STATEMENT OF EFFECTIVE RATES AND CHARGES
NEGOTIATED RATE AGREEMENTS UNDER RATE SCHEDULE FTS-1
Explanatory Footnotes for Negotiated Rates
Under Rate Schedule FTS-1
5/ (Continued)
(2) This provision applies only to the portion of capacity held by
Shipper in excess of 90,000 Dth.
(3) The New Rate shall only apply for the duration of the term of
service provided to the Third Party Shipper, but in no event shall
apply beyond the term of this rate protection provision.
(4) This provision terminates December 31, 2017. If the capacity held
by Shipper is permanently assigned or released to a similarly-
situated replacement shipper, the rate protection provision shall be
extended to such replacement shipper.
6/ The transportation rate under this Agreement is a negotiated rate
consisting of a monthly reservation fee equal to $0.1019 times 30.4 days
for each month, plus a delivery rate of $0.0031 per Dth, plus ACA.
Shipper shall reimburse Transporter for fuel, line loss, and other
unaccounted for gas in kind at a rate of 0.7%. This rate shall be fixed
for the term of this Agreement.
Rate Protection Provision:
(1) This provision applies only to gas that is delivered to NBP at
Ehrenberg, AZ. To the extent NBP and Gasoducto Bajanorte ("GB")
separately provide long-term (greater than 364 days) firm
transportation service to a Third Party Shipper in the Western Zone
at a combined rate that is lower than $0.270 per Dth on a 100% load
factor basis (excluding non-pipeline surcharges), or in the Mexicali
Zone at a combined rate that is lower than $0.245 per Dth, then the
rate applicable to Shipper for service on NBP shall be reduced in
accordance with the following formula:
NR = OR - ((CTR - TPR) x 0.4286)
Where: NR = New Rate level at which Shipper will receive service on
NBP. Resulting unit rate will be converted to a
reservation/delivery structure where the delivery rate
will equal three (3) percent of the NR;
OR = Shipper's negotiated Original Rate on NBP or $0.105 per
Dth on a 100% load factor basis;
CTR = Competitive Threshold Rate which is $0.270 per Dth for
the Western Zone and $0.245 per Dth for the Mexicali
Zone; and
TPR = Third Party Rate for the combined NBP and GP path.
(Continued)
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