Carolina Gas Transmission Corporation
Original Volume No. 1
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Effective Date: 11/01/2006, Docket: CP06- 71-001, Status: Effective
Original Sheet No. 175 Original Sheet No. 175 : Effective
17.9 Obligations of Parties Involved in Capacity Releases.
(a) Obligations of Pipeline.
(1) If Replacement Shipper satisfies Pipeline’s
applicable Tariff provisions governing Shipper
eligibility, Pipeline shall promptly send to
Replacement Shipper an Addendum to the Capacity
Release Umbrella Service Agreement incorporating the
terms of the awarded capacity. For permanent
releases of capacity, within 30 days of the award
date, Pipeline shall execute a new Service Agreement
with Replacement Shipper reflecting the rates, terms,
and conditions of the Addendum, and such Service
Agreement will supersede the Addendum.
(2) Pipeline will notify the initial Releasing Shipper
with recall rights of the name of new Replacement
Shippers who subsequently obtain the released
(3) Pipeline will notify a Releasing Shipper if the
Replacement Shipper fails to pay all or part of an
amount of any invoice for service provided when such
amount is due under GT&Cs Section 21.
(4) For releases of discounted capacity, Pipeline will
notify a Releasing Shipper if the Replacement Shipper
has used an alternate Receipt or Delivery Point that
would subject the service to a non-discounted rate.
(b) Obligations of Releasing Shipper.
(1) For temporary releases of capacity, Releasing
Shipper’s Service Agreement will remain in effect.
Releasing Shipper shall remain ultimately liable to
Pipeline for all reservation charges and surcharges,
if any, under the terms of its Service Agreement.
(2) If Pipeline waives any credit requirements for a
Replacement Shipper, Pipeline will limit the
liability of the Releasing Shipper to the extent of
such credit waiver. However, if the waiver is made
at the request of the Releasing Shipper, the
Releasing Shipper shall continue to be fully liable
under its Service Agreement.
(3) For permanent releases of capacity, Releasing Shipper
will not be relieved of any liability, rate or
otherwise, unless the Replacement Shipper agrees to
assume such liability.