NTS-S RATE SCHEDULE
SUMMER HOURLY NO-NOTICE TRANSPORTATION SERVICE (Cont'd)
(c) The charges and surcharges described above are subject to adjustment in accordance with the
procedures set forth in the General Terms and Conditions.
(d) The Reservation Charge shall apply as of the date service is deemed to commence by the terms
of Shipper's NTS-S Service Agreement.
(e) In addition to collecting the applicable charges and surcharges, Transporter shall retain
from the gas tendered for transportation, including quantities tendered for replenishment of GSQ Draws, the
effective Transportation Retainage Percentage set forth in the currently effective Sheet No. 37 of this
Tariff, unless otherwise negotiated by Transporter and Shipper, and specified in Shipper's NTS-S Service
Agreement. That Transportation Retainage Percentage shall be subject to adjustment in accordance with
Section 35 (Retainage Adjustment Mechanism) of the General Terms and Conditions. Transporter shall not
assess Transportation Retainage on GSQ Draws.
6. PENALTIES
(a) The penalties set forth in this Section are in addition to applicable penalties set forth at
Section 19 (Penalties) of the General Terms and Conditions.
(b) If Shipper, during a given Month, does not deliver to Transporter quantities of gas under
this Rate Schedule sufficient to replenish Shipper's outstanding GSQ Draws to reach a zero balance during the
immediately preceding Month, Shipper shall pay Transporter a penalty for each Dth of such unreplenished GSQ
Draws, grossed up for the Retainage percentage applicable to Transporter's NTS-S Rate Schedule. The penalty
shall be 120 percent of the Spot Market Price for the Month during which such quantities are replenished by
Transporter. For purposes of this Section, "Spot Market Price" shall mean, for the applicable Month, the
contract index price for gas delivered to "Columbia Gas Transmission, LLC, Appalachia", as reported in Inside
FERC's Gas Market Report or successor publication. Upon payment of such penalty, Shipper's GSQ Balance shall
be restored to the extent of the quantities underlying the penalty payment, less Retainage.
(c) For purposes of calculating Penalty Revenues pursuant to Section 19.6 of the General Terms
and Conditions, any amount above 100 percent of the Spot Market Price, net of Transporter's costs, will be
treated as a penalty revenue to be credited back to non-offending Shippers.
7. CONVERSION RIGHT
A Shipper under Rate Schedules FTS and OPT shall have a one-time, irrevocable right to convert all or
a portion of its service entitlements under Rate Schedules FTS and OPT to an equivalent level of service
entitlements under this rate schedule, provided that Shipper provides written notice to Transporter of its
intent to convert at least 30 days from the effective date of this rate schedule. Such converting shipper
shall have the right to retain its winter period (October 1 - March 31) OPT and/or FTS firm transportation
capacity. Transporter will accommodate Shipper requests to exercise the one-time conversion right, subject
to operational availability. Any such conversion must be at least revenue neutral, and Transporter reserves
the right to deny conversion requests that would not be revenue neutral. After exercising such conversion
right, a Shipper may not later return any of the converted service rights to service under the FTS or OPT
Rate Schedules.
8. GENERAL TERMS AND CONDITIONS
All of the General Terms and Conditions are applicable to this Rate Schedule and are hereby made a
part hereof.
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