TransGas Comprehensive Tariff

2014 SaskEnergy Annual Report

TransGas Comprehensive Tariff

Last updated: 8/1/2023

TransGas Comprehensive Tariff

Table of Contents Business Practices Overview......................................................................................... 6 1.1 Definitions ............................................................................................................ 6 1.2 General Terms & Conditions ............................................................................... 30 Article 1 Delivery Pressure ........................................................................ 31 Article 2 Quantity of Gas............................................................................ 31 Article 3 Heating Value of Gas ................................................................... 34 Article 4 Energy Balance ........................................................................... 34 Article 5 Quality of Gas.............................................................................. 36 Article 6 Measurement of Gas.................................................................... 40 Article 7 Standards of Measurement and Tests .......................................... 42 Article 8 Liability and Indemnity.................................................................. 44 Article 9 Terms of Service.......................................................................... 45 Article 10 Lost Gas, Fuel Gas and Unaccounted for Gas............................. 46 Article 11 Rates and Other Charges ........................................................... 47 Article 12 Billing and Payments .................................................................. 47 Article 13 Force Majeure............................................................................ 49 Article 14 Arbitration .................................................................................. 53 Article 15 Termination upon Default............................................................ 55 Article 16 Impaired Receipts or Deliveries................................................... 56 Article 17 Confidentiality ............................................................................ 57 Article 18 Common Stream Operations ...................................................... 58 Article 19 Miscellaneous Provisions............................................................ 58 1.3 General Business Policies .................................................................................. 63 A) GENERAL BUSINESS POLICY ................................................................. 63 I. For Future use ...................................................................................... 64 II. Transportation General Business Policies .............................................. 64 a) Non-Facility ...................................................................................... 64 1) Points of Supply and Delivery........................................................ 64 2) Common Stream Operations......................................................... 65 3) Security........................................................................................ 65 4) Shipper Eligibility .......................................................................... 66 5) Summer Use Service.................................................................... 66 6) TransGas Energy Pool.................................................................. 67 b) Facility.............................................................................................. 68 1) Standard Investment Policy........................................................... 68 2) System Line Designation .............................................................. 70 3) Shipper Builds on Behalf of TransGas ........................................... 71 4) Customer Access to Field Measurement........................................ 72 c) Energy Imbalances ........................................................................... 73 1) Energy Imbalance Adjustments ..................................................... 73 2) Month-End Meter Reading ............................................................ 73 3) Operational Flow Orders ............................................................... 74 d) Rate Administration........................................................................... 76 1) Rates and Other Charges ............................................................. 76 2) Unaccounted for Gas.................................................................... 77 3) Fuel Gas ...................................................................................... 77 e) Billing and Payments......................................................................... 78 1) Billings and Payments................................................................... 78

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TransGas Comprehensive Tariff

f) Terminations and Renewals .............................................................. 78 1) Renewal Rights ............................................................................ 78 2) Relief of Demand Charges ............................................................ 79 3) Termination .................................................................................. 80 g) Other................................................................................................ 80 1) Nominations ................................................................................. 80 2) Receipt and Delivery Pressure of Gas ........................................... 80 3) Interruptible Transportation Service............................................... 81 4) Curtailment................................................................................... 82 5) Gas Quality Reset ........................................................................ 82 6) Transfer of Firm Demand .............................................................. 83 7) Diversions .................................................................................... 84 III. Storage................................................................................................. 85 1) Storage Nominations .................................................................... 85 2) Storage Renewal Rights ............................................................... 85 3) Storage Service Billings and Payments.......................................... 86 4) Storage Rates and Other Charges ................................................ 86 5) Storage Investment Policy............................................................. 86 B) QUEUE POLICY........................................................................................ 88 Article 1 Applicability ................................................................................. 89 Article 2 Objectives of the TransGas Queue Policy ..................................... 89 Article 3 Definitions ................................................................................... 90 Article 4 The Queue Process ..................................................................... 90 Article 5 Changes to Applicant’s Request for Service.................................. 92 Article 6 Queue Deposit............................................................................. 93 Article 7 Allocation of Capacity................................................................... 93 Article 8 Offer of Service............................................................................ 94 Article 9 Open Season .............................................................................. 96 Article 10 Construction of New System Facilities......................................... 97 Article 11 Construction of Customer Specific Facilities ................................ 97 Article 12 Transfers within Queued Areas................................................... 98 Article 13 Withdrawal from the Queue ........................................................ 99 Article 14 General...................................................................................... 99 C) NOMINATIONS PROCEDURES .............................................................. 100 Rates........................................................................................................................ 104 2.1 TransGas Rates Sheet ..................................................................................... 104 2.2 TransGas Rates and Charges Description......................................................... 104 A) TRANSPORTATION RATE SUMMARY.................................................... 105 B) STORAGE RATE SUMMARY .................................................................. 105 C) TRANSPORTATION RATES.................................................................... 106 Receipt Transportation – Long Term Firm................................................. 106 Receipt Transportation – Short Term Firm ................................................ 107 Receipt Transportation – Interruptible ....................................................... 108 Receipt Transportation – High Priority Interruptible.................................... 109 Delivery Transportation – Export – Long Term Firm................................... 110 Delivery Transportation – Export – Short Term Firm.................................. 111 Delivery Transportation – Export – Firm – D11 Basic to Export .................. 112 Delivery Transportation – Export – Firm – L11 Basic to Export................... 113 Delivery Transportation – Export Interruptible............................................ 114 Delivery Transportation – Medium Export – Firm – D21 Basic to Export ..... 115

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TransGas Comprehensive Tariff

Delivery Transportation – Large Industrial Firm ......................................... 116 Delivery Transportation – Large Industrial Interruptible.............................. 117 Delivery Transportation – Medium Industrial Firm...................................... 118 Delivery Transportation – Medium Industrial Interruptible........................... 119 Delivery Transportation – Small Industrial Firm ......................................... 120 Delivery Transportation – Summer Use Firm............................................. 121 Delivery Transportation – Summer Use Interruptible.................................. 122 Delivery Transportation – Commercial Firm .............................................. 123 Delivery Transportation – Non-Demand Interruptible ................................. 124 D) STORAGE RATES .................................................................................. 125 Storage Service – Summer Use Firm and Interruptible .............................. 125 Storage Service – Short Term Summer Use ............................................. 126 Storage Service – Firm and Interruptible................................................... 127 E) SERVICE CHARGES .............................................................................. 128 TransGas Energy Pool Account................................................................ 128 Transportation Elevated Pressure Service ................................................ 129 Transportation Fuel Gas and Unaccounted for Gas Assessment ............... 130 Low Heating Value Surcharge Service...................................................... 131 Service Specifications ............................................................................................... 132 3.1 Transportation .................................................................................................. 132 A) DELIVERY .............................................................................................. 132 B) RECEIPT ................................................................................................ 134 3.2 TransGas Energy Pool...................................................................................... 137 A) TEP SERVICE SPECIFICATION.............................................................. 137 3.3 Storage ............................................................................................................ 140 A) STORAGE SERVICE SPECIFICATION.................................................... 140 B) STORAGE SERVICE SPECIFICATION TERMS & CONDITIONS ............. 142 Article 1 Storage Services ....................................................................... 143 Article 2 Injections................................................................................... 144 Article 3 Withdrawals............................................................................... 149 Article 4 Inventory Transfers .................................................................... 151 Article 5 Excess Contracted Capacity....................................................... 152 Article 6 Overholding Charge................................................................... 153 Article 7 Calculation of Customer’s Inventory............................................ 154 Article 8 Inventory Statement................................................................... 154 Article 9 Exclusion of Liability................................................................... 154 Article 10 Loss or Destruction of Gas ....................................................... 155 Article 11 Default..................................................................................... 156 Article 12 Taxes ...................................................................................... 157 Article 13 General.................................................................................... 157 3.4 Common Stream Operations............................................................................. 158 A) CSO SERVICE SPECIFICATION............................................................. 158 B) CSO SERVICE SPECIFICATION TERMS AND CONDITIONS.................. 159 Article 1 Common Stream Operations ...................................................... 160 Article 2 Definitions ................................................................................. 160 Article 3 Nominations .............................................................................. 160 Article 4 Term ......................................................................................... 160 Article 5 General Covenants .................................................................... 160 Article 6 Allocation of Gas........................................................................ 161 Article 7 Limitation of Liability................................................................... 162

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TransGas Comprehensive Tariff

Article 8 Appointment of a New Common Stream Operator....................... 162 Article 9 Miscellaneous Provisions ........................................................... 163 3.5 Electronic Business .......................................................................................... 164 A) ELECTRONIC BUSINESS SERVICE SPECIFICATION ............................ 164 B) ELECTRONIC BUSINESS TERMS AND CONDITIONS............................ 165 Article 1 Electronic Business Service ....................................................... 166 Article 2 Electronic Evidence ................................................................... 166 Article 3 Tariff: Change and Modification.................................................. 167 Article 4 Term and Termination................................................................ 167 Article 5 Limited Warranty........................................................................ 168 Article 6 Indemnity................................................................................... 169 Article 7 Limited Liability .......................................................................... 169 Article 8 Security and Confidentiality ........................................................ 170 Article 9 Customer Responsibilities .......................................................... 170 Article 10 Restrictions on Assignment or Transfer..................................... 171 Article 11 Intellectual Property and Date Ownership.................................. 172 Article 12 Dispute Mechanism.................................................................. 173 Article 13 Miscellaneous .......................................................................... 173 Article 14 General.................................................................................... 174 Article 15 Customer Operating Environment Requirements....................... 174 3.6 Customer Specific Facilities Construction .......................................................... 176 A) CUSTOMER SPECIFIC FACILITIES CONSTRUCTION SERVICE SPECIFICATION ..................................................................................... 176 B) CUSTOMER SPECIFIC FACILITIES CONSTRUCTION TERMS AND CONDITIONS.......................................................................................... 177 Article 1 Customer Specific Facilities Construction.................................... 178 Article 2 Definitions ................................................................................. 178 Article 3 General Provisions..................................................................... 178 Article 4 Default ...................................................................................... 178 Article 5 Force Majeure ........................................................................... 178 Article 6 Miscellaneous Provisions ........................................................... 179 Appendices........................................................................................................................ 180 TransGas Standard Forms ........................................................................................ 180 TransGas Service Agreement.................................................................................... 180

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TransGas Comprehensive Tariff

Business Practices Overview

1.1 Definitions

-A- Access Code: means the unique identification code and password for use by Customer within the TransGas website Secure Zone. Actual Energy: means the amount of Energy equal to the verified metered volume converted to Energy using the Actual Heating Value. Actual Heating Value: means the Heating Value of Gas determined by TransGas in accordance with the provisions of Clause 7.6 of the General Terms and Conditions. Agency Release: means an arrangement, which allows a Customer to give an Agent authority to act on Customer’s behalf to arrange or administer Service with TransGas. Agent: means the Person named in an Agency Release to act on behalf of Customer. Allocation: means the Gas flow, actual or expected, allocated to each Customer at a Point of Receipt by the CSO. Allowable Withdrawal: means the amount of Gas that can be withdrawn from a Storage account each Day. This is equivalent to the Contracted Rate of Withdrawal plus any injections nominated for that Day. During the period November 1 to April 30, the Allowable Withdrawal is limited based on Customer’s Storage Inventory level. Customer also has the ability to request Excess Withdrawal, which is available on an Interruptible basis. Assignee: means the Person to whom another Customer assigns contractual rights or obligations, in whole or in part. Assignments: means the transfer of contractual rights or obligations from the Customer then holding such contractual rights or obligations to another Person, in whole or in part through a Capacity Release or other like action. Assignor: means the Customer who assigns contractual rights or obligations to an Assignee, in whole or in part through a Capacity Release or other like action. Authorized Overrun Capacity: means the quantity of Gas in excess of the Contract Demand, which TransGas has agreed in writing in advance to transport, for the purposes of Impaired Receipts or Deliveries: re Planned Outages Only. Authorized Overrun Volume (AOV): [See Also Authorized Overrun Capacity. ]

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Business Practices Overview 1.1 Definitions

TransGas Comprehensive Tariff

-B- Back Haul: means the transportation of Gas in a direction opposite to the aggregate physical flows on Gas in the pipeline. This is typically achieved when the pipeline redelivers Gas upstream of the Point of Receipt. Balancing: means equalizing Energy delivered from a Shipper’s Imbalance Account with the Energy received into a Shipper’s Imbalance Account. Basic Monthly Charge: means the monthly fee required to be paid by Customer for the Service provided by TransGas irrespective of the Gas usage or contracted quantities. Best Available Energy (BAE): means the resulting Energy from converting the Best Available Volume to Energy using the Last Available Heating Value. (BAE=BAV x LAHV). Best Available Volume (BAV): means that volume reflecting flows of Gas through a meter, determined by TransGas, using the following information relied on in sequential priority: (a) verified metered flows,

(b) non-verified metered flows, (c) SCADA Estimated Flows, (d) Nominations. Billing Demand: is the Contract Demand.

Business Party’s Class of Service: means a grouping of types of Services, held by a Customer, which flow from the same Point of Receipt to the same Point of Delivery, irrespective of the types of transportation Service.

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Business Practices Overview 1.1 Definitions

TransGas Comprehensive Tariff

-C- Capacity: means the maximum quantity, which can be transported in a given time interval governed by the existing conditions of the Gas Transmission System. Capacity Release: means Assignment. Class of Service: means a grouping of transport Services as follows: Receipt to TEP, TEP to export delivery, TEP to intra-delivery, and Point-to-Point Transportation Service, irrespective of the types of transportation Service. Closing Balance: means the aggregate Energy of Gas in a Shipper’s Imbalance Account at the end of a period that is calculated in accordance with the following formula: Closing Balance = Opening Balance for the period + A-B-C Where: A = Energy received into a Shipper’s Imbalance Account. B = Energy delivered out of a Shipper’s Imbalance Account. C = Fuel Gas and Unaccounted for Gas, where applicable. Commodity Charge: means that portion of a Service rate based on the per unit of Service actually delivered to the Customer. Common Stream Gas: means Gas that has been commingled with or exchanged for Gas owned by Person other than Customer, prior to delivery by TransGas to the Customer at a Point of Delivery or prior to delivery by Customer to TransGas at the Point of Receipt. Common Stream Operating Service or Common Stream Operations Service: means the Service between TransGas and the Common Stream Operator, as set out in the Common Stream Operation Service Specification. Common Stream Operator (CSO): means the Person at a Point of Receipt who accepts Nominations and provides TransGas with Allocations. Compression: means the action on a material, which decreases its volume as the pressure to which it is subjected increases. Natural Gas is usually compressed while it is being transported. Confirmed Nomination: means a Nomination for Service or a change in a Customer’s existing level of Service is verified by TransGas. Contract Brief: means a document summarizing the particulars of a fully executed Request for Service. Contract Demand: means the maximum quantity of Gas in any one Day that TransGas is obligated to transport as identified on the TransGas Contract. Contracted Capacity: means the net cumulative amount of Gas measured in GJ’s which Customer has the right to inject into Customer’s Inventory at any time during the Storage Period as identified on the TransGas Contract.

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Business Practices Overview 1.1 Definitions

TransGas Comprehensive Tariff

Contract Term: means the period of time from the Effective Date of the initial or renewed Service to the Expiry Date. Contract Year: means a period of twelve (12) consecutive Months, beginning at 09:00 hours Saskatchewan Time (Sask Time) on the first Day of the Month and ending 09:00 hours Saskatchewan Time (Sask Time) on the first Day of the Month, twelve Months following, unless otherwise designated by TransGas. Contracted Rate of Withdrawal: means the nominal rate of Withdrawal, specified on a Storage Customer’s TransGas Contract, which is used to determine the Customer’s Allowable Withdrawal rights, as well as Customer’s Allowable Injection rights. Cubic Metre: means that quantity of Gas which, at a temperature of fifteen (15) degrees Celsius and at a pressure of one hundred and one and three hundred and twenty-five thousandths kilopascals absolute (101.325 kPa), occupies one (1) cubic Metre. Curtailment: means the temporary reduction or termination in Firm Service by TransGas due to pipeline constraints. Curtailment may include planned outages or unplanned outages [See also Impaired Receipts and Deliveries], excluding Force Majeure. Customer: means a Person who has executed a TransGas Service Agreement. Customer’s Daily Energy Imbalance: means the sum of the Estimated Daily Shipper Imbalances on each Shipper’s Imbalance Account. Customer’s Inventory: means the amount of Gas expressed in GJs which Customer has in Storage and is entitled, upon prior satisfaction of all Customer’s obligations, to withdraw from Storage. Customer Specific Facilities: means those facilities installed by TransGas for the benefit of Customer, particulars of which are more fully described on the Customer Specific Facilities Construction TransGas Contract. Such facilities remain Customer Specific for: (a) a 5-year period from the in-Service date of the facilities, or (b) until TransGas, at its sole discretion, elects to designate the Customer Specific Facilities as System Line. Customer Specific Facilities Construction Service: means the Service provided for under the TransGas Service Agreement and as outlined in the Customer Specific Facilities Construction Service Specification. Customer’s Total Daily Activity: means the summation of the Daily Activity on each Shipper’s Imbalance Accounts.

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Business Practices Overview 1.1 Definitions

TransGas Comprehensive Tariff

-D- Daily Activity: means the estimated Energy received into a Shipper’s Imbalance Account the previous Day plus the estimated Energy delivered out of a Shipper’s Imbalance Account the previous Day divided by 2. Day: means a period of twenty-four (24) consecutive hours beginning at 09:00 hours Sask Time. Deliverability: means the rate of Withdrawal. Delivery Transportation Service: means the Service provided under the TransGas Service Agreement and as outlined in the Delivery Transportation Service Specification. Demand Charge: means that portion of a Service rate that reflects the reservation of Capacity not the per unit of Service actually delivered to the Customer. Direct Purchase: means the acquisition of Gas supply transported to Customer by means of an intra-Provincial Delivery Transportation Service. Diversions: means the daily transfer of Gas already on the Gas Transmission System from the Point of Delivery to a non-contracted Point of Delivery without a TransGas Contract amendment.

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Business Practices Overview 1.1 Definitions

TransGas Comprehensive Tariff

-E- Effective Date: means the commencement date of the Service as identified on the TransGas Contract. Electronic Business Service: means the Service provided for under the TransGas Service Agreement and as outlined in the Electronic Business Service Specification. Elevated Pressure Service: means the Service provided to a Customer by which TransGas agrees to provide a delivery pressure above the standard operating pressure for that transmission line, in accordance with the General Business Policies. End of Primary Term: means No Renewal Rights. Energy: means the heat content of Gas expressed in GJs. Estimated Daily Shipper Imbalance: means the amount of Energy equal to the estimated Opening Balance on the Shipper’s Imbalance Account plus the estimated Energy received into a Shipper’s Imbalance Account (including any amounts moved from Shipper’s inactive area), during a period, less the estimated amount of Energy delivered out of the Shipper’s Imbalance Account during the period. Evergreen: means the automatic, continuous renewal of a designated term of Service until the Customer provides the required notification to alter or terminate the Service. This type of renewal applies only to those terms of Service as designated in the Tariff. Excess Injection: means Interruptible Storage Injection. Excess Withdrawal: means Interruptible Storage Withdrawal. Expiry Date: means the date the Services contracted for by the Customer will cease, more specifically identified on the TransGas Contract, subject to Renewal Rights.

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Business Practices Overview 1.1 Definitions

TransGas Comprehensive Tariff

-F- Firm: means Service that is not subject to prior claim by another Customer or class of Service. The highest priority class of Service offered to Customers, which anticipates no interruptions except for Force Majeure and specific Curtailment. First Month: the period commencing on the Effective Date and ending at 09:00 hours on the first Day of the succeeding calendar Month, unless otherwise designated by TransGas. Force Majeure: means any cause or occurrence not reasonably within the control of TransGas or Customer, which impacts the ability to perform certain contractual obligations, particulars of which are more specifically set out in the Tariff. Fuel Gas: means a quantity of Gas required by TransGas under transportation Service to provide Service and is supplied by Customer, as outlined in the Tariff. Fuel Rate: means the sum of Fuel Gas and Unaccounted for Gas assessments as identified and updated from time to time in the Tariff.

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Business Practices Overview 1.1 Definitions

TransGas Comprehensive Tariff

-G- Gas: means natural gas. A gaseous material composed of mainly hydrocarbons, which may be burned to produce heat or heat and light. Gas Transmission System (System): includes all those facilities, including the Customer Specific Facilities, owned or used by TransGas in the receipt, transport and delivery of Gas. [See Also Storage Facilities.] General Business Policies: means those policies governing the Customer’s ability to obtain and maintain Service from TransGas as set out in the Tariff. General Terms and Conditions: means those terms and conditions set out in the Tariff which are applicable to any Service provided to a Customer, by TransGas, unless designated to the contrary in the Service Specifications. Gigajoule (GJ): means Joules x 10 9 , and shall be calculated as the product of the Heating Value in MJ per Cubic Metre and the volume of Gas expressed in 10 3 m 3 .

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Business Practices Overview 1.1 Definitions

TransGas Comprehensive Tariff

-H- Handshake: means the transfer of Gas, at an interconnecting pipeline or other point of interconnection, from one upstream Person to a Person that has no service on either system, and subsequent transfer to a downstream Person. Heating Load Customer: means consumers of Gas, within Saskatchewan, designated as heating load Customers by TransGas due to the nature of that consumer’s Gas use. Heating Value: means the gross heating value of Gas expressed in MJ per Cubic Metre, produced by the complete combustion of one (1) Cubic Metre of Gas with air, at a temperature of fifteen (15) degrees Celsius and at a pressure of one hundred and one and three hundred and twenty-five thousandths (101.325) kilopascals absolute, with the Gas free of all water vapor, the products of combustion cooled to a temperature of fifteen (15) degrees Celsius, and the water formed by the combustion condensed to a liquid state.

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Business Practices Overview 1.1 Definitions

TransGas Comprehensive Tariff

-I- Imbalance Charge: means the amount calculated in accordance with Clause Vll of the TEP Service Specifications, and which is payable by Customer when: a. Customer is not meeting its Balancing obligation as set out in Clause 4.3 of the General Terms and Conditions; and b. TransGas elects to settle the difference by purchasing or selling Gas in accordance with Clause 4.4(ii) of the General Terms and Conditions. Impaired Receipts and Deliveries: means the inability of TransGas to receive or deliver the quantities of Gas contracted for under the TransGas Contract. [See also Curtailment.] Initial Term: means the term the Customer is obligated to hold Service upon first contracting for the Service with TransGas. Information: means all knowledge and information concerning the business of the other Person which may be acquired in the course of the negotiation or performance of a Service. Injection: means the act of placing Gas into Storage under Storage Service from Customer’s own Shipper’s Imbalance Account at TEP. Interchangeability: shall mean the ability to substitute one gaseous fuel for another in a combustion application without materially changing the operational safety, efficiency, performance, or increasing air pollutant emissions. Interruptible: means a low priority Service supplied to a Customer which anticipates and permits interruption on short notice at the discretion of TransGas, subject to conditions set out in the Tariff. Inventory: means the amount of Gas held by TransGas, at any point in time, on behalf of Customer under Storage Service. Inventory Transfers: means the transfer of Gas in Storage from one Customer to another.

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TransGas Comprehensive Tariff

-J- Joule: means the amount of work done when the point of application of one (1) Newton is displaced a distance of one (1) Metre in the direction of the force.

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Business Practices Overview 1.1 Definitions

TransGas Comprehensive Tariff

-L- Last Available Heating Value : means the most recent measured Heating Value as determined by TransGas. Load Factor: means the average quantity of Gas delivered or used over a specified time interval divided by the maximum quantity of Gas delivered or used at any time during the time interval. This may be an hour, a Day, a week, a Month, or a year. Where the time interval is not specified, the term is generally assumed to mean the annual load factor. Lost Gas: means Gas missing due to an event of Force Majeure. Low Heating Value Surcharge Service: means the Service provided for under the TransGas Service Agreement and as outlined in the Low Heating Value Surcharge Service Specification.

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Business Practices Overview 1.1 Definitions

TransGas Comprehensive Tariff

-M- Max Day: means the Contract Demand for demand Customers and Maximum Daily Quantity for non-demand Customers. Maximum Daily Quantity: means the anticipated maximum amount of Gas a non-demand transportation Customer may require on any one Day during a year. Megajoules (MJ): means Joules x 10 6 . Month: means a period beginning at 09:00 hours Sask Time on the first Day of a calendar Month and ending at 09:00 hours Sask Time of the first Day of the next succeeding calendar Month, unless otherwise designated by TransGas. Monthly Capacity Charge: for any Month during the Storage Period, means the Monthly Capacity Charge Rate specified in the Tariff Rates and Charges Schedules, multiplied by the Contracted Capacity. Monthly Energy Imbalance: means the sum of the estimated Energy Allocated into a Shipper’s Imbalance Account, net of the estimated Energy delivered out of the Shipper’s Imbalance Account, during a Month; less the final CSOs’ Allocation of Gas to the Customer’s transportation Services which flow into the Shipper’s Imbalance Account net of the Actual Energy delivered out of the Shipper’s Imbalance Account, during a Month. Monthly Withdrawal Charge: for any Month during the Storage Period, means the Monthly Withdrawal Charge Rate specified in the Tariff Rates and Charges Schedules, multiplied by the Contracted Rate of Withdrawal.

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Business Practices Overview 1.1 Definitions

TransGas Comprehensive Tariff

-N- NIT: means the NOVA Inventory Transfer point on the NOVA Gas Transmission Ltd. pipeline system in Alberta. No Evergreen: Means No Renewal Rights No Renewal Rights (NRR): applies to a Service, which is not subject to Evergreen and requires the Customer to request renewal of Service, which will be considered a new Service request subject to Capacity approval and to the Queue Policy and Procedures. Failure to request renewal of Service will automatically result in the termination of the Service. Nomination: means a Customer’s request or a change in an existing request as outlined in the Nomination Procedure. Nomination Procedure: means the procedure identified as the “Nomination Procedure”, amended from time to time, included in the Tariff.

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Business Practices Overview 1.1 Definitions

TransGas Comprehensive Tariff

-O- Opening Balance: means the Closing Balance of the preceding period. Overholding Charge: means the amount, set out in the Tariff Rates and Charges Schedules, which is payable by Customer when: (a) Customer’s Inventory exceeds Contracted Capacity, or (b) Customer fails to withdraw his Inventory from Storage upon expiry of hisStorage Service.

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Business Practices Overview 1.1 Definitions

TransGas Comprehensive Tariff

-P- Person: means and includes TransGas, a Customer, a corporation, a company, a partnership, an association, a joint venture, a trust, an unincorporated organization, a government, or department of a government or a section, branch, or division of a department of a government. Point of Delivery: means the point or points on the Gas Transmission System at the outlet side of TransGas’ meter installation, or other such Points of Delivery that the Persons may agree on, specified on the TransGas Contract, at which TransGas delivers, from its Gas Transmission System, to Customer, the Gas that has been transported on Customer’s behalf. Point of Receipt: means the point or points on the Gas Transmission System or such other Point of Receipt as the parties may agree, specified on the TransGas Contract, at which TransGas receives from, or on behalf of Customer, Gas to be transported. Point-to-Point Transportation Service: means the transportation Service which is contracted from a Point of Receipt on the TransGas System directly to a Point of Delivery, other than TEP, on the TransGas System. Pre-determined Allocation Methodology: means the direction given to TransGas by the CSO, in accordance with allocation methodologies specified by TransGas from time to time, to be used by TransGas, on a daily basis, to allocate the Best Available Energy or on a Monthly basis to Allocate the Actual Energy, amongst the various Shippers transporting Gas from a Point of Receipt.

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Business Practices Overview 1.1 Definitions

TransGas Comprehensive Tariff

-Q- Queue Policy and Procedure: means those terms and conditions as set out in the Tariff, which identifies the process used by TransGas to administer Requests for Service ensuring fair and equitable treatment to all prospective Customers seeking Service.

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Business Practices Overview 1.1 Definitions

TransGas Comprehensive Tariff

-R- Rates and Charges Schedule: means any of the schedules identified as a “Rates and Charges Schedule” included in the Tariff, specifying costs required to be paid by Customer for provision of Service. Receipt Transportation Service: means the Service provided under the TransGas Service Agreement and as outlined in the Receipt Transportation Service Specification. Renewal Right: means the right the Customer has to renew Service provided by TransGas, as outlined in the Tariff. Request for Service: means the electronic submission by the Customer providing the particulars of a transportation, Storage, or Common Stream Operating Service Return Date: means the date a temporary Assignment reverts back to the original Service holder. Right of First Refusal (RFR): applies to a Service, which is not subject to Evergreen however, the Customer is given priority for the renewal of Service over a new Service request and requires the Customer to request renewal of Service. The Capacity not renewed may be placed in a priority position in the TransGas Queue. Failure to request renewal of Service will automatically result in the termination of the Service.

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Business Practices Overview 1.1 Definitions

TransGas Comprehensive Tariff

-S- Saskatchewan Time (Sask Time) : means the time of day in Regina, Saskatchewan (GMT/UTC-6h) in accordance with Coordinated Universal Time (UTC), the current world time- scale. Unless indicated otherwise, references to time in this Tariff are to Saskatchewan Time. SCADA Estimated Flows: means the estimation of the flow through a meter determined by TransGas using information obtained from meters before the end of the Day and projected to the end of the same Day. Schedule of Service: means any of the schedules identified as a “Schedule of Service”, included in the Tariff, detailing the particulars of a Customer’s Service. May also be referred to as TransGas Contract. Secure Zone: means an area within the TransGas website that may contain certain Information specific to the Customer and has access limited to TransGas and Customer or Customer’s designate. Service: means a set of contractual rights and obligations provided under the TransGas Service Agreement as outlined in the Tariff. Service Specifications: means those terms and conditions set out in the Tariff which provide further detail for a designated Service provided to Customer, by TransGas, and supplement to the General Terms and Conditions and General Business Policies. In the event of a conflict, the Service Specification shall prevail. Shipper: means Customer. Shipper Allowable Daily Tolerances: means the range within which Customer’s Daily Energy Imbalance must fall. This range is determined by multiplying the daily Shippers’ Tolerance Percentage by the Customer’s Total Daily Activity expressed in GJ’s. Shipper’s Imbalance Account: means a notional location on the Gas Transmission System or in TEP through which Gas may flow and in which an imbalance may reside. The Shipper’s Imbalance Account are features of TEP Service and Point-to-Point Transportation Service. Shippers’ Tolerance Percentage: means the amount of tolerance, determined by TransGas, that a Shipper might be out of balance on a daily basis. This is expressed as a minimum and maximum percentage. Storage: means the Storage Facilities or those commercial arrangements that TransGas may enter into to provide Storage Service. Storage Facilities: means all underground Storage caverns and Storage fields and all ancillary and related equipment or any other Storage facility utilized by TransGas from time to time for the storage of Gas. [See also Gas Transmission System.] Storage Period: means the period of twelve (12) consecutive Months, beginning at 09:00 hours Sask Time on May 01 and ending 09:00 hours Sask Time on May 01 next following, or unless otherwise designated by TransGas.

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Business Practices Overview 1.1 Definitions

TransGas Comprehensive Tariff

Storage Service: means the Service provided under the TransGas Service Agreement and as outlined in the Storage Service Specification. Summer Use: means the type of Service provided during the summer season as defined for each applicable Service, transportation or Storage. System Line: means the Gas Transmission System, which is not Customer Specific Facilities.

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Business Practices Overview 1.1 Definitions

TransGas Comprehensive Tariff

-T- Tariff: means this published TransGas Comprehensive Tariff, including, but not limited to, the Rates and Charges Schedules, the General Terms and Conditions, the Service Specifications, Procedures, TransGas Service Agreement, Schedules of Service, and the General Business Policies, under which Service will be supplied to a Customer. The Tariff is subject to amendment as set out in the General Terms and Conditions. TEP: means the TransGas Energy Pool. TEP Service: means the Service provided under the TransGas Service Agreement and as outlined in the TransGas Energy Pool Service Specification. TGL: means TransGas Limited. Thousand Cubic Metres or 10 3 m 3 : means one thousand (1,000) Cubic Metres of Gas. Title Transfer: means the transfer of ownership of Gas by movement in TEP from one Shipper’s Imbalance Account to another Shipper’s Imbalance Account, as outlined in the Tariff. Transfer of Contract Demand: means the ability of a Customer to transfer Contract Demand from one location on the Gas Transmission System to another location subject to the approval of TransGas in accordance with the provisions of the Tariff. TransGas: means TransGas Limited. TransGas Contract: means any of the documents containing the particulars of a Customer’s Service including but not limited to those identified as a “Schedule of Service”, “Request for Service”, or “Contract Brief”. TransGas Energy Pool: means the collection of Shipper’s Imbalance Accounts into which Receipt Transportation Services flow and out of which Delivery Transportation Services flow, as well as, Title Transfers from one Shipper’s Imbalance Account to another. Gas may also flow from Shipper’s Imbalance Accounts to and from Storage, subject to Storage Injection and Withdrawal rights. TransGas Investment: the amount of money TransGas will invest towards Customer Specific Facilities based on contractual commitments agreed to by Customer(s) utilizing those Customer Specific Facilities on a Firm basis or on an actual usage basis for Interruptible Transportation Service as outlined in the General Business Policies. TransGas Service Agreement: means the agreement between TransGas and Customer respecting the provision of any Service described in the Tariff.

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Business Practices Overview 1.1 Definitions

TransGas Comprehensive Tariff

-U- Unaccounted For Gas: means the difference between the amount of Gas delivered to the Gas Transmission System for transportation and that redelivered by TransGas, taking into account Fuel Gas, plant shrinkage and imbalances. This difference includes leakage, discrepancies due to meter inaccuracies, unrecoverable Energy Imbalances, and other variants. Undiverted: means a transportation Service which has not been diverted and Gas flows to the Point of Delivery specified on the TransGas Contract.

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Business Practices Overview 1.1 Definitions

TransGas Comprehensive Tariff

-W- Withdrawal: means the act of removing Gas from Storage under Storage Service and delivering it to Customer’s own Shipper’s Imbalance Account at TEP. Wobbe Index: shall mean a measure of the thermal input through a fixed orifice, calculated by dividing the Gas Heating Value in Megajoules per Cubic Metre by the square root of the Gas specific gravity with respect to air, based on a gross or higher heating value (HHV) at standard conditions 101.325 kPa/15 o C real, dry basis.

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Business Practices Overview 1.1 Definitions

TransGas Comprehensive Tariff

-Y- Yearly After Initial Term (YAIT): means that the Service Evergreens on a yearly basis.

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Business Practices Overview 1.1 Definitions

TransGas Comprehensive Tariff

1.2 General Terms & Conditions Table of Contents Article 1

Delivery Pressure ............................................................................................... 31 Quantity of Gas .................................................................................................. 31 Heating Value of Gas.......................................................................................... 34 Energy Balance.................................................................................................. 34 Quality of Gas .................................................................................................... 36 Measurement of Gas .......................................................................................... 40 Standards of Measurement and Tests ................................................................. 42 Liability and Indemnity ........................................................................................ 44

Article 2 Article 3 Article 4 Article 5 Article 6 Article 7 Article 8 Article 9

Terms of Service ................................................................................................ 45 Article 10 Lost Gas, Fuel Gas and Unaccounted for Gas ..................................................... 46 Article 11 Rates and Other Charges ................................................................................... 47 Article 12 Billing and Payments .......................................................................................... 47 Article 13 Force Majeure .................................................................................................... 49 Article 14 Arbitration .......................................................................................................... 53 Article 15 Termination upon Default.................................................................................... 55 Article 16 Impaired Receipts or Deliveries........................................................................... 56 Article 17 Confidentiality..................................................................................................... 57 Article 18 Common Stream Operations............................................................................... 58 Article 19 Miscellaneous Provisions.................................................................................... 58

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Business Practices Overview 1.2 General Terms and Conditions

TransGas Comprehensive Tariff

*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 Delivery Pressure 1.1 Point of Receipt Customer agrees to deliver the Gas, or cause the Gas to be delivered into the Gas Transmission System at the Point of Receipt at such pressures as TransGas requires from time to time at the Point of Receipt not to exceed the maximum pressure limit as set out on the respective TransGas Contract. TransGas reserves the right to change the said maximum pressure limit upon six (6) Months’ written notice to Customer. 1.2 Point of Delivery TransGas agrees to deliver the Gas to Customer at the Point of Delivery out of the Gas Transmission System at pressures as follows: (a) Intra-Saskatchewan demand and non-demand Delivery Transportation Service Customers: at gauge pressures within the pressure limits as set out on the respective TransGas Contract; (b) Export Delivery Transportation Service Customers: at pressures as required by the Customer, subject to the maximum pressure limit as set out on the respective TransGas Contract. Article 2 Quantity of Gas 2.1 General Obligations Subject to the other provisions of the Tariff, TransGas agrees to receive from Customer each Day at each Point of Receipt the quantity of Gas which Customer tenders for transportation on such Day, up to the Contract Demand, and TransGas agrees to tender for delivery to Customer and Customer shall take on such Day at the Point of Delivery, an amount of Gas containing the equivalent amount of Energy as are contained in the amount of Gas tendered by Customer at the Point of Receipt, less Customer's share of Fuel Gas and Unaccounted for Gas, where applicable, up to the Contract Demand. 2.2 Nominations Customer agrees to place a Nomination with TransGas, specifying in GJs, the amount of Gas to be made available by the Customer at the Point of Receipt and by TransGas at the Point of Delivery in compliance with the Nomination Procedure. For Customers whose type of Service includes a Demand Charge, TransGas will allocate Customer’s

Nomination in the following order of priority: (1) Firm Service up to the Contract Demand, (2) Interruptible Service, if applicable.

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Business Practices Overview 1.2 General Terms and Conditions

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