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TWP Pipeline LLC
FERC GAS TARIFF
SECOND REVISED VOLUME NO. 1

SECTION 7.20
NEW FACILITIES POLICY
VERSION 3.0.0

GENERAL TERMS AND CONDITIONS

    
    
    7.20.  NEW FACILITIES POLICY
    
        7.20.1. Transporter is under no obligation to build, acquire and/or 
                install new or expanded pipelines, taps and metering facilities 
                necessary to provide transportation service to any new or existing 
                Shipper.  Transporter may construct facilities on a 
                non-discriminatory basis.
    
        7.20.2. Except as provided in Section 7.20.4, Shipper shall reimburse 
                Transporter:  (a) for the costs of any facilities installed 
                by Transporter with Shipper's consent to receive, measure, 
                transport or deliver Gas for Shipper's account, and (b) for 
                any and all filing fees required in connection with Shipper's 
                FT or IT Agreement that Transporter is obligated to pay to the 
                Commission.  Any reimbursement due Transporter by Shipper shall 
                be due and payable to Transporter within ten (10) days receipt 
                of Transporter's bill.  Transporter may consent that such 
                reimbursement, plus carrying charges thereon, be amortized over 
                a mutually agreeable period.  Carrying charges shall be computed 
                using Commission-established interest rates.
    
        7.20.3. For the purposes of this section, Transporter's construction, 
                acquisition, and/or installation costs shall include, but shall 
                not be limited to:  Transporter's design costs, equipment costs, 
                labor costs, material costs, supervision costs, construction 
                financing costs (including a return on equity), taxes (whether 
                income or otherwise), operating fees, filing fees, right of way 
                costs, environmental compliance costs and permitting costs.
    
        7.20.4. Transporter may waive all or a portion of the facility cost 
                reimbursement requirement if Transporter determines that the 
                expected throughput, revenues or other benefits make construction 
                of the facilities economical to Transporter.  Transporter shall 
                treat requests for waiver in a manner which is not unduly 
                discriminatory.

        7.20.5. Within ninety (90) days after commencing service for the 
                requesting Shipper, Transporter shall determine the actual 
                cost of constructing and installing the requested facilities.  
                If the actual cost is less than the new facilities cost paid 
                by the requesting Shipper under this section, the difference 
                shall be refunded to the requesting Shipper within thirty (30) 
                days of such determination.  If the actual costs is greater than 
                the new facilities cost paid by the requesting Shipper under 
                this section, the difference shall be paid by the requesting 
                Shipper within thirty (30) days of such determination.
    
        7.20.6. Unless mutually agreed otherwise by Transporter and Shipper, 
                Transporter shall have title to, own and operate all new 
                facilities added to its system pursuant to this section.

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