Bluewater Gas Storage, LLC

Original Volume No. 1

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Effective Date: 04/01/2008, Docket: RP08-249-000, Status: Effective

First Revised Sheet No. 153 First Revised Sheet No. 153 : Pending

Superseding: Original Sheet No. 153

GENERAL TERMS AND CONDITIONS

(Continued)

 

28. DEFAULT AND TERMINATION

 

28.1 Customer shall be in default under this FERC Gas

Tariff or the Storage Service Agreement if:

 

(a) Customer shall fail to pay any sums due to

BLUEWATER hereunder and such failure continues for a period of

five (5) Business Days after written notice to Customer by

BLUEWATER;

 

(b) Customer fails to perform any of its material

covenants or obligations under this FERC Gas Tariff or the Storage

Service Agreement, other than obligations to make payments to

BLUEWATER, and Customer does not remedy such failure within a

period of thirty (30) days after receipt of a notice from

BLUEWATER;

 

(c) Customer or its guarantor becomes insolvent, as set

forth in Section 3.3(i); or

 

(d) Customer fails to provide Financial Assurances

pursuant to Section 31.

 

Customer shall indemnify and hold harmless BLUEWATER from and

against any costs or losses resulting from (a), (b), (c) or (d)

above.

 

 

28.2 In the event of any Default by Customer, in addition

to all other remedies available to it pursuant to the Storage

Service Agreements or at law and in equity, BLUEWATER may do any

or all of the following:

 

(a) refuse to accept any further deliveries of Gas from

or on behalf of Customer pursuant to all or any transactions;

 

(b) refuse to deliver Gas to or on behalf of Customer

pursuant to all or any transactions;

 

(c) set off any amount owing by BLUEWATER to Customer

pursuant to any transaction(s) against amounts otherwise owing by

Customer to BLUEWATER pursuant to any other transaction(s);

 

(d) suspend performance until Customer corrects the

default in full;

 

(e) terminate the Customer's Storage Service Agreement,

provided that BLUEWATER shall provide not less than thirty (30)

days notice of such termination to the Customer and to FERC; and

 

(f) assert any liens or other interests, consistent

with applicable law, against any Gas Customer may have remaining

on BLUEWATER's system.