<PAGE>
EXHIBIT 10.4
FIRM TRANSPORTATION SERVICE AGREEMENT
THIS
AGREEMENT is made and entered into this 26th day of October, 1993,
by
and between
PACIFIC
GAS TRANSMISSION COMPANY, a California corporation (hereinafter
referred to as "PGT),
and
PACIFIC
GAS AND ELECTRIC COMPANY, a corporation existing under the laws
of
the State of California, (hereinafter
referred to as "Shipper").
WHEREAS,
PGT owns and operates a natural gas pipeline transmission
system
which extends from a point of
interconnection with the pipeline facilities of
Alberta Natural Gas Company Ltd. (ANG) at
the International Boundary near
Kingsgate, British Columbia, through the
states of Idaho, Washington and Oregon
to a point of interconnection with Pacific
Gas and Electric Company at the
Oregon-California border near Malin,
Oregon; and
WHEREAS,
Shipper desires PGT, on a firm basis, to transport certain
quantities of natural gas from Kingsgate,
British Columbia to Malin, Oregon for
ultimate delivery to Shipper, a local
distribution company; and
WHEREAS,
pursuant to FERC Order No. 636, et seq., PGT will unbundle its
firm transportation and sales services, and
PGT and Shipper will execute a new
service agreement for unbundled firm
transportation service; and
WHEREAS,
this Agreement will supersede and prior agreements between PGT
and Shipper for firm gas sales or firm
transportation, and will incorporate the
transportation rights thereunder into this
Agreement; and
WHEREAS,
PGT is willing to transport certain quantities of natural gas
for
Shipper, on a firm basis,
NOW,
THEREFORE, the parties agree as follows:
I
GOVERNMENTAL AUTHORITY
1.1 This
Firm Transportation Agreement ("Agreement") is made pursuant to
the regulations of the Federal Energy
Regulatory Commission (FERC) contained in
18 CFR Part 284, as amended from time to
time.
<PAGE>
I
GOVERNMENTAL AUTHORITY
(CONTINUED)
1.2 This
Agreement is subject to all valid legislation with respect to
the
subject matters hereof, either state or
federal, and to all valid present and
future decisions, orders, rules,
regulations and ordinances of all duly
constituted governmental authorities having
jurisdiction.
1.3
Shipper shall reimburse PGT for any and all filing fees incurred
by
PGT in seeking governmental authorization
for the initiation, extension, or
termination of service under this Agreement
and Rate Schedule FTS-1. Shipper
shall reimburse PGT for such fees at PGT's
designated office within ten (10)
days of receipt of notice from PGT that
such fees are due and payable.
Additionally, Shipper shall reimburse PGT
for any and all penalty fees or fines
assessed PGT caused by the negligence of
Shipper in not obtaining all proper
Canadian and domestic import/export
licenses, surety bonds or any other
documents and approvals related to the
Canadian exportation and subsequent
domestic importation of natural gas
transported by PGT hereunder.
II
QUANTITY OF GAS AND PRIORITY OF SERVICE
2.1
Subject to the terms and provisions of this Agreement and PGT's
Transportation General Terms and Conditions
contained in PGT's FERC Gas Tariff
First Revised Volume No. 1-A
(Transportation General Terms and Conditions)
applicable to Rate Schedule FTS-1, daily
receipts of gas by PGT from Shipper at
the point(s) of receipt shall be equal to
daily deliveries of gas by PGT to
Shipper at the point(s) of delivery;
provided, however, Shipper shall deliver to
PGT an additional quantity of natural gas
at the point(s) of receipt as
compressor station fuel, line loss and
unaccounted for gas as specified in the
Statement of Effective Rates and Charges of
PGT's FERC Gas Tariff First Revised
Volume No. 1-A which by this reference is
made a part hereof. Any limitation of
the quantities to be received from each
point of receipt and/or delivered to
each point of delivery shall be as
specified on the Exhibit A attached hereto.
2.2 The
maximum quantities of gas to be delivered by PGT for Shipper's
account at the point(s) of delivery are set
forth in Exhibit A.
2.3 In
providing service to its existing or new customers, PGT will
use
the priorities of service specified in
Paragraph 18 of PGT's Transportation
General Terms and Conditions on file with
the FERC.
2.4 Prior
to initiation of service, Shipper shall provide PGT with any
information required by the FERC, as well
as the information identified in
Paragraphs 21, 28, and 29 of PGT's
Transportation General Terms and Conditions
applicable to Rate Schedule FTS-1.
<PAGE>
III
TERM OF AGREEMENT
3.1 This
Agreement shall become effective November 1, 1993, and shall
continue in full force and effect until
October 31, 2005. Thereafter, this
Agreement shall continue in effect from
year to year unless Shipper gives PGT
twelve (12) months prior written notice of
termination of this Agreement. The
Agreement shall terminate twelve (12)
months after such notice.
IV
POINTS OF RECEIPT AND DELIVERY
4.1 The
primary point of receipt of gas deliveries to PGT is as
designated
in Exhibit A, attached hereto.
4.2 The
primary point of delivery of gas to Shipper is as designated in
Exhibit A, attached hereto.
4.3
Shipper shall deliver or cause to be delivered to PGT the gas to
be
transported hereunder at pressures
sufficient to deliver such gas into PGT's
system at the point(s) of receipt. PGT
shall deliver the gas to be transported
hereunder to or for the account of Shipper
at the pressures existing in PGT's
system at the point(s) of delivery.
4.4
Pursuant to Paragraph 29 of PGT's Transportation General Terms
and
Conditions, Shipper may designate other
receipt and/or delivery points as
secondary receipt or delivery points.
V
OPERATING PROCEDURE
5.1
Shipper shall conform to the operating procedures set forth in
PGT's
Transportation General Terms and
Conditions.
5.2
Nothing in Section 5.1 shall compel PGT to transport gas pursuant
to
Shipper's request on any given day. PGT
shall have the right to interrupt or
curtail the transport of gas for the
account of Shipper pursuant to PGT's
Transportation General Terms and Conditions
applicable to Rate Schedule FTS-1.
VI
RATE(S), RATE SCHEDULES, AND
GENERAL TERMS
AND CONDITIONS OF SERVICE
6.1
Shipper shall pay PGT each month for services rendered pursuant
to
this Agreement in accordance with PGT's
Rate Schedule FTS-1, or superseding rate
schedule(s), on file with and subject to
the jurisdiction of FERC.
<PAGE>
VI
RATE(S), RATE SCHEDULES, AND
GENERAL TERMS AND CONDITIONS OF SERVICE
(CONTINUED)
6.2
Shipper shall compensate PGT each month for compressor station
fuel,
line loss and other unaccounted for gas
associated with this transportation
service provided herein in accordance with
PGT's Rate Schedule FTS-1, or
superseding rate schedule(s), on file with
and subject to the jurisdiction of
the FERC.
6.3 This
Agreement in all respects shall be and remains subject to the
applicable provisions of Rate Schedule
FTS-1, or superseding rate schedule(s)
and of the applicable Transportation
General Terms and Conditions of PGT's FERC
Gas Tariff First Revised Volume No. 1-A on
file with the FERC, all of which are
by this reference made a part hereof.
6.4 PGT
shall have the unilateral right from time to time to propose
and
file with FERC such changes in the rates
and charges applicable to
transportation services pursuant to this
Agreement, the rate schedule(s) under
which this service is hereunder provided,
or any provisions of PGT's
Transportation General Terms and Conditions
applicable to such services. Shipper
shall have the right to protest any such
changes proposed by PGT and to exercise
any other rights that Shipper may have with
respect thereto.
VII
MISCELLANEOUS
7.1 This
Agreement shall be interpreted according to the laws of the
State
of California.
7.2
Shipper agrees to indemnify and hold PGT harmless for refusal
to
transport gas hereunder in the event any
upstream or downstream transporter
fails to receive or deliver gas as
contemplated by this Agreement.
<PAGE>
VII
MISCELLANEOUS
(CONTINUED)
7.3 Unless
herein provided to the contrary, any notice called for in this
Agreement shall be in writing and shall be
considered as having been given if
delivered by registered mail or telex with
all postage or charges prepaid, to
either PGT or Shipper at the place
designated below. Routine communications,
including monthly statements and payment,
shall be considered as duly delivered
when received by ordinary mail. Unless
changed, the addresses of the parties are
as follows:
"PGT" PACIFIC GAS TRANSMISSION COMPANY
160 Spear Street
Room 1900
San Francisco, California 94105-1570
ATTENTION: President
& CEO
"SHIPPER"
PACIFIC GAS & ELECTRIC COMPANY
77 Beale Street, Room 1611
Mail Code B16A, P. O. Box 770000
San Francisco, CA 94177
ATTENTION: Mgr. Gas
Services Dept.
7.4 A
waiver by either party of any one or more defaults by the other
hereunder shall not operate as a waiver of
any future default or defaults,
whether of a like or of a different
character.
7.5 This
Agreement may only be amended by an instrument in writing
executed by both parties hereto.
7.6
Nothing in this Agreement shall be deemed to create any rights
or
obligations between the parties hereto
after the expiration of the term set
forth herein, except that termination of
this Agreement shall not relieve either
party of the obligation to correct any
quantity imbalances or Shipper of the
obligation to pay any amounts due hereunder
to PGT.
7.7
Exhibits A and C attached hereto are incorporated herein by
reference
and made a part hereof for all
purposes.
<PAGE>
IN WITNESS
WHEREOF the parties have caused this Agreement to be executed
as of the day and year first above
written.
PACIFIC GAS TRANSMISSION COMPANY
By: /s/ Paula G.
Rosput
-------------------------------------------------
Name: Paula G.
Rosput
Title: Senior Vice
President
Date: October 26,
1993
PACIFIC GAS & ELECTRIC COMPANY
By: /s/ William R.
Mazotti
-------------------------------------------------
Name: William R.
Mazotti
Title: Vice President
- Gas Services & Operations
Date:
October 26, 1993
<PAGE>
EXHIBIT A
TO THE
FIRM TRANSPORTATION SERVICE AGREEMENT
DATED____________________BETWEEN
PACIFIC GAS TRANSMISSION COMPANY
AND
PACIFIC GAS & ELECTRIC COMPANY
<TABLE>
<CAPTION>
RECEIPT
DELIVERY
MAXIMUM DAILY QUANTITY (MDQ)
POINT (1)
POINT(1)
(DELIVERED) MMBTU/D
---------
--------
----------------------------
SUMMER(2)
WINTER(3)
---------
---------
<S>
<C>
<C>
<C>
KINGSGATE
MALIN
1,023,120(4) 1,081,990
</TABLE>
(1) Pursuant to Paragraph 29 of PGT's
Transportation General Terms and
Conditions, Shipper may designate other
receipt and delivery points as
"secondary receipt" and "secondary
delivery" points. For example, Shipper may
designate Stanfield, Oregon and/or Spokane,
Washington as secondary receipt
points.
(2) Summer- - months of May through
October.
(3) Winter - - months of November through
April,
(4) In accordance with FERC's October 1,
1993 order at Docket n. RS92-46
Shipper's firm Summer MDQ (Delivered) may
exceed 1,023,120 MMBtu/d to the extent
firm capacity is available on PGT's
original system. However, under no
circumstances may Shipper's firm Summer MDQ
(Delivered) exceed 1,081,990
MMBtu/d.
<PAGE>
EXHIBIT C
TO THE
FIRM TRANSPORTATION SERVICE AGREEMENT
DATED____________________BETWEEN
PACIFIC GAS TRANSMISSION COMPANY
AND
PACIFIC GAS & ELECTRIC COMPANY
Type of Replacement Service:
Replacement Shipper:
Receipt Point:
Delivery Point:
Maximum Daily Quantity:
Commencement of Credit:
Termination of Credit:
Level of Credit:
_____percent of the maximum rate defined as
________________________________________________
________________________________________________
Applicable for service under Rate Schedule FTS-1
Other Terms and Conditions:
1)__________________________________________________________________________
2)__________________________________________________________________________
3)__________________________________________________________________________
<PAGE>
Gas Transmission Northwest Corporation
FERC Gas Tariff
Original Sheet No. 30
Third Revised Volume No. 1-A
RATE SCHEDULE FTS-1
FIRM TRANSPORTATION SERVICE
1.
AVAILABILITY
This rate schedule is available to any party (hereinafter
called
"Shipper") qualifying for service pursuant to the Commission's
Regulations contained in 18 CFR Part 284, and who has executed a
Firm
Transportation Service Agreement with GTN in the form contained in
this
FERC Gas Tariff, Third Revised Volume No. 1-A.
2.
APPLICABILITY AND CHARACTER OF SERVICE
This rate schedule shall apply to firm gas transportation
services
performed by GTN for Shipper pursuant to the executed Firm
Transportation Service Agreement between GTN and Shipper. GTN
shall
receive from Shipper such daily quantities of gas up to the
Shipper's
Maximum Daily Quantity as specified in the executed Firm
Transportation
Service Agreement between GTN and Shipper plus the required
quantity of
gas for fuel and line loss associated with service under this
Rate
Schedule FTS-1 and redeliver an amount equal to the quantity
received
less the required quantity of gas for fuel and line loss. This
transportation service shall be firm and not subject to curtailment
or
interruption except as provided in the Transportation General Terms
and
Conditions.
Firm transportation service shall be subject to all provisions of
the
executed Firm Transportation Service Agreement between GTN and
Shipper
and the applicable Transportation General Terms and Conditions.
3.
RATES
Shipper shall pay GTN each month the sum of the Reservation
Charge,the
Delivery Charge, plus any applicable Extension Charge, Overrun
Charge
and applicable surcharges for the quantities of natural gas
delivered.
The rate(s) set forth in GTN's current Effective Rates and Charges
for
Transportation of Natural Gas in this FERC Gas Tariff, Third
Revised
Volume No. 1-A are applied to transportation service rendered
under
this rate schedule.
(Continued)
Issued by: John A Roscher, Director of
Rates & Regulatory Affairs
Issued on: October 7, 2003
Effective on: October 6, 2003
<PAGE>
Gas Transmission Northwest Corporation
FERC Gas Tariff
Original Sheet No. 31
Third Revised Volume No. 1-A
RATE SCHEDULE FTS-1
FIRM TRANSPORTATION SERVICE
(Continued)
3.
RATES (Continued)
3.1
Reservation
Charge
The Reservation Charge shall be the sum of the Mileage and the
Non-Mileage Component:
(a) Mileage
Component
The Mileage Component shall be the product of the
currently effective Mileage Rate as set forth on Effective
Tariff Sheet No. 4, the distance, in pipeline miles, from
the Primary Point(s) of receipt to the Primary Point(s) of
Delivery on Mainline Facilities as set forth in Shipper's
Contract, and the Shipper's Maximum Daily Quantity at such
Point(s).
(b)
Non-Mileage Component
The Non-Mileage Component shall be the product of the
currently effective Non-Mileage Rate as set forth on
Effective Tariff Sheet No. 4 and the Shipper's Maximum
Daily Quantity at Primary Point(s) of Delivery on Mainline
Facilities.
(c) Mitigation
Revenue Recovery Surcharge
If Shipper is a Subject Shipper, the Mitigation Revenue
Recovery Surcharge for the Mileage and Non-Mileage
Components as set forth on Effective Tariff Sheet No. 4
shall be included in, and become a part of, the maximum
Mileage and Non-Mileage Base Reservation Rates used for
computing the Mileage and Non-Mileage Components of the
Reservation Charge. The Mileage Component shall be
designed to recover, on the basis of the mileage billing
determinants of the Subject Shippers underlying GTN's
currently effective rates, mileage mitigation revenues not
recovered from other shippers in accordance with Article
IV, Section 1(b) of the Stipulation and Agreement in
Docket No. RP94-149-000, et al., and the Non-Mileage
Component shall be designed to recover, on the basis of
the Non-Mileage billing determinants of the Subject
Shippers underlying GTN's currently effective rates,
Non-Mileage mitigation revenues not recovered from other
shippers in accordance with Article IV, Section 1(b) of
the Stipulation and Agreement in Docket No. RP94-149-000,
et al.
(Continued)
Issued by: John A Roscher, Director of
Rates & Regulatory Affairs
Issued on: October 7, 2003
Effective on: October 6, 2003
<PAGE>
Gas Transmission Northwest Corporation
FERC Gas Tariff
Original Sheet No. 32
Third Revised Volume No. 1-A
RATE SCHEDULE FTS-1
FIRM TRANSPORTATION SERVICE
(Continued)
3.
RATES (Continued)
3.1
Reservation Charge (Continued)
(d)
Competitive Equalization Surcharge
The Mileage and Non-Mileage components of the Competitive
Equalization
Surcharge as set forth on Effective Tariff Sheet No. 4 shall be
included in, and become a part of, the maximum Mileage and
Non-Mileage
Base Reservation Rates used for computing the Mileage and
Non-Mileage
Components of the Reservation Charge of shippers that have
contracted
for service utilizing, in whole or in part, CES Capacity under a
Firm
Transportation Service Agreement having a term of one year or more
and
shippers that have obtained service rights from such shippers
pursuant
to Section 28 of the General Terms and Conditions of this FERC
Gas
Tariff. The Mileage Component shall be equal to the Mileage
Component
of the Mitigation Revenue Recovery Surcharge and the
Non-Mileage
Component shall be equal to the Non-Mileage Component of the
Mitigation
Revenue Recovery Surcharge. Shippers to which the Competitive
Equalization Surcharge applies, other than shippers that have
obtained
service pursuant to Section 28 of the General Terms and Conditions
of
this FERC Gas Tariff, shall be identified on Effective Tariff Sheet
No.
11.
(Continued)
Issued by: John A Roscher, Director of
Rates & Regulatory Affairs
Issued on: October 7, 2003
Effective on: October 6, 2003
<PAGE>
Gas Transmission Northwest Corporation
FERC Gas Tariff
Original Sheet No. 33
Third Revised Volume No. 1-A
RATE SCHEDULE FTS-1
FIRM TRANSPORTATION SERVICE
(Continued)
3.
RATES (Continued)
3.1
Reservation Charge (Continued)
(e) Shipper's
obligation to pay the Reservation Charge and
applicable Reservation Surcharge is independent of Shipper's
ability to obtain
export authorization from the National
Energy Board of Canada, Canadian provincial removal authority,
and/or import authorization from the United States Department
of Energy, and shall begin with the execution of the Firm
Transportation Service Agreement by both parties. The
Reservation Charge and Reservation Surcharge due and payable
shall be computed beginning in the month in which service is
first available (prorated if beginning in the month in which
service is available on a date other than the first day of the
month). Thereafter, the monthly Reservation Charge and
Reservation Surcharge shall be due and payable each month
during the Initial (and Subsequent) Term(s) of the Shipper's
executed Firm Transportation Service Agreement and is
unaffected by the quantity of gas transported by GTN to
Shipper's delivery point(s) in any month except as provided
for in Paragraphs 3.10 and 3.11 of this rate schedule.
3.2 Delivery
Charge
The Delivery Charge shall be the product of the Delivery Rate as
set
forth on Effective Tariff Sheet No. 4, the quantities of gas
delivered
in the month (in Dth) (excluding Authorized Overrun) at point(s)
of
delivery on Mainline Facilities, and the distance, in pipeline
miles,
from the point(s) of receipt to point(s) of delivery on
Mainline
Facilities.
(Continued)
Issued by: John A Roscher, Director of
Rates & Regulatory Affairs
Issued on: October 7, 2003
Effective on: October 6, 2003
<PAGE>
Gas Transmission Northwest Corporation
FERC Gas Tariff
Original Sheet No. 34
Third Revised Volume No. 1-A
RATE SCHEDULE FTS-1
FIRM TRANSPORTATION SERVICE
(Continued)
3.
RATES (Continued)
3.3 Extension
Charge
If Shipper designates a Primary Point of delivery on an
Extension Facility, then in addition to all other charges that
are applicable, Shipper shall pay the Extension Charge, which
shall consist of a reservation and delivery component.
(a) The
reservation component of the Extension Charge
shall be the product of Shipper's Maximum Daily
Quantity at the Primary Point(s) of delivery on the
Extension Facility, the applicable Extension
reservation rate as set forth on Effective Tariff
Sheet No. 4, and the distance, in pipeline miles,
from the Receipt Point(s) on the Extension Facility
to the Primary Point(s) of delivery.
(b) The
delivery component of the Extension Surcharge
shall be the product of the quantities delivered at
the point(s) of delivery on the Extension Facility,
the applicable Extension delivery rate as set forth
on Effective Tariff Sheet No. 4, and the distance, in
pipeline miles, from
the Receipt Point(s) on the
Extension Facility to the point(s) of delivery.
3.4 Authorized
Overrun Charge
Quantities in excess of Shipper's MDQ shall be transported
when capacity is available on the GTN system and when the
provision of such Authorized Overruns shall not effect any
Shipper's rights on the GTN System. Authorized Overruns are
interruptible in nature. The rate charged shall be the same as
the rates and charges for interruptible transportation under
Rate Schedule ITS-1 as set forth on effective Tariff Sheet No.
4, and such Authorized Overruns shall be subject to the
priority of service provisions of Paragraph 19 of the
Transportation General Terms and Conditions.
3.5
Applicability of Surcharges
Shipper shall pay all reservation and usage surcharges
applicable to the service provided to such Shipper as set
forth in GTN's FERC Gas Tariff, Third Revised Volume No. 1-A.
such surcharges shall be deemed to be part of Shipper's
reservation and Delivery Charges.
(Continued)
Issued by: John A Roscher, Director of
Rates & Regulatory Affairs
Issued on: October 7, 2003
Effective on: October 6, 2003
<PAGE>
Gas Transmission Northwest Corporation
FERC Gas Tariff
Original Sheet No. 35
Third Revised Volume No. 1-A
RATE SCHEDULE FTS-1
FIRM TRANSPORTATION SERVICE
(Continued)
3.
RATES (Continued)
3.6 Shipper
shall pay the Maximum Reservation Charge, and the
Maximum Delivery Charge for service under this Rate Schedule
unless GTN offers to discount the Mileage Rate components or
the Non-Mileage Rate components of the Reservation Rate or the
Delivery Rate or the GRI surcharge under this rate schedule.
If GTN elects to discount any such rate, GTN shall, up to
forty-eight (48) hours prior to such discount, by written
notice, advise Shipper of the effective date of such charges
and the quantity of gas so affected; provided, however, such
discount shall not be anticompetitive or unduly discriminatory
between individual shippers. The rates for service under this
rate schedule shall not be discounted below the Minimum
Reservation Charge, the Minimum Delivery Rate, and applicable
ACA Surcharge.
Issued by: John A Roscher, Director of
Rates & Regulatory Affairs
Issued on: October 7, 2003
Effective on: October
6, 2003
<PAGE>
Gas Transmission Northwest Corporation
FERC Gas Tariff
Original Sheet No. 36
Third Revised Volume No. 1-A
RATE SCHEDULE FTS-1
FIRM TRANSPORTATION SERVICE
(Continued)
3.
RATES (Continued)
3.7
Reserved
3.8 Backhauls
(as defined in Paragraph 1.30 of the Transportation
General Terms and Conditions) shall be subject to the same
charges as forward haul (as defined in Paragraph 1.29 of the
Transportation General Terms and Conditions) except that no
gas shall be retained by GTN for compressor station fuel, line
loss and other unaccounted-for gas. Backhauls are subject to
the operating conditions of GTN's pipeline and will not be
made available to Shipper if GTN determines, in its sole
discretion, that such transportation is operationally
infeasible or otherwise not available.
3.9
Reserved
Issued by: John A Roscher, Director of
Rates & Regulatory Affairs
Issued on: October 7, 2003
Effective on: October 6, 2003
<PAGE>
Gas Transmission Northwest Corporation
FERC Gas Tariff
Original Sheet No. 37
Third Revised Volume No. 1-A
RATE SCHEDULE FTS-1
FIRM TRANSPORTATION SERVICE
(Continued)
3.
RATES (Continued)
3.10
Capacity Release
(a) Releasing
Shippers:
Shipper shall have the option to release capacity
pursuant to the provisions of GTN's capacity release
program as specified in the Transportation General
Terms and Conditions. Shipper may release its
capacity, up to Shipper's Maximum Daily Quantity
under this rate schedule, in accordance with the
provisions of Paragraph 28 of GTN's Transportation
General Terms and conditions of this FERC Gas Tariff,
Third Revised Volume No. 1-A. Shipper shall pay a fee
associated with the marketing of capacity by GTN (if
applicable) in accordance with Paragraph 28 of the
Transportation General Terms and Conditions. This fee
shall be negotiated between GTN and the Releasing
Shipper.
(b)
Replacement Shippers:
Shipper may receive released capacity service under
this rate schedule pursuant to Paragraph 28 of the
Transportation General Terms and Conditions and is
required to execute a service agreement in the form
contained for capacity release under Rate Schedule
FTS-1 in this Third Revised Volume No. 1-A.
Shipper shall pay GTN each month for transportation
service under this rate schedule and as set forth in
GTN's current Statement of Effective Rates and
Charges in this Third Revised Volume No. 1-A. Charges
to be paid shall be the sum of the Reservation
Charge, Delivery Charge, and other applicable
surcharges or penalties.
The rates paid by Shipper receiving capacity release
transportation service shall be adjusted as provided
on Exhibit R in the executed Transportation Service
Agreement For Capacity Release between GTN and
Shipper.
(Continued)
Issued by: John A Roscher, Director of
Rates & Regulatory Affairs
Issued on: October 7, 2003
Effective on: October 6, 2003
<PAGE>
Gas Transmission Northwest Corporation
FERC Gas Tariff
Original Sheet No. 38
Third Revised Volume No. 1-A
RATE SCHEDULE FTS-1
FIRM TRANSPORTATION SERVICE
(Continued)
3.11 Reservation
Charge Credit - Malin Primary Delivery Point
If GTN fails to deliver to Malin, Oregon ninety-five percent (95%)
or
more of the aggregate Confirmed Daily Nominations (as
hereinafter
defined) of all Shippers with a Malin primary delivery point
receiving
service under this rate schedule (hereinafter referred to as
the
"Non-Deficiency Amount") for more than twenty-five (25) days in
any
given Contract Year, then for each day during that Contract Year
in
excess of twenty-five (25) days that GTN so fails to deliver
the
Non-Deficiency Amount (a "Credit Day") Shipper, as its sole
remedy,
shall be entitled to a Reservation Charge Credit calculated in
the
manner hereinafter set forth.
For the purpose of this Paragraph 3.10, Confirmed Daily
Nomination
shall mean for any day, the lesser of (1) Shipper's Maximum
Daily
Quantity or (2) the actual quantity of gas that the connecting
pipeline
upstream of GTN is capable of delivering for Shipper's account to
GTN
at Shipper's primary point of receipt(s) on GTN less Shipper's
requirement to provide compressor fuel and line losses under
the
Statement of Effective Rates and Charges of GTN's FERC Gas
Tariff,
Third Revised Volume No. 1-A or (3) the quantity of gas that
Pacific
Gas And Electric
Company (PG&E) is capable of accepting at Malin for
Shipper's account or (4) Shipper's nomination to GTN.
The Reservation Charge Credit for each Credit Day for a
particular
Shipper shall be computed as follows:
Reservation Charge A
B - C
Credit for Each
----- x ------
Credit Day
= (30.4 )
( B )
where A = Shipper's Monthly
Reservation Charge
B = Shipper's
confirmed daily nomination for the
Credit Day
C = Actual
quantity of gas delivered by GTN to PG&E Malin
for Shipper's account for the Credit Day
Except as provided for in Paragraph 3.11 of this rate schedule,
this
Reservation Charge Credit is Shipper's sole remedy for nondelivery
of
gas by GTN.
(Continued)
Issued by: John A Roscher, Director of
Rates & Regulatory Affairs
Issued on: October 7, 2003
Effective on: October 6, 2003
<PAGE>
Gas Transmission Northwest Corporation
FERC Gas Tariff
Original Sheet No. 39
Third Revised Volume No. 1-A
RATE SCHEDULE FTS-1
FIRM TRANSPORTATION SERVICE
(Continued)
3.12 Reservation
Charge Credit - Other than Malin Primary Delivery Point
If GTN fails to deliver Forward-haul service on a Primary Path to
a
primary delivery point on its system other than Malin, Oregon,
ninety-five percent (95%) or more of the aggregate Confirmed
Daily
Nominations (as hereinafter defined) of all Shippers at such
primary
delivery point other than Malin receiving service under this
rate
schedule (hereinafter referred to as the "Non-Deficiency Amount")
for
more than twenty-five (25) days in any given Contract Year, then
for
each day during that Contract Year in excess of twenty-five (25)
days
that GTN so fails to deliver the Non-Deficiency Amount (a "Credit
Day")
Shipper, as its sole remedy, shall be entitled to a Reservation
Charge
Credit calculated in the manner hereinafter set forth.
For the purpose of this Paragraph 3.12, Confirmed Daily
Nomination
shall mean for any day, the lesser of (1) Shipper's Maximum
Daily
Quantity or (2) the quantity of gas that the connecting
downstream
pipeline(s), local distribution company pipeline(s), or
end-user(s)
is/are capable of accepting for Shipper's account at Shipper's
point(s)
of primary delivery on GTN or (3) the quantity of gas that the
connecting pipeline upstream of GTN is capable of delivering to GTN
for
Shipper's account to GTN at Shipper's primary point of receipt(s)
on
GTN less Shipper's requirement to provide compressor fuel and
line
losses
under the Statement of Effective Rates and Charges of GTN's
FERC
Gas Tariff, Third Revised Volume No. 1-A or (4) Shipper's
nomination to
GTN.
The Reservation Charge Credit for each Credit Day for a
particular
Shipper shall be
computed as follows:
Reservation Charge A
B - C
Credit for Each
----- x ------
Credit Day
= (30.4 )
( B )
where A = Shipper's Monthly
Reservation Charge
B = Shipper's
confirmed daily nomination for the
Credit Day
C = Actual
quantity of gas delivered by GTN to a Shipper's
primary delivery point(s) (other than Malin) for
Shipper's account for the Credit Day
Except as provided for in Paragraph 3.10 of this rate schedule
this
Reservation Charge Credit is Shipper's sole remedy for nondelivery
of
gas by GTN.
(Continued)
Issued by: John A Roscher, Director of
Rates & Regulatory Affairs
Issued on: October 7, 2003
Effective on: October 6, 2003
<PAGE>
Gas Transmission Northwest Corporation
FERC Gas Tariff
Original Sheet No. 40
Third Revised Volume No. 1-A
Rate Schedule FTS-1
Firm Transportation Service
(Continued)
3.
RATES (Continued)
3.13
NEGOTIATED RATES
Notwithstanding any provision of GTN's Tariff to the contrary,
GTN and Shipper may mutually agree in writing to a Negotiated
Rate (including a Negotiated Rate Formula) with respect to the
rates, rate components, charges, or credits that are otherwise
prescribed, required, established, or imposed by this Rate
Schedule or by any other applicable provision of GTN's Tariff.
Such Negotiated Rate shall be set forth in Attachment B to the
Firm Transportation Service Agreement and GTN shall make any
filings with the Commission necessary to effectuate such
Negotiated Rate.
Issued by: John A Roscher, Director of
Rates & Regulatory Affairs
Issued on: October 7, 2003
Effective on: October 6, 2003
<PAGE>
Gas Transmission Northwest Corporation
FERC Gas Tariff
Original Sheet No. 41
Third Revised Volume No. 1-A
RATE SCHEDULE FTS-1
FIRM TRANSPORTATION SERVICE
(Continued)
4. FUEL
AND LINE LOSS
For all Forward Hauls, Shipper shall furnish to GTN quantities of
gas
for compressor station fuel, line loss and other utility purposes,
plus
other unaccounted for gas used in the operation of GTN's
combined
pipeline system between the International Boundary near
Kingsgate,
British Columbia and the Oregon-California boundary for the
transportation quantities of gas delivered by GTN to Shipper,
based
upon the effective fuel and line loss percentages in accordance
with
Paragraph 37 of the General Terms and Conditions. No fuel charge
shall
apply to transactions that do not involve a forward haul movement
of
gas.
5. TRANSPORTATION GENERAL
TERMS AND CONDITIONS
All of the Transportation General Terms and Conditions are
applicable
to this rate schedule, unless otherwise stated in the executed
Firm
Transportation Service Agreement between GTN and Shipper. Any
future
modifications, additions or deletions to said Transportation
General
Terms and Conditions, unless otherwise provided, are applicable to
firm
transportation service rendered under this rate schedule, and by
this
reference, are made a part hereof.
Issued by: John A Roscher, Director of
Rates & Regulatory Affairs
Issued on: October 7, 2003
Effective on: October 6, 2003
<PAGE>
Gas Transmission Northwest Corporation
FERC Gas Tariff
Original Sheet No. 41
Third Revised Volume No. 1-A
Reserved For Future Use
Issued by: John A Roscher, Director of
Rates & Regulatory Affairs
Issued on: October 7, 2003
Effective on: October 6, 2003
<PAGE>
Gas Transmission Northwest Corporation
FERC Gas Tariff
Original Sheet No. 100
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Paragraph No.
Provision
Sheet No.
<S>
<C>
<C>
1
Definitions
101
2
Gas Research Institute Charge Adjustment Provision
108
3
Quality of Gas
110
4
Measuring Equipment
112
5
Measurements
114
6
Inspection of Equipment and Records
116
7
Billing
117
8
Payment
118
9
Notice of Changes in Operating Conditions
119
10
Force Majeure
120
11
Warranty of Eligibility for Transportation
121
12
Possession of Gas and Responsibility
121
13
Indemnification
121
14
Arbitration
122
15
Governmental Regulations
122
16
Miscellaneous Provision
123
17
Transportation Service Agreement
123
18
Operating Provisions
125
19
Priority of Service, Scheduling and Nominations
142
20
Curtailment
159
21
Balancing
160
22
Annual Charge Adjustment (ACA) Provision
170
23
Shared Operating Personnel and Facilities
170
24
Complaint Procedures
171
25
Information Concerning Availability and Pricing
of Transportation Service and Capacity Available for
Transportation
172
26
Market Centers
173
27
Planned GTN Capacity Curtailments and Interruptions
174
28
Capacity Release
175
29
Flexible Receipt and Delivery Points
200
30
Gas Supply Restructuring Transition Costs
202
31
Negotiated Rates
208
32
Equality of Transportation Service
210
33
Right of First Refusal Upon Termination of
Firm Shipper's Service Agreement
211
34
Electronic Communications
216
35
Competitive Equalization Surcharge Revenue Credit
221
35A
Crediting of Interruptible Transportation Revenues for
Extensions
222
36
Discount Policy
225
37
Adjustment Mechanism for Fuel, Line Loss and Other
Unaccounted For Gas Percentages
227
38
Reserved
229
39
Sales of Excess Gas
230
40
Gas Industry Standards
231
</TABLE>
Issued by: John A Roscher, Director of
Rates & Regulatory Affairs
Issued on: October 7, 2003
Effective
on: October 6, 2003
<PAGE>
Gas Transmission Northwest Corporation
FERC Gas Tariff
Original Sheet No. 101
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
1.
DEFINITIONS
1.1 Gas Day:
In accordance with NAESB Standard 1.3.1, Version 1.5,
the term "Gas Day" shall be 9:00 a.m. to 9:00 a.m. Central
Clock Time (7:00 a.m. to 7:00 a.m. Pacific Clock Time).
1.1.1
Business Day: The term "Business Day" shall mean Monday
through Friday, excluding U.S.Federal Banking Holidays for
transactions in the United States and similar holidays for
transactions occurring in Canada and Mexico.
1.2 Month: The
word "month" shall mean a period extending from the
beginning of the first day in a calendar month to the
beginning of the first day in the next succeeding calendar
month.
1.3 Maximum
Daily Quantity: The term "Maximum Daily Quantity"
(MDQ)shall mean the maximum daily quantity in Dth of gas which
GTN agrees
to deliver exclusive of an allowance for compressor
station fuel, line loss and other unaccounted for gas and
transport for the account of Shipper to Shipper's point(s) of
delivery on each day during each year during the term of
Shipper's Transportation Service Agreement with GTN.
1.4 Marketing
Affiliate: The term "marketing affiliate" shall mean
Pacific Gas and Electric Company and CEG Energy Options Inc.
1.5 Gas: The
word "gas" shall mean natural gas.
1.6 Cubic Foot
of Gas: The term "cubic foot of gas" is defined in
accordance with NAESB Standard 2.3.9, Version 1.5, as that
quantity of gas which measures one (1) cubic foot at standard
conditions of 14.73 dry psia, 60 degrees F. For gas volumes
reported in cubic meters, the standard conditions are 101.325
kPa, 15 degrees C. Standard 2.3.9, Version 1.5 states in full
"Standardize the reporting basis for Btu as 14.73 psia and 60
degrees F (101.325 kPa and 15 degrees C, and dry). Standardize
the reporting basis for gigacalorie as 1.035646 Kg/cm2 and
15.6 degrees C and dry. Standardize the reporting basis for
gas volumes as cubic foot at standard conditions of 14.73
psia, 60 degrees, F and dry. For gas volumes reported in cubic
meters, the standard conditions are 101.325 kPa, 15 degrees C,
and dry."
1.7 Mcf: The
term "Mcf" shall mean one thousand (1,000) cubic feet
of gas and shall be measured as set forth in Paragraph 5
hereof. The term "MMcf" shall mean one million (1,000,000)
cubic feet of gas.
Issued by: John A Roscher, Director of
Rates & Regulatory Affairs
Issued on: October 7, 2003
Effective on: October 6, 2003
<PAGE>
Gas Transmission Northwest Corporation
FERC Gas Tariff
Original Sheet No. 102
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
1.
DEFINITIONS (Continued)
1.8 Dekatherm:
The term "Dekatherm" (or "Dth") is the quantity of
heat energy equivalent to one million (1,000,000 British
Thermal Units (MMBtu). Dth is the standard quantity for
Nominations, confirmations and Scheduled Quantities in the
United States. For purposes of this tariff and associated
Service Agreements, the terms MMBtu and Dth are synonymous.
1.9 Btu: The
term "Btu" shall mean British Thermal Unit. The term
"MMBtu" shall mean one million (1,000,000) British Thermal
Units. The reporting basis for Btu shall be standardized as
14.73 dry psia and 60 degrees (60o) Fahrenheit (101.325 kPa
and 15.6 degrees C).
1.10
Gross Heating Value. The term "gross heating value" shall mean
the number of Btus in a cubic foot of gas at a temperature of
sixty degrees (600) Fahrenheit, saturated with water vapor,
and at an absolute pressure equivalent to thirty (30) inches
of mercury at thirty-two degrees (320) Fahrenheit.
1.11
Psig. The term "psig" shall means pounds per square inch
gauge.
1.12
Releasing Shipper: A firm transportation Shipper which intends
to post its service to be released to a Replacement Shipper,
has posted the service for release, or has released its
service.
1.13
Replacement Shipper: A Shipper which has contracted to utilize
a Releasing Shipper's service for a specified period of time.
1.14
Posting Period: The period of time during which a Releasing
Shipper may post, or have posted by the pipeline, all or a
part of its service for release to a Replacement Shipper.
1.15
Release Term: The period of time during which a Releasing
Shipper intends to release, or has released all or a portion
of its contracted quantity of service to a Replacement
Shipper.
(Continued)
Issued by: John A Roscher, Director of
Rates & Regulatory Affairs
Issued on: October 7, 2003
Effective on: October 6, 2003
<PAGE>
Gas Transmission Northwest Corporation
FERC Gas Tariff
Original Sheet No. 103
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
1.
DEFINITIONS (Continued)
1.16
Bid Period: The period of time during which a Replacement
Shipper may bid to contract for a parcel which has been posted
for release by a Releasing Shipper.
1.17
Parcel: The term utilized to describe an amount of capacity,
expressed in Dth/d, from a specific receipt point to a
specific delivery point for a specific period of time which is
released and bid on pursuant to the capacity release
provisions contained in Paragraph 28 of these Transportation
General Terms and Conditions.
1.18
Primary Release: The term used to describe the release of
capacity by a Releasing Shipper receiving service under a Part
284 firm
transportation rate schedule.
1.19
Secondary Release: The term used to describe the release of
capacity by a Replacement Shipper receiving service under a
Part 284 firm transportation rate schedule.
1.20
Bid Reconciliation Period: The period of time subsequent to
the Bid Period during which bids are evaluated by GTN.
1.21
Match Period: The period of time subsequent to the Bid
Reconciliation Period and before the notification deadline for
awarding capacity for Prearranged Deal C during which the
Prearranged Shipper may match any higher bids for the Parcel.
1.22
Mainline Facilities: The term "Mainline Facilities" shall mean
the 36-inch and 42-inch mains and appurtenant facilities
extending from the interconnection with the pipeline
facilities of Alberta Natural Gas Company and Foothills Pipe
Lines (South B.C.) Ltd., near Kingsgate, British Columbia to
the interconnection with the pipeline facilities of Pacific
Gas and Electric Company near Malin, Oregon.
(Continued)
Issued by: John A Roscher, Director of
Rates & Regulatory Affairs
Issued on: October 7, 2003
Effective on: October 6, 2003
<PAGE>
Gas Transmission Northwest Corporation
FERC Gas Tariff
Original Sheet No. 104
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
1.
DEFINITIONS (Continued)
1.23
Extension Facilities: The term "Extension Facilities" shall
mean the 12-inch mains and appurtenant facilities extending
from GTN's mainline facilities at Milepost 304.25 and the
16-inch and 12-inch mains and appurtenant facilities extending
from GTN's Mainline Facilities at Milepost 599.20 that were
authorized in Docket No. CP93-618-000. The term "Extension
Facility" shall mean one of the Extension Facilities.
1.24
Subject Shipper: The term "Subject Shipper" shall mean the
Shippers identified in Appendix G of the Stipulation and
Agreement in Docket No. RP94-149-000, et al., and Shippers
that have obtained service rights from such Shippers.
1.25
Nominations: A "Nomination" shall be the provision of
information to GTN necessary to effectuate a transportation
transaction. Specific Nomination procedures are set forth in
Section 19.4 of the General Terms and Conditions of
Transporter's FERC Gas Tariff.
1.26
Intraday Nomination: An "Intraday Nomination" is a Nomination
submitted
after the Nomination deadline whose effective time
is no earlier than the beginning of the Gas Day and runs
through the end of the Gas Day.
1.27
Gas Industry Standards Board Standards: The term "Gas Industry
Standards Board Standards" or "GISB Standards" shall mean the
standardized business practices and electronic communication
practices promulgated by the Gas Industry Standards Board from
time to time and incorporated in the Code of Federal
Regulations by the Federal Energy Regulatory Commission.
1.28
CES Capacity: The term "CES Capacity" shall mean the
additional firm capacity on GTN's Mainline Facilities between
the northernmost point near Kingsgate, British Columbia, and
points downstream thereof that was made available for
subscription on a firm basis as a result of the expansion of
GTN's system authorized in Docket No. CP98-167.
Issued by: John A Roscher, Director of
Rates & Regulatory Affairs
Issued on: October 7, 2003
Effective on: October 6, 2003
<PAGE>
Gas Transmission Northwest Corporation
FERC Gas Tariff
Original Sheet No. 105
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
1.
DEFINITIONS (Continued)
1.29
Forward Haul: The term "Forward Haul" shall refer to
transportation service on GTN's system in which the nominated
direction of flow from receipt point to delivery point is in
the same direction as physical gas flow on the GTN system.
1.30
Backhaul: The term "Backhaul" shall refer to transportation
service on GTN's system in the opposite direction of a Forward
Haul as defined in Section 1.29 above.
1.31
Primary Path: The term "Primary Path" shall mean the
transportation path established by the receipt and delivery
points as set forth in Shipper's executed Service Agreement. A
shipper's Primary Path may be either a Forward Haul or a
Backhaul as defined in Sections 1.29 and 1.30 above.
1.32
Reverse Path: The term "Reverse Path" shall mean the
transportation path that is in the opposite direction of that
Shipper's Primary Path as defined in Section 1.31 above. A
shipper's Reverse Path may be either a Forward Haul or a
Backhaul as defined in Sections 1.29 and 1.30 above. Reverse
Path transactions are subject to the operating conditions of
GTN's pipeline and will not be made available to Shipper if
GTN determines, in its sole discretion, that such
transportation is operationally infeasible or otherwise not
available.
1.33
Negotiated Rate. The term "Negotiated Rate" shall mean a rate
(including a Negotiated Rate Formula) that GTN and a Shipper
have agreed will be charged for service under Rate Schedules
FTS-1, LFS-1, ITS-1, AIS-1 or PS-1 where, for all or a portion
of the contract term, one or more of the individual components
of such rate may exceed the maximum rate, or be less than the
minimum rate, for such component set forth in GTN's tariff for
the given service. Any Agreement entered into after the
effective date of this subsection which provides for a rate
under Rate Schedules FTS-1, LFS-1, ITS-1, AIS-1 or PS-1 other
than the applicable maximum rate shall contain a provision
setting out the mutual agreement of the parties as to whether
the pricing terms represent a discounted rate or a negotiated
rate.
(Continued)
Issued by: John A Roscher, Director of
Rates & Regulatory Affairs
Issued on: October 7, 2003
Effective on: October 6, 2003
<PAGE>
Gas Transmission Northwest Corporation
FERC Gas Tariff
Original Sheet No. 106
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
1.
DEFINITIONS (Continued)
1.34
Negotiated Rate Formula. The term "Negotiated Rate Formula"
shall mean a rate formula that GTN and a Shipper have agreed
will apply to service under a specific contract under Rate
Schedules FTS-1, LFS-1, ITS-1, AIS-1 or PS-1 which results in
a rate where, for all or a portion of the contract term, one
or more of the individual components of such rate may exceed
the maximum rate, or may be less than the minimum rate, for
such component set forth in GTN's Tariff for the given
service.
1.35
Recourse Rate. The term "Recourse Rate shall mean the
applicable maximum rate that would apply to a service but for
the rate flexibility allowed under Section 31 of this Gas
Tariff.
Issued by: John A Roscher, Director of
Rates & Regulatory Affairs
Issued on: October 7, 2003
Effective on: October 6, 2003
<PAGE>
Gas Transmission Northwest Corporation
FERC Gas Tariff
Sheet No. 107
Third Revised Volume No. 1-A
Reserved For Future Use
Issued by: John A Roscher, Director of
Rates & Regulatory Affairs
Issued on: October 7, 2003
Effective
on: October 6, 2003
<PAGE>
Gas Transmission Northwest Corporation
FERC Gas Tariff
Original Sheet No. 108
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
2. GAS
RESEARCH INSTITUTE CHARGE ADJUSTMENT PROVISION
2.1 Purpose:
GTN has joined with other gas enterprises in the
formation of, and participation in, the activities and
financing of the Gas Research Institute (GRI), an Illinois Not
For Profit corporation. GRI has been organized for the purpose
of sponsoring Research, Development and Demonstration
(RD&D)
programs in the field of natural and manufactured gas for the
purpose of assisting all segments of the gas industry in
providing adequate, reliable, safe, economic and
environmentally acceptable gas service for the benefit of gas
consumers and the general public.
For the purpose of funding GRI's approved expenditures, this
Paragraph 2 establishes a GRI Adjustment Charge to be
applicable to GTN's Rate Schedules ITS-1, AIS-1, PS-1 and
FTS-1 in this FERC Gas Tariff, Third Revised Volume No. 1-A;
provided, however, such charge shall not be applicable in the
event gas is delivered to a downstream interstate pipeline
that is a member of GRI.
2.2 Basis for
the GRI Adjustment Charges: The rate schedule
specified in Paragraph 2.1 hereof shall include an increment
for a GRI Adjustment Charge for RD&D. Such GRI Adjustment
Charge shall be that increment, adjusted to GTN's pressure
base and heating value if required, which has been approved by
Federal Energy Regulatory Commission Orders approving GRI's
RD&D expenditures. The GRI Adjustment Charge shall be
reflected in the current Statement of Effective Rates and
Charges for Transportation of Natural Gas in this FERC Gas
Tariff, Third Revised Volume No. 1-A.
2.3 Filing
Procedure: The notice period and proposed effective
date of filings pursuant to this paragraph shall be as
permitted under Section 4 of the Natural Gas Act; provided,
however, that any such filing shall not become effective
unless it becomes effective without suspension or refund
obligation.
2.4 Remittance
to GRI: GTN shall remit to GRI, not later than
fifteen (15) days after the receipt thereof, all monies
received by virtue of the GRI Adjustment Charge or the Check
the Box procedure, less any amounts properly payable to a
Federal, State or Local authority relating to the monies
received hereunder.
(Continued)
Issued by: John A Roscher, Director of
Rates & Regulatory Affairs
Issued on: October 7, 2003
Effective on: October 6, 2003
<PAGE>
Gas Transmission Northwest Corporation
FERC Gas Tariff
Original Sheet No. 109
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
2. GAS
RESEARCH INSTITUTE CHARGE ADJUSTMENT PROVISION (Continued)
2.5 A high
load factor Shipper is a Shipper with a load factor
greater than fifty (50) percent. A low load factor Shipper is
a Shipper with a load factor equal to or less than fifty (50)
percent. A Shipper's load factor for each service agreement
shall be determined annually using the most recent twelve (12)
months of actual throughput available (including throughput
using capacity released pursuant to Paragraph 28 of the
Transportation General Terms and Conditions). The Shipper's
load factor shall remain in effect during the calendar year.
In the event twelve (12) months of actual data does not exist,
the Shipper's load factor shall be determined monthly based on
the latest recorded throughput data. The appropriate GRI
demand surcharge is applied monthly until such time as twelve
(12) months of actual data is accumulated. At such time the
Shipper's load factor shall remain in effect during the
calendar year.
2.6 For the
purpose of funding GRI's approved expenditures, and
subject to the further terms and conditions set forth in the
Stipulation and Agreement Concerning the Post-1993 GRI Funding
Mechanism and the orders approving such Stipulation and
Agreement found at Gas Research Institute, 62 FERC P. 61,316
(1993) this Paragraph 2 establishes a GRI Funding Unit which
shall be collected for quantities of gas transported under
GTN's rate schedules provided, however, such charge shall not
be applicable to discounted transactions except where the
discounted rate is less than the GRI Funding Unit. In this
instance GTN shall remit that portion of the GRI Funding Unit
actually collected. For purposes of discounted transactions,
any GRI Funding Unit shall be considered to be the first
component of rates discounted. The GRI Funding Unit may be
discounted to zero and shall not be applied to the same
quantity of gas more than once.
2.7 Voluntary
GRI Contributions. GTN has agreed to be a collection
agent for shippers that voluntarily choose to support GRI
through a "check the box" procedure on GTN's invoices. Amounts
collected will be remitted to GRI in accordance with the
requirements of Section 2.4 of this FERC Gas Tariff. The
amounts collected pursuant to this procedure will not be part
of GTN's rates.
(Continued)
Issued by: John A Roscher, Director of
Rates & Regulatory Affairs
Issued on: October 7, 2003
Effective on: October 6, 2003
<PAGE>
Gas Transmission Northwest Corporation
FERC Gas Tariff
Original Sheet No. 110
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
3.
QUALITY OF GAS
3.1 Quality
Standards: The gas which Shipper delivers hereunder to
GTN for transport (and the gas which GTN transports hereunder
for Shipper) shall be merchantable gas at all times complying
with the following quality requirements:
(a) Heating
Value: The gas shall have a gross heating
value of not less than nine hundred ninety-five (995)
Btus per standard cubic foot on a dry basis, but with
the consent of Shipper, GTN may deliver gas at a
lower gross heating value.
(b) Freedom
from Objectionable Matter: The gas:
(1) Shall be
commercially free from sand, dust,
gums, crude oil, impurities and other
objectionable substances which may be
injurious to pipelines or which may
interfere with its transmission through
pipelines or its commercial utilization.
(2) Shall not
have a hydrocarbon dew-point in
excess of fifteen degrees (15m) Fahrenheit
at pressures up to eight hundred (800) psig.
(3) Shall not
contain more than one-quarter
(1/4) grain of hydrogen sulfide per one
hundred (100) standard cubic feet.
(4) Shall not
contain more than ten(10) grains
of total sulphur per one hundred (100)
standard cubic feet.
(5) Shall not
contain more than two percent (2%)
by volume of carbon dioxide.
(6) Shall not
contain more than four (4) pounds
of water vapor per one million (1,000,000)
standard cubic feet.
(7)
Shall not
exceed one hundred ten degrees
(110m) Fahrenheit in temperature at the
point of measurement.
(8) Shall be
as free of oxygen as it can be kept
through the exercise of all reasonable
precautions, and shall not in any event
contain more than four-tenths of one percent
(0.4%) by volume of oxygen.
(Continued)
Issued by: John A Roscher, Director of
Rates & Regulatory Affairs
Issued on: October 7, 2003
Effective on: October 6, 2003
<PAGE>
Gas Transmission Northwest Corporation
FERC Gas Tariff
Original Sheet No. 111
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
3.
QUALITY OF GAS (Continued)
3.2 Quality
Tests:
(a) The
quality specifications of the gas received by GTN
hereunder shall be determined by tests which GTN
shall cause to be made at the International Boundary
or such other locations on GTN's system if required
accordance with this Paragraph 3.2.
(b) The gross
heating value of gas delivered hereunder
shall be determined from read-outs of continuously
operating measuring instruments. The method shall
consist of one or more of the following:
(1)
calorimeter
(2) gas
chromatograph
(3) any other
method mutually agreed upon by the
parties.
Measurement of gross heating value with the
calorimeters shall comply with the standards set
forth in the American Society for Testing and
Materials' ASTM D 1826. Analysis of gas with gas
chromatograph shall comply with the standards set
forth in ASTM D 1945. Calculation of the gross
heating value from compositional analysis by gas
chromatography shall comply with the standards set
forth in ASTM D 3588.
GTN or its agent shall calibrate and maintain the
gross heating value measurement device at intervals
as agreed upon by GTN and Shipper. Shipper shall have
access to GTN's devices and shall be allowed to
inspect the sevices and all charts or other records
of measurement at any reasonable time.
(Continued)
Issued by: John A Roscher, Director of
Rates & Regulatory Affairs
Issued on: October 7, 2003
Effective on: October 6, 2003
<PAGE>
Gas Transmission Northwest Corporation
FERC Gas Tariff
Original Sheet No. 112
Third Revised Volume No. 1-A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
3.
QUALITY OF GAS (Continued)
3.2 Quality
Tests (Continued)
(c) Tests
shall be made to determine the total sulphur,
hydrogen sulfide, carbon dioxide and oxygen content
of the gas, by approved standard methods in general
use in the gas industry, and to determine the
hydrocarbon dew-point and water vapor content of such
gas by methods satisfactory to the parties. Tests
shall be made frequently enough to ensure that the
gas is conforming continuously to the quality
requirements. Shipper shall have the right to require
GTN to have remedied any deficiency in quality of the
gas and, in the event such deficiency is not
remedied, the right, in addition to all other
remedies available to it by law, to refuse to accept
such deficient gas until such deficiency is remedied.
4.
MEASURING EQUIPMENT
4.1
Installation: Unless GTN and Shippers agree otherwise, all gas
volume measuring equipment, devices and materials at the
point(s) of receipt and/or delivery shall be furnished and
installed by GTN at Shipper's expense including the tax-on-tax
effect. All such equipment, devices and materials shall be
owned, maintained and operated by GTN. Shipper may install and
operate check measuring equipment provided it does not
interfere with the use of GTN's equipment.
4.2 Testing
Meter Equipment: The accuracy of either GTN's or
Shippers measuring equipment shall be verified by test, using
means and methods acceptable to the other party, at intervals
mutually agreed upon, and at other times upon request. Notice
of the time and nature of each test shall be given by the
entity conducting the test to the other entity sufficiently in
advance to permit convenient arrangement for the presence of
the representative of the other entity. If, after notice, the
other entity fails to have a representative present, the
results of the test shall nevertheless be considered accurate
until the next test. If any of the measuring equipment is
found to be registering inaccurately in any percentage, it
shall be adjusted at once to read as accurately as possible.
All tests of such measuring equipment shall be made at the
expense of the entity conducting the same, except that the
other entity shall bear the expense of tests made at its
request if the inaccuracy is found to be two percent (2%) or
less.
(Continued)
Issued by: John A Roscher, Director of
Rates &a