
personnel shared between (i) the transportation function of El Paso
and the merchant function of El Paso or (ii) El Paso and its marketing
affiliate(s). Only support systems, including utility,
telecommunication, and computer facilities at the corporate
headquarters complex, are shared by El Paso and its marketing
affiliate(s). Separate books of account, records, and computer files
are maintained for El Paso and for its marketing affiliate(s).
23.2 The information and format required from a Shipper for a valid
request for transportation service or amended service, including
transactions in which an affiliated marketer is involved, are
contained in Section 23.6 of this Section 23.
23.3 The procedures used to address and resolve complaints by
Shippers and potential Shippers are as follows:
(a) Any Shipper or potential Shipper may register a telephone
complaint concerning requested and/or furnished transportation service
by calling El Paso's customer assistance toll-free number
1-800-441-3764. Telephone complaints should provide the same
information as provided in written complaints by a Shipper.
Written complaints by any Shipper or potential Shipper, clearly
stating the issue(s), facts relied on by Shipper,
Issued by: A. W. Clark, Vice President
Issued on: November 18, 1992 Effective: December 20, 1992
123
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff First Revised Sheet No. 244
First Revised Volume No. 1-A Superseding
Original Sheet No. 244
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
23. COMPLIANCE PLAN FOR TRANSPORTATION SERVICES AND AFFILIATE TRANSACTIONS
(Continued)
and the Shipper's position, should be mailed by registered or
certified mail, or delivered by hand to:
El Paso Natural Gas Company
Post Office Box 1492
El Paso, Texas 79978
Attention: Director, Mainline Transportation and
Customer Services Department
(Street Address: 304 Texas, El Paso, Texas 79901)
Upon receipt by El Paso, a complaint will be date stamped and recorded
in the Transportation Service Complaint Log maintained by El Paso's
Mainline Transportation and Customer Services Department.
(b) El Paso will respond initially to all complaints by the most
appropriate communication means available within 48 hours and will
respond to all complaints filed with El Paso in writing within 30
days. El Paso's written response will be mailed by registered or
certified mail to Complainant and filed in the Transportation Service
Complaint Log. The final resolution of the complaint will be
dependent upon the nature of the complaint and the time necessary to
investigate the complaint, verify the underlying cause(s) and
determine the relevant facts.
23.4 The procedures used by El Paso to inform affiliated and
nonaffiliated Shippers and potential Shippers on the availability and
pricing of transportation service are as follows:
(a) Inquiries as to the availability of service on El Paso's system
are to be directed to El Paso's Mainline Transportation and Customer
Services Department and are generally responded to by telephone at
which time the Shipper or potential Shipper is informed verbally of
the availability and pricing of transportation service(s).
(b) Upon request, the initial advisement is supported by sending
copies of El Paso's Volume No. 1-A Tariff and any published Notices to
Shippers announcing discounts them available to all similarly-situated
shippers, to potential Shippers (existing Shippers on the system are
already in receipt of such written documents).
Issued by: A. W. Clark, Vice President
Issued on: November 18, 1992 Effective: December 20, 1992
124
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 245
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
23. COMPLIANCE PLAN FOR TRANSPORTATION SERVICES AND AFFILIATE TRANSACTIONS
(Continued)
(c) Once a Shipper has executed a Transportation Service Agreement
with El Paso, Shipper will be sent all Notices to to Shippers
announcing subsequent rate discounts available to all
similarly-situated shippers as such Notices are published, and under
the requirements of Rule 2010 of the FERC's Rules of Practice and
Procedure are served with copies of any El Paso filings proposing
changes in rates for and types of transportation service available.
Shippers are subsequently sent copies of revised sheets to El Paso's
Volume No. 1-A Tariff as such sheets are approved and made effective
by the FERC.
(d) El Paso has established a 24-hour "electronic bulletin board,"
to which any Shipper or potential Shipper may subscribe, on which
information concerning the availability and pricing of transportation
service, including all currently effective rates and discount notices,
is posted. For subscription information telephone (915) 541-2000.
The procedures used by El Paso to schedule service and allocate system capacity
are set forth in Section 4 of this Tariff, a copy of which is sent to all
potential Shippers upon request. Consistent with such procedures, after
receiving all requests for transportation service on any day, system
constraints resulting from over-requests for service at various points are
identified, the available capacity allocated, and Shippers advised by
Operations Control Department of the allocated capacity available to that
Shipper.
When El Paso schedules system maintenance activities which may affect available
capacity at various points on the system, Shippers are notified by Operations
Control in advance of such activities and their expected duration. This
information shall also be posted on El Paso's 24-hour "electronic bulletin
board."
Issued by: A. W. Clark, Vice President
Issued on: April 26, 1990 Effective: May 1, 1990
125
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 246
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
23. COMPLIANCE PLAN FOR TRANSPORTATION SERVICES AND AFFILIATE
TRANSACTIONS (Continued)
23.5. El Paso will maintain a log containing the following
information on all requests for transportation service made by
affiliated or nonaffiliated Shippers or in which an affiliated
or nonaffiliated Shipper is involved, from the time the
information is received until December 31, 1990, or any
extension thereof authorized by the Commission.
(a) The date of receipt of the request;
(b) The date that the request was accepted as valid;
(c) The specific affiliation of the requester with El Paso, and
the extent of El Paso's affiliation, if any, with the person
to be provided transportation service;
(d) The extent of the supplier's affiliation with El Paso;
(e) The identity of the Shipper making the request for service
including designating whether the Shipper is a local
distribution company, an interstate pipeline, an intrastate
pipeline, an end-user, a producer, or a marketer;
(f) The maximum daily contract volume of gas requested to be
transported and the total contract volume of gas requested to
be transported over the life of the contract;
(g) The producing area of the source of the gas requested to be
transported;
(h) The date service is requested to commence and terminate;
(i) A list of all receipt and delivery points between which the
gas is requested to be transported and the distance in
pipeline miles between the receipt point and the delivery
point that are the furthest apart;
Issued by: A. W. Clark, Vice President
Issued on: April 26, 1990 Effective: May 1, 1990
126
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 247
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
23. COMPLIANCE PLAN FOR TRANSPORTATION SERVICES AND AFFILIATE
TRANSACTIONS (Continued)
(j) Whether the service requested is firm or interruptible;
(k) The state of the ultimate end user of the gas;
(l) The identity of the transportation rate schedules and the
transportation rates applicable for such service;
(m) Whether any of the gas being transported is subject to
take-or-pay relief and, if so, how much;
(n) Whether and by how much the cost of the gas to the affiliated
marketer exceeds the price received for the sale of the gas by
the affiliated marketer, after deducting associated costs,
including those incurred for transportation; i.e., whether the
gas is being sold at a loss;
(o) Current status of the request, including whether the request
is: (i) Incomplete, (ii) Complete and awaiting service, (iii)
Complete, a contract signed, and awaiting commencement of
service, (iv) Complete, service has begun and the Commission
docket number assigned to the transaction, (v) Withdrawn, or
(vi) Denied and the reason why;
(p) The position of the request i the transportation
request queue;
Issued by: A. W. Clark, Vice President
Issued on: April 26, 1990 Effective: May 1, 1990
127
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 248
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
23. COMPLIANCE PLAN FOR TRANSPORTATION SERVICES AND AFFILIATE
TRANSACTIONS (Continued)
(q) The disposition of the request, including the date the
requester was notified of availability of capacity, the date
the contract was executed, the date service actually
commenced, and any explanation concerning the disposition of
the request;
(r) Any complaints by the Shipper or end user concerning the
requested or furnished service and the disposition of such
complaints;
(s) Whether the transportation is being requested, offered or
provided at discounted rates, duration of the discount
requested, offered or provided, the maximum rate or fee, the
rate or fee actually charged during the billing period, the
Shipper, corporate affiliation between the Shipper and the
transporting pipeline, and the quantity of gas scheduled at
the discounted rate during the billing period for each
delivery point; and
(t) Any waiver that El Paso grants with respect to tariff
provisions that provide for a discretionary waiver.
Issued by: A. W. Clark, Vice President
Issued on: April 26, 1990 Effective: May 1, 1990
128
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Sheet No. 249 Superseding
First Revised Volume No. 1-A Original Sheet No. 249
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
23. COMPLIANCE PLAN FOR TRANSPORTATION SERVICES AND AFFILIATE TRANSACTIONS
(Continued)
23.6 Transportation Service Request Form
EL PASO NATURAL GAS COMPANY TRANSPORTATION
SERVICE REQUEST FORM
Federal Energy Regulatory Commission record and reporting requirements and El
Paso's FERC Gas Tariff require prospective Shippers and existing Shippers
requesting amended service to furnish the information below prior to processing
a request.
Return this completed FORM to:
Manager of Mainline
Transportation and Customer Services Department
El Paso Natural Gas Company
Post Office Box 1492
El Paso, Texas 79978
Telecopy: (915) 541-2544
(PLEASE TYPE OR PRINT) SHIPPER INFORMATION
1. Legal Name of Shipper: __________________________________________
2. Shipper's Address: P.O. Box/Zip __________________________
Street/Zip __________________________
City/State __________________________
3. Shipper's State of Incorporation: ______________________________
4. Name of Requesting Party: _______________________________________
Title: _______________________
Phone: _______________________
If employed by other than Shipper, please specify Requesting Party's:
Company Name ______________________________
P.O. Box/Zip ______________________________
Street/Zip _______________________________
City/State _______________________________
Issued by: A. W. Clark, Vice President
Issued on: March 20, 1992 Effective: May 15, 1992
129
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A Original Sheet No. 250
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
23. COMPLIANCE PLAN FOR TRANSPORTATION SERVICES AND AFFILIATE
TRANSACTIONS (Continued)
5. Shipper is (check one of the following):
a. ___Interstate Pipeline End-User e. ___End-User
b. ___Intrastate Pipeline* f. ___Producer
c. ___Local Distribution Company* g. ___Marketer
d. ___Hinshaw Pipeline* h. ___Other
(Specify)__________
*State(s) in which Shipper's natural gas system facilities are located:
6. This request is for (check one): _____ New Service
_____ Amended Service Under
Contract # _________
If the request is for new service, please skip the Amended Service
Request section. If the request is for amended service, please
complete the Affiliate Information and Amended Service Request
sections only.
SERVICE/CONTRACT INFORMATION
1. Type of Transportation Service Requested (check one):
___Firm
___Interruptible
___Other ____________________
2. Date service is requested to commence: _____________________
Date service is requested to terminate:_____________________
Evergreen term requested: _____ Yes _____ No
3. Maximum daily contract quantity requested (please specify both):
__________ Mcf/d __________ MMBtu/d
Total contract quantity requested over primary term of agreement (please
specify both): __________ Mcf __________ MMBtu
Issued by: A. W. Clark, Vice President
Issued on: April 26, 1990 Effective: May 1, 1990
130
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
Original Sheet No. 251
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
23. COMPLIANCE PLAN FOR TRANSPORTATION SERVICES AND AFFILIATE TRANSACTIONS
(Continued)
If service is requested for a term of more than 120 days, what
quantities are requested to be transported on an:
Average Day ___Mcf ___MMBtu
Annual Basis ___Mcf ___MMBtu
4. Requested Receipt Point(s) and producing area(s) that are the
source(s) of gas transported. Please list on attached Exhibit A.
5. Requested Delivery Point(s). Please list on attached Exhibit B.
6. State(s) where gas transported will be consumed ultimately:
___________________________________________________________________
At the time it executes a Transportation Service Agreement, Shipper
shall be required to:
- identify the name of the corporate entity or entities
ultimately receiving the gas if other than a pipeline or local
distribution company purchasing for system supply, which
end-user(s) shall be identified in the Transportation Service
Agreement; and
- provide El Paso with verification that the end-user(s) have
signed sales contracts to use the transportation services
provided for in the Transportation Service Agreement.
7. NOTICES TO: ____________________________________________
Street or P.O. Box: ___________________________________
City, State, Zip: ______________________________________
Attention of: __________________________________________
Telephone: ____________________________________________
Telecopy: ____________________________________________
INVOICES TO: ___________________________________________
Street or P.O. Box: ___________________________________
City, State, Zip: ______________________________________
Attention of: __________________________________________
Telephone: ____________________________________________
Telecopy: ____________________________________________
Issued by: A. W. Clark, Vice President
Issued on: April 26, 1990 Effective: May 1, 1990
131
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
Original Sheet No. 252
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
23. COMPLIANCE PLAN FOR TRANSPORTATION SERVICES AND AFFILIATE TRANSACTIONS
(Continued)
8. Name of Shipper's dispatcher for 24-hour contact:
____________________________
Phone: __________________ Telecopy: _____________________
9. Is the gas to be transported subject to take-or-pay relief to El Paso?
___ Yes ___ No ___ Unknown
If YES, what percentage of total contract quantity? _____%
RATE INFORMATION ________________
1. Does Shipper request a discounted rate? ___Yes ___No
2. If YES, please specify the selectively discounted rate(s) requested
and the related service(s): ________________________________________
____________________________________________________________________
____________________________________________________________________
3. If El Paso is unable or unwilling to provide service at the requested
discounted rate, is Shipper willing to pay the maximum rate(s) for the
requested service(s) (to include any published discounts available to
all similarly situated Shippers)?
___Yes ___No
FINANCIAL INFORMATION
El Paso requires each Shipper to provide financial statements (to include a
balance sheet, income statement and statement of cash flow). The statements
should be the most current available as of the date they are submitted. If
audited financial statements are not available, then Shipper also should
provide an attestation by its chief financial officer that the information
shown in the unaudited statements submitted is true, correct and a fair
representation of Shipper's financial condition.
Issued by: A. W. Clark, Vice President
Issued on: April 26, 1990 Effective: May 1, 1990
132
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
Original Sheet No. 253
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
23. COMPLIANCE PLAN FOR TRANSPORTATION SERVICES AND AFFILIATE TRANSACTIONS
(Continued)
Based on its review of Shipper's financial statements, El Paso may agree to
waive any further credit requirements as a condition of service.
Alternatively, El Paso may request Shipper to provide additional evidence of
its creditworthiness, in which event Shipper may elect to provide one of the
following:
- a clean irrevocable letter of credit in form and substance
satisfactory to El Paso in a face amount equal to (i) the sum
of the gas cost component of El Paso's sale-for-resale rates
and the applicable unit transportation rate(s) specified in El
Paso's Tariff for the service(s) which El Paso provides
Shipper, (ii) multiplied by the maximum daily quantity
specified in El Paso's Transportation Service Agreement with
Shipper, (iii) multiplied by 90; or
- a guarantee, in form and substance satisfactory to El Paso,
executed by a person whom El Paso deems creditworthy, of
Shipper's performance of its obligations to El Paso under the
Transportation Service Agreement; or
- such other form of security as Shipper may agree to provide
and as may be acceptable to El Paso.
The FERC Gas Tariff of El Paso does not require the pipeline to provide
transportation service on behalf of any Shipper who fails to demonstrate
creditworthiness. El Paso will treat the financial statements provided by
Shipper as confidential.
AFFILIATE INFORMATION _____________________
1. Is Shipper affiliated with El Paso: ___Yes ___No
If YES, please state specific affiliation:
_________________________________________________________________
Issued by: A. W. Clark, Vice President
Issued on: April 26, 1990 Effective: May 1, 1990
133
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
Original Sheet No. 254
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
23. COMPLIANCE PLAN FOR TRANSPORTATION SERVICES AND AFFILIATE TRANSACTIONS
(Continued)
2. Is the Requesting Party (if other than Shipper) affiliated with
El Paso: ___Yes ___No
If YES, please state specific affiliation:
________________________________________________
3. Is Shipper's or the Requesting Party's supplier affiliated with
El Paso: ___Yes ___No
If YES, please state specific affiliation:
_________________________________________________
4. If gas transported is being purchased from an El Paso affiliate, or if
the Requesting Party or Shipper is an El Paso affiliate, does the cost
of gas to that affiliate exceed its sales price, less associated costs
including transportation expenses, i.e., is the gas being sold at a
loss?
___Yes ___No ___Unknown
If YES, specify amount of loss: ____________________________
AMENDED SERVICE REQUEST _______________________
1. Addition of Receipt Point(s) -- Add the Receipt Point(s) identified
on Exhibit A to Contract # ____________
Is the gas to be transported from the additional Receipt Point(s)
subject to take-or-pay relief to El Paso?
___Yes ___No ___Unknown
If YES, what percentage of total contract quantity? _____%
2. Addition of Delivery Point(s) -- Add the Delivery Point(s)
identified on Exhibit B to Contract #________ Note addition of new
Delivery Point(s) and end users generally will result in a new
position in the first come/first serve queue.)
State(s) in which the gas transported to the additional Delivery
Point(s) will ultimately be consumed:
___________________________________________________________________
Issued by: A. W. Clark, Vice President
Issued on: April 26, 1990 Effective: May 1, 1990
134
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
Original Sheet No. 255
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
23. COMPLIANCE PLAN FOR TRANSPORTATION SERVICES AND AFFILIATE TRANSACTIONS
(Continued)
3. Increase the maximum daily contract quantity under Contract # to
(specify both): _____Mcf/d _____MMBtu/d. (Note an increase in the
maximum daily contract quantity generally will result in a new
position in the first come/first serve queue.)
4. Does Shipper request that service under Contract # be ___________
converted from Subpart B to Subpart G service (check one):
___Yes ___No
5. Other requested service change(s):
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
* * *
Shipper hereby certifies that it has or will have title to the gas delivered to
El Paso for transportation and has entered into or will enter into arrangements
necessary to assure all upstream and downstream transportation will be in place
prior to commencement of service. Shipper also certifies that the information
herein is complete and accurate to the best of Shipper's knowledge, information
and belief.
Legal Name of Shipper: ____________________________
By: _______________________________________________
(Name and Title)
Date: _____________________________________________
Issued by: A. W. Clark, Vice President
Issued on: April 26, 1990 Effective: May 1, 1990
135
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
Original Sheet No. 256
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
23. COMPLIANCE PLAN FOR TRANSPORTATION SERVICES AND AFFILIATE TRANSACTIONS
(Continued)
EL PASO NATURAL GAS COMPANY
TRANSPORTATION SERVICE REQUEST FORM
EXHIBIT A
Producing
Area of
Requested Maximum Total Volume Source
Receipt Point(s)* Daily Volume (Over Term) of Gas*
_______________ _____Mcf/d _____Mcf ________
_____MMBtu/d _____MMBtu
_______________ _____Mcf/d _____Mcf ________
_____MMBtu/d _____MMBtu
_______________ _____Mcf/d _____Mcf ________
_____MMBtu/d _____MMBtu
_______________ _____Mcf/d _____Mcf ________
_____MMBtu/d _____MMBtu
_______________ _____Mcf/d _____Mcf ________
_____MMBtu/d _____MMBtu
_______________ _____Mcf/d _____Mcf ________
_____MMBtu/d _____MMBtu
_______________ _____Mcf/d _____Mcf ________
_____MMBtu/d _____MMBtu
* Use 8-digit EPNG Code and include meter number(s). Also,
identify the name of the pipeline, gatherer or other entity
delivering the gas into El Paso's system.
** Enter 2-digit code from attached list applicable to the
producing area where the field or well producing the gas to be
transported is located.
Issued by: A. W. Clark, Vice President
Issued on: April 26, 1990 Effective: May 1, 1990
136
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
Original Sheet No. 257
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
23. COMPLIANCE PLAN FOR TRANSPORTATION SERVICES AND AFFILIATE TRANSACTIONS
(Continued)
EL PASO NATURAL GAS COMPANY
TRANSPORTATION SERVICE REQUEST FORM
EXHIBIT B
Requested Maximum Total Volume
Receipt Point(s)* Daily Volume (Over Term)
_______________ _____Mcf/d _____Mcf
_____MMBtu/d _____MMBtu
_______________ _____Mcf/d _____Mcf
_____MMBtu/d _____MMBtu
_______________ _____Mcf/d _____Mcf
_____MMBtu/d _____MMBtu
_______________ _____Mcf/d _____Mcf
_____MMBtu/d _____MMBtu
_______________ _____Mcf/d _____Mcf
_____MMBtu/d _____MMBtu
_______________ _____Mcf/d _____Mcf
_____MMBtu/d _____MMBtu
_______________ _____Mcf/d _____Mcf
_____MMBtu/d _____MMBtu
* Use 8-digit EPNG Code and include meter number(s). Also,
identify the name of the pipeline, local distribution company
or other entity receiving the gas downstream of El Paso.
Issued by: A. W. Clark, Vice President
Issued on: April 26, 1990 Effective: May 1, 1990
137
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff First Revised Sheet No. 258
First Revised Volume No. 1-A Superseding
Substitute Original Sheet No. 258
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
24. ORDER No. 636 ELECTRONIC BULLETIN BOARD
24.1 El Paso's Electronic Bulletin Board ("EBB") is accessed
through its electronic communications service known as
"Passport". Passport provides a portfolio of electronic
business services to El Paso's customers. El Paso's EBB is
available on a non-discriminatory basis to any party that has
compatible equipment for electronic transmission of data,
provided that such party has entered into a Passport
Electronic Network Agreement and has been assigned a user
identification, password and security code. Access to the
EBB may be obtained by contacting Passport Services at (915)
541-2000. There is no charge to use the EBB.
24.2 El Paso's EBB shall provide such data as described in and
shall be in compliance with FERC Order No. 636, et seq., by
providing:
(a) a means for all firm shippers to post their "grandfathered"
buy/sell transactions, for informational purposes only, for a period
of thirty (30) days identifying price, terms and conditions and name
of the parties; and (b) a means for a releasing or acquiring Shipper
electing to release all or a portion of its firm transportation rights
in accordance with Section 28.4 and Section 28.5 contained in this
Volume No. 1-A Tariff to advertise such release.
24.3 Parties wishing to bid on released capacity or to compete with
pre-arranged offers shall post their bids through the EBB. Only those
parties who are prequalified with respect to creditworthiness in
accordance with Section 28.20 contained in El Paso's Volume No. 1-A
Tariff may submit a bid during the open season in accordance with
Section 28.9 contained in said Tariff.
24.4 The EBB shall contain information concerning the availability
of capacity: (a) at receipt points; (b) on the mainline; (c) at
delivery points; and
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
138
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Second Revised Sheet No. 259
First Revised Volume No. 1-A Superseding
First Revised Sheet No. 259
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
24. ORDER No. 636 ELECTRONIC BULLETIN BOARD (Continued)
24.4 The EBB shall contain information concerning the availability
of capacity: (Continued)
(d) whether the capacity is available from El Paso directly or through
El Paso's Capacity Release Program set forth in Section 28 contained
in this Volume No. 1-A Tariff.
24.5 El Paso shall post on the EBB notification of any of its
uncommitted firm pipeline capacity.
24.6 El Paso shall post, daily, on the EBB notification of any
unscheduled capacity available for interruptible transportation
service, with bidding in accordance with the applicable provisions of
Section 19 contained in this Volume No. 1-A Tariff.
24.7 EBB users shall have access to all the information
specifically identified in FERC Order Nos. 497 and 636. EBB access,
including historical data, shall be available to state regulatory
commissions and state consumer advocates on the same basis as any
other party. El Paso shall maintain backup copies of the data
contained on its EBB for three years, which may be archived to
off-line storage. Parties may access the on-line data directly
through the EBB. In the event the data has been archived off-line,
parties may request the data from Passport Services through Passport's
electronic mail service, wherein such data shall be made available for
downloading on user's computer. EBB users shall be allowed to
download files so their contents can be reviewed in detail without
tying up access to EBB. Information on the most recent transactions
shall be listed before older information. EBB users shall be able to
split large files into smaller parts for ease of use. On-line help
shall be available to assist the EBB users along with a search
function allowing users to locate all information concerning a
specific transaction, and menus that permit users to separately access
each record in the transportation log, offers to release capacity,
capacity available directly from the pipeline, and standards of
conduct information.
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
139
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
Sheet Nos. 260 through 262
Reserved Sheets
Original Sheet Nos. 260 through 262 have been reserved.
Issued by: A. W. Clark, Vice President
Issued on: April 7, 1993 Effective: April 1, 1993
140
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff First Revised Sheet No. 263
First Revised Volume No. 1-A Superseding
Sheet Nos. 263 through 269
The following sheets have been superseded:
Substitute Original Sheet No. 263
Original Sheet No. 264
Substitute Original Sheet Nos. 265 through 269
Issued by: A. W. Clark, Vice President
Issued on: April 15, 1993 Effective: January 1, 1993
141
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff First Revised Sheet No. 270
First Revised Volume No. 1-A Superseding
Sheet Nos. 270 through 276
Reserved Sheets
Second Revised Sheet No. 270 and First Revised
Sheet Nos. 271 through 276 have
been reserved.
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
142
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
1st Rev Sub Original Sheet No. 277
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
27. UNAUTHORIZED GAS
27.1 Definition of Unauthorized Gas - Unauthorized Gas is natural
gas that has not been scheduled as authorized to be received by El
Paso, either for its own purchase under any gas purchase agreement, or
for transportation to another market under any Transportation Service
Agreement in accordance with the provisions of El Paso's FERC Gas
Tariff. In addition, when a well, with two or more designated
markets is scheduled but one or more markets fail to materialize, El
Paso shall continue to schedule the volumes confirmed for that part of
the well's production that has a market, but that portion for which
the market has failed to materialize will be classified as
unauthorized, unless this is the last well to be confirmed.
Unauthorized Gas is distinguished from transportation imbalances which
are excess volumes of natural gas delivered into El Paso's facilities
from any source scheduled to a market in accordance with the
provisions of this FERC Gas Tariff on any day, including excess
volumes from the last well to be confirmed by contract that results in
volumes in excess of the confirmed volumes, when some lesser amount is
expressly authorized to flow on that day pursuant to Section 4.1 of
the General Terms and Conditions contained in this FERC Gas Tariff.
Such excess scheduled volumes from the last well to be confirmed shall
be subject to Sections 19.12 or 20.11 of said General Terms and
Conditions.
27.2 Unauthorized Gas Causing a Critical Situation - Upon
notification from El Paso of a critical Unauthorized Gas situation,
any party shall, within twenty-four (24) hours, terminate any
unauthorized flow into El Paso's facilities. El Paso shall have the
right to shut in, physically, the source of any Unauthorized Gas.
If, after the twenty-four (24) hour notice period, any quantity of
Unauthorized Gas continues to flow into El Paso's system, El Paso
shall retain, except for partial market wells that have been
classified as unauthorized, at no cost to itself and free of any
obligation to account therefor in kind or otherwise to any person
claiming an interest therein, the full quantity of Unauthorized Gas
introduced into El Paso's facilities. A critical Unauthorized Gas
situation shall apply only when El Paso, in good faith, has determined
that the safety and/or integrity of its system is threatened. Nothing
herein shall limit El Paso's right to take any other actions required
to maintain the safety and integrity of its system operations.
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
143
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
1st Rev Sub Original Sheet No. 278
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
27. UNAUTHORIZED GAS (Continued)
27.2 (Continued) Until El Paso notifies the party(ies), either
electronically or via facsimile, that the critical Unauthorized Gas
situation has ended, the Unauthorized Gas penalty of retention of gas
remains applicable on each subsequent day without further notification
and the party(ies) shall not resume or continue flow of Unauthorized
Gas from a well, plant or interconnected pipeline or gathering
facility.
27.3 Notification of Unauthorized Gas Not Causing a Critical
Situation - After the end of each month El Paso shall send each
operator a notice of Unauthorized Gas flow entitled "Statement of
Unauthorized Gas Account Balances," or succeeding statement. Such
notice shall include the volume, the receipt point(s) and the time
frame in which the Unauthorized Gas was received into El Paso's system.
27.4 Unauthorized Gas Subsequent to the Effectiveness of this
Section - For any Unauthorized Gas volumes delivered to El Paso
subsequent to the effectiveness of this section, and not retained
because of a critical Unauthorized Gas situation on El Paso's system,
said party shall have until the first day of the third month following
the month of El Paso's notification ("Return Period") to resolve the
Unauthorized Gas volumes; provided however, that any such resolution
must be approved by El Paso. El Paso and the party agree to
negotiate in good faith for resolution of the Unauthorized Gas and to
commit in writing during the Return Period any mutually agreed upon
resolution. If El Paso incorrectly classifies gas as Unauthorized
Gas, El Paso will transfer such gas to the appropriate agreement and
will not assess any penalties under this Section 27 on such volumes.
27.5 Unauthorized Gas Prior to the Effectiveness of this Section -
For any Unauthorized Gas volumes delivered to El Paso prior to the
effectiveness of this section, said party shall have six (6) months
after El Paso's notification ("Extended Return Period") to resolve the
Unauthorized Gas volumes; provided however, that any such resolution
must be approved by El Paso. El Paso and the party agree to
negotiate in good faith for resolution of the Unauthorized Gas and to
commit to writing during this Extended Return Period any mutually
agreed upon resolution.
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
144
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
1st Rev Sub Original Sheet No. 279
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
27. UNAUTHORIZED GAS (Continued)
27.6 Disposition of Unauthorized Gas - El Paso will approve
___________________________________ resolution of Unauthorized Gas
volumes described in Sections 27.4 and 27.5 above as follows:
(a) With El Paso's consent, proven owners of Unauthorized Gas may
sell such Unauthorized Gas volumes to any party as long as said party
causes the gas to be transported under an effective Transportation
Service Agreement on El Paso's system. Unless waived by El Paso on a
not unduly discriminatory basis, the party agrees to pay El Paso the
Unauthorized Gas penalty of thirty cents ($.30) per dth for the
respective Unauthorized Gas volumes being purchased, plus any
applicable transportation charge including fuel for redelivery. The
penalty of thirty cents ($.30) per dth shall not be applicable for
Unauthorized Gas volumes delivered into El Paso's system prior to the
effectiveness of this section or for partial market wells that have
been classified as unauthorized.
(b) If said Unauthorized Gas volumes are not resolved by a
mutually agreed upon plan within the Return Period or the Extended
Return Period, as appropriate, El Paso may retain such Unauthorized
Gas volumes at no cost to itself and free of any obligation to account
therefor in kind or otherwise to any person claiming an interest
therein. El Paso shall not assess more than one Unauthorized Gas
penalty for the same infraction.
27.7 Claiming Unauthorized Gas - To claim Unauthorized Gas volumes,
the party shall submit a written plan for resolution thereof to El
Paso within the Return Period or the Extended Return Period, as
appropriate, along with proof of ownership.
27.8 Reporting and Payment of Royalty, Tax, or other Burdens -
Shipper or its suppliers shall be responsible for reporting and
payment of any royalty, tax, or other burdens on natural gas volumes
received by El Paso and El Paso shall not be obligated to account for
or pay such burdens.
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
145
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
1st Rev 1st Sub Original Sheet No. 280
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
27. UNAUTHORIZED GAS (Continued)
27.9 Challenging El Paso's Classification of Unauthorized Gas - Any
party claiming an interest in volumes of natural gas which El Paso has
determined to be Unauthorized Gas may challenge that determination by
the first day of the month following receipt from El Paso of the
notice of Unauthorized Gas. Such challenge shall be in writing and
include all documentation upon which such party relies to substantiate
its challenge. El Paso shall hold such gas until a final
determination has been reached as to the classification of the gas in
question. If no such challenge is received by El Paso within the
period specified, then El Paso's determination that the quantities in
question were Unauthorized Gas shall be final. Upon a determination
that El Paso incorrectly classified natural gas as unauthorized, El
Paso shall correct all records and make gas available, subject to
operational conditions, within sixty (60) days of such determination.
27.10 Accounting for Retained Unauthorized Gas and Penalties - El
Paso shall record the value of the Unauthorized Gas retained (pursuant
to Sections 27.2 and 27.6(b) of this tariff) and the penalty payments
received by El Paso (pursuant to Section 27.6(a) of this tariff) in
the appropriate revenue account. The Unauthorized Gas volumes
retained shall be valued at the lesser of the value determined for the
month the Unauthorized Gas is retained or for the month the proceeds
from the retained Unauthorized Gas are to be credited to eligible
Shippers. The value of such retained Unauthorized Gas shall be based
on the appropriate index price for each production basin (Anadarko,
Permian or San Juan). Such calculation shall be in accordance with
Sections 20.11(e)(i)(1), (2) or (3), respectively, of this tariff.
Any Shipper who has a valid Transportation Service Agreement providing
for mainline transportation services shall be eligible to receive a
share of the value of the Unauthorized Gas volumes retained (less
production area charges and other burdens, if any) and penalty
payments received by El Paso. The Shipper's share shall be credited
to the monthly transportation service invoice rendered by El Paso not
later than 90 days after the month of retention or payment of the
penalty. El Paso shall credit each Shipper in proportion to the
mainline charges billed to that Shipper less conditional credits
pursuant to Section 28.18 of this tariff to the mainline charges
billed to all Shippers in the month of crediting less such conditional
credits.
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
146
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
3rd Substitute Original Sheet No. 281
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE PROGRAM
28.1 Purpose - This Section 28 sets forth the specific terms and
conditions applicable to the implementation by El Paso of a Capacity
Release Program on its interstate pipeline system.
28.2 Applicability - This Section 28 is applicable to any Shipper
who has a Part 284 Transportation Service Agreement under Rate
Schedule T-3 contained in this Volume No. 1-A Tariff or an Acquired
Capacity Agreement (except for those Acquired Capacity Agreements
providing for volumetric reservation charges) and who elects to
release, subject to the Capacity Release Program set forth herein, all
or a portion of its firm transportation rights. Shipper shall have
the right to release any portion of the firm capacity rights held
under a Transportation Service Agreement or an Acquired Capacity
Agreement but only to the extent that the capacity so released is
acquired by another Shipper pursuant to the provisions of this Section
28.
(a) With respect to any full requirements Rate Schedule T-3
Shipper who elects to participate in this Capacity Release Program,
the total capacity rights of such Shipper shall be deemed to be
limited to the quantity representing such Shipper's Billing
Determinants underlying El Paso's rates in effect from time to time
less the quantity actually released by such Shipper. This limitation
on the capacity rights of such full requirements Shipper shall not
apply during the time all capacity released hereunder is recalled by
such Shipper. If a full requirements Shipper under Rate Schedule T-3
is not participating in the Capacity Release Program, such Shipper
shall be entitled to full requirements service in accordance with its
Transportation Service Agreement.
(b) Any Rate Schedule FTS-S Shipper may release capacity under the
same conditions set forth in (a) above provided that such Shipper is
willing to convert on a temporary basis, for a minimum term of one (1)
month, to service under Rate Schedule T-3. Notice of the intent to
convert must be given to El Paso at least one (1) week prior to the
beginning of the month(s) for which such conversion is to be
effective. For purposes of determining capacity rights of such
Shipper, El Paso will utilize either the Shipper's billing
determinants
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: April 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
147
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
2nd Substitute Original Sheet No. 282
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE PROGRAM (Continued)
28.2 Applicability (Continued) established in the general rate
proceeding applicable on the effective date of the conversion or a
billing determinant negotiated by the parties.
28.3 Definitions - For purposes of this Section 28, the following
definitions shall apply:
(a) Releasing Shipper - any Shipper holding firm capacity rights
under a Part 284 Transportation Service Agreement under Rate Schedule
T-3 or an Acquired Capacity Agreement who desires to release such firm
capacity rights to another Shipper pursuant to this Section 28.
(b) Bidding Shipper - any Shipper who is qualified, pursuant to
Section 28.20, to bid for capacity via El Paso's electronic bulletin
board and who submits a bid for such capacity.
(c) Pre-Arranged Shipper - any Shipper who is qualified, pursuant
to Section 28.20, and seeks to acquire capacity under a pre-arranged
release for which notice is given pursuant to Section 28.5.
(d) Acquiring Shipper - any Shipper who acquires released capacity
rights from a Releasing Shipper.
(e) Firm Recallable Capacity - firm capacity released subject to
the Releasing Shipper's right to recall such capacity during the term
of the release.
(f) Acquired Capacity Agreement - an agreement between El Paso and
the Acquiring Shipper setting forth rate(s) and the terms and
conditions of service for using capacity rights acquired pursuant to
this Section 28, in the form contained in Section 28.25 of this Volume
No. 1-A Tariff.
28.4 Notice by Shipper Electing to Release Capacity - A Releasing
Shipper shall deliver a notice via El Paso's electronic bulletin board
that it elects to release firm capacity. The notice shall set forth:
Issued by: A. W. Clark, Vice President
Issued on: April 7, 1993 Effective: April 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-002, et al., dated March 31, 1993
148
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
2nd Substitute Original Sheet No. 283
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE PROGRAM (Continued)
28.4 Notice by Shipper Electing to Release Capacity (Continued)
(a) Releasing Shipper's legal name, contract number, and the name
and title of the individual responsible for authorizing the release of
capacity;
(b) the maximum and minimum (if desired) quantity of firm daily
capacity which the Releasing Shipper desires to release, stated in
Mcf/d;
(c) the delivery point(s) at which the Releasing Shipper will release
capacity and the firm capacity to be released at each such point;
(d) whether capacity will be released on a firm or firm recallable
basis and, if on a firm recallable basis, the terms on which the
capacity can be recalled, which terms must be objectively stated,
non-discriminatory and applicable to all bidders;
(e) the requested effective date and the term of the release;
(f) whether the Releasing Shipper is willing to consider release
for a shorter time period than that specified in (e) above, and,
if so, the minimum (if desired) acceptable period of release;
(g) whether the Releasing Shipper desires bids in dollars or as a
percentage of El Paso's maximum reservation charge(s) and reservation
surcharge(s) applicable to the capacity to be released under this
Volume No. 1-A Tariff as in effect from time to time;
(h) the maximum reservation charge(s) and reservation surcharge(s)
applicable to the capacity being released as shown on El Paso's
Statement of Rates applicable to the Releasing Shipper's
Transportation Service Agreement or Acquired Capacity Agreement and
whether the Releasing Shipper is willing to consider releasing
capacity at a lower rate;
Issued by: A. W. Clark, Vice President
Issued on: April 7, 1993 Effective: April 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-002, et al., dated March 31, 1993
149
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
3rd Substitute Original Sheet No. 284
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE PROGRAM (Continued)
28.4 Notice by Shipper Electing to Release Capacity (Continued)
(i) whether the Releasing Shipper desires to release capacity on the
basis of a volumetric reservation charge and, if so, whether bids
shall be stated in dollars or as a percentage of El Paso's maximum
reservation charge(s) and reservation surcharge(s) in accordance with
Section 28.16 below;
(j) whether Option 1, Option 2, Option 3 or Option 4 of Section 28.10
shall be used to determine the highest bidder and, if Option 3 is
selected, the criteria by which bids are to be evaluated; whatever
evaluation option the Releasing Shipper chooses, it may establish and
post objective, non-discriminatory minimum conditions for an
acceptable bid, subject to the provisions of Section 28.4(q) set forth
below;
(k) the weight for each factor if bids will be evaluated using the
Option 1 weighted composite bid method;
(l) the method by which ties will be broken;
(m) whether the Releasing Shipper wants El Paso to market its released
capacity in accordance with Section 28.17;
(n) the duration of the open season and of the matching period if
longer than the minimums specified in Section 28.8 below;
(o) the date and time the notice is posted on the electronic bulletin
board;
(p) whether the Releasing Shipper is willing to accept contingent bids
that extend beyond the open season and, if so, any non-discriminatory
terms and conditions applicable to such contingencies including the
date by which such contingency must be satisfied (which date shall be
no later than two (2) business days prior to the first day the
Acquired Capacity Agreement is to be effective) and whether, or for
what time period, the next highest bidder will be obligated to acquire
the capacity should the winning contingent bidder be unable to satisfy
the contingency specified in its bid; and
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: April 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
150
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
2nd Substitute Original Sheet No. 285
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE PROGRAM (Continued)
28.4 Notice by Shipper Electing to Release Capacity (Continued)
(q) whether the Releasing Shipper's notice will state minimum
conditions or that such Shipper has revealed such minimums to El Paso
which conditions shall not be revealed during the open season; and
(r) any other applicable conditions.
A Releasing Shipper including any Shipper with a pre-arranged release
that is subject to an open season, may withdraw such notice regardless
of whether a valid bid has been received, at any time prior to the
close of the open season set forth in Section 28.8 if such withdrawal
is due to an unanticipated need for the capacity; provided, however,
that once the notice is withdrawn, both the offer to release and any
bids received during the open season shall remain posted on the
electronic bulletin board for a period of thirty (30) days for
monitoring and control purposes.
28.5 Notice of Pre-Arranged Release - The Releasing Shipper shall
deliver a notice via El Paso's electronic bulletin board of a
pre-arranged release. The notice shall set forth all of the
information on the terms of the release called for in Section 28.4
above and all of the information called for in Section 28.9 below
required to define the pre-arranged bid. In addition, it shall
specify if the pre-arranged bid is for the maximum applicable
reservation rate, whether the Releasing Shipper is seeking bids to
compete with the non-rate provisions of the pre-arranged bid. The
Releasing Shipper shall also designate if it is seeking bids when the
release of capacity is for less than one (1) month.
28.6 Term of Released Capacity - The term of any release of firm
capacity shall not exceed the term of the Transportation Service
Agreement or Acquired Capacity Agreement under which releasing occurs,
nor shall it be less than one (1) full gas flow day.
28.7 Availability of Released Capacity - Released capacity shall be
made available on a nondiscriminatory basis and shall be assigned on
the basis of an open season or pre-arrangement in accordance with the
procedures described in Sections 28.8 and 28.10 below.
Issued by: A. W. Clark, Vice President
Issued on: April 7, 1993 Effective: April 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-002, et al., dated March 31, 1993
151
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
2nd Substitute Original Sheet No. 286
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE PROGRAM (Continued)
28.8 Open Season and Matching Period - The minimum term of any open
season to be held as a consequence of the posting by a Releasing
Shipper of its election to release capacity in accordance with
Sections 28.4 or 28.5 hereof shall be as specified below, except that:
(1) no open season shall be required for a pre-arranged release that
is for the maximum reservation charge(s) and reservation surcharge(s)
applicable to the rate schedule pursuant to which capacity is released
under this Volume No. 1-A Tariff as in effect from time to time; and
(2) no open season shall be required for a pre-arranged release with a
duration of less than one month regardless of the rate bid.
(a) Capacity released under a pre-arrangement, for a period of less
than one (1) month may not be rolled over or extended unless an offer
to release is posted on El Paso's electronic bulletin board, prior to
the effective date of the rollover or extension, treating the
extension or rollover as a pre-arranged release and initiating the
appropriate open season. A Releasing Shipper may not re-release
capacity subject to this paragraph (a) to the same Acquiring Shipper
until thirty (30) days after the first release period has ended unless
such Acquiring Shipper offers to pay the maximum reservation charge(s)
and reservation surcharge(s) and such bid meets all the terms and
conditions of the subsequent release or such Acquiring Shipper is the
highest bidder for the capacity during the open season.
(b) For capacity to be released for a term of less than one (1)
calendar month and which is being offered subject to the Option 4 bid
evaluation procedure specified in Section 28.10 below, an open season
of at least one (1) business day shall be held commencing at least two
(2) business days prior to the effective day of the release. If the
bids are to be evaluated in accord with Options 1 or 2, the open
season must commence at least two (2) business days prior to the
effective date of the release. If the capacity to be released is
subject to a pre-arranged bid, the open season must commence at least
three (3) business days prior to the effective date of the release to
allow for a minimum of one (1) business day for the Pre-Arranged
Shipper to match any bids received during the open
Issued by: A. W. Clark, Vice President
Issued on: April 7, 1993 Effective: April 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-002, et al., dated March 31, 1993
152
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
2nd Substitute Original Sheet No. 287
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE PROGRAM (Continued)
28.8 Open Season and Matching Period (Continued) season. If the
bids are to be evaluated pursuant to Option 3, the open season shall
commence at least three (3) business days prior to the effective date
of the release to allow for a minimum of one (1) business day for bid
evaluation.
(c) For capacity to be released for a term of at least one (1)
calendar month but not more than three (3) calendar months, an open
season of at least five (5) business days shall be held commencing at
least nine (9) business days prior to the effective date of the
release. If the capacity to be released is subject to a pre-arranged
bid, the open season must commence at least twelve (12) business days
prior to the effective date of the release to allow for a minimum of
three (3) business days for the Pre-Arranged Shipper to match any bids
received during the open season.
(d) For capacity to be released for a term of more than three (3)
calendar months but not more than one (1) year, an open season of at
least ten (10) business days shall be held commencing at least
fourteen (14) business days prior to the effective date of the
release. If the capacity to be released is subject to a pre-arranged
bid, the open season must commence at least nineteen (19) business
days prior to the effective date of the release to allow for a minimum
of five (5) business days for the Pre-Arranged Shipper to match any
bids received during the open season.
(e) For capacity to be released for a term of more than one (1) year,
an open season of at least twenty (20) business days shall be held
commencing at least twenty four (24) business days prior to the
effective date of the release. If the capacity to be released is
subject to a pre-arranged bid, the open season must commence at least
thirty four (34) business days prior to the effective date of the
release to allow for a minimum of ten (10) business days for the
Pre-Arranged Shipper to match any bids received during the open
season.
Issued by: A. W. Clark, Vice President
Issued on: April 7, 1993 Effective: April 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-002, et al., dated March 31, 1993
153
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
2nd Substitute Original Sheet No. 288
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE PROGRAM (Continued)
28.8 Open Season and Matching Period (Continued)
(f) With respect to any pre-arranged release which is not subject to
an open season, the Releasing Shipper shall post notice not later than
forty-eight (48) hours after the transaction commences.
(g) If any Releasing Shipper agrees to accept a contingent bid
pursuant to Section 28.4(p) the beginning of the open season as set
forth in Sections 28.8(a), (b), (c), (d) and (e) above shall start
earlier by the number of business days so stated by the Releasing
Shipper.
28.9 Bids for Released Capacity - A bid may be submitted to El
Paso by a Bidding Shipper at any time during the open season via El
Paso's electronic bulletin board.
(a) Each bid for released capacity must include the following:
(i) Bidding Shipper's legal name, address, and the name and title of
the individual responsible for authorizing the bid; (ii) the term of
the proposed acquisition;
(iii) the maximum reservation charge(s) and reservation surcharge(s)
Bidding Shipper is willing to pay for the capacity;
(iv) the volume desired and any minimum acceptable volume;
(v) whether or not the Bidding Shipper is an affiliate of the
Releasing Shipper;
(vi) whether the bid is a contingent bid and the contingency which
must be satisfied before the date specified by the Releasing Shipper
pursuant to Section 28.4(p) above; and
(vii) all other information requested by the Releasing Shipper.
(b) Any bid received by El Paso during the open season shall be posted
on El Paso's electronic bulletin board
Issued by: A. W. Clark, Vice President
Issued on: April 7, 1993 Effective: April 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-002, et al., dated March 31, 1993
154
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
2nd Substitute Original Sheet No. 289
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28 CAPACITY RELEASE PROGRAM (Continued)
28.9 Bids for Released Capacity (Continued)
(excluding Bidding Shipper's name). The posting shall indicate if
the bid is a contingent bid. Any bid may be withdrawn by such
Shipper at any time prior to the close of the open season. However,
once a bid is withdrawn, such Shipper may not resubmit a bid at a
lower rate but may resubmit a bid at a higher rate. A Bidding
Shipper may not simultaneously submit multiple bids for the same
package of capacity and may not have more than one bid posted at a
given time for such package of capacity.
(c) A Bidding Shipper may not bid a reservation charge(s) less than
the minimum reservation charge(s) nor more than the sum of the maximum
reservation charge(s) and reservation surcharge(s) specified by this
Volume No. 1-A Tariff, nor may the volume or the term of the release
of such bid exceed the maximum volume or term specified by the
Releasing Shipper.
(d) Any capacity acquired on a volumetric reservation charge basis may
not be re-released.
28.10 Awarding of Released Capacity - Released capacity shall be
awarded in accordance with this Section 28.10.
(a) If Bidding Shipper submits a bid to acquire the released capacity
at the maximum reservation charge(s) and reservation surcharge(s) and
upon all the terms and conditions specified in the Releasing Shipper's
notice, then the capacity shall be awarded to such Bidding Shipper,
and the Releasing Shipper shall not be entitled to reject such bid.
Provided, however, if such bid was submitted as a bid in an open
season relating to a pre-arranged release and the Pre-Arranged Shipper
matches such offer, then the capacity shall be awarded pursuant to
Section 28.10(g) hereof. If more than one such bid is received then
the capacity shall be awarded in accordance with Section 28.10(f)
hereof. The Releasing Shipper shall not be entitled to reject any
bid so selected.
Issued by: A. W. Clark, Vice President
Issued on: April 7, 1993 Effective: April 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-002, et al., dated March 31, 1993
155
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
2nd Substitute Original Sheet No. 290
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE PROGRAM (Continued)
28.10 Awarding of Released Capacity (Continued)
(b) If a bid is received that exceeds the minimum but does not conform
completely to the reservation charge(s) and reservation surcharge(s)
and all the terms and conditions specified in the Releasing Shipper's
notice, then the Acquiring Shipper(s) shall be the Bidding Shipper(s)
who offer(s) the highest bid determined under Option 1, Option 2,
Option 3 or Option 4 below, as applicable. Provided, however, if such
bid was submitted as a bid in an open season relating to a
pre-arranged release and the Pre-Arranged Shipper matches such offer,
then the capacity shall be awarded pursuant to Section 28.10(g)
hereof. If bids from two or more Bidding Shippers result in bids of
equal rank then the capacity shall be awarded in accordance with
Section 28.10(f) hereof. El Paso shall evaluate and rank all bids
submitted during the open season. If Bidding Shipper has not removed
its contingency by the date specified by the Releasing Shipper
pursuant to Section 28.4(p) hereof, such bid shall be deemed to have
been withdrawn.
(i) Default Bid Evaluation Criteria - If Releasing Shipper does not
specify otherwise, all bids will be evaluated pursuant to Option 1
with equal weighting factors on all three criteria.
Issued by: A. W. Clark, Vice President
Issued on: April 7, 1993 Effective: April 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-002, et al., dated March 31, 1993
156
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
2nd Substitute Original Sheet No. 291
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE PROGRAM (Continued)
28.10 Awarding of Released Capacity (Continued)
(ii) OPTION 1 - Weighted Composite Bid Calculation
Bidding
Releasing Releasing Bidding Shipper's
Shipper's Shipper's Shipper's Actual Bid
Assigned Bid Maximum Bid Actual Bid Weighting
Weighting (%) Values Values (%)
------------- ----------- ---------- ----------
(a) (b) (c) (d)*
(1) Volume in Mcf
(2) Term Stated in
Months
(3) Reservation
Charge(s) and
Reservation
Surcharge(s)
Actual Weighted ______
Composite Bid ______%
c
---
* d = b x a
(iii) OPTION 2 - Net Present Value Calculation
R x 1 - (1 + i) - n x V = present
----------- value
i
where: i = interest rate per month using the current
Commission interest rate as defined in 18 C.F.R.
Section 154.67(c)(2)(iii)(A)
n = term of the agreement, in months
R = the Reservation Charge(s) and Reservation
Surcharge(s) bid
V = volume stated in Mcf or
Issued by: A. W. Clark, Vice President
Issued on: April 7, 1993 Effective: April 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-002, et al., dated March 31, 1993
157
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
2nd Substitute Original Sheet No. 292
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE PROGRAM (Continued)
28.10 Awarding of Released Capacity (Continued)
(iv) OPTION 3 - Releasing Shipper's Criteria
Releasing Shipper shall specify how bids are to be evaluated to
determine which is the best offer and must include all criteria
necessary to enable El Paso to evaluate any contingent or
non-contingent bids. The criteria must be objectively stated,
applicable to all potential bidders and non-discriminatory. Such
criteria shall also include provisions describing how capacity shall
be allocated in the event two or more bids are ranked equally.
(v) OPTION 4 - First-Come/First-Served
Capacity shall be awarded on a first-come/first- served basis as bids
are received, up to maximum capacity specified in the notice of
release, to the Acquiring Shipper(s) who submits a bid meeting the
minimum terms and conditions of the release. Option 4 shall only
apply to capacity to be released for a term of less than one (1)
calendar month which is not subject to a pre-arranged release or a
contingency.
(c) If Option 1 is selected by the Releasing Shipper, then such
Shipper shall specify, among the criteria listed above, those criteria
which are to be applicable in determining the highest weighted
composite bid and shall assign a relative weighting to each such
factor. At the end of the open season, El Paso shall, for each bid
received, calculate an actual weighted composite bid by dividing the
actual bid component by Releasing Shipper's maximum bid component and
multiplying the result by the Releasing Shipper's assigned bid
weighting. The results of this calculation shall determine each bid
component's actual weight. Once all bid components are calculated,
an actual composite weighting will be determined for each bid by
summing the bid weightings for each component. The bids will then be
ranked in order from the highest to the lowest actual weighted
composite score.
Issued by: A. W. Clark, Vice President
Issued on: April 7, 1993 Effective: April 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-002, et al., dated March 31, 1993
158
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
2nd Substitute Original Sheet No. 293
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE PROGRAM (Continued)
28.10 Awarding of Released Capacity (Continued)
(d) If Option 2 is selected by the Releasing Shipper, then, at the end
of the open season, El Paso shall calculate a Net Present Value for
each bid received, with the bids being ranked in order from the
highest to the lowest Net Present Value.
(e) If no bids are received which meet or exceed all of the minimum
conditions specified by the Releasing Shipper, no capacity shall be
awarded. If any bids are received which meet or exceed the Releasing
Shipper's minimum criteria, El Paso shall rank all such bids in
accordance with the criteria specified in the notice of release and
shall award the capacity to the successful Bidding Shipper(s). Any
Bidding Shipper who would receive less than the minimum acceptable bid
volume shall not be obligated to accept released capacity.
(f) If bids from two or more Bidding Shippers result in bids of equal
score, the Acquiring Shipper(s) shall be determined based upon the tie
breaking method designated by the Releasing Shipper, and if none is
specified, by a lottery. The lottery shall be conducted by El Paso
on a non-discriminatory basis. Capacity shall be awarded in
accordance with the order of draw, with capacity awarded to the
first-drawn Bidding Shipper up to the volume bid by such Shipper, and,
if any released capacity remains after such award, it shall be offered
to other Bidding Shippers in the lottery in accordance with the order
of draw. Any Bidding Shipper who, by virtue of its place in the
order of draw, receives less than the minimum acceptable bid volume
shall not be obligated to accept released capacity. The results of
the lottery shall be posted on El Paso's electronic bulletin board.
(g) If a pre-arranged release is for the maximum reservation charge(s)
and reservation surcharge(s) under this Volume No. 1-A Tariff, as in
effect from time to time, and meets all other terms and conditions
imposed by the Releasing Shipper, then the Pre-Arranged Shipper shall
become the Acquiring Shipper. Service to such Acquiring Shipper may
begin on the next scheduling day after award of the
Issued by: A. W. Clark, Vice President
Issued on: April 7, 1993 Effective: April 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-002, et al., dated March 31, 1993
159
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
2nd Substitute Original Sheet No. 294
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE PROGRAM (Continued)
28.10 Awarding of Released Capacity (Continued) capacity and
execution of the Acquired Capacity Agreement described in Section
28.11 hereof if that is the effective date specified by the Releasing
Shipper. If a pre-arranged release is for less than the maximum
reservation charge(s) and reservation surcharge(s) or does not meet
all other terms and conditions required by the Releasing Shipper, an
open season is required pursuant to Section 28.8. If a better offer
is received during the open season, as determined under Option 1,
Option 2 or Option 3, the Pre-Arranged Shipper shall have the time
specified in Section 28.8 hereof to match that offer and if the offer
is matched, the Pre-Arranged Shipper shall become the Acquiring
Shipper. If the Pre-Arranged Shipper fails to match the better
offer, then the Bidding Shipper who presented the better offer shall
become the Acquiring Shipper.
(h) A Releasing Shipper shall retain all of the capacity under the
executed Transportation Service Agreement or Acquired Capacity
Agreement that is not acquired by an Acquiring Shipper as the result
of an open season or a pre-arranged release.
28.11 Execution of Agreements or Amendments
(a) Upon the award of capacity, the Acquiring Shipper obtaining
released capacity shall execute electronically an Acquired Capacity
Agreement with El Paso in the form set forth in Section 28.25 below;
provided, however, such Shipper shall also return to El Paso an
executed hard copy of the Acquired Capacity Agreement within five (5)
business days of such award of capacity. Service to be performed
under the Acquired Capacity Agreement is subject to discontinuance if
the executed contract is not provided to El Paso within such time
period. Once an Acquired Capacity Agreement has been executed, the
terms of such Agreement are not subject to amendment, except as
provided in Section 28.8(a).
Issued by: A. W. Clark, Vice President
Issued on: April 7, 1993 Effective: April 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-002, et al., dated March 31, 1993
160
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
2nd Substitute Original Sheet No. 295
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE PROGRAM (Continued)
28.11 Execution of Agreements or Amendments (Continued)
(b) Where capacity has been released for the entire remaining term of
the Releasing Shipper's Transportation Service Agreement, the
Releasing Shipper may request El Paso to amend its Transportation
Service Agreement to reflect the release of capacity. Absent
agreement by El Paso to such amendment, which may be conditioned on
exit fees or other terms and conditions, the Releasing Shipper shall
remain bound by and liable for payment of the reservation charge(s)
and reservation surcharge(s) under the Transportation Service
Agreement. To the extent that capacity is released for the remaining
term of the Releasing Shipper's Transportation Service Agreement and
the Acquiring Shipper has agreed to pay the maximum reservation
charge(s) and reservation surcharge(s) for such capacity, Releasing
Shipper's contract shall be amended so as to relieve such shipper of
any further liability for payment of the reservation charge(s) and
reservation surcharge(s) applicable to the capacity released under the
Transportation Service Agreement. In the event the Releasing
Shipper's Transportation Service Agreement is amended to reflect the
release of capacity, El Paso shall enter into a Transportation Service
Agreement with the Acquiring Shipper in the form prescribed for
service under Rate Schedule T-3 but containing the rates and terms and
conditions established for the acquired capacity pursuant to this
Section 28.
28.12 Notice of Completed Transactions - Within five (5) business
days after capacity has been awarded pursuant to Section 28.10, El Paso
shall post the information identified below regarding each transaction
on its electronic bulletin board for a period of five (5) business
days.
(a) term;
(b) reservation charge(s) and reservation surcharge(s) as bid;
(c) delivery points;
Issued by: A. W. Clark, Vice President
Issued on: April 7, 1993 Effective: April 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-002, et al., dated March 31, 1993
161
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
2nd Substitute Original Sheet No. 296
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28 CAPACITY RELEASE PROGRAM (Continued)
28.12 Notice of Completed Transactions (Continued)
(d) volume in Mcf;
(e) whether the capacity is firm or firm recallable;
(f) all conditions, including any minimums, concerning the release;
(g) the names of the Releasing Shipper and the Acquiring Shipper; and
(h) whether or not the Acquiring Shipper is an affiliate of the
Releasing Shipper or El Paso.
28.13 Effective Date of Release and Acquisition - The effective date
of the release by a Releasing Shipper and acquisition by an Acquiring
Shipper shall be on the date so designated in the Acquired Capacity
Agreement or Transportation Service Agreement referenced in Section
28.11 above.
28.14 Notice by El Paso of Uncommitted Firm Capacity - In the
event E Paso determines that it has any uncommitted firm capacity on
its system, El Paso shall post on its electronic bulletin board a
notice of the availability of such capacity or of a pre-arrangement
concerning such capacity, setting forth the same information as
prescribed in Section 28.4 or Section 28.5, as applicable, and the
capacity shall be awarded using the procedures specified by Sections
28.8 and 28.10; provided, however, that El Paso shall not be obligated
to accept any bid for uncommitted capacity that is for less than the
maximum reservation charge(s) and reservation surcharge(s) specified
in this Volume No. 1-A Tariff as in effect from time to time.
28.15 Notice of Offer to Purchase Capacity - In the event a party
desires to purchase capacity on El Paso's system, it may post a notice
of offer to purchase capacity on El Paso's electronic bulletin board
or, if such party is not currently authorized to access the electronic
bulletin board and elects to provide El Paso with the information in
some other form, El Paso shall post such offer on its electronic
bulletin board within twenty-four (24) hours of receipt of such offer.
The offering
Issued by: A. W. Clark, Vice President
Issued on: April 7, 1993 Effective: April 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-002, et al., dated March 31, 1993
162
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
2nd Substitute Original Sheet No. 297
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE PROGRAM (Continued)
28.15 Notice of Offer to Purchase Capacity (Continued)
party may furnish all data for posting which it deems appropriate but
at a minimum such data shall include the following:
(i) offering party's legal name, address, and person to contact for
additional information;
(ii) the term of the proposed purchase;
(iii) the maximum reservation charge(s) and reservation surcharge(s)
the party is willing to pay for the capacity;
(iv) the volume desired; and
(v) the delivery points.
28.16 Rates - The reservation charge(s) and reservation surcharge(s)
for any released firm capacity shall be the reservation charge(s) and
reservation surcharge(s) bid by the Acquiring Shipper, but in no event
shall such reservation charge(s) and reservation surcharge(s) be less
than El Paso's minimum or more than El Paso's maximum reservation
charge(s) and reservation surcharge(s) under the applicable rate
schedule as in effect from time to time. In addition, Acquiring
Shipper shall pay the maximum usage charge as well as all other
applicable charges and surcharge(s) for the service rendered unless
discounted by El Paso. For a volumetric reservation charge, the sum
of the reservation charge(s) and reservation surcharge(s) shall be
converted to a daily rate by dividing by the number of days in the
month.
28.17 Marketing Fee - When a Releasing Shipper requests that El Paso
actively market the capacity to be released, the Releasing Shipper and
El Paso shall negotiate the terms of the marketing service to be
provided by El Paso and the marketing fee to be charged therefor.
28.18 Billing - El Paso shall bill the Acquiring Shipper the rate(s)
specified in the Acquired Capacity Agreement or the Transportation
Service Agreement and any other applicable charges and such Acquiring
Shipper shall pay the billed
Issued by: A. W. Clark, Vice President
Issued on: April 7, 1993 Effective: April 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-002, et al., dated March 31, 1993
163
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
Substitute Original Sheet No. 297A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE PROGRAM (Continued)
28.18 Billing (Continued)
amounts directly to El Paso. Further, the Acquiring Shipper who has
acquired capacity on a volumetric reservation rate basis shall be
billed the daily reservation rate(s) plus the usage rate(s) and all
applicable surcharges times the volumes actually transported.
Releasing Shipper shall be billed the reservation charge(s) and
reservation surcharge(s) associated with the released capacity
pursuant to its contract, with a concurrent conditional credit for
payment of the reservation charge(s) and reservation surcharge(s) due
from the Acquiring Shipper. This bill shall include an itemization
of credits and adjustments associated with each Acquired Capacity
Agreement. Releasing Shipper shall also be billed a marketing fee,
if applicable, pursuant to the provisions of Section 28.17. An
Acquiring Shipper who re-releases acquired capacity shall pay to El
Paso a marketing fee, if applicable. If an Acquiring Shipper does
not make payment to El Paso of the reservation charge(s) and
reservation surcharge(s) due as set forth in Section 6 of this Volume
No. 1-A Tariff, El Paso shall notify the Releasing Shipper of the
amount due, including all applicable late charges authorized by
Section 6.4 of this Tariff, and such amount shall be paid by the
Releasing Shipper. In addition, Releasing Shipper may terminate the
release of capacity to an Acquiring Shipper if such Shipper fails to
pay all of the amount of any bill for gas delivered under the executed
Acquired Capacity Agreement when such amount is due, in accordance
with said Section 6.4. Once terminated, capacity and all applicable
charges shall revert to the Releasing Shipper. Notwithstanding the
provisions of Section 6.4, all payments received from an Acquiring
Shipper shall first be applied to the reservation charge(s) due for
transportation service and then to any reservation surcharges(s),
including late charges related solely to such reservation charge(s),
then to any penalty due, then to usage charges, and last to late
charges not related to any reservation charge(s) due.
28.19 Nominations and Scheduling - An Acquiring Shipper shall
nominate and schedule natural gas for transportation service hereunder
directly with El Paso in accordance with the applicable procedures set
forth in this Volume No. 1-A Tariff. Releasing Shipper shall give
El Paso and the Acquiring Shipper(s) notice of any recall no later
Issued by: A. W. Clark, Vice President
Issued on: April 7, 1993 Effective: April 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-002, et al., dated March 31, 1993
164
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
Substitute Original Sheet No. 297B
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE PROGRAM (Continued)
28.19 Nominations and Scheduling (Continued)
than the close of Day 1 scheduling for the day on which the recall is
to take effect. Releasing Shipper, when returning recalled capacity
to the Acquiring Shipper(s), shall give El Paso and such Acquiring
Shipper(s) notice prior to the close of Day 1 scheduling for the day
on which the capacity is to revert to the Acquiring Shipper(s).
28.20 Qualification for Participation in the Capacity Release
Program - Any Shipper wishing to become a Bidding Shipper, or a
potential Pre-Arranged Shipper, must satisfy the creditworthiness
requirements of El Paso's transportation tariff by pre-qualifying
prior to submitting a bid for capacity or prior to becoming a party
to a pre-arranged release. Once a Shipper becomes an Acquiring
Shipper, such Shipper can be subject to an annual credit review with
respect to its eligibility to make additional bids on other offers of
released capacity. A Shipper cannot bid for services which exceed its
qualified level of creditworthiness. Notwithstanding such
qualification to participate in the open season, El Paso does not
guarantee the payment of any outstanding amounts by an Acquiring
Shipper.
28.21 Compliance by Acquiring Shipper - By acquiring released
capacity, an Acquiring Shipper agrees that it will comply with the
terms and conditions of El Paso's certificate of public convenience
and necessity authorizing this Capacity Release Program and all
applicable Commission orders and regulations, including Part 284
thereof. Such Acquiring Shipper also agrees to be responsible to El
Paso for compliance with all terms and conditions of El Paso's Volume
No. 1-A Tariff, as well as the terms and conditions of the Acquired
Capacity Agreement. End user lists shall not be required.
28.22 Obligations of Releasing Shipper - The Releasing Shipper
shall continue to be liable and responsible for all reservation
charge(s) and reservation surcharge(s) associated with the released
capacity up to the maximum reservation charge(s) and reservation
surcharge(s) specified in such Releasing Shipper's Transportation
Service Agreement or Acquired Capacity Agreement. Re-releases by an
Acquiring Shipper shall not relieve the original or any subsequent
Releasing Shipper of its obligations under this section.
Issued by: A. W. Clark, Vice President
Issued on: April 7, 1993 Effective: April 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-002, et al., dated March 31, 1993
165
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
Substitute Original Sheet No. 297C
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE PROGRAM (Continued)
28.23 Flexible Receipt and Delivery Point(s) - Shipper(s) using
Acquired Capacity Agreements may utilize alternate receipt and
delivery point(s) pursuant to the conditions contained in Section
20.13 of this Volume No. 1-A Tariff which is incorporated herein.
28.24 Refunds - In the event that the Commission orders refunds of any
rates charged by El Paso, El Paso shall flow-through refunds to any
Acquiring Shipper to the extent that such Shipper has paid a rate in
excess of El Paso's just and reasonable, applicable maximum rates.
28.25 Acquired Capacity Agreement -
Acquired Capacity Agreement
Between
El Paso Natural Gas Company
and
---------------------------
THIS AGREEMENT is made and entered into as of this day _______ of
________, by and between EL PASO NATURAL GAS COMPANY, a Delaware ________
corporation, hereinafter referred to as "El Paso," and ________, a ____________
corporation, hereinafter referred to as "Acquiring Shipper."
WHEREAS, El Paso and _________________, hereinafter referred
_________________ to as "Releasing Shipper," are parties to a ________________
Agreement under Rate Schedule ___ contained in El Paso's FERC Gas ___
Tariff________, First Revised Volume No. 1-A, dated __________ (contract
_____________ code
WHEREAS, Acquiring Shipper desires to acquire all or a portion of the
firm capacity rights to be released from said ____________________________
Agreement.
NOW THEREFORE, in consideration of the promises and premises
hereinafter set forth, El Paso and Acquiring Shipper agree as follows:
Issued by: A. W. Clark, Vice President
Issued on: April 7, 1993 Effective: April 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-002, et al., dated March 31, 1993
166
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
1st Substitute Original Sheet No. 297D
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE PROGRAM (Continued)
28.25 Acquired Capacity Agreement (Continued)
1. Acquiring Shipper agrees to comply with the terms and conditions
of El Paso's certificate of public convenience and necessity issued by
the Commission authorizing El Paso's Capacity Release Program and with
Section 28 of the General Terms and Conditions contained in El Paso's
Volume No. 1-A Tariff. In addition, Acquiring Shipper agrees to
comply with all other terms and conditions of said Volume No. 1-A
Tariff as well as the terms and conditions set forth herein.
2. The following capacity rights, which are released through the
Capacity Release Program, are acquired at the Receipt Point(s) and
Delivery Point(s) designated below:
Receipt Point(s): Those Receipt Point(s) set forth in the
_____________________________ Agreement.
Delivery Point(s)
The Delivery Point(s) as specified in the Notice posted pursuant to
Sections 28.4 or 28.5 of El Paso's Volume No. 1-A Tariff. If the
Releasing Shipper does not limit the Acquiring Shipper's rights to the
primary Delivery Point(s) specified in the Notice, then the Acquiring
Shipper may designate any primary Delivery Point(s) within the same
zone as the Releasing Shipper's primary Delivery Point(s), to the
extent that capacity is available at such point(s).
Contract Volume ________Mcf (for billing the reservation charge(s) and
reservation surcharge(s), this volume shall be converted to
dekatherms)
3. Capacity acquired hereunder is released through the Capacity
Release Program on a (firm or firm recallable) basis. The Acquiring
Shipper acknowledges notice of and agrees to be bound by the terms of
the Notice posted pursuant to Sections 28.4 or 28.5 of El Paso's
Volume No. 1-A Tariff, as regards to the terms on which this capacity
can be recalled by the Releasing Shipper. Releasing Shipper is
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: April 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
167
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
1st Substitute Original Sheet No. 297E
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE PROGRAM (Continued)
28.25 Acquired Capacity Agreement (Continued)
responsible for exercising such recall, in accordance with the
provisions of Section 28.19 of El Paso's Volume No. 1-A Tariff. (The
foregoing paragraph shall be applicable to Acquiring Shipper(s) who
acquire firm recallable capacity.)
4. For capacity acquired hereunder, Acquiring Shipper shall pay El
Paso each month the charges set forth below:
5. This Agreement shall become effective on and continue in full
force and effect through unless terminated pursuant to Section 28.18
of El Paso's Volume No. 1-A Tariff.
6. Other terms: As specified in the Notice posted pursuant to
Sections 28.4 or 28.5 of El Paso's Volume No. 1-A Tariff.
7. Any formal notice, request or demand that either party gives to
the other respecting this Agreement, shall be in writing and shall be
mailed by registered or certified mail or delivered by hand to the
following address of the other party:
El Paso: El Paso Natural Gas Company
Post Office Box 1492
El Paso, Texas 79978
Attention: Director, Mainline Transportation and
Customer Services Department
Acquiring Shipper:
Notices regarding recall rights shall also be delivered by telephone,
facsimile, or El Paso's electronic system.
8. Acquiring Shipper hereby certifies that it has or will have title
to the gas delivered to El Paso for transportation and has entered
into or will enter into arrangements necessary to assure all upstream
and downstream transportation will be in place prior to commencement
of service.
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: April 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
168
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
Original Sheet No. 297F
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE PROGRAM (Continued)
28.25 Acquired Capacity Agreement (Continued)
IN WITNESS HEREOF, the parties have caused this Agreement to be
executed in two (2) original counterparts, by their duly authorized
officers, the day and year first set forth herein.
ATTEST: EL PASO NATURAL GAS COMPANY
By __________________ By ____________________
(Title) (Title)
ATTEST: ________________________
(Acquiring Shipper)
By __________________ By ____________________
(Title) (Title)
Issued by: A. W. Clark, Vice President
Issued on: April 7, 1993 Effective: April 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-002, et al., dated March 31, 1993
169
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
Substitute Original Sheet No. 298
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
29. COMPLIANCE PLAN FOR UNBUNDLED SALES DIVISION
29.1 El Paso will organize its unbundled sales and transportation
operating employees so that they function independently of each other
to the maximum extent practicable.
29.2 El Paso Gas Marketing Company, a separate and independently
operated corporate affiliate, is designated as El Paso's agent for
purposes of conducting El Paso's gas merchant function. El Paso and
El Paso Gas Marketing Company as agent for El Paso will conduct their
business in conformance with the standards of conduct set forth in
Section 161.3 and Section 284.286 of the Commission's Regulations and
other applicable requirements of Order Nos. 497 and 497-A.
29.3 El Paso will not provide a preference in any pipeline services to
a Shipper because that Shipper also purchases natural gas from El Paso
or from its marketing affiliate, or to a marketing affiliate of El
Paso, over Shippers who purchase natural gas from another merchant.
Issued by: A. W. Clark, Vice President
Issued on: November 4, 1993 Effective: October 1, 1993
Issue to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-016, et al., dated October 29, 1993
Tariff Sheet Subject to Further Modification
170
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
Substitute Original Sheet No. 299
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
30. ASSIGNMENT OF FIRM CAPACITY ON UPSTREAM PIPELINES
30.1 Purpose - This Section 30 sets forth the terms and conditions
under which El Paso shall assign, in whole or in part, the rights and
obligations under contracts held by El Paso for firm capacity on
upstream jurisdictional pipelines.
30.2 Applicability - This Section 30 shall apply to any firm Shipper
who accepts assignment of any or all of El Paso's firm transportation
capacity rights described in Section 30.1 above.
30.3 Availability of Capacity - El Paso's firm upstream capacity shall
be made available on a nondiscriminatory basis and shall be assigned
on the basis of an open season in accordance with the procedures
described in Section 30.6 below.
30.4 Permanent Assignment - All assignments pursuant to this Section
30 shall be for the entire remaining term of El Paso's contract with
such upstream pipeline.
30.5 Rate - The rate for such assigned capacity shall be as
established by the tariff of such upstream pipeline or as otherwise
negotiated between the Shipper and upstream pipeline. El Paso shall
not charge any fee in connection with the assignment of its capacity
on the upstream pipeline.
30.6 Open Season - Upon the effectiveness of this Section 30, El Paso
shall conduct an open season for a period of fifteen (15) days by
posting a notice of such availability on its electronic bulletin
board. In order for a Shipper to participate in this open season,
Shipper shall submit to El Paso a completed bid in the form set forth
in Section 30.9 below. If Shippers' requests for capacity exceed the
available firm capacity during the open season, such capacity shall be
allocated among the requesting Shippers based on a lottery. After the
open season, El Paso will allocate all requests for available capacity
on a first-come/first-served basis.
30.7 Qualifications for Assignment - Shipper must satisfy any
applicable requirements of the upstream pipeline's tariff, including
creditworthiness.
Issued by: A. W. Clark, Vice President
Issued on: April 30, 1993 Effective: April 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-002 and 003 dated December 17, 1992
171
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
Substitute Original Sheet No. 299A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
30. ASSIGNMENT OF FIRM CAPACITY ON UPSTREAM PIPELINES (Continued)
30.8 Reporting Requirements - El Paso and any Shipper accepting
assignment of capacity obtained from El Paso pursuant to this Section
30 shall file with the Commission the following information:
(1) the name, address, and telephone number of the assignee;
(2) the corporate affiliation between the assignor and the assignee,
if any; and
(3) a description of the specific rights assigned, including term,
receipt and delivery points, and volume.
30.9 Bid Form
1. Company Name ___________________________________
2. Mailing Address ________________________________
3. Name of Company
Contact/Title __________________________________
4. Phone & FAX No. Phone ___________ FAX __________
5. Upsream Contract _______________________________
6. Contract Quantity ______________________________
7. Receipt Point(s) ______________________________
______________________________
______________________________
Delivery Point(s) ____________________________
____________________________
____________________________
8. Requested Begin
Date ____________________________
Issued by: A. W. Clark, Vice President
Issued on: April 30, 1993 Effective: April 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-002 and 003 dated December 17, 1992
172
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
Substitute Original Sheet No. 299B
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
30. ASSIGNMENT OF FIRM CAPACITY ON UPSTREAM PIPELINES (Continued)
30.9 Bid Form (Continued)
Shipper represents that all information submitted with this bid is
correct and is submitted by its authorized representative. Bids are
binding only when a fully executed Assignment Agreement has been
returned to El Paso.
9. Signature ______________________________________
10. Print Name _____________________________________
11. Title __________________________________________
12. Date ___________________________________________
Issued by: A. W. Clark, Vice President
Issued on: April 30, 1993 Effective: April 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-002 and 003 dated December 17, 1992
173
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
Original Sheet No. 299C
GENERAL TERMS AND CONDITIONS
(Continued)
31. WASHINGTON RANCH FACILITY STRANDED INVESTMENT COST RECOVERY This
Section 31 applies to those Shippers having an executed Transportation
Service Agreement with El Paso for firm forward haul service subject
to either Rate Schedule T-3 or Rate Schedule FTS-S. In addition to
other charges otherwise due under such Rate Schedules, Shipper shall
pay the Reservation Surcharge pursuant to this Section 31.
31.1 Purpose - This Section 31 establishes the procedures which will
permit El Paso to recover from its Shippers one hundred percent (100%)
of stranded investment costs associated with the Washington Ranch
Facility. Such costs shall be allocated to El Paso's Rate Schedule T-3
and FTS-S firm forward haul Shippers based on each Shipper's
reservation revenue responsibility, as established in the Settlement
at Docket No. RP92-214-000, et al., for the period termed "Prospective
Period."
31.2 Effectiveness - Commencing with the effective date of El Paso's
Stipulation and Agreement at Docket No. RP92-214-000, et al., El Paso
shall be entitled to bill and collect the Washington Ranch Facility
stranded investment costs. Such costs will accrue interest effective
February 1, 1993 and shall be fully amortized by December 31, 1996.
31.3 Definitions - The definition of terms applicable to this Section
31 are as follows: (a) Recovery Period - The period beginning on the
effective date any new rates become effective under this Section 31
and ending on the day prior to the effective date of any succeeding
rate change under this Section. The initial recovery period shall
begin upon the effectiveness of the Settlement at Docket No.
RP92-214-000, et al., and end on the day prior to the effective date
of the second recovery period. The subsequent recovery periods shall
be the six (6) month periods commencing each January 1 and July 1
until all amounts have been amortized and interest thereon has been
recovered. (b) Monthly Amortized Amounts - The Monthly Amortized
Amounts shall be allocated to El Paso's firm forward haul Shippers
based on each Shipper's forward haul reservation dollar allocation as
established at Docket No. RP92-214-000, et al., "Prospective Period."
The Monthly
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
174
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff First Revised Sheet No. 299D
First Revised Volume No. 1-A Superseding
Original Sheet No. 299D
GENERAL TERMS AND CONDITIONS
(Continued)
31. WASHINGTON RANCH FACILITY STRANDED INVESTMENT COST RECOVERY (Continued)
31.3 Definitions (Continued)
Amortized Amounts are the total estimated stranded investment costs,
less previously amortized amounts divided by the number of months
remaining in the Amortization Period, plus interest for the
applicable Recovery Period. The Monthly Amortized Amounts shall be in
effect until adjusted in accordance with Section 31.4(b).
(c) Reservation Surcharge - A reservation surcharge rate shall be
determined as set forth in Section 31.4(a) below. The Reservation
Surcharge shall be selectively adjusted by El Paso; provided, however,
that such adjusted Reservation Surcharge shall not exceed the
applicable Maximum Rate nor shall it be less than the Minimum Rate in
effect from time to time.
(d) Billing Determinants - The Billing Determinants underlying the
rates at Docket No. RS92-60-000, et al., __ __ "Prospective Period,"
and identified on Statement of Rates Sheet Nos. 25 and 26 of this FERC
Gas Tariff shall apply to those firm forward haul Shippers of El Paso
for the purpose of this Section.
(e) Monthly Billed Amount - The monthly amount billed each Shipper as
reflected on Statement of Rates Sheet Nos. 24 and 25 of the FERC Gas
Tariff as described in Section 31.4(b) below shall be the Reservation
Surcharge multiplied by the Billing Determinant.
(f) Interest Rate - The quarterly interest rate published by the
Commission and computed in accordance with Section 154.67(c)(2)(iii)
of the Commission's Regulations.
31.4 Determination of the Reservation Surcharge and Monthly Amortized
Amount - El Paso shall determine the Reservation Surcharge and Monthly
Amortization by the following procedures:
(a) The Reservation Surcharge rate(s) shall be determined utilizing
the total Monthly Amortized Amount within each rate zone divided by
the total of the Billing Determinants for that zone, and is
reflected on the Statement of Rates Sheet contained in this Volume No.
1-A Tariff.
Issued by: A. W. Clark, Vice President
Issued on: November 29, 1993 Effective: January 1, 1994
175
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
Original Sheet No. 299E
GENERAL TERMS AND CONDITIONS
(Continued)
31. WASHINGTON RANCH FACILITY STRANDED INVESTMENT COST RECOVERY (Continued)
31.4 Determination of the Reservation Surcharge and Monthly Amortized
Amount (Continued)
(b) El Paso shall adjust the Monthly Amortized Amount for interest
calculated on the unrecovered balance of El Paso's stranded investment
costs as set forth below. Interest shall commence to accrue with
respect to El Paso's stranded investment costs effective February 1,
1993.
(i) Effective with the Settlement at Docket No. RP92-214-000, et al.,
El Paso shall include the actual accrued interest from February 1,
1993 through the effective date and estimated interest through
December 31, 1993 utilizing the actual Interest Rate (if the actual
Interest Rate is unknown the interest rate shall be estimated),
divided by the number of months remaining in 1993 to derive the
interest adjustment to the Monthly Amortized Amount.
(ii) Effective for the six (6) months commencing January 1, 1994, El
Paso shall reflect any differences resulting from the use of estimated
versus actual accrued interest for the period February 1, 1993 through
December 31, 1993. Any resulting difference shall be added to or
deducted from the estimated interest for the six (6) month period
commencing January 1, 1994. The total interest shall be divided by
six (6) to determine the monthly interest for such Recovery Period.
(iii) At the end of each six (6) month period following June 30, 1994
through the termination of the Amortization Period, El Paso shall
calculate an estimate for the projected interest expense for the next
six (6) month Recovery Period. At the same time, El Paso shall
calculate the actual interest expense that would have accrued during
the previous Recovery Period. This actual interest amount will be
compared to the previously estimated interest amount for such period
and any resulting difference shall be added to or deducted from the
next six (6)
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993
176
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Volume No. 1-A
Original Sheet No. 299F
GENERAL TERMS AND CONDITIONS
(Continued)
31. WASHINGTON RANCH FACILITY STRANDED INVESTMENT COST RECOVERY (Continued)
31.4 Determination of the Reservation Surcharge and Monthly Amortized
Amount (Continued)
month interest projection, divided by six (6) months to derive the
interest for the applicable Recovery Period.
(iv) Effective the third month following the end of the Amortization
Period, El Paso shall calculate the actual interest for any past
period of estimated interest utilizing the appropriate Interest Rate,
and shall make a one time adjustment to reflect the appropriate amount
to each Shipper's invoice.
(c) In the event the Transportation Service Agreement of any existing
Shipper terminates during any Recovery Period, the unamortized portion
of the costs inclusive of interest allocated to such Shipper under
this Section 31.4 will be due within thirty (30) days or such other
period as mutually agreed to by El Paso and Shipper, not to extend
beyond the termination of the Amortization Period.
(d) Each Shipper subject to this Section 31 shall have the option of
paying the amount allocated to it in a lump sum or over a shorter
Amortization Period if desired, with an appropriate interest
adjustment.
31.5 True-up of Actual Versus Estimated Loss or Gain Realized from the
Sale of Washington Ranch Gas Inventory - El Paso shall adjust the
remaining unamortized balance to reflect the difference between the
actual gain or loss and the previously estimated gain or loss from the
sale of gas inventory from the Washington Ranch Facility. Such
adjustment shall be reflected in El Paso's earliest semi-annual filing
following one year's effectiveness of this Section 31. Such
adjustment shall be reflected in the balance as of February 1, 1993
for interest accrual purposes.
Issued by: A. W. Clark, Vice President
Issued on: September 13, 1993 Effective: October 1, 1993
Issued to comply with order of the Federal Energy Regulatory
Commission, Docket No. RS92-60-011, et al., dated August 31, 1993