FERC GAS TARIFF

FERC GAS TARIFF
ORIGINAL VOLUME NO. 1
OF
RIDGELINE MIDSTREAM SERVICES LLC
Filed with the
FEDERAL ENERGY REGULATORY COMMISSION
888 First Street NE
Washington, DC 20426
Docket Nos. RP22-847-000 (Rate Case)
RP22-847-001 (Interconnection)
Filed pursuant to Sections 4 and 7 of the Natural Gas Act, 15 U.S.C. §§ 717c and 717f, and the Commission's regulations at 18 C.F.R. Parts 154, 157, and 284, Subpart G
FERC Code: 960442
Applicant:
Ridgeline Midstream Services LLC
700 Kanawha Boulevard East, Suite 1400
Charleston, West Virginia 25301
EIN: 87-4231956
Sole Member:
Dunmore Energy Holdings Ltd.
4th Floor, Harbour Place
103 South Church Street
George Town, Grand Cayman KY1-1002
Cayman Islands
Registered Agent:
Capitol Filings Inc.
1209 Orange Street
Wilmington, Delaware 19801
Date of Filing: May 12, 2022
Proposed Effective Date: July 12, 2022
The proposed effective date of this tariff is sixty (60) days after the date of filing, in accordance with 18 C.F.R. § 154.207.
Prepared by:
Calderwood & Harkness LLP
1601 K Street NW, Suite 900
Washington, DC 20006
Communications regarding this tariff should be directed to:
George Trujillo, Esq.
Responsible Partner
Calderwood & Harkness LLP
1601 K Street NW, Suite 900
Washington, DC 20006
Telephone: (202) 555-7100
Email: gtrujillo@calderwoodharkness.com
Dr. Natasha Orlov
Director of Rates & Regulatory
Ridgeline Midstream Services LLC
700 Kanawha Boulevard East, Suite 1400
Charleston, West Virginia 25301
Telephone: (304) 555-2200
Email: norlov@ridgelinemidstream.com
SECTION 1
PRELIMINARY STATEMENT
1.1 Description of Ridgeline Midstream Services LLC
Ridgeline Midstream Services LLC ("Ridgeline" or "Transporter") is a limited liability company duly organized and existing under the laws of the State of Delaware. Ridgeline was formed on March 15, 2019, and is registered to transact business in the States of West Virginia and Pennsylvania. Ridgeline's sole member is Dunmore Energy Holdings Ltd. ("DEH"), a Cayman Islands exempted limited company organized under the laws of the Cayman Islands and maintaining its principal office at 4th Floor, Harbour Place, 103 South Church Street, George Town, Grand Cayman KY1-1002, Cayman Islands. DEH holds a one hundred percent (100%) membership interest in Ridgeline.
Ridgeline owns and operates the Ridgeline Pipeline System, an interstate natural gas pipeline system located in the States of West Virginia and Pennsylvania, as more fully described in Section 1.2 hereof. Ridgeline is engaged in the business of transporting natural gas in interstate commerce for hire and is subject to the jurisdiction of the Federal Energy Regulatory Commission ("FERC" or "Commission") under the Natural Gas Act, 15 U.S.C. § 717 et seq.
Ridgeline's principal office is located at 700 Kanawha Boulevard East, Suite 1400, Charleston, West Virginia 25301. Ridgeline's registered agent for service of process in the State of Delaware is Capitol Filings Inc., 1209 Orange Street, Wilmington, Delaware 19801. Ridgeline's Employer Identification Number is 87-4231956.
Ridgeline is not affiliated with any local distribution company, natural gas producer, or natural gas marketer. DEH is a holding company that does not itself engage in the production, gathering, processing, or distribution of natural gas. Ridgeline has no subsidiaries.
1.2 Description of the Ridgeline Pipeline System
The Ridgeline Pipeline System (the "System" or the "Ridgeline Pipeline System") consists of a one hundred eighty-seven (187) mile, twenty-four (24) inch diameter high-pressure natural gas transmission pipeline extending from the Wetzel County Interconnect in Wetzel County, West Virginia, to the Waynesburg Compressor Station in Greene County, Pennsylvania. The pipeline is constructed of API 5L X-70 line pipe, and is designed to operate at a maximum allowable operating pressure ("MAOP") consistent with applicable Department of Transportation pipeline safety regulations codified at 49 C.F.R. Part 192.
The System includes the following principal facilities:
Receipt Point. The System's receipt point is the Wetzel County Interconnect, located at approximate coordinates 39.6120° N, 80.7540° W, in Wetzel County, West Virginia, designated as Milepost 0.0 of the System. The Wetzel County Interconnect serves as the physical point at which gas is received into the System for transportation.
Delivery Point. The System's delivery point is the Waynesburg Compressor Station, located at approximate coordinates 39.8965° N, 80.1810° W, in Greene County, Pennsylvania. The Waynesburg Compressor Station serves as the physical point at which gas transported on the System is redelivered to or for the account of shippers.
Compressor Stations. The System includes three (3) compressor stations, as follows:
(a) Wetzel Station — Located at Milepost 0.0, Wetzel County, West Virginia. The Wetzel Station houses mainline compression facilities equipped with gas-fired centrifugal compressor units providing installed compression of approximately 15,000 horsepower.
(b) Mannington Station — Located at approximately Milepost 68.5, Marion County, West Virginia. The Mannington Station houses mainline compression facilities equipped with gas-fired centrifugal compressor units providing installed compression of approximately 15,000 horsepower.
(c) Waynesburg Station — Located at the System's delivery point at approximately Milepost 187.0, Greene County, Pennsylvania. The Waynesburg Station houses mainline compression facilities equipped with gas-fired centrifugal compressor units providing installed compression of approximately 15,000 horsepower.
The aggregate installed compression on the System is forty-five thousand (45,000) horsepower. All compressor stations are equipped with after-coolers, scrubbers, and emergency shutdown systems in accordance with applicable pipeline safety regulations.
Design Capacity. The System has a design capacity of approximately 1.2 billion cubic feet per day ("Bcf/d"), equivalent to 1,200,000 dekatherms per day ("Dth/d") at an assumed thermal content of 1,000 British Thermal Units per cubic foot ("BTU/cf").
In-Service Date. The Ridgeline Pipeline System was placed into service on October 1, 2021. As of the date of this filing, current throughput on the System is approximately 680 million cubic feet per day ("MMcf/d"), representing approximately 56.67% utilization of design capacity.
The System traverses Wetzel County, West Virginia; Marion County, West Virginia; Monongalia County, West Virginia; and Greene County, Pennsylvania. The pipeline right-of-way was obtained through a combination of easement agreements with private landowners and crossings of public rights-of-way pursuant to applicable state and local permits.
1.3 Proposed Interconnection
Ridgeline proposes a new physical interconnection with the existing pipeline network of Appalachian Trunk Pipeline Company, LLC ("ATPC") at ATPC Milepost 412.6 on ATPC's mainline system. ATPC is a limited liability company organized under the laws of the Commonwealth of Pennsylvania, operating a FERC-jurisdictional interstate natural gas pipeline system extending approximately six hundred forty (640) miles across the Commonwealth of Pennsylvania, the State of West Virginia, and the Commonwealth of Virginia, with a current system capacity of approximately 3.8 Bcf/d.
The proposed interconnection will be located at the Wetzel County Interconnect at Milepost 0.0 of the Ridgeline System. The interconnection facilities will include a new meter station and pig launcher/receiver facilities at the interconnection point. The interconnection is designed to be bidirectional, enabling gas to flow from the ATPC system to the Ridgeline System or from the Ridgeline System to the ATPC system depending on supply and demand conditions and the scheduling of transportation service.
The design capacity of the interconnection facilities is 800 million cubic feet per day ("MMcf/d") bidirectional, which is expandable to 1.2 Bcf/d through the installation of additional metering runs and ancillary equipment.
Estimated Interconnection Facilities Cost. The total estimated cost of the interconnection facilities is $22.3 million, allocated between the parties as follows:
The cost allocation reflects the relative benefits of the interconnection to each party, taking into account the proportionate share of capacity at the interconnection, the investment in respective metering and piping facilities, and the ownership responsibilities of each party for facilities on its side of the interconnection point. Ridgeline's share of the interconnection cost is included in its rate base as part of the total cost of service supporting the proposed rates.
Metering Equipment. The interconnection meter station will be equipped with three (3) runs of twelve (12) inch ultrasonic flow meters, gas chromatographs for continuous gas quality analysis, flow computers, and SCADA (Supervisory Control and Data Acquisition) integration for remote monitoring and data transmission. The metering facilities are designed and will be installed in accordance with AGA Report No. 9 and applicable FERC and pipeline safety regulations.
The proposed interconnection is the subject of Docket No. RP22-847-001, filed concurrently with this tariff filing.
1.4 Nature of Service
Ridgeline proposes to provide open-access transportation service under Part 284, Subpart G of the Commission's regulations (18 C.F.R. Part 284). Ridgeline will provide service on a non-discriminatory, open-access basis pursuant to Section 7 of the Natural Gas Act, 15 U.S.C. § 717f, and in accordance with the Commission's open-access policies as articulated in Order No. 636, Pipeline Service Obligations and Revisions to Regulations Governing Self-Implementing Transportation Under Part 284 of the Commission's Regulations, and subsequent orders.
Ridgeline proposes two (2) rate schedules for transportation service on the Ridgeline Pipeline System:
(a) Rate Schedule FT-1 — Firm Transportation Service. Rate Schedule FT-1 provides for firm transportation service under which Transporter is obligated to transport gas for Firm Shippers up to the Maximum Daily Quantity ("MDQ") specified in each shipper's Firm Transportation Service Agreement. Firm Shippers are entitled to priority in scheduling and are subject to curtailment only after all interruptible service has been curtailed.
(b) Rate Schedule IT-1 — Interruptible Transportation Service. Rate Schedule IT-1 provides for interruptible transportation service, available on a best-efforts, as-available basis. IT Shippers have the lowest scheduling priority and service may be interrupted or curtailed at Transporter's sole discretion to accommodate firm service requirements or to maintain the operational integrity of the System.
Ridgeline does not propose to provide any storage service, hub service, pooling service, or park-and-loan service under this tariff. Ridgeline does not propose to provide any sales service. Ridgeline is a transportation-only pipeline.
1.5 Regulatory Authority
This tariff is filed with the Federal Energy Regulatory Commission pursuant to Sections 4 and 7 of the Natural Gas Act, 15 U.S.C. §§ 717c and 717f. Ridgeline is a "natural-gas company" as defined in Section 2(6) of the Natural Gas Act, 15 U.S.C. § 717a(6), and is subject to the jurisdiction of the Commission with respect to the rates, terms, and conditions of its transportation service in interstate commerce.
This tariff is subject to the Commission's regulations at 18 C.F.R. Parts 154 (Rate Schedules and Tariffs), 157 (Applications for Certificates of Public Convenience and Necessity and for Orders Permitting and Approving Abandonment under Section 7 of the Natural Gas Act), and 284 (Certain Sales and Transportation of Natural Gas Under the Natural Gas Policy Act of 1978 and Related Authorities). All rates, terms, and conditions set forth in this tariff are subject to the jurisdiction and approval of the Commission and may be changed only by filing revised tariff sheets with the Commission in accordance with 18 C.F.R. Part 154.
1.6 Applicability
This tariff governs the provision of firm and interruptible natural gas transportation service on the Ridgeline Pipeline System. The rates, terms, and conditions set forth herein are applicable to all shippers contracting for service under Rate Schedule FT-1 (Firm Transportation Service) or Rate Schedule IT-1 (Interruptible Transportation Service). No transportation service shall be provided on the Ridgeline Pipeline System except in accordance with the provisions of this tariff and the applicable Service Agreement executed between Transporter and each shipper. This tariff applies to all gas received and transported on the Ridgeline Pipeline System, without regard to the source, producer, or ownership of such gas.
SECTION 2
SYSTEM MAP
MAP OF THE RIDGELINE PIPELINE SYSTEM
Ridgeline Midstream Services LLC
FERC Gas Tariff, Original Volume No. 1
The following map depicts the Ridgeline Pipeline System, including the 187-mile, 24-inch-diameter high-pressure natural gas transmission pipeline extending from the Wetzel County Interconnect (Wetzel County, West Virginia) at Milepost 0.0 to the Waynesburg Compressor Station (Greene County, Pennsylvania) at Milepost 187.0. The map shows the locations of the three compressor stations (Wetzel Station, Mannington Station, and Waynesburg Station), the receipt point, the delivery point, and the proposed interconnection point with the mainline of Appalachian Trunk Pipeline Company, LLC at ATPC Milepost 412.6. The map also depicts the county and state boundaries traversed by the pipeline, including Wetzel County, West Virginia; Marion County, West Virginia; Monongalia County, West Virginia; and Greene County, Pennsylvania.
Legend:
— 24-inch Ridgeline Pipeline (solid line)
▲ Compressor Station
● Receipt Point (Wetzel County Interconnect, MP 0.0)
■ Delivery Point (Waynesburg Compressor Station, MP 187.0)
◇ Proposed Interconnection Point with ATPC (ATPC MP 412.6)
– – State Boundary (West Virginia / Pennsylvania)
· · · County Boundary
Pipeline Specifications:
Diameter: 24 inches
Length: 187 miles
Design Capacity: 1.2 Bcf/d (1,200,000 Dth/d)
Aggregate Installed Compression: 45,000 HP
Scale: 1 inch = approximately 15 miles
Compass Rose: North oriented to top of page
Note: This map is provided for illustrative purposes. Precise pipeline routing, milepost locations, and geographic coordinates are set forth in the applicable Certificate of Public Convenience and Necessity application and as-built survey documentation filed with the Commission.
SECTION 3
STATEMENT OF RATES
3.1 Rate Schedule FT-1 — Firm Transportation Service
The following rates are applicable to firm transportation service provided under Rate Schedule FT-1 of this tariff. These rates represent the maximum recourse rates and are effective as of the proposed effective date of this tariff, unless otherwise ordered by the Commission.
The Reservation Rate is calculated on a per-Dth-per-day basis and is charged monthly. The monthly reservation charge for each Firm Shipper is computed as:
Monthly Reservation Charge = MDQ × $0.2223 × Number of Days in Billing Month
The Usage Rate is charged on all volumes of gas actually transported during the billing month. The monthly usage charge is computed as:
Monthly Usage Charge = Actual Dth Transported × $0.0042
The total maximum recourse rate of $0.2265/Dth is based on 100% load factor billing determinants and reflects the full cost of service associated with the Ridgeline Pipeline System. The derivation of the rate components is as follows:
Design Capacity: 1,200,000 Dth/d
Annual Billing Determinants (100% Load Factor): 1,200,000 Dth/d × 365 days = 438,000,000 Dth/yr
Total Cost of Service: $97,360,000
Reservation Component: $97,360,000 × (98.14% reservation allocation) ÷ 438,000,000 Dth = $0.2223/Dth
Usage Component: $97,360,000 × (1.86% usage allocation) ÷ 438,000,000 Dth = $0.0042/Dth
Total Recourse Rate: $0.2223 + $0.0042 = $0.2265/Dth
The detailed derivation of the cost of service is set forth in the Appendix to this tariff and in the rate case application Exhibits A through P filed with the Commission in Docket No. RP22-847-000.
3.2 Rate Schedule IT-1 — Interruptible Transportation Service
The following rate is applicable to interruptible transportation service provided under Rate Schedule IT-1 of this tariff:
The interruptible transportation rate is equal to one hundred percent (100%) of the maximum firm transportation recourse rate (Rate Schedule FT-1) stated on a daily basis. Interruptible transportation service is available on a best-efforts, as-available basis, and IT Shippers have the lowest scheduling priority.
There is no reservation charge for interruptible transportation service. The daily rate is charged on all volumes of gas actually transported on each day that interruptible service is provided.
Note: The IT rate derivation as filed does not include a detailed demonstration of the relationship between the firm and interruptible rate components. This deficiency was subsequently identified as Deficiency Item 3 in the Commission Staff's Deficiency Letter dated January 19, 2023 in Docket No. RP22-847-000. Ridgeline anticipates filing supplemental rate support addressing this deficiency in its response to the Deficiency Letter.
3.3 Negotiated Rate Authority
Ridgeline reserves the right to offer transportation service at negotiated rates pursuant to the Commission's negotiated rate policies as set forth in Alternatives to Traditional Cost-of-Service Ratemaking for Natural Gas Pipelines; Regulation of Negotiated Transportation Services of Natural Gas Pipelines, 74 FERC ¶ 61,076 (1996), and subsequent Commission orders and policy statements.
Any negotiated rate agreement entered into between Transporter and a shipper must be filed with the Commission in accordance with 18 C.F.R. § 154.112. The terms and conditions of any negotiated rate agreement, including the negotiated rate itself, will be set forth in the applicable Service Agreement or in a separate negotiated rate agreement filed with the Commission.
All shippers offered service at a negotiated rate must have the option to take service at the applicable maximum recourse rate set forth in this tariff as an alternative to the negotiated rate. The recourse rate shall at all times serve as the rate ceiling for purposes of Commission review. Transporter shall not condition the availability of service at the recourse rate upon a shipper's willingness to agree to service at a negotiated rate.
Negotiated rate service is subject to all of the terms and conditions of this tariff, except to the extent that specific terms and conditions are modified in the negotiated rate agreement as filed with the Commission.
3.4 Surcharges
This section is reserved for surcharges that may be approved by the Commission from time to time. No surcharges are proposed in this initial tariff filing. Any surcharges subsequently approved by the Commission, including but not limited to surcharges for new or changed taxes, compliance costs, or other Commission-authorized assessments, will be posted on Transporter's electronic bulletin board and applied in accordance with the applicable Commission orders.
SECTION 4
RATE SCHEDULE FT-1
FIRM TRANSPORTATION SERVICE
4.1 Availability
Rate Schedule FT-1 is available to any person, corporation, municipality, or other entity ("Firm Shipper") that has executed a Firm Transportation Service Agreement in the form prescribed by Exhibit A to this tariff (the "Form of Service Agreement — Firm Transportation"). Service under Rate Schedule FT-1 is available from the receipt point(s) to the delivery point(s) on the Ridgeline Pipeline System, as specified in the Firm Shipper's executed Service Agreement. Service under Rate Schedule FT-1 is subject to the availability of firm capacity on the System.
Firm capacity on the Ridgeline Pipeline System shall be awarded through an open season process conducted in accordance with the Commission's open-access policies and posted on Transporter's electronic bulletin board. Ridgeline shall conduct an initial open season for firm capacity prior to the commencement of service under this tariff. Subsequent open seasons shall be conducted as needed when additional firm capacity becomes available, including capacity made available through contract expirations, capacity releases, or system expansions.
4.2 Applicability and Character of Service
Service under Rate Schedule FT-1 is firm transportation service. Transporter is obligated to receive, transport, and redeliver natural gas for each Firm Shipper on a firm basis up to the Maximum Daily Quantity ("MDQ") specified in such Firm Shipper's Service Agreement, subject to the terms and conditions of this tariff. Service under Rate Schedule FT-1 is provided on a firm, primary-path basis, and each Firm Shipper is entitled to schedule and have confirmed volumes up to its MDQ each Gas Day.
Transporter shall have no obligation to transport volumes in excess of a Firm Shipper's MDQ on a firm basis. Volumes nominated by a Firm Shipper in excess of its MDQ may be scheduled on an interruptible basis if capacity is available, and such excess volumes shall be subject to the rates, terms, and conditions of Rate Schedule IT-1.
Firm transportation service under Rate Schedule FT-1 is provided on a transportation-only basis. Transporter does not take title to the gas at any point during transportation. Title to the gas remains with the Firm Shipper (or with the party on whose behalf the gas is delivered to Transporter) at all times during the receipt, transportation, and redelivery of such gas.
4.3 Receipt and Delivery Points
The primary receipt point for service under Rate Schedule FT-1 is the Wetzel County Interconnect, located at Milepost 0.0 of the Ridgeline Pipeline System, in Wetzel County, West Virginia. The primary delivery point is the Waynesburg Compressor Station, located in Greene County, Pennsylvania.
Each Firm Shipper's Service Agreement shall specify the primary receipt point(s) and primary delivery point(s) applicable to such Firm Shipper's firm capacity entitlement. Additional receipt and delivery points may be designated by mutual agreement between Transporter and Firm Shipper, subject to the filing of appropriate tariff sheets with the Commission reflecting the addition of such points.
Note: Provisions for segmentation of firm capacity and flexible receipt and delivery point elections are not included in this original tariff filing. This omission was subsequently identified as Deficiency Item 12 in the Commission Staff's Deficiency Letter dated January 19, 2023 in Docket No. RP22-847-000. Ridgeline anticipates addressing segmentation and flexible receipt/delivery point provisions in its response to the Deficiency Letter.
4.4 Maximum Daily Quantity (MDQ)
The Maximum Daily Quantity ("MDQ") for each Firm Shipper shall be specified in such Firm Shipper's Firm Transportation Service Agreement. The MDQ represents the maximum quantity of natural gas, expressed in dekatherms ("Dth"), that Transporter is obligated to receive, transport, and redeliver for such Firm Shipper on any Gas Day.
The aggregate of all Firm Shippers' MDQs shall not exceed the design capacity of the Ridgeline Pipeline System, which is 1,200,000 Dth per day (equivalent to approximately 1.2 Bcf/d at an assumed thermal content of 1,000 BTU per cubic foot). In the event that the aggregate MDQs of all Firm Shippers that have executed Service Agreements or that have been awarded capacity in an open season would exceed the design capacity, Transporter shall allocate available capacity on a pro rata basis among competing requests, in accordance with the Commission's open-access requirements.
4.5 Rates
The following rates are applicable to firm transportation service provided under this Rate Schedule FT-1:
(a) Reservation Rate: $0.2223 per Dth of MDQ per day. The Reservation Rate is a demand charge payable monthly regardless of whether Firm Shipper actually utilizes its firm capacity entitlement during the billing month.
(b) Usage Rate: $0.0042 per Dth of gas actually transported. The Usage Rate is a commodity charge payable on all volumes of gas actually received and transported by Transporter for Firm Shipper during the billing month.
(c) Maximum Recourse Rate (100% Load Factor): $0.2265 per Dth, computed as the sum of the Reservation Rate and the Usage Rate at 100% load factor.
(d) Surcharges: Applicable surcharges, if any, as approved by the Commission and posted on Transporter's electronic bulletin board.
The rates set forth above are maximum recourse rates. Transporter may discount the Reservation Rate, the Usage Rate, or both, down to the applicable minimum rate, which shall be the Usage Rate of $0.0042/Dth (i.e., Transporter may discount the Reservation Rate to zero but may not discount the Usage Rate below $0.0042/Dth). Any discounted rate offered to one Firm Shipper shall not require Transporter to offer the same discounted rate to any other shipper. Transporter may also offer service at negotiated rates pursuant to Section 3.3 of this tariff.
4.6 Billing and Payment
(a) Billing Cycle. Transporter shall bill each Firm Shipper on a monthly basis. The billing month shall correspond to the calendar month. Transporter shall issue invoices within ten (10) business days following the end of each calendar month in which service was provided.
(b) Reservation Charge. The monthly reservation charge for each Firm Shipper shall be computed as follows:
Monthly Reservation Charge = MDQ × $0.2223 × Number of Days in Billing Month
The reservation charge is due and payable regardless of whether Firm Shipper actually scheduled or utilized any of its firm capacity during the billing month. The reservation charge obligation commences on the commencement date specified in the Firm Shipper's Service Agreement and continues through the expiration or earlier termination of the Service Agreement.
(c) Usage Charge. The monthly usage charge for each Firm Shipper shall be computed as follows:
Monthly Usage Charge = Actual Dth Transported During Billing Month × $0.0042
(d) Other Charges. In addition to the reservation and usage charges, each monthly invoice may include charges or credits for: fuel use and lost-and-unaccounted-for gas (FL&U) retention adjustments, imbalance cash-out charges or credits, OFO penalty charges, applicable surcharges, and applicable taxes and assessments.
(e) Payment Terms. Payment of all invoiced amounts is due within twenty-five (25) days of the date of the invoice. Payment shall be made by wire transfer of immediately available funds to the account designated by Transporter on the invoice.
(f) Late Payment Interest. Any amounts not paid when due shall bear interest from the due date until paid at the rate of the lesser of (i) one and one-half percent (1.5%) per month (18% per annum) or (ii) the maximum rate of interest permitted by applicable law. Late payment interest shall be compounded monthly.
(g) Adjustments. If Transporter determines that any invoice contained an error, Transporter shall issue a corrected invoice within sixty (60) days of discovery of the error. Any overpayment by Shipper shall be credited against future invoices or refunded, and any underpayment shall be payable within twenty-five (25) days of the corrected invoice. Adjustments are subject to a twenty-four (24) month limitation period from the date of the original invoice.
4.7 Term
(a) Minimum Term. The minimum term of any Firm Transportation Service Agreement under Rate Schedule FT-1 shall be one (1) year from the commencement date of service as specified in the Service Agreement.
(b) Maximum Term. The maximum term of a Firm Transportation Service Agreement shall be as specified in the Service Agreement. Terms of up to twenty-five (25) years from the commencement of service are available at the option of the Firm Shipper, subject to mutual agreement on the applicable term and rates.
(c) Evergreen Provision. Unless otherwise specified in the Service Agreement, each Firm Transportation Service Agreement shall automatically renew for successive one (1) year periods following the expiration of the primary term, unless either party provides written notice of termination at least one hundred eighty (180) days prior to the expiration of the then-current term.
(d) Right of First Refusal. Upon expiration of a Firm Transportation Service Agreement, the Firm Shipper shall have a right of first refusal as provided in Section 6.15 of the General Terms and Conditions.
4.8 Scheduling and Nominations
(a) Nomination Procedures. Firm Shippers shall submit nominations for transportation service via Transporter's electronic bulletin board ("EBB") or through other NAESB-compliant electronic nomination means, in accordance with the nomination timelines and procedures established by the North American Energy Standards Board ("NAESB") Wholesale Gas Quadrant ("WGQ") standards.
(b) Nomination Cycles. Nominations shall be submitted and processed in accordance with the following NAESB WGQ nomination cycles:
(i) Timely Nomination Cycle
(ii) Evening Nomination Cycle
(iii) Intraday 1 Nomination Cycle
(iv) Intraday 2 Nomination Cycle
(v) Intraday 3 Nomination Cycle
The nomination deadlines, confirmation deadlines, and effective times for each nomination cycle shall be as established by the applicable NAESB WGQ standards, as may be amended from time to time.
(c) Priority of Service. Firm Shippers shall have scheduling priority over all IT Shippers. Among Firm Shippers, all confirmed firm nominations up to each Firm Shipper's MDQ shall receive equal scheduling priority. Nominations by a Firm Shipper in excess of its MDQ shall be treated as interruptible nominations subject to the scheduling priority provisions of Rate Schedule IT-1.
(d) Confirmation. Transporter will confirm nominations in accordance with applicable NAESB WGQ standards and timeframes. Confirmation of a Firm Shipper's nomination up to its MDQ shall be subject only to the receipt of a matching nomination from the upstream delivering party or the downstream receiving party, as applicable.
Note: NAESB WGQ standards compliance has been identified as incomplete in this initial tariff filing. Specific areas of non-compliance were subsequently identified as Deficiency Items 6 and 7 in the Commission Staff's Deficiency Letter dated January 19, 2023 in Docket No. RP22-847-000.
4.9 Operational Flow Orders (OFOs)
(a) Authority to Issue OFOs. Transporter may issue Operational Flow Orders ("OFOs") when, in Transporter's sole judgment, system conditions require such orders to maintain the operational integrity, reliability, safety, or efficient operation of the Ridgeline Pipeline System. OFOs may require Firm Shippers to adjust their deliveries and receipts of gas to bring such volumes into balance or to otherwise take actions necessary to address the operational condition giving rise to the OFO.
(b) OFO Tolerance. During any period in which an OFO is in effect, Firm Shippers must maintain their actual receipts and deliveries within a tolerance band of plus or minus five percent (±5%) of their scheduled quantities for each Gas Day.
(c) OFO Penalties. Any Firm Shipper whose actual receipts or deliveries fall outside the OFO tolerance band during a Gas Day on which an OFO is in effect shall be assessed an OFO penalty of $25.00 per Dth for each Dth by which the Firm Shipper's actual volumes exceed the applicable tolerance band. OFO penalties are assessed on a daily basis.
(d) Notice. OFO notices shall be posted on Transporter's EBB and communicated to affected shippers electronically (by email or other electronic means) as promptly as practicable. Transporter shall endeavor to provide at least four (4) hours' advance notice of the issuance of an OFO, but may issue an OFO effective immediately when, in Transporter's judgment, emergency conditions so require.
(e) Duration. An OFO shall remain in effect until Transporter determines that the conditions giving rise to the OFO have been sufficiently ameliorated, at which time Transporter shall post notice of the termination of the OFO on its EBB.
Note: The OFO provisions as filed were cited as not fully compliant with applicable NAESB WGQ standards. This was referenced in Deficiency Item 6 of the Commission Staff's Deficiency Letter dated January 19, 2023.
4.10 Imbalance Management
(a) Daily Balancing. Each Firm Shipper shall use reasonable efforts to maintain daily balance between the quantities of gas delivered to Transporter at the receipt point(s) and the quantities of gas received from Transporter at the delivery point(s), adjusted for FL&U retention.
(b) Imbalance Tolerance. A Firm Shipper's daily imbalance (i.e., the difference between the quantity of gas received by Transporter at the receipt point(s) for Firm Shipper's account and the quantity of gas delivered by Transporter at the delivery point(s) to or for Firm Shipper's account, adjusted for FL&U) shall be subject to a tolerance band of plus or minus five percent (±5%) of the Firm Shipper's MDQ per Gas Day. Imbalances within this tolerance band shall not be subject to imbalance penalty charges.
(c) Monthly Cash-Out. All accumulated imbalances at the end of each calendar month shall be cashed out at applicable index prices as follows:
(i) For under-deliveries (Shipper has received more gas from Transporter than Shipper has delivered to Transporter, adjusted for FL&U): Shipper shall pay Transporter at the highest three-day average of the applicable daily index price posted during the billing month.
(ii) For over-deliveries (Shipper has delivered more gas to Transporter than Shipper has received from Transporter, adjusted for FL&U): Transporter shall credit Shipper at the lowest three-day average of the applicable daily index price posted during the billing month.
(d) Imbalance Trading. Firm Shippers may trade imbalances with other shippers served under this tariff, subject to Transporter's approval and confirmation that the trade does not adversely affect System operations. All imbalance trades must be reported to Transporter through the EBB prior to the end of the billing month in which the imbalance occurred.
(e) Persistent Imbalances. A Firm Shipper that maintains cumulative imbalances in excess of the applicable tolerance band for three (3) or more consecutive months shall be subject to additional penalty charges, at a rate of $10.00/Dth per day for each Dth of cumulative imbalance in excess of the tolerance band, and may be subject to suspension of scheduling privileges until the imbalance is resolved.
4.11 Capacity Release
This section is reserved for future tariff provisions implementing the Commission's capacity release policies under 18 C.F.R. § 284.8 and the Commission's orders and policies regarding the release of firm capacity by Firm Shippers.
Note: No capacity release provisions were included in this original tariff filing. This omission was subsequently identified as Deficiency Item 5 in the Commission Staff's Deficiency Letter dated January 19, 2023 in Docket No. RP22-847-000. Ridgeline anticipates filing capacity release provisions in its response to the Deficiency Letter.
4.12 Force Majeure
(a) Definition. Neither Transporter nor Firm Shipper shall be liable to the other for any failure to perform its obligations under a Firm Transportation Service Agreement to the extent that such failure is caused by an event of force majeure. As used herein, "force majeure" means any cause or causes not reasonably within the control of the party claiming force majeure, and which, by the exercise of due diligence, such party is unable to prevent or overcome. Force majeure events include, but are not limited to:
(i) Acts of God, including but not limited to earthquakes, floods, hurricanes, tornadoes, landslides, lightning, and other severe weather events;
(ii) Wars, acts of terrorism, insurrections, riots, civil disturbances, blockades, and embargoes;
(iii) Actions or restraints of governmental authorities (whether federal, state, local, or foreign), including the issuance of orders, regulations, injunctions, or embargoes;
(iv) Strikes, lockouts, work stoppages, or other labor disputes;
(v) Pipeline breaks, leaks, or ruptures;
(vi) Failure or breakdown of compressor stations, meters, valves, or other pipeline equipment;
(vii) Extreme weather conditions rendering pipeline operations unsafe or impracticable;
(viii) Fires, explosions, and blowouts;
(ix) Epidemics, pandemics, and quarantine restrictions; and
(x) Any other event or circumstance beyond the reasonable control of the claiming party, whether or not similar to the foregoing.
(b) Notice. The party claiming force majeure shall provide written notice to the other party within forty-eight (48) hours of the occurrence of the force majeure event, describing in reasonable detail the nature and extent of the force majeure event, its expected duration, and the steps being taken to mitigate its effects.
(c) Mitigation. The party claiming force majeure shall exercise due diligence to mitigate the effects of the force majeure event and to resume performance of its obligations as soon as reasonably practicable. The settlement of strikes, lockouts, and other labor disputes shall be entirely within the discretion of the party experiencing such disputes.
(d) Reservation Charge Relief. Firm Shipper's obligation to pay reservation charges during a force majeure event affecting Transporter's ability to provide firm service shall be determined in accordance with the Commission's regulations and applicable precedent.
(e) Limitation. Force majeure shall not excuse the obligation to make payments for service rendered prior to the force majeure event.
SECTION 5
RATE SCHEDULE IT-1
INTERRUPTIBLE TRANSPORTATION SERVICE
5.1 Availability
Rate Schedule IT-1 is available to any person, corporation, municipality, or other entity ("IT Shipper") that has executed an Interruptible Transportation Service Agreement in the form prescribed by Exhibit B to this tariff (the "Form of Service Agreement — Interruptible Transportation"). Service under Rate Schedule IT-1 is available from the receipt point(s) to the delivery point(s) on the Ridgeline Pipeline System, subject to the availability of capacity not subscribed under Rate Schedule FT-1 or otherwise in use by Firm Shippers.
Service under Rate Schedule IT-1 is fully interruptible. Transporter has no obligation to provide interruptible transportation service on any given Gas Day. The availability of interruptible service is determined by Transporter on a day-to-day basis, based on the capacity remaining on the System after all Firm Shipper nominations have been confirmed and scheduled.
5.2 Applicability and Character of Service
Interruptible transportation service under Rate Schedule IT-1 is transportation service that may be interrupted or curtailed by Transporter at its sole discretion, at any time and without advance notice, to accommodate firm transportation service under Rate Schedule FT-1 or to maintain the operational integrity, reliability, safety, or efficient operation of the Ridgeline Pipeline System. IT Shippers have the lowest scheduling priority, below all Firm Shippers.
Interruptible transportation service is provided on a transportation-only basis. Transporter does not take title to any gas received for interruptible transportation. Title to the gas remains with the IT Shipper or the party on whose behalf the gas is delivered to Transporter at all times.
An IT Shipper's nomination for interruptible service on any Gas Day does not create an obligation on the part of Transporter to provide service on that or any subsequent Gas Day. Transporter may refuse to accept any nomination for interruptible service without liability to the IT Shipper.
5.3 Rates
The following rate is applicable to interruptible transportation service under this Rate Schedule IT-1:
Daily Rate: $0.2265 per Dth of gas actually transported.
The daily rate for interruptible transportation service is equal to one hundred percent (100%) of the maximum firm transportation recourse rate under Rate Schedule FT-1, stated on a daily basis. There is no reservation charge for interruptible transportation service; the daily rate is a usage-based charge applied to all volumes of gas actually transported on each Gas Day on which interruptible service is provided.
Transporter may discount the interruptible rate down to a minimum rate of $0.0042/Dth. Discounted rates offered to one IT Shipper shall not require Transporter to offer the same discounted rate to any other shipper.
Note: The IT rate derivation as filed does not include a detailed demonstration of the relationship between the firm and interruptible rate components, including the methodology for converting the firm recourse rate to a daily interruptible rate. This deficiency was subsequently identified as Deficiency Item 3 in the Commission Staff's Deficiency Letter dated January 19, 2023 in Docket No. RP22-847-000.
5.4 Scheduling Priority
Interruptible transportation service under Rate Schedule IT-1 shall be scheduled only after all Firm Shipper nominations under Rate Schedule FT-1 have been confirmed for the applicable Gas Day. Among IT Shippers, scheduling priority shall be determined as follows:
(a) Revenue Priority. The IT Shipper paying the highest rate (on a $/Dth basis) shall have scheduling priority over IT Shippers paying lower rates.
(b) Chronological Priority. Among IT Shippers paying the same rate, scheduling priority shall be based on the chronological order in which nominations were received by Transporter, with earlier nominations having higher priority.
(c) Pro Rata Allocation. In the event that available interruptible capacity is insufficient to accommodate all IT Shipper nominations at the same rate and received at the same time, available capacity shall be allocated on a pro rata basis among such IT Shippers based on their nominated quantities.
An IT Shipper's interruptible nomination may be bumped (i.e., displaced) by a Firm Shipper's nomination during any nomination cycle, including intraday nomination cycles. In the event of a bump, Transporter shall notify the affected IT Shipper as promptly as practicable through the EBB or other electronic communication.
5.5 Billing and Payment
The billing and payment provisions applicable to interruptible transportation service under Rate Schedule IT-1 are as follows:
(a) Daily Usage Charge. The daily usage charge for each IT Shipper shall be computed as:
Daily Usage Charge = Actual Dth Transported on Gas Day × Applicable Daily Rate
(b) Monthly Invoicing. Transporter shall aggregate the daily usage charges for each IT Shipper for all Gas Days in the billing month and shall issue a monthly invoice within ten (10) business days following the end of each calendar month. Monthly invoices shall also include any applicable FL&U retention adjustments, imbalance charges or credits, OFO penalties, surcharges, and taxes.
(c) Payment Terms. Payment of all invoiced amounts is due within twenty-five (25) days of the date of the invoice. Payment shall be made by wire transfer of immediately available funds to the account designated by Transporter.
(d) Late Payment Interest. Any amounts not paid when due shall bear interest at the rate specified in Section 4.6(f) of Rate Schedule FT-1.
(e) Adjustments. Adjustments to invoices shall be handled in accordance with Section 4.6(g) of Rate Schedule FT-1.
5.6 Term
There is no minimum term for interruptible transportation service under Rate Schedule IT-1. An Interruptible Transportation Service Agreement shall be effective upon execution by both parties and shall continue in effect until terminated by either party upon thirty (30) days' prior written notice to the other party. Interruptible service may be provided on a day-to-day, monthly, or other periodic basis as may be agreed between Transporter and IT Shipper.
5.7 IT Revenue Crediting
This section is reserved for future tariff provisions regarding the crediting of IT revenues and the disposition of penalty revenues collected under the OFO and imbalance provisions of this tariff.
Note: No penalty revenue crediting mechanism was included in this original tariff filing. This omission was subsequently identified as Deficiency Item 10 in the Commission Staff's Deficiency Letter dated January 19, 2023 in Docket No. RP22-847-000. Ridgeline anticipates filing penalty revenue crediting provisions in its response to the Deficiency Letter.
SECTION 6
GENERAL TERMS AND CONDITIONS
The following General Terms and Conditions ("GT&C") are applicable to all transportation service provided under this tariff, including service under Rate Schedule FT-1 (Firm Transportation Service) and Rate Schedule IT-1 (Interruptible Transportation Service). The provisions of these General Terms and Conditions are incorporated by reference into each Service Agreement executed under this tariff. In the event of any conflict between the provisions of these General Terms and Conditions and the provisions of a specific Rate Schedule, the provisions of these General Terms and Conditions shall control unless the specific Rate Schedule expressly provides otherwise.
6.1 Definitions
As used in this tariff and in any Service Agreement executed hereunder, the following terms shall have the meanings set forth below. Capitalized terms used but not defined in any specific section of this tariff shall have the meanings ascribed to them in this Section 6.1.
"Bcf/d" means billion cubic feet per day.
"BTU" means British Thermal Unit, the quantity of heat required to raise the temperature of one (1) pound of water by one (1) degree Fahrenheit at or near 59°F.
"Commission" or "FERC" means the Federal Energy Regulatory Commission, or any successor agency.
"Delivery Point" means the point or points at which Transporter redelivers gas to or for the account of Shipper, as designated in the applicable Service Agreement.
"Dth" means dekatherm. One dekatherm is equal to 1,000,000 (one million) BTU.
"EBB" means the electronic bulletin board maintained by Transporter pursuant to Section 6.8 of these General Terms and Conditions.
"Firm Shipper" means a shipper holding a valid and effective Firm Transportation Service Agreement under Rate Schedule FT-1 of this tariff.
"FL&U" means fuel use and lost-and-unaccounted-for gas, as described in Section 6.5 of these General Terms and Conditions.
"Gas" or "Natural Gas" means any mixture of hydrocarbons and noncombustible gases in a gaseous state, consisting primarily of methane (CH₄), delivered to or transported by Transporter under this tariff. The term includes, without limitation, casinghead gas, dry gas, gas well gas, residue gas, and gas obtained from coal seams or shale formations.
"Gas Day" means the period of twenty-four (24) consecutive hours beginning at 9:00 a.m. Central Clock Time ("CCT") on a given calendar day and ending at 9:00 a.m. CCT on the following calendar day, in accordance with NAESB WGQ standards.
"Interconnect" or "Interconnection Point" means the Wetzel County Interconnect at Milepost 0.0 of the Ridgeline Pipeline System, where the System interconnects with the facilities of Appalachian Trunk Pipeline Company, LLC.
"IT Shipper" means a shipper holding a valid and effective Interruptible Transportation Service Agreement under Rate Schedule IT-1 of this tariff.
"MAOP" means Maximum Allowable Operating Pressure, as established for the Ridgeline Pipeline System in accordance with 49 C.F.R. Part 192 and applicable pipeline safety regulations.
"Maximum Daily Quantity" or "MDQ" means the maximum quantity of gas, expressed in Dth, that Transporter is obligated to receive, transport, and redeliver for a Firm Shipper on any Gas Day, as specified in such Firm Shipper's Service Agreement.
"MMcf/d" means million cubic feet per day.
"NAESB" means the North American Energy Standards Board, or any successor organization.
"Natural Gas Act" or "NGA" means the Natural Gas Act, 15 U.S.C. § 717 et seq., as amended.
"OFO" means Operational Flow Order, as described in Section 6.11 of these General Terms and Conditions.
"Receipt Point" means the point or points at which Shipper delivers gas to Transporter for transportation, as designated in the applicable Service Agreement.
"Ridgeline Pipeline System" or "System" means the 187-mile, 24-inch-diameter high-pressure natural gas transmission pipeline and related facilities owned and operated by Transporter, as described in Section 1.2 of this tariff.
"SCADA" means Supervisory Control and Data Acquisition, the computerized system used by Transporter for remote monitoring, measurement, and control of pipeline operations.
"Service Agreement" means a Firm Transportation Service Agreement (Exhibit A) or an Interruptible Transportation Service Agreement (Exhibit B) executed between Transporter and a Shipper under this tariff.
"Shipper" means any party, whether a Firm Shipper or an IT Shipper, receiving or entitled to receive transportation service under this tariff pursuant to an executed Service Agreement.
"Transporter" means Ridgeline Midstream Services LLC, a Delaware limited liability company, and its successors and assigns.
"WGQ" means the Wholesale Gas Quadrant of NAESB.
6.2 Quality Specifications
(a) Gas Quality Requirements. All gas delivered to the Ridgeline Pipeline System at any receipt point must meet the following quality specifications at the time of delivery:
(b) Right to Refuse Non-Conforming Gas. Transporter may refuse to accept gas that does not meet the quality specifications set forth in paragraph (a) above. Transporter shall promptly notify Shipper if gas tendered at a receipt point fails to meet the applicable quality specifications. Shipper shall be responsible for all costs incurred by Transporter as a result of accepting gas that does not conform to the quality specifications, including but not limited to costs of treating, processing, blending, or disposing of such gas.
(c) Quality Verification. Gas quality at each receipt point shall be verified by continuous gas chromatograph analysis conducted at the receipt point. The gas chromatograph shall be installed, calibrated, maintained, and operated by Transporter in accordance with applicable industry standards, including GPA 2261 (Analysis of Natural Gas and Similar Gaseous Mixtures by Gas Chromatography) or its successor standard.
(d) Modification of Specifications. Transporter may propose modifications to the gas quality specifications set forth herein by filing revised tariff sheets with the Commission in accordance with 18 C.F.R. Part 154. No modification to the gas quality specifications shall be effective without Commission acceptance or approval.
6.3 Measurement
(a) Units of Measurement. All gas received, transported, and delivered under this tariff shall be measured in dekatherms ("Dth"). One dekatherm equals 1,000,000 BTU. Volumetric quantities shall be determined at base conditions of 14.73 pounds per square inch absolute ("psia") and 60 degrees Fahrenheit ("°F").
(b) Measurement Equipment. Transporter shall install, own, and maintain measurement equipment at the receipt point(s) and delivery point(s) on the Ridgeline Pipeline System. All measurement equipment shall be of the type and capacity necessary to accurately measure the volumes of gas received and delivered.
At the Wetzel County Interconnect (Milepost 0.0), the measurement facilities consist of three (3) runs of twelve (12) inch ultrasonic flow meters, continuous gas chromatographs for gas quality analysis, flow computers, and SCADA integration for remote monitoring and data transmission.
(c) Measurement Standards. All measurement shall be conducted in accordance with the following industry standards:
(i) AGA Report No. 9 — Measurement of Gas by Multipath Ultrasonic Meters, as amended from time to time (for ultrasonic flow measurement).
(ii) AGA Report No. 7 — Measurement of Gas by Turbine Meters, as amended from time to time (for turbine meter measurement, if applicable at any measurement point).
(iii) AGA Report No. 8 — Compressibility Factors of Natural Gas and Other Related Hydrocarbon Gases, as amended from time to time.
(iv) GPA 2172 — Calculation of Gross Heating Value, Relative Density, Compressibility and Theoretical Hydrocarbon Liquid Content for Natural Gas Mixtures for Custody Transfer, or its successor standard.
(d) Heating Value Determination. The heating value (BTU content) of gas shall be determined by continuous gas chromatograph analysis at each receipt point and delivery point. The gas chromatograph shall be calibrated at intervals not exceeding fourteen (14) days using certified calibration gas standards traceable to the National Institute of Standards and Technology ("NIST").
(e) Inspection and Testing. Shipper shall have the right, upon reasonable prior written notice (not less than five (5) business days), to inspect and test measurement equipment at any receipt or delivery point at which Shipper's gas is measured. Shipper may install check-measurement equipment at Shipper's expense, provided that such equipment does not interfere with Transporter's measurement equipment or pipeline operations. If Shipper disputes the accuracy of Transporter's measurement equipment, Transporter shall test such equipment within ten (10) business days of Shipper's written request.
(f) Measurement Corrections. If measurement equipment is found to be inaccurate by a factor of more than one percent (1%), the quantities of gas measured during the period of inaccuracy shall be adjusted retroactively to the date on which the inaccuracy first occurred, as determined by Transporter based on available data. If the date on which the inaccuracy first occurred cannot be determined, the adjustment shall be made for the prior thirty (30) day period. If measurement equipment is found to be inaccurate by a factor of one percent (1%) or less, no retroactive adjustment shall be made, and the equipment shall be recalibrated or replaced to restore accuracy.
(g) Records. Transporter shall retain all measurement records, including meter charts, electronic flow measurement data, gas chromatograph analyses, calibration records, and related documentation, for a minimum period of six (6) years in accordance with 18 C.F.R. Part 225.
6.4 Pressure
(a) Maximum Allowable Operating Pressure. The Maximum Allowable Operating Pressure ("MAOP") of the Ridgeline Pipeline System shall be as established in accordance with 49 C.F.R. Part 192 and as specified in the applicable Service Agreement. Transporter shall not operate any segment of the System at a pressure exceeding the MAOP established for such segment.
(b) Minimum Delivery Pressure. Transporter shall use reasonable efforts to maintain a minimum delivery pressure of five hundred pounds per square inch gauge (500 psig) at the delivery point (Waynesburg Compressor Station). The minimum delivery pressure is a target delivery pressure, and Transporter's failure to maintain the minimum delivery pressure shall not constitute a default under any Service Agreement or this tariff, provided that Transporter exercises due diligence to maintain adequate system pressures.
(c) Receipt Pressure. Shipper shall deliver gas to Transporter at the receipt point at such pressure as is sufficient to enter the Ridgeline Pipeline System against the prevailing pipeline pressure at the receipt point. Transporter shall not be obligated to accept gas delivered at a pressure insufficient to enter the System.
(d) System Pressures. Transporter shall maintain system pressures at levels adequate to provide firm transportation service to Firm Shippers. Transporter's obligation to maintain system pressures is subject to force majeure, maintenance activities, and other operational constraints.
6.5 Fuel Use and Lost-and-Unaccounted-For Gas (FL&U)
(a) FL&U Retention. Shipper shall deliver to Transporter, at the receipt point, a quantity of gas in kind, in addition to the quantities nominated for transportation, to compensate Transporter for compressor fuel consumed and line loss (collectively, "FL&U") associated with the transportation of Shipper's gas on the Ridgeline Pipeline System.
(b) FL&U Percentage. The FL&U percentage shall be two percent (2.0%) of total gas received at the receipt point for Shipper's account. The FL&U retention percentage applies to all gas received, regardless of whether the gas is transported under Rate Schedule FT-1 or Rate Schedule IT-1.
(c) Calculation. The quantity of gas to be retained by Transporter as FL&U for each Shipper for each billing month shall be calculated as follows:
FL&U Retention (Dth) = Total Gas Received for Shipper's Account (Dth) × 2.0%
The quantity of gas redelivered to or for Shipper's account at the delivery point shall be equal to the total gas received at the receipt point for Shipper's account minus the FL&U retention quantity.
(d) No Tracker Mechanism. The FL&U percentage set forth in paragraph (b) above is a fixed percentage as proposed in this initial tariff filing. No annual true-up or tracker mechanism is included in this filing for adjusting the FL&U percentage to reflect actual fuel use and line loss experience.
Note: The absence of an FL&U tracker mechanism was subsequently identified as Deficiency Item 2 in the Commission Staff's Deficiency Letter dated January 19, 2023 in Docket No. RP22-847-000. Ridgeline anticipates filing an FL&U tracker mechanism in its response to the Deficiency Letter.
6.6 Title and Warranty of Gas
(a) Warranty of Title. Shipper warrants that it has good and marketable title to, or the right and authority to deliver, all gas tendered for transportation on the Ridgeline Pipeline System, and that such gas is free and clear of all liens, encumbrances, and adverse claims. This warranty shall extend throughout the period during which such gas is in the custody of Transporter.
(b) Indemnification. Shipper shall indemnify, defend, and hold harmless Transporter from and against any and all claims, demands, causes of action, losses, liabilities, damages, costs, and expenses (including reasonable attorneys' fees and court costs) arising out of or relating to any defect in or failure of Shipper's title to or right to deliver any gas tendered for transportation under this tariff.
(c) No Title Transfer. Transportation of gas by Transporter under this tariff does not constitute a transfer of title or ownership of such gas from Shipper to Transporter. Title to the gas remains with Shipper (or with the party on whose behalf Shipper delivers the gas to Transporter) at all times during receipt, transportation, and redelivery.
Note: The title and warranty provisions as filed were identified as inadequate in the Commission Staff's Deficiency Letter dated January 19, 2023, as Deficiency Item 8, for failing to include sufficient protections related to Shipper's warranty obligations in the event of competing title claims or governmental seizure of gas.
6.7 Nominations and Scheduling
(a) Nomination Submission. All nominations for transportation service under this tariff shall be submitted by Shipper via Transporter's electronic bulletin board ("EBB") or through other NAESB WGQ-compliant electronic nomination means designated by Transporter. Nominations must include the information required by NAESB WGQ standards, including but not limited to: the identity of the Shipper, the Service Agreement number, the receipt point(s), the delivery point(s), the nominated volume (in Dth), the Gas Day(s) for which the nomination is effective, and the identity of the upstream and downstream parties.
(b) Nomination Cycles. Nominations shall be submitted and processed in accordance