Dominion South Pipeline Co., LP

Original Volume No. 1

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Effective Date: 03/01/2009, Docket: RP09-292-000, Status: Effective

First Revised Sheet No. 1047 First Revised Sheet No. 1047

Superseding: Original Sheet No. 1047

 

GENERAL TERMS AND CONDITIONS

CAPACITY RELEASE

 

15.4 Contracting.

 

A. Pipeline must contract directly with the bidders who make the best bids, as determined

above. Subject to agreement by the winning bidders to pay at least the maximum

applicable usage and fuel charges, Pipeline must accept the bids and contract to provide

the released capacity to the winning bidders, by executing the winning bidders' Bid

Agreements upon award of the winning bids. Such executed Bid Agreement shall become an

Exhibit to the Capacity Release Agreement between each winning bidder, as Replacement

Customer, and Pipeline. Replacement Customer, like any other Customer, shall be subject

to all applicable provisions of Pipeline's FERC Gas Tariff.

 

B. Unless Pipeline expressly agrees otherwise, Releasing Customer's Service Agreement with

Pipeline shall remain in effect until the normal expiration of the contract term,

notwithstanding any capacity release transaction.

 

1. Releasing Customer shall remain liable on its contract with Pipeline, and shall

pay all applicable reservation charges, and related surcharges and Interest,

for released capacity, directly to Pipeline; provided, however, that Pipeline

and Customer may, in connection with their agreement to a Negotiated Rate,

agree upon Releasing Customer payment obligations and procedures and crediting

mechanisms in the event of a capacity release that varies from or has terms in

addition to those set forth herein. The provisions of this Section 15.4.B.1 do

not authorize Pipeline to negotiate terms and conditions of service. In the

case of permanent releases, Pipeline will not unreasonably refuse to relieve

Releasing Customer from liability under its Service Agreement.

 

2. Unless otherwise agreed under GT&C Section 15.4.C, Releasing Customer will

receive a contingent credit for reservation charges and associated surcharges

actually paid to and received by Pipeline, attributable to capacity rights

released by Releasing Customer.

 

a. Pipeline will grant Releasing Customer a contingent credit for the

reservation charges and reservation-related surcharges attributable to

capacity rights released by such customer. In the event Pipeline is

not paid the applicable reservation charges for the released capacity,

Pipeline shall have the right to reverse such contingent credit and to

charge applicable interest to Releasing Customer.

 

b. Pipeline shall fully credit Releasing Customer for Reservation Charges

and reservation-related surcharges paid by the Replacement Customer,

even if such revenues exceed the rate contractually payable by

Releasing Customer for the released capacity.

 

c. Reservation Charge credits to Releasing Customer shall be reduced by any

marketing fees applicable to releases in which Pipeline actively markets

the capacity, as negotiated between Pipeline and Releasing Customer.

 

d. In the event of partial payments by Replacement Customer, funds will

first be used to pay reservation charges and related surcharges,

whether owed to Pipeline or to Releasing Customer.

 

3. For release transactions: (1)effective prior to July 30, 2008, and those

(2)effective on or after July 30, 2008, with a term greater than one year which

provide for a rate between the applicable minimum and maximum rates, refunds

shall be allocated first to Replacement Customer, to the extent required. To

the extent that Pipeline owes refund amounts attributable to the release

transaction in excess of the amounts refunded to Replacement Customer, then

Pipeline shall make such refunds to Releasing Customer.

 

4. For release transactions effective on or after July 30, 2008, with a term of

one year or less, which are not subject to the maximum rate cap, the rate paid

by the Replacement Customer will be deemed a final rate and will not be subject

to refund.