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. 127 Original Sheet No. 127 : Effective

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

the release and assignment subject to compliance with the provisions

of Section 20 of these General Terms and Conditions. The

Replacement Customer must withdraw the portion of its Maximum

Storage Quantity by the end of the term of the release. In lieu of

withdrawing the portion of its Storage Inventory, the Replacement

Customer can also attempt to effect a transfer of the portion of its

Storage Inventory to another storage service Customer as provided in

Section 20 of these General Terms and Conditions. If the

Replacement Customer fails to withdraw or transfer the portion of

its Storage Inventory by the end of the term of its release, title

to the portion of Customer's remaining Storage Inventory will be

vested, at no cost, in the Releasing Customer which released its

capacity to the Replacement Customer on a temporary basis.

 

 

4.14 BLUEWATER's Rights to Terminate Temporary Capacity

Releases.

 

(a) In the event of a temporary release for which (1)

BLUEWATER has given notice of termination of the Releasing

Customer's Storage Service Agreement pursuant to Section 28 of these

General Terms and Conditions and (2) the reservation charge

specified in the effective Addendum to the Replacement or

Prearranged Replacement Customer's Capacity Release Umbrella

Agreement is less than the level of the reservation charge which the

Releasing Customer was obligated to pay BLUEWATER, then BLUEWATER

shall be entitled to terminate the Addendum, upon 30 days' written

notice to the Replacement or Prearranged Replacement Customer,

unless the Replacement or Prearranged Replacement Customer agrees

prior to the end of said 30-day notice period to pay for the

remainder of the term of the Addendum either (i) the reservation and

commodity charges at levels which the Releasing Customer was

obligated to pay BLUEWATER, or (ii) such rate as mutually agreed by

BLUEWATER and Replacement or Prearranged Replacement Customer.

Customer may elect to pay the lesser of the two foregoing options.

BLUEWATER's right to terminate the Addendum is subject to BLUEWATER

providing written notice of termination to the Replacement or

Prearranged Replacement Customer within 30 days of the determination

by BLUEWATER that the Releasing Customer no longer satisfies

BLUEWATER's credit requirements. Termination of the Addendum shall

not occur prior to termination of the Releasing Customer's contract.

 

(b) In the event that a Customer has received 30 days'

notice of termination of the Addendum to Customer's Capacity Release

Umbrella Agreement pursuant to Section 4.14(a) above for storage

service and there is Gas in storage for Customer's account at the

end of such 30-day period, the Addendum shall continue in force and

effect for the sole purpose of withdrawal of said Gas by Customer

until Customer's Storage Inventory is zero. BLUEWATER shall require

Customer to withdraw each Day a quantity equal to the MDWQ, or such

other lesser quantity acceptable to BLUEWATER. The requirement to

withdraw storage quantities shall be suspended on any Day to the

extent that BLUEWATER cannot accommodate a nomination or withdraw

such storage quantities on such Day. Customer may also transfer

title of Gas remaining in Customer's Storage Inventory to another

Customer pursuant to Section 20 of BLUEWATER's General Terms and

Conditions. In the event Customer fails to withdraw its entire

Storage Inventory within the time