Columbia Gulf Transmission Company

Second Revised Volume No. 1

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Effective Date: 11/01/1993, Docket: RS92- 6-005, Status: Effective

Original Sheet No. 150 Original Sheet No. 150 : Effective

 

GENERAL TERMS AND CONDITIONS (Continued)

 

 

5. SERVICE AGREEMENT

 

5.1 Form of Service Agreement. Shipper shall enter into a contract with Transporter under

Transporter's applicable standard Form of Service Agreement or Assignment Agreement prior to

receiving service from Transporter under any Rate Schedule; provided, however, that a Service

Agreement between Transporter and Shipper that was in effect on the effective date of this Tariff

shall remain in effect until it is replaced, superseded, terminated, or expires by its own terms,

and shall be considered as an executed Service Agreement to the extent that its provisions are not

superseded by or in conflict with the provisions of this Tariff. Shippers with new levels of service

shall execute new Service Agreements. As used in this Tariff, "Service Agreement" shall include

Assignment Agreements unless otherwise specified.

 

5.2 Term. The period of time to be covered by the Service Agreement (but not including

Assignment Agreements) shall be determined (i) by agreement between the parties or (ii) in accordance

with the auction procedures set forth at Section 4 (Auctions of Available Firm Service) of the

General Terms and Conditions, but shall not exceed 20 years. Where the Service Agreement supersedes

or cancels an existing Service Agreement, however, Transporter may require that the term of the

Service Agreement shall be not less than the unexpired portion of the term contained in the Service

Agreement to be superseded or canceled. The term of an Assignment Agreement shall be determined in

accordance with the provisions of Section 14 (Release and Assignment of Service Rights) of the

General Terms and Conditions.

 

5.3 Quantity Obligations and Requirements. The quantities of gas to be transported by

Transporter shall be set forth in the applicable Service Agreement.

 

5.4 Successors and Assigns. Any company that succeeds by purchase, merger, or consolidation

to the gas properties of Transporter or of Shipper substantially as an entirety, and any Affiliated

Successor in Interest that acquires from Transporter the properties of Transporter used in interstate

commerce in rendering service to Shipper, shall be entitled to the rights and shall be subject to

the obligations of its predecessor in title under the Service Agreement. Shipper, Transporter,

and their successors may assign or pledge the Service Agreement under the provisions or any mortgage,

deed of trust, indenture or similar instrument that it has executed or may execute hereafter;

provided, however, that such mortgage, deed of trust, indenture or similar instrument shall cover

the properties of such party as an entirety unless such party is an Affiliated Successor in Interest

as described above. Otherwise no party shall assign the Service Agreement or any of its rights

thereunder unless it first shall have obtained in writing the consent thereto of the other party;

provided, however, that Shipper may release and assign service rights contracted for under such

Service Agreement pursuant to the conditions, and subject to the limitations, of Section 14 (Release

and Assignment of Service Rights) of the General Terms and Conditions. Any direct or indirect

assignment of service rights by Shipper under this paragraph shall be made in good faith and not for

the purpose of avoiding the requirements of Section 14.

 

5.5 Waiver of default. No waiver by either party of any one or more defaults by the other in

the performance of any provisions of the Service Agreement shall operate or be construed as a waiver

of any future default or defaults, whether of a like or different character.