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