Negotiated Rate Agreements


 

Pipeline and ENI USA Gas Marketing LLC ("Shipper") have entered into a Service Agreement dated as

of November 20, 2008, pursuant to which Shipper will pay Pipeline a negotiated rate for firm

transportation service provided under Rate Schedule FT. In accordance with Section 27 of the

General Terms and Conditions, the following information is provided with respect to such Service

Agreement:


 

Contract No.: 001

Term: 20 years (commencing on June 30, 2009)

Shipper Name: Eni USA Gas Marketing, LLC

Negotiated Rate or Rate Formula: $.0355 Dth/day (reservation charge)* plus

the applicable commodity charge** plus Fuel Retainage Percentage and

applicable surcharges***

Applicable Rate Schedules: Rate Schedule FT

Receipt Point(s): Cameron LNG Terminal

Delivery Point(s): Interconnection of Pipeline with Transcontinental Gas

Pipeline

Contract Quantities:


 

Maximum Daily Transportation Quantity: 623,000 Dth per Gas

Day;

Maximum Annual Transportation Quantity: 227,395,000 Dth.


 


 


 

Affirmation: The effective Service Agreement either does not deviate in any material aspect from

the form of Service Agreement in this Tariff, or Pipeline has sought approval from the Commission

of any material deviation(s).


 

*The reservation charge is subject to adjustment as follows: (a) if, at any time, the total

capacity of Pipeline subject to contracts on a firm basis with a primary term of at least five

years equals or exceeds 1,890,000,000 Dth/day, the reservation charge shall be $.0329 Dth/day; and

(b) if, at any time, the total capacity of Pipeline subject to contracts on a firm basis with a

primary term of at least five years equals or exceeds 2,130,000,000 Dth/day, the reservation

charge shall be $.0292 Dth/day.


 

** The commodity charge shall be an amount per Dth equal to .02 multiplied by the applicable

reservation charge.


 

***Each month, Pipeline shall credit to Shipper and other Rate Schedule FT Negotiated Rate

Shippers 80% of the sum of the previous months Rate Schedule AOS and IT revenues, based on

Shipper's and each other such Shippers pro rata share of the total then authorized transportation

capacity of Pipeline.