Keyspan LNG, LP (Alng)
Third Revised Volume No. 1
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Effective Date: 01/27/2003, Docket: RP03-241-000, Status: Effective
Original Sheet No. 72A Original Sheet No. 72A : Effective
GENERAL TERMS AND CONDITIONS
(continued)
14. CAPACITY RELEASE (continued)
14.12 KLNG's Rights to Terminate Temporary Capacity Releases.
(a) In the event of a temporary release for which (1) KLNG has
given notice of termination of the Releasing Customer's
contract because the Releasing Customer no longer satisfies
KLNG's credit requirements as outlined in Sections 3.1 and
3.2 of KLNG's General Terms and Conditions and (2) the Fixed
Charges specified in the effective Addendum to the
Replacement or Prearranged Customer's Capacity Release
Umbrella
Agreement are less than the level of the Fixed Charges which
the Releasing Customer was obligated to pay KLNG (or, if
the Releasing Customer is paying a negotiated rate, the sum
of
all fixed-type charges and commodity-type charges), then KLNG
shall be entitled to terminate the Addendum, upon 30 Days'
written notice to the Replacement or Prearranged Customer,
unless the Replacement or Prearranged Customer agrees prior
to
the end of said 30-day notice period to pay for the remainder
of the term of the Addendum one of the following: (i) the
Fixed Charges and usage charges at levels which the Releasing
Customer was obligated to pay KLNG, (ii) the applicable
maximum
tariff rate, or (iii) such rate as mutually agreed to by
KLNG and Replacement or Prearranged Customer. Customer may
elect to pay the lesser of the foregoing three options.
KLNG's
right to terminate the Addendum is subject to KLNG providing
written notice of termination to the Replacement or
Prearranged
Customer within 60 Days of the determination by KLNG that the
Releasing Customer no longer satisfies KLNG's credit
requirements. Termination of the Addendum shall not occur
prior to termination of the 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 14.12(a) above and
there
is LNG 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 LNG until
Customer's
inventory is zero. KLNG shall require Customer to withdraw
each
day a quantity equal to