FSS-M RATE SCHEDULE
FIRM STORAGE SERVICE WITH MARKET-BASED RATES (Cont'd)
6. RATE
(a) The applicable rate for service under this Rate Schedule will be a negotiated
market-based rate as provided in Shipper's FSS-M Service Agreement.
(b) From the quantities delivered into storage for Shipper, Transporter will retain the
Storage Gas Loss Retainage Percentage of gas specified in Transporter's currently effective
Tariff, unless otherwise negotiated by Transporter and Shipper, and specified in Shipper's FSS-M
Service Agreement. That percentage will be subject to adjustment in accordance with Section 35
(Retainage Adjustment Mechanism) of the General Terms and Conditions. The Storage Gas Loss
Retainage Percentage applicable to Rate Schedule FSS-M will be calculated separately in
Transporter's annual Retainage Adjustment Mechanism filings.
(c) Shipper will remain responsible for all property or other taxes associated with the
quantities held for Shipper in storage under this Rate Schedule. Transporter will periodically
report to Shipper the quantities in storage, allocated by State, to enable Shipper to calculate
and pay all taxes associated with those storage quantities. The Crawford and Weaver storage
fields, which are subject to market-based rates, will be treated conjunctively and Shipper's
storage gas will be deemed to be proportionally allocated to these storage fields based on total
working gas in storage held in capacity subject to market-based rate rates.
(d) Transporter will be responsible for any loss, cost, or expense arising from any
loss of Shipper's gas in Transporter's storage that results from Transporter's negligence or
failure to exercise due diligence. Notwithstanding the provisions in Section 22 (Possession of
Gas) of the General Terms and Conditions, Shipper will be responsible for obtaining its own
insurance for any gas in storage, and will hold Transporter harmless from any loss, cost, or
expense arising from any loss of storage gas that results from a force majeure event or that is
not the result of Transporter's negligence or failure to exercise due diligence.
7. PENALTIES
(a) If Shipper fails to comply with an interruption order issued by Transporter
pursuant to this Rate Schedule or Section 16 (Interruptions of Service) of the General Terms and
Conditions and:
(i) Causes injections in excess of 103 percent of the lowered MDIQ set by
Transporter's interruption order (Lowered Quantity), then Shipper will be assessed and pay
penalties based on a price per Dth equal to three times the midpoint of the range of
prices reported for "Columbia Gas, Appalachia" as published in Platts Gas Daily price
survey for all quantities tendered in excess of its Lowered Quantity; or
(ii) Causes withdrawals in excess of 103 percent of the Lowered Quantity,
Shipper will be assessed and pay penalties based on a price per Dth equal to three times
the midpoint of the range of prices reported for "Columbia Gas, Appalachia" as published
in Platts Gas Daily price survey for all quantities taken in excess of its Lowered
Quantity.
(b) If Shipper fails to comply with an operational flow order issued by Transporter
pursuant to Section 17 (Operational Flow Orders) of the General Terms and Conditions, a penalty
based on a price per Dth equal to three times the midpoint of the range of prices reported for
"Columbia Gas, Appalachia" as published in Platts Gas Daily price survey will be assessed to
Shipper for all quantities in violation of that operational flow order.
(c) On any Day that Shipper's injections into storage exceed 110 percent of its
applicable MDIQ, as described in Section 3(c) of this Rate Schedule, Shipper will pay Transporter
a penalty of $5.00 per Dth for all quantities injected in excess of 110 percent of its MDIQ.
(d) In any Month in which Shipper's total monthly injection quantities exceed 105
percent of the applicable MMIQ as described in Section 3 of this Rate Schedule, Shipper will pay
Transporter a penalty of $5.00 per Dth for all quantities injected in excess of 105 percent of
the applicable MMIQ.
(e) In any Month in which Shipper's net withdrawals from storage exceed the applicable
limits set forth in Section 4 of this Rate Schedule, Shipper will pay Transporter a penalty of
$5.00 per Dth for all quantities withdrawn in excess of those limits.
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Issued by: Claire A. Burum, SVP Regulatory Affairs
Issued on: March 25, 2009 Effective on: April 22, 2009
Filed to comply with order of the Federal Energy Regulatory Commission, Docket
No. CP08-431-000, issued March 19, 2009, 26 FERC ¶ 61,237 |