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. 149 Second Revised Sheet No. 149

Superseding: First Revised Sheet No. 149

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

(d) The foregoing rules governing transfers of Storage

Inventory shall also apply to requests to transfer Storage

Inventory among a Customer's Storage Service Agreements, which

shall be limited to transfers between Storage Service Agreements

under the same Rate Schedule.

 

20.2 Title Transfers of Gas

 

(a) Transfers of title between Customers and/or Storage

Service Agreements under which Gas is delivered to BLUEWATER,

withdrawn from BLUEWATER's storage or wheeled on BLUEWATER's

system may be permitted by BLUEWATER at Point(s) of Receipt and

Point(s) of Delivery or on BLUEWATER's system on an Interruptible

basis pursuant to Customer's Hub Services Agreement.

 

(b) Requests for such transfers shall be made in

accordance with the nomination procedures set forth in Section 8,

Nominations and Scheduling, of the General Terms and Conditions

herein. BLUEWATER shall not unreasonably withhold approval of

such transfers.

 

21. PENALTIES

 

21.l A Customer shall be liable for and shall be required

to reimburse BLUEWATER for all penalties, charges and fees which

BLUEWATER is required to pay to Transporter(s) as a consequence of

Customer's actions. The recovery of such penalty amounts shall be

on an as-billed basis.

 

21.2 In addition to the payment of the penalties set forth

in Section 21.1 herein, the responsible Customer shall also be

liable for, and shall reimburse BLUEWATER, for all costs incurred

by BLUEWATER as a consequence of such Customer's actions.

 

22. TRANSMISSION PROVIDER STANDARDS OF CONDUCT

 

BLUEWATER does not meet FERC's definition of a

"Transmission Provider" (18 C.F.R. 358.3(a)) because it is a

storage company authorized to charge market-based rates, is not

interconnected with the facilities of any affiliated interstate

natural gas pipeline, has no exclusive franchise area, has no

captive customers and has no market power. Therefore, BLUEWATER

is not required to comply with FERC's Transmission Provider

Standards of Conduct, as promulgated in Order Nos. 2004, et al.,

and codified at 18 C.F.R. Part 358.