Network Expansions / Augmentations Sample Clauses

Network Expansions / Augmentations. A Network Augmentation will be automatically treated as part of the covered pipeline upon the Augmentation coming into service. There are three types of Network Augmentation envisaged by Allgas as follows: • an Augmentation necessary to maintain the safety, integrity or contracted conditions of the Network where such Augmentation meets the test in Section 8.16 of the Code. In this instance, there will be no adjustment to the prevailing tariff prior to the Augmentation; • in accordance with Section 8.16(b)(ii) of the Code, if the Augmentation has system wide benefits that justify the approval of a higher Reference Tariff for all Network Users, Allgas may seek the Regulator’s approval of an increase in the Reference Tariff; and • an Augmentation necessary to maintain the safety, integrity or contracted conditions of the Network for a particular End User or group of End Users where such Augmentation does not meet the test in Section 8.16 of the Code. In this instance, Allgas may require the provision of a Capital Contribution or Surcharge to be applied to the End User or group of End Users. In these circumstances no adjustment will be made to the prevailing tariff prior to the Augmentation and the End User will pay the prevailing tariff plus the Capital Contribution or Surcharge amount as determined by Allgas. Allgas will provide written notice to the Regulator where it elects to charge a Surcharge.