Egan Hub Storage, LLC
First Revised Volume No. 1
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Effective Date: 02/01/2009, Docket: RP09-160-000, Status: Effective
Fifth Revised Sheet No. 125 Fifth Revised Sheet No. 125
Superseding: Fourth Revised Sheet No. 125
GENERAL TERMS AND CONDITIONS
(Continued)
4.14 Egan Hub's Rights to Terminate Temporary Capacity Releases.
(a) In the event of a temporary release for which (1) Egan Hub has given notice
of termination of the Releasing Customer's contract because the Releasing Customer no longer
satisfies Egan Hub's credit requirements as outlined in Section 3.4 of Egan Hub's General
Terms and Conditions and (2) the Storage Reservation Charge specified in the effective
Addendum to the Replacement Customer's Capacity Release Umbrella Agreement is less than the
level of the Storage Reservation Charge which the Releasing Customer was obligated to pay Egan
Hub, then Egan Hub shall be entitled to terminate the Addendum, upon 30 Days' written notice
to the Replacement Customer, unless the Replacement Customer agrees prior to the end of said
30-Day notice period to pay for the remainder of the term of the Addendum either (i) the
reservation and commodity charges at levels which the Releasing Customer was obligated to pay
Egan Hub, or (ii) such rate as mutually agreed to by Egan Hub and Replacement Customer.
Customer may elect to pay the lesser of the two foregoing options. Egan Hub's right to
terminate the Addendum is subject to Egan Hub providing written notice of termination to the
Replacement Customer within 60 Days of the determination by Egan Hub that the Releasing
Customer no longer satisfies Egan Hub's credit requirements. Termination of the Addendum
shall not occur prior to termination of Releasing Customer's contract.
(b) In the event that a Customer has received 30 Days' notice of termination of
the Addendum to Customer's Capacity Release Umbrella Agreement pursuant to Section 4.13(a)
above for storage service and there is Gas in storage for Customer's account at the end of such
30-Day period, the Addendum shall continue in force and effect for the sole purpose of
withdrawal of said Gas by Customer until Customer's Storage Inventory is zero. Egan Hub shall
require Customer to withdraw each Day a quantity equal to the MDWQ, or such other lesser
quantity acceptable to Egan Hub. The requirement to withdraw storage quantities shall be
suspended on any Day to the extent that Egan Hub cannot accommodate a nomination to withdraw
such storage quantities on such Day. Customer may also transfer title of Gas remaining in
Customer's Storage Inventory to another Customer pursuant to Section 20 of Egan Hub's General
Terms and Conditions. In the event Customer fails to withdraw its entire Storage Inventory as
required by this section, Egan Hub shall auction any remaining Storage Inventory pursuant to
the timeline set forth in Section 33 of these General Terms and Conditions, and shall remit the
proceeds of such auction to Customer, less Storage Reservation Charges for the period from the
first day following the termination date until the inventory is sold to the highest bidder and
any applicable Fuel Reimbursement charges, Storage Withdrawal Charges and any administrative
costs incurred by Egan Hub to conduct the auction. The Storage Reservation Charges shall be
calculated by multiplying the Storage Reservation Charge rate in effect on the termination date
of the Firm Storage Service Agreement or Secondary Firm Storage Service Agreement, as
applicable, by the quantity of Gas sold at auction. Customer shall indemnify Egan Hub and hold
it harmless from all costs, damages, and liabilities arising out of the failure of Customer to
remove such Storage Inventory and the disposal of such Storage Inventory by sale by Egan Hub.
4.15 Notices to Releasing Customers. Egan Hub shall provide the original
Releasing Customer with Internet E-mail notification reasonably proximate in time with any of
the following formal notices given by Egan Hub to the Releasing Customer's Replacement
Customer(s), of the following:
(1) Notice to the Replacement Customer regarding the Replacement Customer's
past due, deficiency, or default status pursuant to Egan Hub's tariff;
(2) Notice to the Replacement Customer regarding the Replacement Customer's
suspension of service notice;
(3) Notice to the Replacement Customer regarding the Replacement Customer's
contract termination notice due to default or credit-related issues; and
(4) Notice to the Replacement Customer that the Replacement Customer(s) is
no longer creditworthy and has not provided credit alternative(s)
pursuant to Egan Hub's tariff.