B-R Pipeline Company

Original Volume No. 1

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Effective Date: 05/01/2004, Docket: RP04-224-000, Status: Effective

Original Sheet No. 100 Original Sheet No. 100 : Effective

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

20. CAPACITY RELEASE (Continued)

 

For releases of one year or more, if Replacement Shipper or

Prearranged Replacement Shipper fails to so demonstrate, such

released service shall be awarded to the bidder who is

creditworthy and who submitted the bid with the next highest

economic value. If no additional bids were submitted by

creditworthy bidders, then all bidders shall have one (1) week to

demonstrate creditworthiness to Transporter's satisfaction. The

service offered for release shall then be awarded to the bidder

who is creditworthy and who submitted the bid with the highest

economic value. If no creditworthy bids are submitted, the

capacity release process shall terminate, but the Releasing

Shipper may elect to request a release of the subject capacity at

a later time.

 

(k) Releasing Shipper is responsible for payment of

reservation charges for the release of transportation capacity,

as well as any applicable reservation surcharges under the firm

Service Agreement as it existed before any release(s), except as

provided in Section 21. Transporter shall not be liable to

Releasing Shipper for the revenue credits provided for in Section

21 of the General Terms and Conditions in the event any

Replacement Shipper fails to pay any applicable reservation

charges or applicable reservation surcharges to Transporter.

However, Releasing Shipper shall retain a subrogated right to

demand payment from any Replacement Shipper or Prearranged

Replacement Shipper in the event any Replacement Shipper or

Prearranged Replacement Shipper is delinquent on any such payment

owed Transporter.

 

(l) Bids may be submitted for any segment of released Rate

Schedule FT-1 capacity subject to the availability of metering

and pipeline capacity at and between the requested receipt and

delivery points. Replacement Shippers or Prearranged Replacement

Shippers may change primary receipt or delivery points as

specified in this Tariff during the term of a capacity release.

At the expiration of each release such changes shall terminate

and the Releasing Shipper shall be entitled to its rights at

receipt and delivery points as they existed prior to the release.

 

(m) A Releasing Shipper may withdraw its release in accordance

with NAESB Standard 5.3.14 and prior to receipt of a valid bid.