Bluewater Gas Storage, LLC

Original Volume No. 1

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Effective Date: 12/13/2008, Docket: RP09-75-000, Status: Effective

Second Revised Sheet No. 141 Second Revised Sheet No. 141

Superseding: First Revised Sheet No. 141

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

11.2 Receipt and Delivery Rates. BLUEWATER has designed

the facilities required to wheel, store, inject and withdraw Gas

based on "normal" operating pressures maintained by the

Transporter(s) at the Point(s) of Receipt/Delivery with allowances

for reasonable fluctuations. In the event that conditions on the

Transporter's system vary substantially from this "normal" design

condition coincident with high levels of Customer receipt or

delivery activity, BLUEWATER's capability to receive or deliver

the quantities set forth in its Storage Service Agreements may be

impaired, resulting in an interruption in service. If this

happens, capacity will be allocated pursuant to Section 5 of the

General Terms and Conditions of this FERC Gas Tariff. Customer

agrees to indemnify and hold BLUEWATER harmless for any loss

caused by any such interruption in service.

 

12. TITLE AND RISK OF LOSS

 

12.1 Customer warrants for itself, its successors and

assigns, that it will have at the time of delivery of Gas for

injection, storage, parking, wheeling or loan repayment hereunder

either good title to or the right to have the Gas transported or

stored. Customer warrants for itself, its successors and assigns,

that the Gas it delivers hereunder shall be free and clear of all

liens, encumbrances, or claims whatsoever; and that it will

indemnify BLUEWATER and save it harmless from all claims, suits,

actions, damages, costs and expenses arising directly or

indirectly from or with respect to the title and/or right to Gas

tendered to BLUEWATER hereunder. Title to Gas transported or

stored under all Rate Schedules other than Rate Schedules FL and

IL and Gas loaned under Rate Schedule IB, shall remain at all

times with Customer. Title to gas transported or stored under

Rate Schedules FL and IL and to Gas loaned under Rate Schedule IB

shall pass from BLUEWATER to Customer when loan gas is delivered

for Customer's account to a Point of Delivery and title shall pass

from Customer to BLUEWATER when loaned gas is returned by Customer

to a Point of Receipt; provided that, for Gas flowing in

international commerce, title to loaned Gas shall be deemed to

transfer (to Customer or to Bluewater, as applicable) at a point

on BLUEWATER's pipeline facilities on the United States side of

the international boundary with Canada.

 

12.2 As between Customer and BLUEWATER, (x) Customer shall

be deemed to be in control and possession of the Gas prior to

delivery to BLUEWATER for wheeling, parking, storage or injection

at the Point(s) of Receipt and after redelivery by BLUEWATER to

Customer at the Point(s) of Delivery, and shall indemnify and hold

BLUEWATER harmless from any damage or injury caused thereby, and

(y) BLUEWATER shall be deemed to be in control and possession of

the Gas after the receipt of Gas at the Point(s) of Receipt and

until BLUEWATER's redelivery of an equivalent quantity of Gas to

Customer at the Point(s) of Delivery, and shall indemnify and hold

Customer harmless from any damage or injury caused thereby, except

for damages and injuries caused by the sole negligence of

Customer. Notwithstanding anything to the contrary set forth in

this Section 12.2, the risk of loss of any quantity of Gas wheeled

through, injected into, parked or stored in and withdrawn from the

BLUEWATER storage facilities shall remain with Customer, and

BLUEWATER shall not be liable to Customer for any loss of Gas,

except as may be the consequence of the intentional or negligent

acts or omissions of BLUEWATER. Any losses of Gas, unless

resulting