Columbia Gas Transmission LLC

Third Revised Volume No. 1

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Effective Date: 03/23/2009, Docket: RP09-375-001, Status: Effective

Original Sheet No. 280A Original Sheet No. 280A

 

(2) Early Termination of Service Agreements. Transporter may, in a not unduly discriminatory

manner agree with Shipper to terminate its Recourse rate, discounted rate or negotiated rate long-term Service

Agreement prior to its expiration date. The situations in which Transporter may agree to terminate such a

Service Agreement include, without limitation, the following:

 

(i) where Shipper responds to a solicitation for capacity release offers in a reverse

open season for capacity requiring the construction of new facilities and the conditions set forth in the

solicitation have been satisfied;

 

(ii) Where Shipper agrees to pay an exit fee that is sufficient, taking into account the

remaining term of the Service Agreement and the value and liquidity of the capacity subscribed under the

Service Agreement being terminated or reduced, to make the termination or reduction financially beneficial to

Transporter, in Transporter's reasonable judgment. Transporter may waive the exit fee where Shipper's Service

Agreement provides for a discounted rate and Transporter concludes that the capacity subscribed thereunder

would be sold at a higher rate for the full remaining term of the Service Agreement.

 

An agreement to terminate a Service Agreement hereunder shall not constitute a material deviation from the

applicable form of Service Agreement.