Library / Natural Gas Pipeline Tariff Regulations Draft: June 10th, 2022 Objective 1. The objective of these Regulations is to establish the tariff methodologies and tariffs for

Natural Gas Pipeline Tariff Regulations Draft: June 10th, 2022 Objective 1. The objective of these Regulations is to establish the tariff methodologies and tariffs for

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(2) Shippers shall be charged monthly in arrears. The capacity charge charged to a shipper
shall be the rate which is applicable, multiplied by the number of units of reserved capacity
reserved by the shipper, multiplied by the number of days in the month, subject to downward
adjustment in the event of force majeure or default by the Operator.

(3) The capacity charge shall be determined by the reference tariffs pursuant to the tariff
methodology determined by the Authority. The tariff methodology may adjust the reference
tariffs into real tariffs based on the interaction of the various classes of capacity charges.
Such real tariffs shall be determined for each calendar year expressed in constant United
States dollars of the base year of the cash flow that was used in the tariff methodology. The
actual capacity charge to be charged to shippers shall be the real tariffs adjusted for inflation.

(4) The actual capacity charges to apply in a calendar year shall be calculated by the operator
who shall notify all shippers under the particular type of gas transportation agreements, prior
to December 1st before the next calendar year.

(5) The actual capacity charges shall be charged to all shippers during the calendar year in
question, without adjustmentsduring the calendar year.

(6) The reference tariffs shall be a levelized charge, whereby it is a constant charge over the
term approved by the Authority.

Commodity Charge

9. (1) The commodity charge shall be set to recover the cost to the operator of all fuel gas,
provided the operator uses the fuel gas efficiently and in accordance with good engineering
practice.

(2) All shippers shall pay the same commodity charge per unit of natural gas actually
transported on their behalf.

(3) Each shipper shall have the right, in lieu of paying a commodity charge, to provide at no
cost to the operator a share of the total quantity of fuel gas required by the operator in
proportion to that shipper’s actual throughput of natural gas through the pipeline or network.

Tariff Methodology

10. (1) The Authority shall determine, within a prescribed time frame, the tariff methodology
applicable to:

(a)
new gas transportation pipelines operating on an open access basis;

(b)
new gas transportation pipelines being operated for the own account of the
licencee;

(d)
the review of tariffs for the existing gas transportation network.

(2) In determining the tariff methodology, the Authority shall take into consideration:

(a)
whether the tariff shall be charged on a “postage stamp” basis, whereby the
tariff shall be non-distance-sensitive, having only one single tariff rate for the
class of tariff, regardless of the distance that natural gas is transported along
the pipeline;