1
EXHIBIT 10.2
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
Second Revised Volume No. 1-A 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 (hereinafter 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 Shippers 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 Shippers 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: May 23, 1994 Effective: July 01, 1994
2
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 111
Second Revised Volume No. 1-A
RATE SCHEDULE T-3
Firm Transportation Service
(Continued)
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 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. 22 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,
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
3
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 112
Second Revised Volume No. 1-A
RATE SCHEDULE T-3
Firm Transportation Service
(Continued)
4. RATE (Continued)
4.1 Transportation Charges (Continued)
applicable from the production basin(s) in
which natural gas is received to the
production area(s) within such basin or
state(s) in which deliveries are made set
forth from time to time on currently
effective Sheet No. 23 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. 23 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. 23 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: May 23, 1994 Effective: July 01, 1994
4
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 113
Second Revised Volume No. 1-A
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. 24 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 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. 24 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
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
5
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 114
Second Revised Volume No. 1-A
RATE SCHEDULE T-3
Firm Transportation Service
(Continued)
4. RATE (Continued)
4.3 Production Area Charges (Continued)
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 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.
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.
22, 23, and 24 of this
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
6
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 115
Second Revised Volume No. 1-A
RATE SCHEDULE T-3
Firm Transportation Service
(Continued)
4. RATE (Continued)
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
Charges" 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: May 23, 1994 Effective: July 01, 1994
7
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 116
Second Revised Volume No. 1-A
RATE SCHEDULE T-3
Firm Transportation Service
(Continued)
7. FUEL AND/OR SHRINKAGE (Continued)
other services provided pursuant to Shippers 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 O% 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, at al., shall be
entitled to receive firm transportation of the quantities
specified by its Transportation Service Agreement with El Paso
for a period, unless
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
8
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 117
Second Revised Volume No. 1-A
RATE SCHEDULE T-3
Firm Transportation Service
(Continued)
9. PROVISIONS APPLICABLE TO SHIPPERS THAT CONVERTED TO FIRM
TRANSPORTATION (Continued)
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
(dth)
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: May 23, 1994 Effective: July 01, 1994
9
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 118
Second Revised Volume No. 1-A
RATE SCHEDULE T-3
Firm Transportation Service
(Continued)
9. PROVISIONS APPLICABLE TO SHIPPERS THAT CONVERTED TO FIRM
TRANSPORTATION (Continued)
SHIPPER BILLING DETERMINANTS
(dth)
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
PEMEX Gas y Petroquimica Basica 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: May 23, 1994 Effective: July 01, 1994
10
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 119
Second Revised Volume No. 1-A
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 Reservation
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
11
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 120
Second Revised Volume No. 1-A
RATE SCHEDULE T-3
Firm Transportation Service
(Continued)
10. MAINLINE TRANSPORTATION RESERVATION CHARGE CREDIT (Continued)
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: May 23, 1994 Effective: July 01, 1994
12
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet Nos. 121 through 124
Second Revised Volume No. 1-A
Reserved Sheets
Original Sheet Nos. 121 through 124 have been reserved.
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
13
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 200
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
Table of Contents
Section Description Sheet No.
1 Definitions 201
2 Method of Measurement 203
3 Measurement Equipment 205
4 Scheduling and Capacity Allocation 210
5 Quality 220
6 Billing and Payment 237
7 Force Majeure 242
8 Control and Possession of Natural Gas 243
9 Adverse Claims to Natural Gas 244
10 Indemnification 245
11 Odorization 246
12 Non-Waiver of Future Default 247
13 Service Conditions 248
14 Statutory Regulation 250
15 Assignments 251
16 Descriptive Headings 252
17 Taxes 253
18 Gas Research Institute General Research
Development and Demonstration Funding
Unit Adjustment Provision 254
19 Operating Provisions for Interruptible
Transportation Service 258
20 Operating Provisions for Firm Transportation
Service 272
21 Annual Charge Adjustment Provision 291
22 Take-or-Pay Buyout and Buydown Cost Recovery 292
23 Compliance Plan for Transportation Services
and Affiliate Transactions 293
24 Order No. 636 Electronic Bulletin Board 308
25 Reserved 310
26 Reserved 320
27 Unauthorized Gas 330
28 Capacity Release Program 334
29 Compliance Plan for Unbundled Sales Division 357
30 Assignment of Firm Capacity on Upstream
Pipelines 358
31 Washington Ranch Facility Stranded Investment
Cost Recovery 361
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
14
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 201
Second Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
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 F) to sixty degrees
Fahrenheit (60 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 (l,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
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.
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
15
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 202
Second Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
1. DEFINITIONS (Continued)
1.8 Natural Gas - Any mixture of hydrocarbons or of hydrocarbons
and noncombustible gases, in a gaseous state, consisting
essentially of methane.
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 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: May 23, 1994 Effective: July 01, 1994
16
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 203
Second Revised Volume No. 1-A
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: May 23, 1994 Effective: July 01, 1994
17
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 204
Second Revised Volume 1-A
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: May 23, 1994 Effective: July 01, 1994
18
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 205
Second Revised Volume 1-A
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: May 23, 1994 Effective: July 01, 1994
19
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 206
Second Revised Volume 1-A
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: May 23, 1994 Effective: July 01, 1994
20
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 207
Second Revised Volume 1-A
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: May 23, 1994 Effective: July 01, 1994
21
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 208
Second Revised Volume 1-A
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 prevent 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: May 23, 1994 Effective: July 01, 1994
22
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 209
Second Revised Volume 1-A
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: May 23, 1994 Effective: July 01, 1994
23
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 210
Second Revised Volume 1-A
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: May 23, 1994 Effective: July 01, 1994
24
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 211
Second Revised Volume 1-A
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.
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
25
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 212
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
4. SCHEDULING AND CAPACITY ALLOCATION (Continued)
4.1 Scheduling of Receipts and Deliveries (Continued)
(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.
(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: May 23, 1994 Effective: July 01, 1994
26
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 213
Second Revised Volume 1-A
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 in 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: May 23, 1994 Effective: July 01, 1994
27
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 214
Second Revised Volume 1-A
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 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
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
28
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 215
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
4. SCHEDULING AND CAPACITY ALLOCATION (Continued)
4.2 Capacity Allocation -Procedure (Continued)
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: May 23, 1994 Effective: July 01, 1994
29
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 216
Second Revised Volume 1-A
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: May 23, 1994 Effective: July 01, 1994
30
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 217
Second Revised Volume 1-A
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 in 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
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
31
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 218
Second Revised Volume 1-A
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)
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
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 Operators
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
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
32
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 219
Second Revised Volume 1-A
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)
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.
(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: May 23, 1994 Effective: July 01, 1994
33
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 220
Second Revised Volume 1-A
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: May 23, 1994 Effective: July 01, 1994
34
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
Original Sheet No. 221
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
5. QUALITY (Continued)
5.1 (Continued)
(e) Carbon Dioxide - The gas shall not have a carbon
dioxide 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 it
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
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
35
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 222
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
5. QUALITY (Continued)
5.2 (Continued)
volumes up to the residue volume at the plant design capacity
as it exists on July 31, 1990; provided, however, to 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
LOCATION METER SPECIFICATIONS HISTORICAL
CODE CO2 MOL % TOTAL DILUENTS VOLUME
MOL % (MCF/D)
Amoco Slaughter Plant 77-039 - 11.89 6,915
(IAMSLAUG)
Barnhart Plant (J.L. Davis) 77-002 - 3.55 6,149
(IBARNHRT)
Big Lake Texon Plant 77-055 - 9.67 2,362
(Damson Oil Corp.)
(ITEXON)
Chevron Puckett Plant 14-261 3.55 4.09 37,390
(IPUCKETT)
Conoco Ramsey Plant 77-095 - 6.38 4,579
(IRAMSEY)
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
36
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 223
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
5. QUALITY (Continued)
5.2 (Continued)
NON-CONFORMING PLANTS (continued)
GRANDFATHERED
SPECIFICATIONS
LOCATION METER TOTAL DILUENTS HISTORICAL
CODE CO2 MOL % MOL % VOLUME
(MCF/D)
Exxon Snyder Plant 77-009 - 7.42 696
(Oryx Energy)
(IEXSNYDR)
Jal Complex 01-814 - 4.31 28,518
(IJALCPLX)
Jameson Plant (Oryx Energy) 77-078 - 7.02 2,823
(ISUNJAME)
Meridian Benedum Plant 02-304 - 3.18 75,585
(MOHI)(IHYBENDM)
Midkiff Plant 01-079 - 4.95 39,371
(IMIDKIFF)
Midway Lane Plant 03-933 - 4.45 4,617
(Apache Gas Corporation)
(IMIDWAY)
Permian Corp. CPD #2 14-082 - 6.03 6,620
(IPERTOD2)
Phillips Goldsmith Plant 02-381 - 5.23 62,267
(IPHGOLDS)
Phillips Lee Plant 77-025 - 7.34 27,484
(IPHLEE)
Phillips Eunice Plant 77-287 - 5.15 57,672
(IPHEUNIC)
Phillips Fullerton Plant 77-289 - 6.18 28,200
(IPHFULTN)
Phillips Spraberry Plant 77-248 - 4.64 11,277
(IPHSPBRY)
San Juan River Plant 01-125 - 4.35 32,827
(ISJRVPLT)
Shell TXL Plant (ISHTXL) 77-029 - 6.17 12,054
Shell Wasson Plant 01-106 - 5.98 8,682
(ISHWASON)
Terrell Plant 01-596 2.89 4.53 102,708
(ITERRELL)
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
37
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 224
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
5. QUALITY (Continued)
5.2 (Continued)
NON-CONFORMING PLANTS (continued)
GRANDFATHERED
SPECIFICATIONS
LOCATION METER TOTAL DILUENTS HISTORICAL
CODE CO2 MOL % MOL % VOLUME
(MCF/D)
Texaco Fuller 77-036 - 7.66 661
(ITEXFULR)
Texaco Vealmoor Plant 77-028 - 6.32 10,204
(IVEALMOR)
Tipperary Denton Plant 77-001 - 5.02 2,554
(J.L. Davis)
(IDENTON)
Union of California 77-027 - 6.42 2,056
Dollarhide Plant
(IUTDOLHD)
Union Texas Perkins Plant 77-068 - 10.19 9,178
(IUTPERKDI)
Val Verde 14-136 2.13 - 195,985
(IMOITRKA)
Warren Monument 77-045 - 4.04 31,576
(IWARMONU)
Warren Saunders Plant 77-046 - 5.75 12,421
(IWARSAUD)
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: May 23, 1994 Effective: July 01, 1994
38
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 225
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
5. QUALITY (Continued)
5.3 (Continued)
NON-CONFORMING INTERCONNECTS TOTAL
LOCATION METER DILUENTS HISTORICAL
CODE CO2 MOL % MOL % VOLUME
(MCF/D)
Big Blue Receipt Point 14-091 - 9.50 11,900
(Colorado Interstate)
(IBIG8IFUE)
Howe Ranch Discharge 02-721 4.12 5.20 3,480
(Meridian)
Northern Natural Plains 40-019 - 4.22 111,072
(INN30PLA)
Plains Compressor 40-043 - 4.50 8,464
(Westar-Felmac)
(IW40-043)
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 basin 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 Specifications
(grains per 100 standard cubic feet)
LOCATION TOTAL HYDROGEN MERCAPTAN ORGANIC
SULFUR SULFIDE SULFUR SULFUR
Terrell Plant - 0.45 - -
Puckett Plant - 0.45 - -
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
39
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 226
Second Revised Volume 1-A
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 or
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: May 23, 1994 Effective: July 01, 1994
40
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 227
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
5. QUALITY (Continued)
5.5 (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: May 23, 1994 Effective: July 01, 1994
41
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 228
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
5. QUALITY (Continued)
Total Sulfur
Water Hydro- H2S Mercaptan Sulfur Total
Vapor carbons GR/100 Organic Sulfur 3/ CO2 Diluents Oxygen
Location #/MMCF Dew Point Scf GR/100 Scf MOL # MOL # #
San Juan Basin Sweet Gas
(GSANJUAN) 25 1/ 0.25 5/.75/1.25 2 3 .2
La Jara
(ILAJARA) 25 1/ 0.25 5/.75/1.25 2 3 .2
Tapacito Field
(ITAPACIT) 25 1/ 0.25 5/.75/1.25 2 3 .2
Kutz
(Exchange Point No. 13) 25 1/ 0.25 5/.75/1.25 2 3 .2
(IEXCPT13)
Kutz
(Exchange Point No. 18) 25 1/ 0.25 5/.75/1.25 2 3 .2
(IEXCPT18)
Gas Company of New Mexico
(Exchange Point No. 47) 25 1/ 0.25 5/.75/1.25 2 3 .2
(IEXCPT47)
San Juan Ignacio Dry
(GIGNACIO) 25 20 degrees F 0.25 5/.75/1.25 2 3 .2
Bondad (West Gas)
(IBONDAD) 25 20 degrees F 0.25 5/.75/1.25 2 3 .2
Dust, Minimum
Gums & Heating
Solid Value
Location Matter Btu Temperature
San Juan Basin Sweet Gas Max 120 degrees F
(GSANJUAN) Free of 967 Min 50 degrees F
La Jara Max 120 degrees F
(ILAJARA) Free of 967 Min 50 degrees F
Tapacito Field Max 120 degrees F
(ITAPACIT) Free of 967 Min 50 degrees F
Kutz Max 120 degrees F
(Exchange Point No. 13) Free of 967 Min 50 degrees F
(IEXCPT13)
Kutz Max 120 degrees F
(Exchange Point No. 18) Free of 967 Min 50 degrees F
(IEXCPT18)
Gas Company of New Mexico Max 120 degrees F
(Exchange Point No. 47) Free of 967 Min 50 degrees F
(IEXCPT47)
San Juan Ignacio Dry Max 120 degrees F
(GIGNACIO) Free of 967 Min 50 degrees F
Bondad (West Gas) Max 120 degrees F
(IBONDAD) Free of 967 Min 50 degrees F
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
42
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 229
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
5. QUALITY (Continued)
Total Sulfur
Water Hydro- H2S Mercaptan Sulfur Total
Vapor carbons GR/100 Organic Sulfur 3/ CO2 Diluents Oxygen
Location #/MMCF Dew Point Scf GR/100 Scf MOL # MOL # #
WestGas
(IWESTGAS) 25 20 degrees F 0.25 5/.75/1.25 2 3 .2
Lockridge
(GLOCKRID) 20 20 degrees F 2/ 4/ 5/ 3 6/ .2
Worsham
(GWORSHAM) 20 20 degrees F 2/ 4/ 5/ 3 6/ .2
Waha
(GWAHA) 20 20 degrees F 2/ 4/ 5/ 3 6/ .2
West Waha
(GWSTWAHA) 20 20 degrees F 2/ 4/ 5/ 3 6/ .2
Gomez
(GGOMEZ) 20 20 degrees F 2/ 4/ 5/ 3 6/ .2
Toro
(GTORO) 20 20 degrees F 2/ 4/ 5/ 3 6/ .2
Rojo Caballos
(GROJOCAB) 20 20 degrees F 2/ 4/ 5/ 3 6/ .2
Carlsbad
(GCARLSBAD) 7 20 degrees F 0.25 5/.75/1.25 2 3 .2
Beckham County
(GBECKHAM) 7 20 degrees F 0.25 5/.75/1.25 2 3 .2
Dust, Minimum
Gums & Heating
Solid Value
Location Matter Btu Temperature
WestGas Max 120 degrees F
(IWESTGAS) Free of 967 Min 50 degrees F
Lockridge Max 120 degrees F
(GLOCKRID) Free of 967 Min 50 degrees F
Worsham Max 120 degrees F
(GWORSHAM) Free of 967 Min 50 degrees F
Waha Max 120 degrees F
(GWAHA) Free of 967 Min 50 degrees F
West Waha Max 120 degrees F
(GWSTWAHA) Free of 967 Min 50 degrees F
Gomez Max 120 degrees F
(GGOMEZ) Free of 967 Min 50 degrees F
Toro Max 120 degrees F
(GTORO) Free of 967 Min 50 degrees F
Rojo Caballos Max 120 degrees F
(GROJOCAB) Free of 967 Min 50 degrees F
Carlsbad Max 120 degrees F
(GCARLSBAD) Free of 967 Min 50 degrees F
Beckham County Max 120 degrees F
(GBECKHAM) Free of 967 Min 50 degrees F
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
43
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 230
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
5. QUALITY (Continued)
Total Sulfur
Water Hydro- H2S Mercaptan Sulfur Total
Vapor carbons GR/100 Organic Sulfur 3/ CO2 Diluents Oxygen
Location #/MMCF Dew Point Scf GR/100 Scf MOL # MOL # #
San Juan Mainline
(GSJMNLIN) 7 20 degrees F 0.25 5/.75/1.25 2 3 .2
26" Eunice to Pecos
(GEU-PECS) 7 20 degrees F 0.25 5/.75/1.25 2 3 .2
Plains to San Juan
(GSJXOVER) 7 20 degrees F 0.25 5/.75/1.25 2 3 .2
Terrell to Puckett
(GTER-PUK) 7 20 degrees F 0.25 5/.75/1.25 2 3 .2
20" Goldsmith to Plains
(G20GO-PL) 7 20 degrees F 0.25 5/.75/1.25 2 3 .2
16" C Line
(G16C-LIN) 7 20 degrees F 0.25 5/.75/1.25 2 3 .2
McKay Creek
(GMCKAYCR) 7 20 degrees F 0.25 5/.75/1.25 2 3 .2
20" Sonora to Benedum
(GSON-BEN) 7 20 degrees F 0.25 5/.75/1.25 2 3 .2
Hobart (Phillips)
(GHOBART) 7 20 degrees F 0.25 5/.75/1.25 2 3 .2
Hobart - Zybach
(GHOB-ZYB) 7 20 degrees F 0.25 5/.75/1.25 2 3 .2
Dust, Minimum
Gums & Heating
Solid Value
Location Matter Btu Temperature
San Juan Mainline Max 120 degrees F
(GSJMNLIN) Free of 967 Min 50 degrees F
26" Eunice to Pecos Max 120 degrees F
(GEU-PECS) Free of 967 Min 50 degrees F
Plains to San Juan Max 120 degrees F
(GSJXOVER) Free of 967 Min 50 degrees F
Terrell to Puckett Max 120 degrees F
(GTER-PUK) Free of 967 Min 50 degrees F
20" Goldsmith to Plains Max 120 degrees F
(G20GO-PL) Free of 967 Min 50 degrees F
16" C Line Max 120 degrees F
(G16C-LIN) Free of 967 Min 50 degrees F
McKay Creek Max 120 degrees F
(GMCKAYCR) Free of 967 Min 50 degrees F
20" Sonora to Benedum Max 120 degrees F
(GSON-BEN) Free of 967 Min 50 degrees F
Hobart (Phillips) Max 120 degrees F
(GHOBART) Free of 967 Min 50 degrees F
Hobart - Zybach Max 120 degrees F
(GHOB-ZYB) Free of 967 Min 50 degrees F
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
44
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 231
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
5. QUALITY (Continued)
Total Sulfur
Water Hydro- H2S Mercaptan Sulfur Total
Vapor carbons GR/100 Organic Sulfur 3/ CO2 Diluents Oxygen
Location #/MMCF Dew Point Scf GR/100 Scf MOL # MOL # #
ANR No. 1
(IANR#1AN) 7 20 degrees F 0.25 5/.75/1.25 2 3 .2
ANR No. 2
(IANR#2AN) 7 20 degrees F 0.25 5/.75/1.25 2 3 .2
BP Gas Transmission
(Roger Mills County) 7 20 degrees F 0.25 5/.75/1.25 2 3 .2
(ICHEY-CP)
NGPL Beckham #3
(INGPLB#3) 7 20 degrees F 0.25 5/.75/1.25 2 3 .2
Dust, Minimum
Gums & Heating
Solid Value
Location Matter Btu Temperature
ANR No. 1 Max 120 degrees F
(IANR#1AN) Free of 967 Min 50 degrees F
ANR No. 2 Max 120 degrees F
(IANR#2AN) Free of 967 Min 50 degrees F
BP Gas Transmission Max 120 degrees F
(Roger Mills County) Free of 967 Min 50 degrees F
(ICHEY-CP)
NGPL Beckham #3 Max 120 degrees F
(INGPLB#3) 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
Issued on: May 23, 1994 Effective: July 01, 1994
45
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 232
Second Revised Volume 1-A
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.
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
46
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 233
Second Revised Volume 1-A
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
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: May 23, 1994 Effective: July 01, 1994
47
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 234
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
5. QUALITY (Continued)
5.10 (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: May 23, 1994 Effective: July 01, 1994
48
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 235
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
5. QUALITY (Continued)
5.10 (continued)
(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 merchantability.
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 Shipper or its designee in effecting
such changes.
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
49
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 236
Second Revised Volume 1-A
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 an 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 chromatography.
(b) To determine whether specific points on El Paso's system can
operate below the fifty degree Fahrenheit (5O degrees 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: May 23, 1994 Effective: July 01, 1994
50
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 237
Second Revised Volume 1-A
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: May 23, 1994 Effective: July 01, 1994
51
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 238
Second Revised Volume 1-A
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: May 23, 1994 Effective: July 01, 1994
52
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 239
Second Revised Volume 1-A
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: May 23, 1994 Effective: July 01, 1994
53
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 240
Second Revised Volume 1-A
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 6.1 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: May 23, 1994 Effective: July 01, 1994
54
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 241
Second Revised Volume 1-A
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: May 23, 1994 Effective: July 01, 1994
55
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 242
Second Revised Volume 1-A
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, prevent 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: May 23, 1994 Effective: July 01, 1994
56
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 243
Second Revised Volume 1-A
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 in
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: May 23, 1994 Effective: July 01, 1994
57
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 244
Second Revised Volume 1-A
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: May 23, 1994 Effective: July 01, 1994
58
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 245
Second Revised Volume 1-A
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: May 23, 1994 Effective: July 01, 1994
59
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 246
Second Revised Volume 1-A
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: May 23, 1994 Effective: July 01, 1994
60
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 247
Second Revised Volume 1-A
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.
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
61
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 248
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
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 transportation customers.
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: May 23, 1994 Effective: July 01, 1994
62
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 249
Second Revised Volume 1-A
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: May 23, 1994 Effective: July 01, 1994
63
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 250
Second Revised Volume 1-A
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: May 23, 1994 Effective: July 01, 1994
64
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 251
Second Revised Volume 1-A
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: May 23, 1994 Effective: July 01, 1994
65
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 252
Second Revised Volume 1-A
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: May 23, 1994 Effective: July 01, 1994
66
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 253
Second Revised Volume 1-A
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: May 23, 1994 Effective: July 01, 1994
67
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
First Revised Sheet No. 254
Second Revised Volume No. 1-A
Superseding
Original Sheet No. 254
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. The GRI funding mechanism is
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
Issued by: Patricia A. Shelton, Vice President
Issued on: NOVEMBER 30, 1994 Effective: January 01, 1995
68
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 255
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
18. GAS RESEARCH INSTITUTE GENERAL RESEARCH, DEVELOPMENT AND DEMONSTRATION
FUNDING UNIT ADJUSTMENT PROVISION (Continued)
18.2 Applicability (Continued)
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 each month based on
actual throughput for each prior month of service until a
twelve (12) month history is established. Thereafter, the new
firm Shipper's load factor shall be based on its twelve (12)
month throughput consistent with other Shippers. 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
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
69
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff First Revised Sheet No. 256
Second Revised Volume No. 1-A Superseding
Original Sheet No. 256
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
18. GAS RESEARCH INSTITUTE GENERAL RESEARCH, DEVELOPMENT AND DEMONSTRATION
FUNDING UNIT ADJUSTMENT PROVISION (Continued)
18.5 Time and Manner of Filing and Related Report (Continued)
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.
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
Arizona Public Service Company 97ZC
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
Mission Energy Fuel Company 97YX
Mobil Natural Gas Inc. 97YK
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
Issued by: Patricia A. Shelton, Vice President
Issued on: NOVEMBER 30, 1994 Effective: JANUARY 01, 1995
70
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff First Revised Sheet No. 257
Second Revised Volume No. 1-A Superseding
Original Sheet No. 257
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 (Continued)
LOW LOAD FACTOR (50% or less) SHIPPERS
Agreement
Description Code
Arizona Electric Power Cooperative, Inc. 9838
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
Natural Gas Processors Company 97YR
Navajo Tribal Utility Authority 97ZY
PEMEX Gas y Petroquimica Basica 97ZZ
Salt River Project Agricultural Improvement 9826
and Power District
Southdown, Inc. (SW Portland) 982Q
Southwest Gas Corporation 97ZL
Southwest Gas Corporation 97ZK
Issued by: Patricia A. Shelton, Vice President
Issued on: NOVEMBER 30, 1994 Effective: JANUARY 01, 1995
71
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff First Revised Sheet No. 258
Second Revised Volume No. 1-A Superseding
Original Sheet No. 258
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 23.5 shall
govern.
19.3 On any day that sufficient capacity is not available in El Paso 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: AUGUST 30, 1994 Effective: OCTOBER 01, 1994
72
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff First Revised Sheet No. 259
Second Revised Volume No. 1-A Superseding
Original Sheet No. 259
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 23.5 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 Shippers 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 provision of the applicable rate schedule or
Transportation Service Agreement; provided, however, that no
such waiver shall operate or be
Issued by: A. W. Clark, Vice President
Issued on: AUGUST 30, 1994 Effective: OCTOBER 01, 1994
73
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 260
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. OPERATING PROVISIONS FOR INTERRUPTIBLE TRANSPORTATION SERVICE
(Continued)
19.7 (Continued)
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 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
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
74
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 261
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. OPERATING PROVISIONS FOR INTERRUPTIBLE TRANSPORTATION SERVICE
(Continued)
19.10 (Continued)
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.
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)
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
75
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 262
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. OPERATING PROVISIONS FOR INTERRUPTIBLE TRANSPORTATION SERVICE
(Continued)
19.12 Resolution of Imbalances (Continued)
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 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 in bona 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
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
76
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 263
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. OPERATING PROVISIONS FOR INTERRUPTIBLE TRANSPORTATION SERVICE
(Continued)
19.12 Resolution of Imbalances (Continued)
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 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 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 a verifiable imbalance is caused by El Paso, that
portion of the
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
77
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 264
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. OPERATING PROVISIONS FOR INTERRUPTIBLE TRANSPORTATION SERVICE
(Continued)
19.12 Resolution of Imbalances (Continued)
imbalance shall not be considered as part of
Shipper's imbalance for purposes of initiating
cash-out. 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) 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 actual 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 requested and
confirmed 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.
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
78
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 265
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. OPERATING PROVISIONS FOR INTERRUPTIBLE TRANSPORTATION SERVICE
(Continued)
19.12 Resolution of Imbalances (Continued)
(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 (O) 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 sample 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'" Mainline System at West
Texas, Permian or Waha from the
publications identified in Section
19.12(e)(ii); and
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
79
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 266
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. OPERATING PROVISIONS FOR INTERRUPTIBLE TRANSPORTATION SERVICE
(Continued)
19.12 Resolution of Imbalances (Continued)
(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).
(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.
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
80
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 267
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. OPERATING PROVISIONS FOR INTERRUPTIBLE TRANSPORTATION SERVICE
(Continued)
19.12 Resolution of Imbalances (Continued)
(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 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.
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
81
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 268
Second Revised Volume 1-A
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 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 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
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
82
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 269
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. OPERATING PROVISIONS FOR INTERRUPTIBLE TRANSPORTATION SERVICE (Continued)
19.12 Resolution of Imbalances (Continued)
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 - When the aggregate value received from
all sources resulting from cash-out exceeds the cost of gas plus
administrative fees, El Paso shall credit such net amount within
90 days of the payment date to 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 shall net gas imbalances, on a
non-discriminatory basis, adjusted to reflect a common point at
which the imbalance is held, between contracts with such Shipper
pursuant to the conditions identified below.
(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.
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
83
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 270
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. OPERATING PROVISIONS FOR INTERRUPTIBLE TRANSPORTATION SERVICE Continued)
19.12 Resolution of Imbalances (Continued)
(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.
(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
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
84
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 271
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. OPERATING PROVISIONS FOR INTERRUPTIBLE TRANSPORTATION SERVICE (Continued)
19.13 Unauthorized Overpull Penalty (Continued)
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 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: May 23, 1994 Effective: July 01, 1994
85
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff First Revised Sheet No. 272
Second Revised Volume No. 1-A Superseding
Original Sheet No. 272
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
23.5 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: AUGUST 30, 1994 Effective: OCTOBER 01, 1994
86
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 273
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (Continued)
20.3 (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 five 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: May 23, 1994 Effective: July 01, 1994
87
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 274
Second Revised Volume 1-A
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
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
88
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 275
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (Continued)
20.9 (Continued)
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 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: May 23, 1994 Effective: July 01, 1994
89
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 276
Second Revised Volume 1-A
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
imbalances) 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: May 23, 1994 Effective: July 01, 1994
90
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 277
Second Revised Volume 1-A
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 in bona 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
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
91
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 278
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (Continued)
20.11 Resolution of Imbalances (Continued)
in accordance with this Section 20.11. 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 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 a verifiable imbalance is caused by El Paso, that
portion of the imbalance shall not be considered as
part of Shipper's imbalance for purposes of
initiating cash-out. 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 provision (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
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
92
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 279
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (Continued)
20.11 Resolution of Imbalances (Continued)
not be subject to this Section 20.11 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 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 requested and
confirmed 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 (O) 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
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
93
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 280
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (Continued)
20.11 Resolution of Imbalances (continued)
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 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 pulications
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.
(ii) The four trade publications referenced above
are Inside FERC Gas Market Report (Prices of
Spot Gas
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
94
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 281
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (continued)
20.11 Resolution of Imbalances (Continued)
Delivered to Pipelines), Natural Gas Week
(Spot Prices on Natural Gas Pipeline
Systems, Delivered to Pipelines), Gas Daily
(Natural Gas Surrey), 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: May 23, 1994 Effective: July 01, 1994
95
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 282
Second Revised Volume 1-A
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 Unbalance
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 Prices;
(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: May 23, 1994 Effective: July 01, 1994
96
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 283
Second Revised Volume 1-A
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 if 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 - When the aggregate value
received from all sources resulting from cash-out
exceeds the cost of gas plus administrative fees, El
Paso shall credit such net amount within 90 days of
the payment date to Shippers on a
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
97
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 284
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
20. OPERATING PROVISIONS FOR FIRS TRANSPORTATION SERVICE (Continued)
20.11 Resolution of Imbalances (Continued)
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 shall net gas
imbalances, on a non-discriminatory basis, adjusted to
reflect a common point at which the imbalance is held,
between contracts with such Shipper pursuant to the
conditions identified below.
(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.
(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.
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 its ability to maintain
scheduled deliveries to all receiving parties is
materially
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
98
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 285
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (Continued)
20.12 Unauthorized Overpull Penalty (Continued)
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.
(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.
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
99
EL PASO NATURAL GAS COMPANY
ERC Gas Tariff Original Sheet No. 286
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (Continued)
20.12 Unauthorized Overpull Penalty (Continued)
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
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 a
pro 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: May 23, 1994 Effective: July 01, 1994
100
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 287
Second Revised Volume 1-A
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 be Shipper's
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
101
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 288
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (Continued)
20.13 Flexible Receipt and Delivery Point(s) (Continued)
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 Shippers
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: May 23, 1994 Effective: July 01, 1994
102
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 289
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (Continued)
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
terms of the contract, whichever shall first occur.
(b) El Paso sboard 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 electroniSuch notice shall be binding
open season. once received by El Paso and
shall not be revocable by such Shipper.
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
103
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 290
Second Revised Volume 1-A
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) Shippers 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: May 23, 1994 Effective: July 01, 1994
104
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 291
Second Revised Volume 1-A
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, 23, and 25, 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: May 23, 1994 Effective: July 01, 1994
105
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 292
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
22. TARE-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: May 23, 1994 Effective: July 01, 1994
106
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff First Revised Sheet No. 293
Second Revised Volume No. 1-A Superseding
Original Sheet No. 293
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
23. COMPLIANCE PLAN FOR TRANSPORTATION SERVICES AND AFFILIATE TRANSACTIONS
23.1 Shared operating employees and shared operating facilities
between El Paso and its marketing affiliate(s):
None.
There are no shared operating employees between the
transportation function of (i) El Paso and the merchant
function of El Paso or (ii) El Paso and its marketing
affiliate(s). Only support facilities, including utility,
telecommunication, and computer systems 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 are
contained in Section 23.5 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: August 30, 1994 Effective: October 01, 1994
107
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff First Revised Sheet No. 294
Second Revised Volume No. 1-A Superseding
Original Sheet No. 294
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
23. COMPLIANCE PLAN FOR TRANSPORTATION SERVICES AND AFFILIATE TRANSACTIONS
(Continued)
23.3 (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 Department
(Street Address: 100 N. Stanton, 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 El Paso will maintain a log containing the following
information on all requests for interruptible transportation
service where allocation of capacity is based on a first
come/first served priority. The log data relating to each
contract shall be maintained as long as the contract is used
to allocate capacity and for three (3) years thereafter.
Issued by: A. W. Clark, Vice President
Issued on: August 30, 1994 Effective: October 01, 1994
108
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff First Revised Sheet No. 295
Second Revised Volume No. 1-A Superseding
Original Sheet No. 295
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
23. COMPLIANCE PLAN FOR TRANSPORTATION SERVICES AND AFFILIATE TRANSACTIONS
(Continued)
23.4 (Continued)
(a) 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;
(b) 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;
(c) The contract number; and
(d) The date that the request was accepted as valid.
Issued by: A. W. Clark, Vice President
Issued on: August 30, 1994 Effective: October 01, 1994
109
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff First Revised Sheet No. 296
Second Revised Volume No. 1-A Superseding
Original Sheet No. 296
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
23. COMPLIANCE PLAN FOR TRANSPORTATION SERVICES AND AFFILIATE TRANSACTIONS
(Continued)
23.5 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:
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. Duns Number:_________________________________________________________________
5. 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: August 30, 1994 Effective: October 01, 1994
110
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff First Revised Sheet No. 297
Second Revised Volume No. 1-A Superseding
Original Sheet No. 297
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
23. COMPLIANCE PLAN FOR TRANSPORTATION SERVICES AND AFFILIATE TRANSACTIONS
(Continued)
6. Shipper is (check one of the following):
a. ____ Interstate Pipeline 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:
7. 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 __________ MMBtu/d.
Total contract quantity requested over primary term of agreement
(please specify both):
__________ Mcf/d MMBtu/d __________ MMBtu/d.
Issued by: A. W. Clark, Vice President
Issued on: August 30, 1994 Effective: October 01, 1994
111
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff First Revised Sheet No. 298
Second Revised Volume No. 1-A Superseding
Original Sheet No. 298
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. 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: August 30, 1994 Effective: October 01, 1994
112
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff First Revised Sheet No. 299
Second Revised Volume No. 1-A Superseding
Original Sheet No. 299
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
23. COMPLIANCE PLAN FOR TRANSPORTATION SERVICES AND AFFILIATE TRANSACTIONS
(Continued)
7. Name of Shipper's dispatcher for 24-hour contact: _____________________
Phone: _______________________________________ Telecopy: ___________
RATE INFORMATION
Contact your T&E Project Manager in the Mainline Transportation Department for
discount requests.
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: August 30, 1994 Effective: October 01, 1994
113
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff First Revised Sheet No. 300
Second Revised Volume No. 1-A Superseding
Original Sheet No. 300
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 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
Issued by: A. W. Clark, Vice President
Issued on: August 30, 1994 Effective: October 01, 1994
114
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff First Revised Sheet No. 301
Second Revised Volume No. 1-A Superseding
Original Sheet No. 301
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
AMENDED SERVICE REQUEST
1. Addition of Receipt Point(s) -- Add the Receipt Point(s) identified on
Exhibit A to Contract # _________________________ .
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 served queue.)
Issued by: A. W. Clark, Vice President
Issued on: August 30, 1994 Effective: October 01, 1994
115
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff First Revised Sheet No. 302
Second Revised Volume No. 1-A Superseding
Original Sheet No. 302
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 served 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 title or the right to ship 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: August 30, 1994 Effective: October 01, 1994
116
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff First Revised Sheet No. 303
Second Revised Volume No. 1-A Superseding
Original Sheet No. 303
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
Requested Maximum Total Volume
Receipt Point(s)* Daily Volume (Over Term)
_________________ ____________Mcf/d ____________Mcf/d
__________MMBtu/d ___________MMBBtu
_________________ ____________Mcf/d ____________Mcf/d
__________MMBtu/d ___________MMBBtu
_________________ ____________Mcf/d ____________Mcf/d
__________MMBtu/d ___________MMBBtu
_________________ ____________Mcf/d ____________Mcf/d
__________MMBtu/d ___________MMBBtu
_________________ ____________Mcf/d ____________Mcf/d
__________MMBtu/d ___________MMBBtu
_________________ ____________Mcf/d ____________Mcf/d
__________MMBtu/d ___________MMBBtu
Use 8-digit EPNG Code and include meter number(s).
Issued by: A. W. Clark, Vice President
Issued on: August 30, 1994 Effective: October 01, 1994
117
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff First Revised Sheet No. 304
Second Revised Volume No. 1-A Superseding
Original Sheet No. 304
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/d
__________MMBtu/d ____________MMBBtu
_________________ ____________Mcf/d _____________Mcf/d
__________MMBtu/d ____________MMBBtu
_________________ ____________Mcf/d _____________Mcf/d
__________MMBtu/d ____________MMBBtu
_________________ ____________Mcf/d _____________Mcf/d
__________MMBtu/d ____________MMBBtu
_________________ ____________Mcf/d _____________Mcf/d
__________MMBtu/d ____________MMBBtu
_________________ ____________Mcf/d _____________Mcf/d
__________MMBtu/d ____________MMBBtu
Use 8-digit EPNG Code and include meter number(s).
Issued by: A. W. Clark, Vice President
Issued on: August 30, 1994Effective: October 01, 1994
118
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff First Revised Sheet No. 305
Second Revised Volume No. 1-A Superseding
Sheet Nos. 305 through 307
Reserved Sheets
Sheet Nos. 305 through 307 have been reserved
Issued by: A. W. Clark, Vice President
Issued on: August 30, 1994 Effective: October 01, 1994
119
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 306
Second Revised Volume 1-A
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
Requested Maximum Total Volume Area Source
Receipt Point(s)* Daily Volume (Over Term) of Gas
______________ ____________Mcf/d _____________Mcf/d ______________
__________MMBtu/d ____________MMBBtu
______________ ____________Mcf/d _____________Mcf/d ______________
__________MMBtu/d ____________MMBBtu
______________ ____________Mcf/d _____________Mcf/d ______________
__________MMBtu/d ____________MMBBtu
______________ ____________Mcf/d _____________Mcf/d ______________
__________MMBtu/d ____________MMBBtu
______________ ____________Mcf/d _____________Mcf/d ______________
__________MMBtu/d _____________MMBBtu
______________ ____________Mcf/d _____________Mcf/d ______________
__________MMBtu/d _____________MMBBtu
* 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: May 23, 1994 Effective: July 01, 1994
120
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 307
Second Revised Volume 1-A
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/d
__________MMBtu/d ___________MMBBtu
_________________ ____________Mcf/d ____________Mcf/d
__________MMBtu/d ___________MMBBtu
_________________ ____________Mcf/d ____________Mcf/d
__________MMBtu/d ___________MMBBtu
_________________ ____________Mcf/d ____________Mcf/d
__________MMBtu/d ___________MMBBtu
_________________ ____________Mcf/d ____________Mcf/d
__________MMBtu/d ___________MMBBtu
_________________ ____________Mcf/d ____________Mcf/d
__________MMBtu/d ___________MMBBtu
* 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: May 23, 1994 Effective: July 01, 1994
121
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 308
Second Revised Volume 1-A
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
prearranged 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 capacities
(a) at receipt points;
(b) on the mainline;
(c) at delivery points; and
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
122
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff
Second Revised Volume 1-A Original Sheet No. 309
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
24. ORDER NO. 636 ELECTRONIC BULLETIN BOARD (Continued)
24.4 (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: May 23, 1994 Effective: July 01, 1994
123
EL PASO NATURAL GAS COMPANY Sheet Nos. 310 through 319
FERC Gas Tariff
Second Revised Volume No. 1-A
Reserved Sheets
Original Sheet Nos. 310 through 319 have been reserved.
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
124
EL PASO NATURAL GAS COMPANY Sheet Nos. 320 through 329
FERC Gas Tariff
Second Revised Volume No. 1-A
Reserved Sheets
Original Sheet Nos. 320 through 329 have been reserved.
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
125
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 330
Second Revised Volume 1-A
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: May 23, 1994 Effective: July 01, 1994
126
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 331
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
27.2 Unauthorized Gas Causing a Critical Situation (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 Periods) 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
Periods) 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: May 23, 1994 Effective: July 01, 1994
127
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 332
Second Revised Volume 1-A
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: May 23, 1994 Effective: July 01, 1994
128
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 333
Second Revised Volume 1-A
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. 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
value determined for the month the Unauthorized Gas enters the
El Paso system. 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)(l), (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 taxes and royalties, if
applicable 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, including any Acquiring 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: May 23, 1994 Effective: July 01, 1994
129
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 334
Second Revised Volume 1-A
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 (l) 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
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
130
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 335
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE PROGRAM (Continued)
28.2 Applicability (Continued)
determinants 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 prearranged
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: May 23, 1994 Effective: July 01, 1994
131
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 336
Second Revised Volume 1-A
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 rates;
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
132
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 337
Second Revised Volume 1-A
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;
(1) 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 the 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: May 23, 1994 Effective: July 01, 1994
133
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 338
Second Revised Volume 1-A
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 seasons and
(r) any other applicable conditions.
A Releasing Shipper including any Shipper with a prearranged
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
prearranged 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 prearranged bid is for the
maximum applicable reservation rate, whether the Releasing
Shipper is seeking bids to compete with the non-rate
provisions of the prearranged 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 Terms 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: May 23, 1994 Effective: July 01, 1994
134
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 339
Second Revised Volume 1-A
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 prearranged 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 prearrangement, 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 prearranged 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 prearranged
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 season. If the bids are to
be
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
135
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 340
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE PROGRAM (Continued)
28.8 Open Season and Matching Period (Continued)
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: May 23, 1994 Effective: July 01, 1994
136
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 341
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE PROGRAM (Continued)
28.8 Open Season and Matching Period (Continued)
(f) With respect to any prearranged 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
volumes
(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.
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
137
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 342
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE PROGRAM Continued)
28.9 Bids for Released Capacity (Continued)
(b) Any bid received by El Paso during the open season
shall be posted on El Paso's electronic bulletin
board (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: May 23, 1994 Effective: July 01, 1994
138
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 343
Second Revised Volume 1-A
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 prearranged release and the Prearranged
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: May 23, 1994 Effective: July 01, 1994
139
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 344
Second Revised Volume 1-A
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 ____%
* d = c/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 = sold stated in Mcf
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
140
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 345
Second Revised Volume 1-A
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 components
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: May 23, 1994 Effective: July 01, 1994
141
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 346
Second Revised Volume 1-A
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 prearranged 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
Prearranged Shipper shall become the Acquiring
Shipper. Service to such Acquiring Shipper may begin
on the next scheduling day after award of the
capacity and
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
142
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 347
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE PROGRAM (Continued)
28.10 Awarding of Released Capacity (Continued)
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: May 23, 1994 Effective: July 01, 1994
143
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 348
Second Revised Volume 1-A
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: May 23, 1994 Effective: July 01, 1994
144
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 349
Second Revised Volume 1-A
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
Shippers; 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
El 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, setting
forth the same information as prescribed in Section 28.4 or
Section 28.5, as applicable. The capacity shall be awarded
using the procedures specified by Sections 28.8 and 28.10.
Any pre-arranged transaction for uncommitted or expansion firm
capacity shall be subject to the posting and bidding
procedures of this Section 28 regardless of the term or rate.
Tied bids will be resolved by the tie-breaking method
specified in Section 28.10(f) with no preference given to any
Shipper involved in a pre-arranged transaction. 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
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
145
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 350
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE PROGRAM (continued)
28.15 Notice of Offer to Purchase Capacity (Continued)
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 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
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
146
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 351
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE PROGRAM (continued)
28.18 Billing (Continued)
Service Agreement and any other applicable charges and such
Acquiring Shipper shall pay the billed 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
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
147
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 352
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE PROGRAM (Continued)
28.19 Nominations and Scheduling (Continued)
later 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 credit
worthiness 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: May 23, 1994 Effective: July 01, 1994
148
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 353
Second Revised Volume 1-A
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
_____________________________, 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: May 23, 1994 Effective: July 01, 1994
149
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 354
Second Revised Volume 1-A
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. l-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 Paint(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), or
within any upstream zone through which the released
capacity passes, 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 responsible for exercising such
recall, in accordance with the
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
150
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 355
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE PROGRAM (Continued)
28.25 Acquired Capacity Agreement (Continued)
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 Tariffs
6. Other terms
As specified in the Notice posted pursuant to
Sections 28.4 or 28.5 of El Paso's Volume No. l-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 title
or the right to ship 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: May 23, 1994 Effective: July 01, 1994
151
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 356
Second Revised Volume 1-A
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: May 23, 1994 Effective: July 01, 1994
152
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 357
Second Revised Volume 1-A
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: May 23, 1994 Effective: July 01, 1994
153
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 358
Second Revised Volume 1-A
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 credit worthiness.
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
154
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 359
Second Revised Volume 1-A
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. Upstream Contract ______________________________
6. Contract Quantity ______________________________
7. Receipt Point(s) ______________________________
______________________________
______________________________
Delivery Point(s) ______________________________
______________________________
______________________________
8. Requested Begin Data ______________________________
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
155
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 360
Second Revised Volume 1-A
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: May 23, 1994 Effective: July 01, 1994
156
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 361
Second Revised Volume 1-A
TRANSPORTATION 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, at al., "Prospective
Period." The Monthly Amortized Amounts
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994
157
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 362
Second Revised Volume 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
31. WASHINGTON RANCH FACILITY STRANDED INVESTMENT COST RECOVERY (Continued)
31.3 Definitions (Continued)
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. 27, 28, and 29 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. 27, 28, and 29 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: May 23, 1994 Effective: July 01, 1994
158
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 363
Second Revised Volume 1-A
TRANSPORTATION 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 was stranded investment costs effective February
1, 1993.
(i) Effective with the Settlement at Docket No.
RP92-214-000, at 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: May 23, 1994 Effective: July 01, 1994
159
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Original Sheet No. 364
Second Revised Volume 1-A
TRANSPORTATION 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 protection, 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 Parody 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: May 23, 1994 Effective: July 01, 1994
160
EL PASO NATURAL GAS COMPANY
FERC Gas Tariff Sheet Nos. 365 through 399
Second Revised Volume 1-A
Reserved Sheets
Original Sheet Nos. 365 through 399 have been reserved.
Issued by: A. W. Clark, Vice President
Issued on: May 23, 1994 Effective: July 01, 1994