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<br />SCHEDULE "B" TO <br />OPTIONAL INDUSTRIAL GAS SALES OR GAS TRANSPORTATION CONTRACT <br /> <br />GENERAL TERMS AND CONDITIONS APPLICABLE TO BOTH SALES SERVICE <br />AND TRANSPORTATION SERVICE <br /> <br />1. Qualification <br /> <br />(a) In order to qualify as a Customer and receive service under this Contract a customer must: (i) be served from a <br />connection to a TXUGD distribution system downstream from a city gate and inside the boundaries of a city: (ii) be <br />served without exceeding the capacity ofTXUGD's existing facilities: and (Hi) qualify to receive service as an <br />industrial customer under TXUGD's Rate Schedule No. 200 issued in April of 1999; however, such customer may <br />not be an electric generation customer, and must consume at least 1500 decathenns as an annual average instead of <br />not less than 125 mcfper month of its Connet Year. <br /> <br />(b) A customer, other than a residential customer, that is otherwise qualified. but does nol have a minimum gas <br />usage of 1500 decatherms as an annual average. may choose commercial class gas sales service. <br /> <br />(c) Service under this Contract will not be available to a customer that has another existing gas sales or <br />transportation contract or agreement related to those facilities described on the signature page of this Contract for <br />gas service from TXUGD's distribution facilities. Nanual gas transportation or sales service under this Contract <br />will only be available to such customers upon the tennination of such other contracts. . <br /> <br />(d) Customer must have entered a written agreement with TXUGD in the form of the Contract that is a pan of the <br />approved tariff applicable hereto. <br /> <br />(e) Customer must have selected one of the service options and other variable terms and provisions that are <br />agreeable to TXUGD, as provided on the signature page of this Contract and on the Selection of Service Form. <br />which is included as Schedule "A." Such a signature page and such Selection of Service Form will, when agreed to <br />by TXUGD, become a pan of this Contract and incorporated herein. <br /> <br />(t) This Contract, including all applicable Schedules and tariffs, constitutes the entire contract between Customer <br />and TXUGD with respect to Customer's facilities described on the signature page for the purposes herein <br />designated. <br /> <br />(g) Service under this Contract will only be available where Optional Industrial Rates are in effect. <br /> <br />2. Definitions <br /> <br />(a) "Agreement" or "mutual agreement" as used in this Contract in regard to an agreement of the parties on a <br />variable term or provision of this Contract., at inception or in the future, mean an agreement thar will not be <br />unreasonably withheld by either pany; however, the agreement ofTXUGD will necessarily be dependent upon the <br />relevant distribution system operating conditions. which TXUGD will not be required to change, and TXUaD will <br />not be required to change the capacity of its system or add new facilities. <br /> <br />(b) "Billing month" means that period of time beginning at 9:00 A.M. central clock time on the first calendar day <br />of a calendar month and ending at 9:00 A.M. cenaal clock time, on the first calendar day of the following calendar <br />month for which TXUGD submits a statement to Customer for the services, fees, tax reimbursement. costs, charges <br />and compensation due to TXUGD under the provisions of this Contract. <br /> <br />(c) "Contract Year" means the period of time beginning at 9:00 A.M. central clock time on the first day of the <br />month after initial deliveries of gas to Customer are measured through TXUGO's measurement facilities and ending <br />at 9:00 A.M. central clock time on the same day and month one (1) year thereafter, or as otherwise set forth on the <br />signature page of this Contract. <br /> <br />(d) "Day" means the period of time beginning at 9:00 A.M. central clock time on one calendar day and ending at <br />9:00 A.M. central clock time on the following calendar day. <br /> <br />(e) "Decatherm" has the meaning set forth in paragraph 8(a) of this Schedule "B." <br /> <br />(0 "Delivery Point" has the meaning set forth on the signature page of this Contract. <br /> <br />Rev OS/25/01 Attach. to Rate Sch. 4221 <br /> <br />04 <br />