Bluewater Gas Storage, LLC

Original Volume No. 1

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Effective Date: 12/01/2006, Docket: CP06-351-001, Status: Effective

Original Sheet No. 122 Original Sheet No. 122 : Effective

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

to the Replacement Customer for the released capacity rights, or as

otherwise agreed. If the Replacement Customer fails to pay when due

all or part of the amounts credited to the Releasing Customer,

BLUEWATER shall pursue payment from the Replacement Customer by

notifying such Customer by registered letter, return receipt

requested, that it has five (5) days from receipt of such letter to

pay the amount due including any applicable interest. If the

Replacement Customer fails to pay such amount by the end of the

fifth day, BLUEWATER shall reverse the credit and bill the Releasing

Customer for such past due amounts, plus applicable interest.

 

4.11 Rights and Obligations of the Parties.

 

(a) The Storage Service Agreement between the Releasing

Customer and BLUEWATER shall remain in full force and effect with

the Releasing Customer to receive a credit to its invoice as

described in Section 4.10 above. If the Replacement Customer fails

to pay all or part of the amounts credited to the Releasing Customer

after the five Day notification period specified in Section 4.10,

BLUEWATER shall reverse the credit and bill the Releasing Customer

for such past due amounts, plus applicable interest. The Storage

Service Agreement executed by the Replacement Customer shall be

fully effective and enforceable by and against the Replacement

Customer. The Replacement Customer may also release capacity

pursuant to this Section, and in such event and for such purposes,

shall be considered the Releasing Customer.

 

(b) BLUEWATER shall accept nominations, schedule service,

afford priority of service and interrupt service based on

instructions and communications from the Releasing Customer and the

Replacement Customer which are consistent with one another and with

the terms and conditions of BLUEWATER's FERC Gas Tariff and their

respective Storage Service Agreements. In the event that

instructions or nominations from the Releasing Customer and

Replacement Customer are, in BLUEWATER's opinion, inconsistent or

conflicting, BLUEWATER shall comply with the instructions of the

Releasing Customer; provided, however, that such instructions must

not be inconsistent with BLUEWATER's FERC Gas Tariff or the terms of

either the Releasing Customer's or Replacement Customer's Storage

Service Agreement, in BLUEWATER's opinion. The Releasing Customer

will indemnify BLUEWATER against any claim or suit by the

Replacement Customer, its successors or assigns arising from any

action taken by BLUEWATER in reliance upon the Releasing Customer's

nominations and instructions and will hold BLUEWATER harmless for

any action taken by BLUEWATER in reliance upon the nominations and

scheduling instructions of the Replacement Customer; provided,

however, that the Releasing Customer shall not be liable for the

Replacement Customer's failure to pay the usage charges (plus all

applicable surcharges, Fuel Reimbursement, taxes, penalties, etc.)

billed to the Replacement Customer and attributable to its usage of

the released capacity. The Replacement Customer will indemnify

BLUEWATER against any claim or suit by the Releasing Customer, its

successors or assigns, arising from any action taken by BLUEWATER in

reliance upon the nominations and scheduling instructions of the

Replacement Customer and will hold BLUEWATER harmless for any

actions taken by BLUEWATER in reliance upon the instructions of the

Releasing Customer.