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TARIFF FOR GAS SERVICE TXU GAS COMPANY <br />RATE SCHEDULE: 32 I City Gate Transportation Terms and Conditions <br />APPLICABLE TO: Entire System REVISION: 0 <br /> DATE: <br />EFFECTIVE DATE: i I PAGE: 3 of 3 <br /> <br />5. Gas SuPply Sourcinq <br /> (a) Sourcing of Supply. Due to the location of Customer's Delivery Point(s) and Company's <br />storage facilities and the operational requirements of Company's p~peline, it ~s necessary for Customer to <br />source certain quantities of its Gas supply in proximity to the Delivery Point(s) and storage facdihes under <br />the applicable Transportation Agreement in order for Company to provide firm transportation aeiivery and <br />storage service thereunder, tn order to meet Customer's market and storage requirements, Company <br />and Customer will coordinate in a timely manner to ensure adequate Gas supplies are available in certain <br />geographic operational areas. In the event of force majeure on Company's pipetine system such that <br />service to Customer's residential and commercial customers may be interrupted, Company will make <br />additional interruptible pipeline capacity available to Customer, to the extent then availabte, on any <br />segment of Company's system if such action woutd minimize or eliminate firm service interruption. <br /> (b) Storage Supply. In order for Company to provide firm transportation service under any <br />Transportation Agreement it may be necessary, from time to time, for Customer to source a portion of ~ts <br />Gas supply from its Gas inventory in Company's storage facilities. Customer's minimum requirements to <br />source its Gas from storage, if any, will be set forth in the applicable Transportation Agreement. The <br />actual operating capabilities of Company's pipeline and storage facilities may allow for the mm*mum <br />withdrawal requirements set forth in the applicable Transportation Agreement to be waived, in whole or in <br />pad, from time to time. In that regard, Company may from time to time advise Customer of its daily <br />operating conditions, and, to the extent permitted by such actual operating conditions, Customer may <br />nominate volumes of Gas less than the minimums set forth in the applicable Transportation Agreement. <br /> <br /> -93- <br /> <br /> <br />