Tariff Section 1.3: General Business Policies

A) General Business Policy

I. For Future Use

II. Transportation General Business Policies

A. Non-Facility 

1. Points of Supply and Delivery

1.1. Receipt and Delivery Points 

For Delivery Transportation Service, each Service may have as many Points of Delivery as the Customer wishes.  Each Point of Delivery requires a Contract Demand or Maximum Daily Quantity.  The Customer will be invoiced for each Point of Delivery, including one (1) Basic Monthly Charge for each Point of Delivery on the TransGas Contract, where applicable. 

For Receipt Transportation Service, except Service which initiates at NIT, each Service may have as many Points of Receipt as the Customer wishes. Each Point of Receipt has a Contract Demand.  All the Contract Demands are summed to arrive at the total Contract Demand for the Receipt Transportation Service.

Receipt Transportation Service that initiates at NIT will be contracted for under a separate Service.  

1.2 Point-to-Point Transportation Service 

Point-to-Point Transportation Service includes any transportation Service flowing directly from a Point of Receipt to a Point of Delivery as agreed to between TransGas and Customer to meet specific Customer needs. 

For Point-to-Point Transportation Service, the Gas will flow from the Point of Receipt to the Point of Delivery, as specified on the TransGas Contract, and will not flow through TEP. 

The toll for Point-to-Point Transportation Service includes a receipt component and a delivery component plus any Fuel Gas and Unaccounted for Gas requirement. 

1.3 Energy Pool 

Each Customer holding a valid transportation or Storage Service will be provided a TEP Service at no additional charge. 

If the Customer does not hold a valid transportation Service, Customer may request a TEP Service.  This Service will be subject to costs as specified in the Rates and Charges section of the Tariff. 

All Gas flowing to or from TEP must flow into or from Shipper’s own Shipper’s Imbalance Account.

1.4 Multiple Delivery Services 

Customer may have more than one Delivery Transportation Service to one Point of Delivery. 

For Direct Purchase Points of Delivery, no more than one Shipper may hold Delivery Transportation Service to that Point of Delivery. 

There may be more than one Point of Delivery at a Customer’s facility under separate metering.  If the Customer requests separate metering, then the cost of the separate metering is the Customer’s responsibility. 

If a Customer currently has two or more Services running to one location (being a contiguous piece of property), the Customer may amalgamate these Services.  The cost of the amalgamation is the Customer’s responsibility. 

Separate metering may be required by TransGas for those Customers requesting Summer Use Service with year-round requirements. A separate meter will not be required if the Customer’s Summer Use component can be otherwise determined. 

2. Common Stream Operations 

2.1 Common Stream Operator 

At each Point of Receipt, one Person is appointed, usually by mutual consent, the CSO.  At TEP, TransGas is the CSO. 

2.2 Common Stream Operations Service 

TransGas and the CSO will have one Common Stream Operations TransGas Contract that will list all the Receipt Transportation Services under the CSO’s responsibility at each Point of Receipt. 

2.3 Transportation Service 

Customers who hold transportation Service are bound to the Common Stream Operations Service Specification including the Terms and Conditions. 

3. Security 

3.1 Customer Specific Costs 

TransGas reserves the right to request security equal to the TransGas Investment portion of the Customer Specific Facilities costs if the level of project risk is deemed higher than acceptable to TransGas. 

TransGas reserves the right to request Information pertaining to Customer's project in order to assess the level of risk. 

Security must be in place prior to the first flow of Gas under the applicable Receipt or Delivery Transportation Service. 

3.2 Account Security 

TransGas requires security to be posted for all transportation and Storage Services where, in the opinion of TransGas, there is potential account risk. 

The determination of account security is solely at the discretion of TransGas. 

TransGas reserves the right, at any time during the term of the Service, to request account security in an amount of up to six (6) Months’ anticipated revenue from those accounts it deems to have potential account risk. 

3.3 Financing Security 

TransGas reserves the right to request security for up to the total amount of a Customer’s share of Customer Specific Facilities financed by TransGas. 

3.4 Term of Security 

Security posted for the TransGas Investment in Customer Specific Facilities costs will remain in effect for the Initial Term as defined in the Service Specification.  Once the Initial Term has expired, the security will be returned to the Customer. 

Security posted for account security is subject to review by TransGas after one (1) year. 

3.5 Termination of Service 

Upon early termination of the transportation Service, the posted security may be used to cover the unrecovered portion of the TransGas Investment. 

3.6 Temporary Assignments 

If TransGas has deemed that either or both account and project security is required, then, in the event of a temporary Assignment, the Assignor shall remain obligated to post such security. 

4. Shipper Eligibility 

4.1 Intra-Provincial Transportation 

Any intra-provincial Customer can apply for Delivery Transportation Service.   

4.2 Receipt and Delivery Transportation 

Any Customer may hold the Receipt Transportation Service, the Delivery Transportation Service or both. 

5. Summer Use Service 

5.1 Applicability 

Summer Use Service is applicable to all intra-Provincial Delivery Customers whose operational year extends between April 1 and September 30. 

5.2 Extension of Time Frame  

Summer Use Customers may not begin operation prior to, nor extend operations past the time frame of April 1 — September 30 without prior approval from TransGas.  Those Customers wishing to extend this time frame must apply for standard Interruptible Service. 

5.3 Basic Monthly Charge 

A Summer Use Customer does not pay the Basic Monthly Charge for the period extending from October 1 to March 31 under the Summer Use Service if the transportation Service has not been utilized. 

5.4 Year-Round Consumption 

A separate meter may be required to separately identify Summer Use consumption from year-round consumption for those Customers requesting Summer Use Service with year-round requirements.  A separate meter will not be required if TransGas can otherwise determine the Customer’s Summer Use component. 

5.5 Disconnection 

Subject to provisions in Items 5.2 and 5.4 above, a Summer Use Customer is disconnected at the end of an operational year. 

5.6 Average Monthly Consumption 

A Summer Use Customer is required to maintain a minimum average Monthly consumption of 550 GJ’s over each operational year. 

6. TransGas Energy Pool 

6.1 Nominations 

To deliver Gas to TEP, a Shipper must place a Nomination, under a valid Receipt Transportation Service, a Point-to-Point Transportation Service (Diverted), or Storage Service with TransGas.  The Nomination must indicate the amount of Energy, in GJ's, to be delivered to Shipper’s Imbalance Account. 

To receive Gas from TEP, a Shipper must place a Nomination, under a valid Delivery Transportation Service or Storage Service, with TransGas.  The Nomination must indicate the amount of Energy, in GJ's, to be delivered from Shipper’s Imbalance Account. 

Nominations may also be placed to move Gas from one Shipper’s Imbalance Account at TEP to another Shipper’s Imbalance Account at TEP (Title Transfer). 

B. Facility

1. Standard Investment Policy 

1.1 Applicability 

Standard Investment Policy applies to all new and existing Customers, who are adding Customer Specific Facilities. 

Customer(s) shall pay all costs of Customer Specific Facilities except those costs covered by TransGas Investment.  New Customers at an existing facility will be required to contribute toward their allocated share of prior Customer Specific Facility costs not covered by TransGas Investment. 

The Customer Specific Facilities will remain the property of TransGas. 

1.2 Transportation 

For both Firm and Interruptible Service, TransGas will invest in Customer Specific Facilities at both the Point of Receipt and the Point of Delivery.  The level at which TransGas will invest is outlined in Clause 1.6. 

For TransGas Investment at the time of contracting, a minimum 1-year term is required.  For short-term Firm Service and Interruptible Service, a deferred investment is available within the initial 5 years of facility operation.  The deferred TransGas Investment on Interruptible Service is calculated based on the actual annual transport quantities and the deferred short term Firm Service Investment is based on the actual Contract Demand.   

1.3 Non-Standard Service 

If the Customer requests non-standard Service, the Customer will be required to pay all costs incurred to provide non-standard Service.  This is not subject to rebate. 

1.4 Customer Specific Facility Costs 

System Lines are not included in the calculation of Customer contributions. 

Customer Specific Facilities may include an allocated portion of existing non-System Line facilities.  Further, TransGas, at its discretion and acting reasonably, may deem System construction, required to meet a new Service request, to be Customer Specific Facility Construction. 

1.5 Refund of Capital Contribution 

If another Customer begins to utilize a Customer Specific Facility within the initial 5 years, then the original Customer(s) may receive a proportionate refund of their capital contribution.  No interest is paid on the refund of capital contributions. 

If a Customer Specific Facility is deemed to have become a part of System Line within 5 years, all Customers on that line will receive a full refund of their capital contribution associated with that facility. 

In the event Customer elects a temporary Assignment of transportation Service, Customer (Assignor) shall retain all rights to any rebates of outstanding Customer contributions, which may occur during the period of the temporary Assignment. 

In the event Customer elects a permanent Assignment of transportation Service, Customer (Assignor) shall have assigned all rights and obligations, including any rebates of outstanding Customer contributions for the Capacity assigned away as of the Effective Date of the permanent Assignment. 

In regards to Receipt Customer Specific Facilities, a change of Common Stream Operator does not automatically transfer the rights to any rebates of outstanding Customer contributions to the new Common Stream Operator, which the previous Common Stream Operator may have had.  In order to transfer these rights, if applicable, to the new Common Stream Operator, in the absence of a transportation Service Agreement transferring these rights, an Assignment of the TransGas Contract relevant to these rights must be executed by both parties. 

1.6 Standard Investment Levels 

TransGas will invest in Customer Specific transmission facilities an amount up to the levels indicated in the table below. 

The maximum TransGas Investment level (over five year period) is equivalent for all Customers.  This is expressed above on a Contract Demand basis per year of term for demand Customers.  For non-demand Customers, the investment will be a deferred investment over a 5 year timeframe, and calculated using the investment levels above applied to the actual transport quantity each year. 

1.7 Financing Option 

TransGas will consider financing a Customer’s share of Customer Specific Facility costs.  A minimum down payment of 25 percent is required.  Security may be required. 

Financing will be available for up to 2 years for Interruptible Service or the length of a Firm Service term. 

The financing rate of interest will be set to provide TransGas with similar returns to those being earned by TransGas on its other activities. 

1.8 Discounted Cash Flow Investment 

At its discretion, TransGas may utilize a discounted cash flow analysis to determine the appropriate level of TransGas Investment in a project. 

In utilizing the discounted cash flow analysis, TransGas will determine the appropriate required rate of return and the time frame over which that return will be earned.  The standard cash flow analysis will recognize all incremental capital costs, operating costs, other costs, and revenues. 

To be eligible for TransGas Investment based on a discounted cash flow analysis, a longer term of Service may be required. 

1.9 Transfer of Firm Demand 

Transfer requests from Points of Receipt or Delivery at which TransGas has invested will be considered providing the Customer reimburses TransGas for any remaining portion of the TransGas Investment.  Such a reimbursement shall not remove Customer’s obligation for Demand Charge payments for the duration of the Service.  [See General Business Policies A).II.g).6) Transfer of Firm Demand, for more information.] 

For Contract Demand transferred into a Point of Receipt or Delivery that utilizes a Customer Specific Facility within the initial 5 years, TransGas may invest in the remaining term of such Contract Demand, providing the remaining term is 1 month or longer.  Remaining terms of 1 year or more may attract TransGas Investment at the time of the transfer.  Investments in remaining terms of less than one year will be on a deferred basis. 

2. System Line Designation 

2.1 New Construction 

Any new construction may be considered System Line at the discretion of TransGas.  Further, at TransGas’ discretion, any construction of System Line, including the construction of Storage Facilities, may be deemed Customer Specific Facilities Construction.

2.2 Customer Specific Facilities 

All Customer Specific Facilities become System Line after 5 years from the date the facilities were available for use. 

Any Customer Specific Facilities may become System Line before 5 years if so deemed by TransGas.  Customer contribution refunds also apply. 

If the Customer reimburses TransGas for TransGas Investment, pursuant to the General Business Policies (II. G6.2 Transferring Firm Capacity), the reimbursed amount would be recognized as a Customer contribution amount paid toward the applicable Customer Specific Facility, and would be eligible for capital contribution rebates within the initial 5 years of facility operation. 

2.3 Customer Contributions 

System Lines are not included in the calculation of Customer contributions. 

3. Shipper Builds on Behalf of TransGas 

3.1 Construction Agreement to Build 

TransGas and the Customer may enter into a construction agreement to build the pipeline portion of the Customer Specific Facilities at the Customer’s sole cost and risk. 

The Customer Specific Facilities will remain the property of TransGas. 

3.2 TransGas Procedures and Specifications 

The Customer who builds on behalf of TransGas must do so in accordance with all TransGas’ procedures and specifications. 

3.3 Inspection 

TransGas reserves the right to inspect the construction to ensure that all standards are met. 

Cost of the inspection is at the Customer’s expense. 

3.4 Metering and Tie-in 

TransGas will provide and install a meter station at a location of its choice. 

TransGas will also provide the tie-in to the Gas Transmission System. 

3.5 Reimbursement 

Once the pipeline portion is completed and a “Certificate of Completion” is issued by TransGas, TransGas will reimburse the Customer an amount equal to the TransGas Investment, not to exceed TransGas' estimated total cost of the project as agreed to prior to construction. 

4. Customer Access to Field Measurement 

4.1 Points of Delivery and Receipt 

TransGas, at its discretion, will install electronic communication devices on the meters at Points of Delivery and Receipt for purposes of remote meter reading. 

TransGas, at its discretion, may elect not to install electronic communication devices at any Points of Receipt or Delivery.  However, TransGas will continue to gather metering information manually and the Customer may request one of the following: 

1. Website access – meter information presented on the TransGas website. 
2. Customer signal – a pulse signal to Customer connection point located outside the meter building. 
3. Customer display – digital display located outside the meter building. 
4. Costs to Install Electronic Communication Devices 
5. Customer is responsible for all capital costs for equipment described in Item 4.1.  TransGas Investment will not apply where TransGas has elected, at its discretion, not to install electronic communication devices. 
6. In the event TransGas, at its discretion, elects to install electronic communications devices on existing meters, TransGas will be responsible for the capital costs. 
7. In the event TransGas, at its discretion, elects to install electronic communications devices on new Points of Receipt or Delivery, such capital costs may become part to the Customer Specific Facilities to which the TransGas Investment may apply. 
8. All operations and maintenance costs related to the electronic communications devices will be the responsibility of TransGas. 

4.2 Secure Zone 

TransGas will provide password protected meter specific access to data located on the TransGas website to a Customer on the basis of the Customer’s right to access a specific receipt or delivery meter, under any TransGas Service.  

4.3 Accuracy and Timing 

Customer assumes all responsibility and risk with respect to the accuracy of the Information supplied from all options described herein.  TransGas will endeavor to have Customer signal and Customer display information available on a continuous basis and the previous Day’s information available to Customers on the TransGas website by 08:00 hours Sask Time the next Day.  

C. Energy Imbalances 

1. Energy Imbalance Adjustments 

1.1 Estimated Daily Shipper Imbalance 

Each Day, TransGas will determine the Estimated Daily Shipper Imbalance on Shipper’s Imbalance Accounts.  TransGas will also determine and provide Shipper’s Customer Daily Energy Imbalance. 

1.2

Shipper shall ensure that the Customer Daily Energy Imbalance is within the prescribed Shipper’s Allowable Daily Tolerance.  If the Customer Daily Energy Imbalance falls outside the prescribed Shipper’s Allowable Daily Tolerance, Shipper may make one of the following adjustments to mitigate the imbalance: 

1. Adjust receipt Nominations and acquire more or less Gas into Shipper’s(s) Imbalance Account. 
2. Move Gas to or from Storage. 
3. Adjust delivery Nominations for Gas leaving Shipper’s(s) Imbalance Account. 
4. Move Gas to or from Shipper’s Imbalance Account at TEP by way of Title Transfers. 

1.3

If Customer fails to meet the Balancing obligation, TransGas reserves the right to restrict flows at the Points of Receipt and Delivery, TEP and Storage to ensure compliance. 

2. Month-End Meter Reading 

2.1 General Principles 

The daily volumetric meter readings will be converted to Energy by TransGas using the applicable Heating Value. 

The Month-end volumetric meter reading will be converted to Energy by TransGas using the applicable Actual Heating Value. 

2.2 Delivery 

TransGas will attempt to read all TransGas delivery meters on the first calendar Day of each Month. 

Where meter reading on the first calendar Day of each Month is not practical, Month-end meter readings will be calculated by TransGas. 

For export Service, the Month-end delivery Energy is determined by the total daily Nominations to TransGas subject to any adjustments by downstream pipelines. 

2.3 Receipts 

Daily Point of Receipt Energy is Allocated pursuant to the Common Stream Operations Service. 

TransGas will attempt to read all TransGas receipt meters on the first calendar Day of each Month. 

Where meter reading on the first calendar Day of each Month is not practical, Month-end meter readings will be determined by TransGas. 

2.4 Electronic Metering 

TransGas will attempt to have electronic metering in place on larger locations on the System to permit the establishment of daily flows and its communication to Shippers. 

2.5 Secure Zone 

TransGas will post the Best Available Energy on the TransGas website.  Customers may apply to access their specific information by completing an Electronic Access Application form. [See Electronic Business Service Specification within this Tariff, for more information.] 

3.  Operational Flow Orders

3.1 General Principles 

When the pipeline is in a crisis or an emergency situation, as determined by TransGas in its absolute discretion, those Shippers that cause or contribute to the emergency will be accountable for the costs incurred to mitigate the emergency situation. 

An emergency situation can occur when Shipper’s Imbalance Accounts are out of balance in a manner which may, without limitation, impact the safe operation of the pipeline or hinder TransGas’ ability to meet its Firm Service obligations, in which event, TransGas may issue an Operational Flow Order (OFO). 

3.2 Operational Flow Order 

An OFO is a mechanism TransGas may activate to protect the operational integrity of the pipeline.  TransGas may issue and implement system-wide OFOs in the event of high or low pipeline inventory.  The order requires all Shippers to take immediate action to bring their account balances back within a specified Shipper’s Tolerance Percentage.  Shippers will be required to adjust their supplies or deliveries to bring their Shipper’s Imbalance Accounts into tolerance. 

3.3 OFO and Tolerance Levels 

On each Day, TransGas provides all Shippers with a Shipper’s Tolerance Percentage.  Shippers shall ensure their Shipper’s Imbalance Account is within the Shipper’s Allowable Daily Tolerance.  [See General Terms and Conditions, Article 4.]  The Shipper’s Tolerance Percentages are required to be observed since they are used by TransGas to adjust the amount of System Line pack required.  

When the Shipper’s Tolerance Percentages are adjusted by TransGas to the maximum levels of +20% to 0% or -20% to 0%, this indicates that TransGas is entering a potential crisis situation and Shippers are expected to react immediately. 

3.4 OFOs Issued to Who 

An OFO will be issued to all Shippers that may potentially cause or contribute to what TransGas deems to be an emergency situation. 

3.5 OFO Issuance 

TransGas will issue an OFO by means of an electronic message (email) to the Shippers.  Further, TransGas will attempt, on a reasonable efforts basis, to contact and confirm notice of the issuance of an OFO with Shippers via telephone.  A copy of the OFO issued will be concurrently posted on the TransGas website which will constitute deemed notice to all Shippers.  

1. Reason or Justification for the OFO
   The OFO will contain a description of the situation deemed by TransGas to be an emergency. 
2. Time and Date of Issuance
   The OFO will be issued with a time and date stamp. 
3. Compliance Deadline
   The Shipper will be required to take immediate action to bring their Shipper’s Imbalance Accounts within the specified Shipper Allowable Daily Tolerance by the compliance deadline in the OFO.  The compliance deadline will be no less that 20 hours from the time and date of issuance of the OFO. 
4. Duration of the OFO 
   The OFO will indicate the time period over which strict compliance with the Shipper Allowable Daily Tolerance will be required.  An OFO may be issued indicating it will be in effect until further notice to the Shippers.  TransGas will take all reasonable actions to limit the duration an OFO is in effect and will promptly notify Shippers once same is no longer required. 
5. Account Tolerances in Effect 
   The OFO will indicate the Shippers’ Tolerance Percentage, minimum and maximum, for all Shipper’s Imbalancing Accounts. 
6. Consequences of Non-Compliance 
   In order to maintain TransGas’ System integrity due to Shipper’s non-compliance with the OFO, TransGas may incur costs to purchase or sell Gas to temporarily affect TransGas line pack.  Shippers’ Imbalance Accounts will not be affected by the purchase or sale of this Gas and Shippers will not get title or ownership to any TransGas line pack Gas. 
   These costs on any Day will be the net of the purchase and sale of Gas and may include any associated costs or charges during that Day. 
   While an OFO is in effect and if TransGas does incur costs to protect the integrity of the System as a result of non-compliance by Shippers, these costs will be allocated to those Shippers who do not comply with the OFO.  The allocation of the costs will be determined by prorating the costs to non-compliant Shippers based on the amount they are out of balance from the specified Shipper’s Allowable Daily Tolerance range on the Day that the Gas was received or delivered to protect the system security. 
7. Determination of Imbalance from Specified Range 
   The amount of imbalance, over the specified range, will be determined at the compliance deadline of the OFO and based on the Shipper Imbalance for the Gas Day in which non-compliance costs were incurred.  TransGas will, in its discretion, determine the amount of imbalance after Daily reallocations have been obtained. 
8. Other Information 
   The OFO may contain any other pertinent information. 

3.6 Invoicing of Costs 

Under separate invoice, the costs will be forwarded to Shippers immediately upon the allocation of costs by TransGas. 

D. Rate Administration 

1. Rates and Other Charges 

1.1 Service Charges 

Customer is required to pay for Service as outlined in the TransGas Contract.  The TransGas Contract shall specify the rate code, which the Customer may use to determine the applicable rate under the Tariff Rates and Charges Schedules. 

1.2 Commodity Charges 

Where applicable, Commodity Charges for transportation Service are calculated based on the delivery Energy.  The delivery Energy will be the verified metered volume converted to Energy using the Actual Heating Value. 

1.3 Non-Standard Service 

Customer may be required to pay any additional costs incurred by TransGas to provide non-standard Service. 

In the event that a program featuring non-standard service subject to additional costs is terminated in its entirety, TransGas shall collect or refund, on a pro-rata basis, any outstanding balances from or to those Customers that contributed to the balance. 

For Elevated Pressure Service, Customer will be required to pay all incremental operating costs plus any incremental facility costs. 

1.4 Third Party Charges 

From the TransGas Point of Receipt to TEP, with the exception of receipts initiated at NIT, and from TEP to the Point of Delivery and also from Point of Receipt to Point of Delivery under Point-to-Point Transportation Service, third party charges are rolled into the TransGas tolls. 

Any additional interconnecting pipeline charges for Service outside this are at the Customer’s expense. 

1.5 Many Islands Pipe Lines (Canada) Limited [MIPL(C)L]  

Charges for MIPL(C)L contracts, held by TransGas, which flow Gas onto TransGas facilities, will be included in the TransGas rates.  This will also be the case where MIPL(C)L facilities both receive and deliver Gas off the TransGas system. 

2. Unaccounted for Gas 

2.1 Delivery of Gas 

For Point-to-Point Transportation Service and Receipt Transportation Service, the Customer shall deliver to TransGas, at the Point of Receipt, the Customer’s share of Unaccounted for Gas, excluding Lost Gas, from the Gas Transmission System.  Delivery Transportation Service will not be required to deliver Gas for Unaccounted for Gas. 

3. Fuel Gas 

3.1 Fuel Gas Requirement 

For Point-to-Point Transportation Service and Receipt Transportation Service, the Customer shall deliver to TransGas, at the Point of Receipt, the Customer’s share of Fuel Gas from the Gas Transmission System.  Delivery Transportation Service will not be required to deliver Gas for Fuel Gas. 

E. Billing and Payments 

1. Billings and Payments 

1.1 Interest on Overdue Invoices 

Interest may be charged on all unpaid portions after the due date based on an annual interest rate of prime plus 4%. 

 F. Terminations and Renewals

1. Renewal Rights 

1.1 Long Term Firm Service 

For Firm Receipt and Delivery Transportation Service, except for Receipt Transportation Service initiating at NIT, which has a term of 1 year or longer, the term is automatically renewed for another 12-Month term, under the same terms and conditions, subject to Item 1.2 below, unless written notice is received by TransGas sixty (60) Days prior to the anniversary date, of the Customer’s intent to terminate or amend the Service.  For Export Firm contracts a written notice must be received at least twenty-five (25) Months prior to the anniversary date.  For Receipt Transportation Service initiating at NIT, this written notice must be received at least twenty-six (26) Months prior to the anniversary date; for Receipt Transportation Service initiating at NIT with an expiry date prior to November 1, 2026, this written notice must be received at least sixteen (16) Months prior to the anniversary date.

1.2 Long Term Firm Service and NRR 

In some instances, TransGas may, acting reasonably, offer a 1-year or longer TransGas Contract with No Renewal Rights (NRR), when, in TransGas’ opinion, Capacity is only available for a finite period. 

1.3 Short Term Firm Service 

For Firm Receipt and Delivery transportation Service with a term of less than 1 year, the term in not automatically renewed (NRR).  The Customer must apply in writing to extend the Service.  The application is subject to Capacity approval and may be subject to the Queue Policy. 

1.4 Interruptible Service 

For standard Interruptible Service, the monthly term will Evergreen monthly, subject to termination by the Customer upon forty-eight (48) hours’ prior written notice to TransGas. 

1.5 TEP Service 

For all Shippers holding a valid transportation Service, Shipper’s TEP Service is automatically renewed along with the renewal of any transportation Service. 

In those instances where Customer does not have a valid transportation Service, Customer’s TEP Account is automatically renewed on a Monthly basis. 

2. Relief of Demand Charges 

2.1 Demand Charges 

The Customer is liable for all Demand Charges for the term of the Service, however:  

1. The Customer may be relieved of Demand Charges by paying appropriate compensation in an amount determined by TransGas; 
2. Customer may also be relieved of any Demand Charges if another Customer assumes the Contract Demand pursuant to Items 2.2 and 2.3; and  
3. For an intra-Provincial Delivery Transportation Service, the Customer will be relieved of Demand Charges if the Customer becomes either a full service or a delivery service customer of SaskEnergy Incorporated. 

2.2 Allocation of Firm Capacity 

Upon written request, TransGas will offer the Firm Capacity sequentially to Customers in the Queue. 

If a Customer's unused Capacity becomes fully committed, relief will be granted. 

If a Customer's unused Capacity is not fully committed, the Customer will continue to pay the Demand Charge for that portion not committed. 

2.3 Assignment of Existing Firm Capacity 

Customers with Firm Capacity will have the right, at the option of TransGas, to assign this Capacity, in whole or in part, directly to another party.  The assigning Customer transfers his rights, in whole or in part, to the second party. 

The Assignment may be temporary (recallable or not) or permanent.  The maximum duration of a temporary Assignment will be 12 Months or the Expiry Date of the assigned transportation Service. 

Assignees will not be permitted to reassign temporarily assigned Capacity. 

For a temporary Assignment, the Assignor must post all security requirements.  Further, the Assignor guarantees the fulfillment of all contractual obligations by the Assignee.  For a permanent Assignment, the Assignee may be required to provide security prior to the Assignment. 

In the event Customer elects a temporary Assignment of the transportation Service, Customer shall retain all rights to any rebates of outstanding Customer contributions which may occur during the period of the temporary Assignment. 

Co-owners may split existing Firm Capacity upon written request from all owners.  Total Capacity for all new transportation Service must equal total Capacity for the old Service(s). 

3. Termination 

3.1 Energy Balances 

The Customer shall be responsible for zeroing any Energy Imbalance on any Shipper Imbalance Account that may exist upon the termination of that Service. 

Upon termination of a Shipper Imbalance Account, Customer has 10 Days after the determination of any remaining imbalance to zero the imbalance. 

TransGas shall use reasonable effort to recover any remaining Energy Imbalance due to TransGas at the end of the 10 Day period.  Thereafter, any remaining unrecoverable Imbalance will be considered Unaccounted for Gas and dealt with as specified in Clause 10.3 of the General Terms and Conditions. 

3.2 Return to SaskEnergy Services 

An intra-provincial Delivery Transportation Service shall terminate if Customer becomes either a full service or a delivery service customer of SaskEnergy Incorporated. 

 G. Other

1. Nominations 

1.1 Responsibility for Nominations 

For all transportation Service and Title Transfers within TEP, Customer or Customer’s Agent must Nominate for Service in accordance with the Nomination Procedure within this Tariff. 

With the exception of Summer Use transportation, any Direct Purchase Customer, consuming less than 48,600 GJ per year, and any Direct Purchase Demand Customer, whose total Contract Demand at the Point of Delivery is less than 1,000 GJ per Day, may provide TransGas with one Nomination for Delivery Transportation Service, each Month, equal to their anticipated Monthly usage.  Such Customer may make any additional Nominations throughout the Month to correct for any daily imbalances. 

Notwithstanding the preceding, TransGas reserves the right, at its sole discretion, to require daily Nominations from any Customer. 

1.2 Nomination Forms 

Appropriate Nomination forms can be found in the Standard Forms section of the Tariff. 

[See Nomination Procedures, within this Tariff, for further information.] 

2. Receipt and Delivery Pressure of Gas 

2.1 Elevated Pressure Service 

If a Customer requests a guaranteed delivery pressure above the standard operating pressure for that transmission line, and TransGas agrees to provide the higher delivery pressure, then Customer must pay incremental operating costs plus any incremental facility costs. 

3. Interruptible Transportation Service 

3.1 Availability 

Interruptible transportation Service is available to all Customers.  

3.2 General Principles 

For applicable Firm Demand transportation Service Customers, on any Day the Gas transported exceeds Contract Demand, the excess shall be transported, at the discretion of TransGas, and treated as Interruptible Service subject to the rates and charges as well as other sections of the Tariff applicable to Interruptible Service. 

Any volume of Gas transported for Customers whose receipts initiate at NIT in excess of the Firm Service Contract Demand must be done through the Customer taking out a separate Interruptible Service contract in advance. 

For Non-Demand transportation Service Customers holding both Firm Service and Interruptible Service, the amount of Gas transported on a daily basis will be equal to the Nomination for Interruptible Service. 

An Interruptible Receipt Service Customer may move an unlimited quantity of Gas each Day from any Point of Receipt on the Gas Transmission System, to TEP, on a reasonable efforts basis only. 

An Interruptible Delivery Service Customer may move an unlimited quantity of Gas each Day from TEP, to any Point of Delivery on the Gas Transmission System, on a reasonable efforts basis only. 

3.3 Levels of Interruptible Service 

1. High Priority 
   In the event that TransGas is unable to provide Firm Receipt or Delivery Transportation Service, high priority Interruptible Service is available to those Customers who have executed a Firm Service TransGas Contract, are waiting for Firm Service, and have the appropriate security in place.  While priority of Service is higher, the rate for high priority Interruptible Service is equal to the rate for standard low priority Interruptible Service. 
   High priority Interruptible Service is eligible for Interruptible investment as outlined in Item 3.3.2. 
2. Low Priority 
   TransGas will defer investment for Interruptible Service Customer Specific Facilities to connect or upgrade existing facilities.  [See Policy on Standard Investment A).II.b).1)] 
   TransGas will not invest in System Line expansion to accommodate low priority Service. 

3.4 Minimum Monthly Bill 

Shipper shall pay the minimum Monthly bill, as itemized in the Rates and Charges section of the Tariff. 

3.5 Interruptible Priority of Service 

If TransGas’ upstream and/or downstream Capacity is not normally deemed to be full, then Interruptible Service Nominations are accepted up to full Capacity. [See Nomination Procedure in the Tariff for further details.] 

If TransGas’ upstream and/or downstream Capacity is considered full, then during times of restrictions, Interruptible Service Nominations will be prorated. 

Single Nominations for Service are limited to the physical Capacity at each location. 

4. Curtailment 

4.1 Interruptible Transportation Service 

TransGas will curtail Interruptible Transportation Service, Receipt and Delivery, as required to provide Service to Firm Service Customers, as well as for the other causes of Curtailment as outlined in the General Terms and Conditions.  

If Capacity is limited, high priority Interruptible Service is not curtailed until all low priority Interruptible Service is curtailed. 

TransGas reserves the right to curtail Customers with 4 hours’ notice, however, TransGas may implement immediate Curtailment if severe System problems are encountered. 

5. Gas Quality Reset 

5.1 Applicability 

The Gas Quality Reset Policy is applicable in those instances where TransGas is called out to a Point of Receipt to reinstate deliveries following a discontinuance due to the Shipper’s failure to comply with any of the Gas quality requirements outlined in Clause 5.1 of the TransGas General Terms and Conditions. 

5.2 Procedure 

TransGas will respond, in a timely manner, to Shipper requests for a Gas quality reset.  This Service is normally available to Shippers on a 24 hour, 7 Day a week basis. 

If TransGas deems that it has responded to an exceptional number of reset requests from one specific Shipper, then the Shipper will be advised that subsequent responses will be during normal working hours as soon as manpower is available. 

TransGas will also indicate to the Shipper that if response during normal working hours is not acceptable to the Shipper, then overtime call outs may be subject to a reset fee.  The circumstances surrounding overtime call outs will be reviewed by TransGas and, at its discretion, the reset fee will be charged. 

5.3 Reset Call Out Fee 

The reset call out fee will be the loaded hourly rate for a DMO II. 

6. Transfer of Firm Demand 

6.1 General Principles 

All transfer requests will be for a permanent transfer.  Temporary transfer requests will not be considered.  At the time of a request for transfer, a Shipper may simultaneously request a second permanent transfer returning to the originating point.  However, TransGas will not reserve Capacity at the originating point and the simultaneous request will be subject to Capacity constraints and may be subject to the Queue Policy. 

All existing contractual terms and conditions will accompany all accepted transfer requests.  Contracted Capacity may be transferred in whole or in part. 

Transfers across the TransGas Energy Pool will not be considered. 

Transfers from and to like Services will be considered only.  For example, transfers from a Receipt Transportation Service to a Receipt Transportation Service or transfers from a gathering and compression point to a gathering and compression point only. 

Transfers of contract Capacity will be incremental to any current Contract Demand at the point to which the Capacity is being transferred. 

The transfer request may be subject to TransGas’ Queue Policy. 

6.2 Transferring Firm Capacity 

All transfer requests are subject to pipeline Capacity constraints.  If TransGas has invested in Customer Specific Facilities, Customer must reimburse TransGas for any remaining TransGas Investment before a request for transfer will be considered.  [See item 1.9 of the Standard Investment Policy.]  TransGas will invest in incremental Capacity to accommodate a Capacity transfer request. 

Capacity transfers may be subject to an allocated share of Customer Specific Facility costs at the point being transferred to. [See Item 1.1 of the Standard Investment Policy.] 

6.3 Requests to Transfer Contract Demand 

Customers requesting a transfer of Contract Demand from one Point of Receipt to another, or from one Point of Delivery to another, must submit a Request for Service that is approved by TransGas 

6.4 Intra to Export Transfers 

Intra Delivery Customers may request a permanent transfer of Contract Demand to export. 

For low Load Factor Intra Delivery Customers (less than 50 percent), a limit will be placed on the total quantity of Gas that can be transferred during a 12 month period from August 1 of one year to August 1 of the following year from one or a grouping of delivery locations, at the Customer’s discretion.  This limit will be the Shipper’s historical Firm transport Load Factor at the Intra Delivery Customer’s location(s) (based on 2 years of information or as can otherwise be determined by TransGas), plus a 5 percent cushion, applied to the total Contract Demand at the delivery location(s) or transferred to export from the delivery location(s) during the Gas year in question, less the quantity of Gas actually transported to the delivery location(s) during the Gas year in question.  TransGas will inform Shipper of the Load Factor to be used for the Gas year (November to November). 

If Shipper exceeds the limit specified by TransGas, the excess amount transported will be subject to a charge equal to the export Interruptible rate. 

6.5 Operational Considerations 

Transfers will be approved if Capacity is available.  Capacity must be available at the point to which the transfer is requested and, in addition, transmission Capacity must also be available downstream for a receipt request and upstream for a delivery request. 

If upstream or downstream Capacity is limited, a transfer request will be subject to the Queue Policy.  Such requests will be included in the TransGas Queue.  

If Customer Specific Facilities are required, the Customer will assume all such costs not covered by TransGas Investment.  

7. Diversions 

7.1 General Principles 

For Diversions of Service, prior authorization must be obtained from TransGas. 

 III. Storage

1. Storage Nominations 

1.1 Injection Into Storage 

Gas will be delivered into Storage from Customer’s own Shipper’s Imbalance Account at TEP through daily Nominations placed with TransGas.  [See Nomination Procedure, in this Tariff, for further information.] 

If a Nomination is not received within the specified time, the last Nomination remains in effect until the Customer makes a subsequent Nomination. 

Injections into Storage will be on a Firm basis, either Base or Biddable, as outlined in the Storage Terms and Conditions in place from time to time. Excess Injections, above Firm entitlements, are on a reasonable efforts basis. 

If required, daily Excess Injections will be prorated based on Nominations received. 

1.2 Withdrawals from Storage 

Withdrawals from Storage will be made on the basis of daily Nominations up to Customer’s Allowable Withdrawal rights.  Nominations must be in place with TransGas. 

If a Nomination is not received within the specified time, the last Nomination remains in effect until the Customer makes a subsequent Nomination. 

Upon Withdrawal from Storage, Gas will be transferred to Customer’s own Shipper’s Imbalance Account at TEP.  

If required, Withdrawals will be prorated based on Customer’s Allowable Withdrawal rights except when Service must be maintained to Heating Load Customers. 

1.3 Changes to Nominations 

Changes to Nominations, with 4-hours’ notice, are accepted on a reasonable efforts basis.  Only on-the-hour changes to Nominations will be accepted. 

Retroactive Nominations will not be permitted. 

2. Storage Renewal Rights 

2.1 Long Term Summer Use Storage Service 

For long-term Summer Use Storage Service, the term will not Evergreen but rather Customer will have the Right of First Refusal (RFR).  With RFR rights, the Customer is given priority for the renewal of Service over a new Service request. 

Once TransGas has determined the amount of long-term Summer Use Storage Capacity that will be available for the next Storage year, as defined in the Storage Terms and Conditions, the Customers will be informed by TransGas of any change in the amount of Capacity available.  Customers will supply TransGas with a written request by the deadline specified by TransGas for long-term Summer Use Storage Service, for the next Storage year.  Failure to notify TransGas will result in the termination of Service. 

The request for long-term Summer Use Storage Service may be subject to the prorating of Capacity.  In any given year, if sufficient Capacity is not offered to satisfy the current RFR Customer’s requirements, then, at the Customer’s option, the Capacity requirements not contracted for the current term will be placed in the TransGas Queue and given a priority position.  The TransGas Queue Policy will apply. 

3. Storage Service Billings and Payments 

3.1 Interest on Overdue Invoices 

Interest may be charged on all unpaid portions after the due date based on an annual interest rate of prime plus 4 %. 

4. Storage Rates and Other Charges 

4.1 Non-Standard Service 

Customer may be required to pay any additional costs incurred by TransGas to provide non-standard Service. 

5. Storage Investment Policy 

5.1 Applicability 

The Storage Investment Policy applies to all new and existing Storage Customers, who contract incrementally for either existing Contracted Capacity and/or Contracted Rate of Withdrawal or for Contracted Capacity and/or Contracted Rate of Withdrawal associated with a new Storage project. 

5.2 Capital Contribution 

For a new Storage project, Customer(s) shall pay a capital contribution for facility costs except those costs covered by TransGas Investment.  The capital contribution may also include a contribution toward their allocated share of prior facility costs, if Contracted Capacity and/or Contracted Rate of Withdrawal become available or if a new Storage project is initiated, within a Five-Year Window as described in 5.4 below. 

The Storage Facility will remain the property of TransGas. 

5.3 TransGas Investment Levels 

TransGas Investment in Storage Facility costs will be equal to that level supported by the present Storage tolls plus an equal sharing, with the Customers receiving incremental Storage Service from the facilities, of any project costs above the prior Customer capital contribution amounts which would be subject to refunds within the Five-Year Window.  

5.4 Five-Year Window 

The Five-Year Window is the five year period, commencing with the Effective Date of the final contracting of a new Storage project during which Customer(s) may be required to make capital contributions toward these prior projects.  Refunds to Customer(s) who have made capital contributions to that project will be available during this period. 

5.5 Term 

At TransGas’ discretion, Customers may be required to contract for a term of up to ten years associated with a new Storage project. 

5.6 Non-Standard Service 

If the Customer requests non-standard Service, the Customer will be required to pay all costs incurred to provide non-standard Service.  This is not subject to rebate. 

5.7 Refund of Capital Contribution 

If another Customer contracts incrementally for existing Storage Service or if TransGas initiates a new Storage project within the Five-Year Window, then the original Customer(s) may receive a proportionate refund of their capital contribution.  No interest is paid on the refund of capital contributions. 

In the event Customer elects a temporary Assignment of Storage Service, Customer (Assignor) shall retain all rights to any rebates of outstanding capital contributions, which may occur during the period of the temporary Assignment. 

In the event Customer elects a permanent Assignment of Storage Service, Customer (Assignor) shall have assigned all rights and obligations, including any rebates of outstanding capital contributions for the Contracted Capacity and/or Contracted Rate of Withdrawal assigned away as of the Effective Date of the permanent Assignment. 

5.8 Financing Option 

TransGas will consider financing a Customer’s capital contribution cost.  A minimum down payment of 25 percent is required.  Security may be required. 

The financing rate of interest will be set to provide TransGas with similar returns to those being earned by TransGas on its other activities. 

B) Queue Policy

The Queue Policy outlined herein is applicable to all TransGas Queues for Service.
*The uppercase terms used herein shall have the meanings as ascribed to the corresponding terms set out in the Definitions section of this Tariff.*

Article 1: Applicability 

1.1

A Queue may exist for any of the following TransGas Services: 

1. Firm Receipt Transportation Service, 
2. Firm Delivery Transportation Service, 
3. Hub to Hub Service, 
4. Low Heating Value Surcharge Service, 
5. Storage Service. 

1.2

The TransGas Queue is applicable to any applicant’s request for Service, when there is a constraint on the System, either a Customer Specific Facility constraint or a System constraint, and where there is a reasonable expectation the constraint will be relieved at some future date. 

1.3

The TransGas Queue is not applicable in those instances where there is no Capacity constraint or where there is no reasonable expectation that a constraint will be relieved at a future date. 

1.4

To be included in the TransGas Queue, all requests for Service must be for a minimum term of one (1) year. 

1.5

To be considered for inclusion in a TransGas Queue, the applicant must first have signed a TransGas Service Agreement. 

1.6

There is no limit on how far into the future Service may be requested for transport related Services (Article 1.1 (a) to (e)). 

1.7

The TransGas Queue Policy and the Request for Registered Queue Position Forms are available to all applicants in the TransGas Comprehensive Tariff found on the TransGas website. 

Article 2: Objectives of the TransGas Queue Policy 

2.1

To establish the procedures by which an applicant acquires access to those applicable Services listed in Article 1.1 above. 

2.2

To provide TransGas with a list of realistic Service requests from which an economic facility expansion may be planned. 

Article 3: Definitions 

Where used in this TransGas Queue Policy the following terms shall have the meanings: 

3.1

"Offer of Service" means an offer by TransGas to provide the Service described in the applicant’s Request for Registered Queue Position Form, and includes, without limitation, the following: 

1. a letter of intent or letter of commitment describing the terms of Service; 
2. an applicable TransGas Contract describing the terms of Service; or 
3. an amendment to an existing TransGas Contract describing the terms of Service. 

3.2

“Open Season” is a prescribed period in which interested parties will have an opportunity to obtain a position in a TransGas Queue “Binding” or to express an interest in future Service “Non-Binding". 

3.3

“Queue Deposit” is a refundable deposit, subject to the default provisions described in Article 6 herein, that the applicant will be required to submit to reserve a place in the TransGas Queue. 

3.4

“Queued Area” means that area of the TransGas System, as identified by TransGas or also Storage, where Capacity is currently constrained. 

3.5

"Request for Registered Queue Position Form" means the Request for Registered Queue Position Forms found in the Standard Forms Section of the Tariff, which applicants use to outline their request for those Services as outlined in Article 1.1 above. 

3.6

"TransGas Queue" means the Queue established by TransGas to provide applicants with access to those applicable Services. 

Article 4: The Queue Process 

If an applicant requests Service at a location where TransGas is not currently able to fully provide the Service requested, the applicant’s request is added to the TransGas Queue. 

4.1

All applicants will be required to complete a Request for Registered Queue Position Form.  A Request for Registered Queue Position Form is available in the Standard Forms Section of the Tariff. 

4.2

By requesting a Queue position, the applicant has indicated a willingness to accept an Offer of Service for the Service requested in a Request for Registered Queue Position Form. 

4.3

With the signing of the Request for Registered Queue Position Form, the applicant acknowledges and agrees to be bound by the provisions set forth in the Request for Registered Queue Position Form and its terms and conditions as follows: 

1. In consideration of TransGas receiving the Request for Registered Queue Position Form and considering the inclusion of the applicant in the TransGas Queue and other good and valuable consideration, the applicant agrees to comply with and to be bound by the provisions of this TransGas Queue Policy that may be in force from time to time. 
2. The applicant acknowledges having reviewed the TransGas Queue Policy, which is currently in force; provided, however, that it is understood and agreed that TransGas may change the TransGas Queue Policy without notice.  Such new TransGas Queue Policy shall be binding on the applicant once it is posted on the TransGas website. 

4.4

To ensure that only serious requests are received and in order to attain a registered Queue position, each prospective Customer will be required to post a Queue Deposit. 

4.5

Upon receipt of a written request for Service, an applicant’s request for Service will be added to the TransGas Queue.  TransGas will inform the applicant that the request has been received and has been added to the TransGas Queue.  A Queue Deposit and a fully completed Request for Registered Queue Position Form will be requested.  The applicant will have 14 Days, or as otherwise indicated by TransGas, to submit both the Queue Deposit and the fully completed Request for Registered Queue Position Form to TransGas.  Failure to submit either or both within the time specified will result in the applicant’s request being removed from the TransGas Queue. 

If an applicant does not provide all the information required in the Request for Registered Queue Position Form and TransGas, acting reasonably, deems the information is significant, TransGas will notify the applicant of the missing information.  Failure to provide the missing information will result in the applicant’s request being removed from the TransGas Queue. 

If the applicant does not provide all the information required in the Request for Registered Queue Position Form and TransGas, acting reasonably, deems the missing information is not significant, then the applicant’s request will remain in the TransGas Queue.  If, at a later date, TransGas, acting reasonably, deems the missing information as now significant, the applicant shall provide the information to TransGas.  If the information is not provided in a time specified by TransGas, which shall be no less than seven (7) Days, the applicant will be removed from the TransGas Queue and any applicable Queue Deposit will be returned. 

4.6

An applicant will be positioned in the TransGas Queue according to the date and time their written request for Service  is received, subject to the applicant submitting the required Queue Deposit and Request for Registered Queue Position Form within 14 calendar Days of receipt of the request from TransGas.  If the Queue Deposit or the Request for Registered Queue Position Form is not received within the 14 calendar Day window, the applicant’s request will be positioned in the TransGas Queue according to the date and time their Queue Deposit and Request for Registered Queue Position Form are both received by TransGas. 

4.7

TransGas will maintain a listing of the TransGas Queue.  A Queue list will be provided upon request.  The Queue list will identify the Capacity requested and, if so authorized by the applicant, the name of the applicant.  Such authorization is requested from each applicant on the Request for Registered Queue Position Form. 

4.8

TransGas will notify applicants in the TransGas Queue of any changes in the applicable Service rates, the timing of construction, the estimated Customer contributions, and any security deposit required. 

4.9

TransGas may, at its discretion, close a Queued Area and no additional requests for Service will be accepted.  Queued Areas that have been closed will be re-opened through an Open Season. 

Article 5: Changes to Applicant’s Request for Service 

5.1

An applicant may request minor, non-significant changes to their request without affecting the applicant’s Queue position.  However, if an applicant requests a significant change to their request with respect to a requested Point of Receipt, Point of Delivery, in-service date, type of Service, or other material terms, then the applicant’s position in the TransGas Queue will be moved back to the date the requested change was received.  The determination of whether a change is significant and should trigger a move back in the TransGas Queue will be determined by TransGas, acting reasonably. 

5.2

A request to increase the Service Capacity of an applicant’s original request will be considered as a second request for Service.  The original request will remain unchanged and a second position in the TransGas Queue will be established for the additional Service Capacity requested. 

An applicant may reduce his requested Service Capacity without losing his position in the TransGas Queue.  The applicant’s requested reduction in Service Capacity will be administered as a partial withdrawal from the TransGas Queue and the portion of the Queue Deposit relating to the reduced Capacity will be handled as outlined in Article 13 herein. 

5.3

An applicant may request to transfer the Point of Receipt or the Point of Delivery as outlined in his Request for Registered Queue Position Form, to another location.  The requested transfer will be allowed only if the transfer is considered not significant, as deemed by TransGas, acting reasonably. 

5.4

With the exception of Storage, positions in the Queue are specific to a Point of Receipt or a Point of Delivery, as outlined in the Request for Registered Queue Position Form, and are only assignable at these locations. To facilitate the Assignment, both parties must submit written requests to TransGas. 

Article 6: Queue Deposit 

6.1

TransGas requires an applicant, making a request for Service, to submit a Queue Deposit to reserve their place in the TransGas Queue.  The Queue Deposit must either be in cash or Letter of Credit.  An acceptable form of Letter of Credit is found in the Standard Forms Section of the Tariff.  The Letter of Credit must be current until the commencement of Service. 

6.2

The amount of the Queue Deposit will be determined by the Service request and will be equivalent to the cost of one Month's Service, or a minimum of one thousand dollars ($1,000).  For this reason the exact amount of the Queue Deposit will vary according to the size and the type of Service requested. 

The Queue Deposit is required to recover TransGas' investment and related costs in a facilities expansion and is a representation of the loss TransGas would face.  It is not intended to be a penalty. 

Article 7: Allocation of Capacity 

7.1

As Capacity in Queued Areas becomes available, TransGas will complete an Offer of Service, as detailed in Article 8.0 herein, for the Capacity and offer it sequentially to those applicants in a TransGas Queue until the available Capacity is fully committed, regardless of requested in-service date.  The following exception to this process will be applied: 

1. The Request for Registered Queue Position Form allows for the specification of a minimum Service level by the applicant.  In the event that Capacity becomes available that does not meet the minimum the applicant has specified, there will be no Capacity offered to the applicant and TransGas will offer the Capacity to the next position in the Queue.  The applicant will maintain their position in the Queue for when future Capacity becomes available that meets their minimum specification. 

In the event that Capacity becomes available that does not meet any applicants’ specified minimum Service level, TransGas will proceed to offer it sequentially to those applicants in a TransGas Queue with no risk of forfeiture of any portion of the applicants’ Queue Deposit or their position in the Queue should they choose not to take up the Capacity. 

7.2

A future dated contract will be required for those applicants that accept the offer of Capacity and whose Service date is in the future.  Any Capacity that becomes available prior to the start date of the future dated contract will be made available first to those Customers in the Queue, with renewal rights only up to the point of the future dated contract start date.  If any of the temporary Capacity remains after offering it to the Queue it will become available to Customers who do not hold a Queue position. 

7.3

In those instances when more than one request has the same Queue position and sufficient Capacity is not available to meet all requested Capacity, the available Capacity will be prorated among these applicants in proportion to their requested Capacity. 

Article 8: Offer of Service 

8.1

An applicant, receiving an Offer of Service, will have 30 Days to fully execute the Offer of Service.  An applicant, failing to fully execute an Offer of Service within 30 Days, will be removed from the TransGas Queue and forfeit the Queue Deposit unless:  

1. the Service specified in the Offer of Service would require the applicant to accept an in-service date earlier than that requested in the Request for Registered Queue Position Form; 
2. the Service specified in the Offer of Service would require the applicant to accept a Service Capacity less than the minimum requested in the Request for Registered Queue Position Form;   
3. the Service specified in the Offer of Service would require the applicant to accept a term, more or less, than that requested in the Request for Registered Queue Position Form.* 
   * TransGas reserves the right to require a minimum initial term within the Offer of Service of up to a maximum of ten (10) contract years. 
4. for any non-standard Service offering, the applicant may refuse the Offer of Service, remain in the TransGas Queue and will not forfeit the Queue Deposit. 
5. the applicant has withdrawn from the TransGas Queue during the first seven Days of receiving a Final Quotation, as outlined in Article 13 herein. 

In the case of (a), (b), (c), (d) or (e), the applicant may refuse the Offer of Service, will not forfeit their Queue Deposit and may remain in the TransGas Queue or may withdraw from the TransGas Queue and recover his full Queue Deposit. 

8.2

Failure by an applicant to meet any of the requirements of an executed Offer of Service shall be deemed to be a rejection of the Offer of Service by the applicant and will result in the applicant forfeiting the Queue Deposit and Queue position.  Further, TransGas shall be entitled to recover any other costs associated with the preparation of the Offer of Service. 

TransGas, at its discretion, may accept changes to the Offer of Service, where it deems these changes are not significant and similar to those outlined in Article 8.3 and Article 8.5.   

8.3

TransGas may accept changes to a Point of Receipt or a Point of Delivery, from that specified in the Offer of Service, which are deemed by TransGas to be non-significant changes.  TransGas views this in the same manner as non-significant changes in requested Service prior to an Offer of Service. 

If, after receiving an Offer of Service, the applicant requests a change to his Service request and the change is deemed significant by TransGas, this will be viewed as a refusal of the Offer of Service and the Queue Deposit is forfeited.  The change in Service requested is then viewed as a new request and subject to the provisions of the TransGas Queue Policy with respect to new requests. 

8.4

If TransGas offers a Service Capacity less than requested on the Request for Registered Queue Position Form and the Customer wishes to accept the lesser amount, the proportionate share of the Queue Deposit, applicable to the offered Capacity, will be returned to the Customer as per Article 8.6.  The remainder of the Service request, and applicable Queue Deposit, may remain in the TransGas Queue to be dealt with as per the applicant’s request and maintains the original request date or the applicant may withdraw from the TransGas Queue and the balance of the Queue Deposit will be returned as outlined in Article 13 herein.  

8.5

If an applicant is willing to accept only a portion of the Service Capacity referred to in an Offer of Service, which matches the Capacity requested in the Request for Registered Queue Position Form and TransGas agrees to such a reduction, the applicant may receive Service in such reduced Capacity.  However, the Queue Deposit returned to the applicant, as outlined in Article 8.6, will be that amount which would be applicable to such reduced Capacity.  The remaining Capacity will be removed from the TransGas Queue and the applicant will forfeit the remainder of the Queue Deposit. 

8.6

For applicants accepting an Offer of Service, their Queue Deposits will be returned no later than one (1) month following applicant accepting the Offer of Service.  

8.7

A fully executed Offer of Service, preceding the applicable TransGas Contract, will: 

1. bind the applicant to execute an applicable TransGas Contract or an amendment to a fully executed TransGas Contract with TransGas;  
2. confirm the terms outlined in the Request for Registered Queue Position Form or the terms under which TransGas is able to make Service available as described in this TransGas Queue Policy; 
3. request any additional information which TransGas may require to evaluate or proceed with a proposed facility expansion;  
4. bind the applicant to provide the Customer contribution specified which may be required if the applicant’s Service request is accommodated in a proposed facility expansion; 
5. bind the applicant to provide a required Security Deposit if the applicant’s Service request is accommodated in a proposed facility expansion. 

8.8

Execution of an Offer of Service, in the form of a letter of intent or a letter of commitment by an applicant, does not bind TransGas to provide the Service described within the Offer of Service if TransGas determines not to provide the Service for economic reasons. 

Article 9: Open Season 

At TransGas’ discretion, an Open Season may be declared to ensure fair access to information for interested parties on a potential Service offering, to help TransGas evaluate potential facility expansions and/or to provide fair access to Capacity.  Open Seasons may be Binding or Non-Binding. 

TransGas will use reasonable effort to communicate the relevant details of each Open Season to those parties who TransGas may reasonably believe would be interested in the Open Season. 

9.1 Binding Open Seasons 

1. During a Binding Open Season all interested parties, or as per Article 9.2 (b), all parties who participated in the Non-Binding Open Season, as the case may be, may forward a fully completed Request for Registered Queue Position Form.  All Forms received during the Binding Open Season window will maintain the same date and time-stamp, being the close of the Binding Open Season. 
2. After the Request for Registered Queue Position has been received by TransGas, a Queue Deposit will be requested.  The applicant will have 14 calendar Days, or as otherwise indicated by TransGas, to submit the Queue Deposit.  Failure to submit within the time specified will result in the applicant’s request being removed from the Binding Open Season responses. 
3. All Requests by Registered Queue Position Forms received after the Binding Open Season will be positioned in the TransGas Queue as outlined in this TransGas Queue Policy.  

9.2 Non-Binding Open Seasons 

1. TransGas may declare a Non-Binding Open Season to gauge potential interest in a Service and evaluate whether it warrants spending further effort to detail how the Service interest could be met.  Respondents to a Non Binding Open Season are not placed in a Queue. 
2. TransGas will communicate if participation in a Non-Binding Open Season is a requirement to be included within any future Binding Open Seasons. 

Article 10: Construction of New System Facilities 

10.1

TransGas will build new system facilities under the following conditions: 

1. sufficient Queue Capacity is present and economically feasible to justify a facility expansion; and 
2. an Offer of Service, signed by the applicant(s), is provided. 

Any System facility expansion may be subject to approval by the TransGas Board of Directors.  All applicants in the TransGas Queue, for whom the requested Service can be economically provided, may be asked to confirm their request for Service as outlined in the Request for Registered Queue Position Form by signing an Offer of Service and Article 8.0 will apply. 

10.2

On the basis of the Capacity requirements in the TransGas Queue or confirmed in the Offer of Service, TransGas will develop and proceed with a facilities expansion plan.  TransGas may determine that for economic reasons, the facilities expansion plan may not be able to accommodate all confirmed requests.  The Capacity, made available through the facilities expansion plan, will be allocated to those applicants according to their position in the TransGas Queue, who have accepted an Offer of Service as outlined in Article 7.0. 

10.3

Each applicant who signed an Offer of Service will be notified of their inclusion in the facility expansion plan.  Applicants whose requests could not be accommodated may remain in the TransGas Queue at their option.  Applicants whose requests are accommodated in the facility expansion plan and who have signed an Offer of Service are required to fulfill the commitments of the Offer of Service within 30 Days and execute an applicable  TransGas Contract or sign an amendment to a current, fully executed TransGas Contract.  In addition to any provisions outlined in the Offer of Service, failure to execute an applicable TransGas Contract will be dealt with in accordance with Article 8.2 

Article 11: Construction of Customer Specific Facilities  

11.1

Where Customer Specific Facilities are required in conjunction with a registered Queue position, TransGas will provide the applicant with a “Final Quotation”, which includes, without limitation, the following information: 

1. the Customer contribution for the Service requested; 
2. the amount of any required security deposit; 
3. the amount of any TransGas Investment in Customer Specific Facilities;   
4. the timing of construction indicating an in-Service date; and 
5. a TransGas Contract. 

Any changes that may impact the information found in the Final Quotation will result in TransGas issuing a revised Final Quotation and written notification will be forwarded to the applicant. 

11.2

The applicant will have thirty (30) Days from receipt of the Final Quotation to fully execute and return the TransGas Contract to TransGas.  Failure to do so will result in the applicant being removed from the TransGas Queue and forfeiture of the Queue Deposit. 

If the applicant declines the offer of the Customer Specific Facilities Construction Service, he will be removed from the TransGas Queue and forfeit the Queue Deposit, unless the applicant declines this Service within the first seven (7) Days of receipt of the Final Quotation.  If the applicant rejects the Final Quotation within the 7-Day window, he will be removed from the TransGas Queue and the Queue Deposit will be returned to the applicant. 

11.3

The seven (7) Day period of rejection and the subsequent return of any Queue Deposit are only applicable when the construction of new Customer Specific Facilities is required. 

Where the construction of new Customer Specific Facilities is NOT required, a Final Quotation is NOT issued. 

A Customer contribution may be required when there is construction of Customer Specific Facilities.  When a Customer contribution is required and there is no construction of Customer Specific Facilities, the Service is deemed to be Non-Standard. 

11.4

Once TransGas receives a fully executed TransGas Contract, TransGas may issue a transportation Offer of Service and Article 8.0 will apply. 

Article 12: Transfers within Queued Areas 

12.1

Customers, who already have Firm Receipt Capacity within a Queued Area, will have the right to transfer this Capacity to another receipt location within the Queued Area under standard transfer policies.  Those applicants in a receipt Queue will not have first rights to this Firm Capacity. 

12.2

Customers, who already have Firm Delivery Capacity within a Queued Area, will have the right to transfer this Capacity to another delivery location within the Queued Area under standard transfer policies, or to transfer to the export market, provided they provide a simultaneous request to transfer back to the original Point of Delivery.  The transfer to the export market shall not exceed one Month.   Those applicants in a delivery Queue will not have first rights to this Firm Capacity. 

12.3

Customers holding Firm Capacity outside a Queued Area will not be able to transfer into a Queued Area but will be placed in the TransGas Queue upon completion of the Request for Registered Queue Position Form and will be subject to the provisions outlined in this TransGas Queue Policy. 

12.4

With the exception outlined under Article 12.2, Customers transferring Firm Capacity out of a Queued Area will not have any future rights to the Capacity.  The resulting Firm Capacity will be made available to the TransGas Queue as outlined in Article 7.0. 

Article 13: Withdrawal from the Queue 

13.1

Prior to receiving the Offer of Service from TransGas, an applicant may withdraw from the TransGas Queue and receive a full refund of the Queue Deposit, providing that a written notice of withdrawal is received by TransGas.   

13.2

Once an Offer of Service has been received, an applicant can no longer withdraw from the TransGas Queue without forfeiting the Queue Deposit, unless the Offer of Service falls under the exceptions outlined in Article 8.1 and Article 11.2. 

Article 14: General 

14.1

Any notice or other document to be delivered under this TransGas Queue Policy shall be in writing and personally delivered to, emailed, or forwarded by registered mail to the following address: 

1. In the case of TransGas, 
   TransGas Limited 
   500-1777 Victoria Avenue 
   Regina, Saskatchewan 
   S4P 4K5 
   Email:    tglcustomerservices@transgas.com 
   Attention:    TransGas Customer Service 
2. In the case of the applicant, the address set forth in the Request for Registered Queue Position Form or any such other addresses as may be designated in writing and delivered to TransGas.  Any such notice or document shall be deemed to have been received as follows: 
   1. by email, the same business Day; 
   2. by registered mail, 4 clear business Days, not including any time period that the relevant post office facilities are subject to a strike or other significant labor dispute; 
   3. by personal delivery, the Day it is delivered. 

For the purposes of this Article 14.1, "business Day" shall mean Monday to Friday, excluding designated Saskatchewan statutory holidays. 

14.2

This TransGas Queue Policy shall be interpreted pursuant to, and governed by the laws of the Province of Saskatchewan.   

C) Nominations Procedures

PROCEDURE: 

It is essential that TransGas receive accurate Nominations in order to optimize the pipeline system. TransGas needs to ensure that Storage Injection and Withdrawal capabilities and pipeline Capacity is available on the Days that Service is requested.  This cannot be completed in the most efficient manner if Customers do not nominate accurately and can put Firm Customer commitments at risk when the Nomination for Capacity is not reflected in the actual daily activity. 

Access to the Secure Zone will be made available upon submission of a completed TransGas Electronic Access Application form and selection of the applicable role(s). 

For the following TransGas Services, Customer shall provide TransGas with a daily Nomination: 

1. Receipt to TEP 
2. TEP to Intra-Provincial, 
3. TEP to Export 
4. Storage Injections, Withdrawals and Storage Inventory Transfers, 
5. Trades between Shipper’s Imbalance Accounts at TEP. 

Customer is required to place Nominations with TransGas to commence or alter any daily movements of Energy by the following procedures. 

Nominations are submitted through the electronic web application on the Secure Zone. In the event that access to the Secure Zone is unavailable, Nominations can be submitted by email until the web site becomes available. 

Customer must place a Nomination with TransGas specifying the amount of Gas, in GJs, to be made available at the contract level and then meter level indicated on the Nomination at or before the deadlines as outlined in the DEADLINES section below. TEP Trades and Storage Inventory Transfers are effective for 09:00 hour Sask Time. All times in this Nomination Procedure are stated at Saskatchewan Time (Sask Time). 

All Nominations are to be submitted by contract level and then by meter while TEP Trades and Storage Inventory Transfers will be from one business party to another business party. 

Customer must ensure that, where applicable, Nominations are also placed with Customer’s producer, marketer, and any upstream or downstream pipeline. 

Nominations must indicate a start date and time and an end date; the end time will always be 09:00 hours Sask Time. 

• The end date for transportation Nominations, Storage Injection and Withdrawals and Storage Inventory Transfers can be no later than 1 month 
• e.g. If the current date for a receipt Nomination is April 25th, the latest acceptable end date is May 1st at 09:00 hours Sask Time. 
• Intra-Day Nominations will always end at 09:00 hours Sask Time on the following Day. 
• TEP Transfers are always entered as a Gas Day or range of Gas Days. Storage Inventory Transfers can be entered as a Gas Day or Production Month. 

GROUPING AND RANKING NOMINATIONS: 

Where Customer’s Nomination is served by multi upstream and/or downstream parties, the Nomination is considered part of a group and special conditions can apply to these Nominations. A group Nomination can occur as follows: 

• Upstream on Receipt to TEP or an interconnecting pipeline, 
• Downstream on TEP to Export 

Changes to Nominations that are part of the group can affect all the Nominations in the group, and grouped Nominations must be submitted together and maintain the same start and end dates. 

NOTICE OF NOMINATIONS NOT SCHEDULED DUE TO SYSTEM CONSTRAINTS OR NON-COMPLIANCE TO POLICY 

Confirmation and Scheduled status are implicit unless notified otherwise. If your Nominations are not scheduled by TransGas due to Capacity constraints or non-compliance with TransGas policy, business parties will be notified through the web application or other means. In Capacity constrained areas, Nominations may not be scheduled and Nominations will be pro-rated or cut, subject to provisions in the Tariff, and Customer will be contacted for potential next steps. Interruptible Service pro-rations will be based on previous Interruptible flow. 

DEFINITIONS OF TRANSPORT AND STORAGE NOMINATION STATUS ON THE WEB NOMINATIONS APPLICATION IN THE SECURE ZONE 

Once a Nomination has been submitted (i.e. its status is PENDING, ACCEPTED, REJECTED OR WITHDRAWN,), it cannot be altered. To change the dates or quantities on a submitted Nomination, a new Nomination must be created which will override the existing one. The Customer may only delete Nominations with status of NEW, or BUSINESS INVALID OR LINE INVALID. Only Nominations with a status of BUSINESS VALID OR PROCESSED will be scheduled, unless notified otherwise. 

See definitions below for further detail: 

• NEW – A Nomination that has just been created by the New or Copy function, or has just been edited, but has not been saved to the database. 
• BUSINESS INVALID OR LINE INVALID– A Nomination failed the validations during the Validate or Submit function and has not been saved to the database. If error messages exist, the status on the Nomination will be BI (Business Invalid) or LI (Line Invalid). 
• BUSINESS VALID - A Nomination that has been successfully submitted and validated by TransGas. This Nomination will be processed and scheduled, unless notified otherwise, or unless another Nomination overrides it. 

DEFINITIONS OF TEP TRADE AND STORAGE INVENTORY TRANSFER STATUS IN THE SECURE ZONE 

TEP Trade and Storage Inventory Transfers can be initiated by either the buyer or seller. The initiator enters the second party’s mnemonic, business party number or business party name and can edit the quantity, dates and their contract, while the transfer has a status of NEW. Once the Nomination has been forwarded to the second party, the initiator can no longer edit the transaction. The second party may edit their contract only, and only if there is more than one contract to select from. This is the only potential editable field on a Nomination with a status of PENDING, and the only status that allows the second party to edit at all. 

An initiator can delete TEP Trades or Storage Inventory Transfers that are in status of NEW or have validation errors. Once transfer has been submitted as Pending, it can be rejected, accepted or withdrawn but cannot be deleted. 

See definitions below for further detail: 

Initiator Status 

• NEW – A TEP Trade or Storage Inventory Transfer that has been created by the New or Copy function and has not been submitted to the database. Nominations with a status of NEW can be edited. Only the initiating party can edit a NEW TEP Trade or Storage Inventory Transfer. 
• PENDING – A TEP Trade or Storage Inventory Transfer has been submitted to the second party using the Submit function, but has not been accepted or rejected by the confirming party. 
• REJECTED – A TEP Trade or Storage Inventory Transfer can be rejected by confirming party if they do not agree to the quantity or dates entered by initiating party. Once rejected, TEP Trade or Storage Inventory Transfer cannot be edited and a new TEP Trade or Storage Inventory Transfer may be required. 
• PROCESSED – A TEP Trade or Storage Inventory Transfer that has been successfully submitted and validated by both parties. This will be processed and scheduled, unless another TEP Trade overrides it. 
• WITHDRAWN – TransGas has withdrawn the TEP Trade or Storage Inventory Transfer after the Trade was in a PROCESSED status. This would be requested to TransGas by both the initiating party and the confirming party. 

Second Party Status 

• PENDING – A TEP Trade or Storage Inventory Transfer has been forwarded by the initiating party using the Submit function and is awaiting authorization by the second party. The initiating party will see a status of PENDING; the second party will also see a status of PENDING. From this point forward, the Nomination is displayed for both parties. 
• REJECTED – A TEP Trade or Storage Inventory Transfer can be rejected by confirming party if they do not agree to the quantity or dates entered by initiating party. Once rejected, trade or transfer cannot be edited and a new trade or transfer may be required. 
• INVALID – Error exists when confirming party attempts to submit trade or transfer as transfer has failed validations. 
• PROCESSED – A trade or transfer that has been successfully submitted and validated by both parties. This will be processed and scheduled, unless another trade overrides it. 
• WITHDRAWN – TransGas has withdrawn the TEP Trade or Storage Inventory Transfer after the trade was in a PROCESSED status. This would be requested to TransGas by both the initiating party and the confirming party. 

LATE NOMINATIONS 

A transportation or Storage Nomination is considered late if the Nomination cycle being nominated on has closed as per Nomination Deadlines, described below. If the cycle is closed, a warning message is displayed stating that the Nomination status is BI (Business Invalid) and Nomination is Late. If a Late Nomination is required for a Customer (e.g. to correct a discrepancy between Nominations), Customer must get approval from TransGas and the Late Nomination will require TransGas to override the late status. 

DEADLINES 

[See deadlines for placing Nominations with TransGas applicable to same Day Service and next Day Service].

TransGas reserves the right to change these deadlines without prior notice to conform to deadline changes by interconnecting pipelines. 

Note: All times are Saskatchewan Time. 

All required Nominations, submitted by email, can be addressed to: 

Customer Service Administrator 
TransGas Customer Services 
General Inquiry Line: (306) 777-9900 
Weekend On-Call Cell: (306) 537-0926 
Email:transport@transgas.com 

Support for the web application will be available during normal business hours by calling the General Inquiry line. Weekend and holiday support will be available by calling the Weekend On-Call Cell during the hours of 08:00 hours Sask Time to 17:00 hours.