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Contracting For Transportation Special Emphasis on Generator Loads

Richard G. Smead, Natural Gas Transportation and Marketing (2001)

Every interstate pipeline is required to maintain a detailed FERC tariff, specifying the terms and conditions of service, the rates to be charged, and containing a “standard contract” for each service it offers. Every shipper service agreement starts with that standard contract. Then, the individual service agreement will list the term of the agreement, the receipt and delivery points involved, the maximum delivery quantity (MDQ) of the agreement, and the rates to be charged. The rates may simply be a reference to the tariff, or they may be stated discounts from those rates. Because any firm shipper has a right to move to secondary receipt and delivery points, the agreement may also describe the rates to be charged for service to or from various points other than the primary points listed in the contract. Thus, the tariff is the starting point for each agreement, and the tariff may only be changed if FERC approves the change.