Columbia Gas Transmission LLC

Third Revised Volume No. 1

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Effective Date: 06/12/2009, Docket: RP09-294-002, Status: Effective

First Revised Sheet No. 335 First Revised Sheet No. 335

Superseding: Original Sheet No. 335

 

GENERAL TERMS AND CONDITIONS (Cont'd)

 

(b) For all assignments of service rights, Releasor shall remain ultimately responsible to

Transporter for full payment of the reservation charge, any applicable reservation-related surcharges, and any

other fixed charges for which Releasor is otherwise obligated to Transporter. For permanent releases of

capacity, Transporter may in its reasonable discretion agree to release the Releasor from this responsibility.

Such discretion shall be exercised by Transporter in a nondiscriminatory manner. Until payment by Replacement

Shipper to Transporter of any unpaid reservation charges, any claims Releasor may have relating to those

charges shall be subordinated to those of Transporter. Any reservation charge payments made by Replacement

Shipper to Transporter will not be withheld from Releasor by Transporter due to Replacement Shipper's failure

to pay Transporter other amounts owed that are unrelated to the released capacity. In the event of

termination of Releasor's Service Agreement with Transporter, Replacement Shipper's Service Agreement with

Transporter is deemed terminated unless (1) Replacement Shipper agrees to pay Transporter the currently

effective maximum rates for service under the Tariff, or (2) Transporter and Replacement Shipper mutually

agree upon a discounted rate or negotiated rate for service under this Tariff; provided, however, that any

Replacement Shipper shall be entitled to continued service at the contract rate between the Releasor and

Transporter.

 

(c) In the event that a Replacement Shipper (including a Secondary Replacement Shipper) fails to

pay Transporter's invoice relating to the released capacity, Transporter shall within five business days

provide the Releasor (the most recent Releasor, where the capacity has been secondarily assigned) with written

or telephonic notice of such nonpayment. Upon Releasor's receipt of such notice of Replacement Shipper's

nonpayment, Releasor, without prejudice to any other rights it may have, may immediately recall the assigned

capacity upon 24-hour notice to Replacement Shipper unless within such period Replacement Shipper pays in full

the outstanding indebtedness, together with accrued interest at the Commission approved interest rate, and

furnishes adequate assurance of payment to Releasor if required by Releasor.

 

(d) Transporter should provide the original releasing shipper with Internet E-mail notification

reasonably proximate in time with any of the following formal notices given by Transporter to the releasing

shipper's replacement shipper(s), of the following:

 

(1) Notice to the replacement shipper regarding the replacement shipper's past due, deficiency,

or default status pursuant to Transporter's tariff;

 

(2) Notice to the replacement shipper regarding the replacement shipper's suspension of service

notice;

 

(3) Notice to the replacement shipper regarding the replacement shipper's contract termination

notice due to default or credit-related issues; and

 

(4) Notice to the replacement shipper that the replacement shipper(s) is no longer creditworthy

and has not provided credit alternative(s) pursuant to Transporter's tariff.

 

14.9 Refunds.

 

(a) For all refunds other than those described at paragraph (b) immediately below, the original

Releasor of any capacity shall receive from Transporter any reservation charge-related refunds associated with

the assigned capacity, including any refunds related to the reservation charge portion of payments under a

one-part volumetric rate. The Replacement Shipper holding the assigned right to service at the time of the

overpayment shall receive from Transporter its share of any commodity charge-related refunds, including any

refunds related to the commodity portion of payments under a one-part volumetric rate, associated with the

assigned capacity. Refunds owed by Transporter will be made by Transporter directly to Replacement Shipper or

indirectly through the Releasor if Replacement Shipper has appointed Releasor as its agent for billings

pursuant to Section 14.8(a) above.

 

(b) The refund obligation of Transporter set forth in paragraph (a) shall be modified where Releasor

has released capacity at a rate in excess of that owed by Releasor to Transporter for that capacity

("Releasor's Margin"). To the extent that Releasor's margin equals or exceeds the amount of any refund

obligation, Transporter shall not be obligated to make refunds to Releasor. (Any refunds ultimately paid to a

Replacement Shipper in that event shall be paid by Releasor.) For capacity release transactions with a term

of one (1) year or less that are not subject to the maximum rates set forth in Transporter's Tariff, no

refunds will be owed to the Replacement Shipper. Any applicable refund will be paid directly to the Releasor.

 

14.10 Fees. Transporter shall not charge a fee for posting of a Release Notice or a Request to Purchase on

its EBB. Transporter shall be entitled to charge a reasonable fee if Releasor and Transporter agree that

Transporter shall receive a fee for actively marketing the capacity Releasor seeks to release.