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.