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

capacity.

(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.