Rockies Express Pipeline LLC (Entrega)

Second Revised Volume No. 1

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Effective Date: 09/01/2007, Docket: CP06-354-002, Status: Effective

Original Sheet No. 215 Original Sheet No. 215 : Effective

 

GENERAL TERMS AND CONDITIONS

 

15. CAPACITY RELEASE BY FIRM SHIPPERS (Contd.)

 

15.19 TRANSPORTER'S RIGHT TO TERMINATE A CAPACITY RELEASE

 

A. Transporter may elect to terminate a Replacement Shipper's

Agreement with Transporter upon prior written notice to the

Replacement Shipper at least equal in duration to the

minimum prior notice period which is provided for in Section

3.7 or Section 3.8 of these General Terms and Conditions,

for termination of service to the releasing Shipper from

which the Replacement Shipper obtained its Capacity, under

the following conditions:

 

(1) The Releasing Shipper has failed to make timely

payment or maintain credit (or provide adequate

assurance of payment) in accordance with Section 3.7,

Section 3.8 or Section 13 of these General Terms and

Conditions and Transporter has suspended or terminated

service to the Releasing Shipper or has provided

notice under these General Terms and Conditions which

ultimately results in suspension or termination of

service; and

 

(2) The rate stated in the Replacement Shipper's Agreement

is less than the rate for service under Transporter's

contract with the Original Shipper; provided, however,

that a Replacement Shipper which is creditworthy can

continue an existing Capacity release by notifying

Transporter that it agrees to pay a rate which it

specifies that equals or exceeds the lower of: (i)

the applicable maximum rate; or (ii) the same rate as

is in the original Agreement between Transporter and

the Releasing Shipper. Alternatively, notwithstanding

Section 15 of these General Terms and Conditions,

Transporter and Replacement Shipper may agree upon

pricing terms, in which case the release shall

continue. Such notification or Agreement must be

effectuated prior to the end of the notice period.

 

16. GENERAL ITEMS

 

16.1 FEE FOR ACTIVE MARKETING

 

When a Releasing Shipper under Section 15 of these General Terms

and Conditions requests that Transporter actively market Capacity

to be released, the Releasing Shipper and Transporter shall

negotiate the terms of the marketing service to be provided by

Transporter and the marketing fee to be charged.