Columbia Gulf Transmission Company

Second Revised Volume No. 1

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Effective Date: 06/11/2009, Docket: RP09-275-001, Status: Effective

Sixth Revised Sheet No. 197 Sixth Revised Sheet No. 197

Superseding: Fifth Revised Sheet No. 197

 

GENERAL TERMS AND CONDITIONS (Continued)

 

(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 Assignee 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 Assignee to Transporter will not

be withheld from Releasor by Transporter due to Assignee'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 Replacement

Shipper agrees to pay the lower of: (1) the former Releasing Shipper's contract rate, or (2) the maximum tariff

rate for the service for the remainder of the Replacement Shipper's Service Agreement.

 

(c) In the event that an Assignee (including a Secondary Assignee) fails to pay Transporter's

invoice relating to the released capacity, Transporter shall within ten 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 Assignee's nonpayment, Releasor, without prejudice

to any other rights it may have, may immediately recall the assigned capacity upon 24-hour notice to Assignee

unless within such period Assignee 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 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

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

volumetric rate. The Assignee 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 Assignee, or indirectly through the Releasor if

Assignee 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 obliged to make refunds to Releasor. (Any refunds ultimately paid to an

Assignee 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.