Discovery Gas Transmission LLC

Original Volume No. 1

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Effective Date: 02/27/2009, Docket: RP09-291-000, Status: Effective

Fifth Revised Sheet No. 151 Fifth Revised Sheet No. 151

Superseding: Fourth Revised Sheet No. 151

 

11. CAPACITY RELEASE

 

11.1 ELIGIBILITY - Any Shipper with an Effective Firm Service Agreement under

Transporter's FT-1 Rate Schedule is eligible to release all or part of

its capacity to a Replacement Shipper on a permanent or temporary basis,

subject to the provisions of this Section 11.

 

In the event that long-term (more than one year)released capacity is

subject to a Negotiated Rate, all transactions subject to this section

will be capped at the maximum, Commission-approved tariff rate for all

purposes except the obligation of the Shipper to pay Transporter the

difference between the rate bid and paid by a replacement shipper and

the Negotiated Rate.

 

11.2 TYPES AND CONDITIONS OF RELEASES -

 

a. Permanent Release - A Releasing Shipper may release all or part of

its Firm capacity under an Effective FT-1 Service Agreement, for

the remaining primary term of the Agreement. The Replacement

Shipper may contract for the Primary Receipt and Delivery Point(s)

specifically set forth in a Releasing Shipper's Effective FT-1

Service Agreement, or for other Primary Receipt and Delivery

Point(s) up to the Released Capacity subject to available capacity

and any restrictions on changes of Primary Receipt and Delivery

Point(s) imposed by the Releasing Shipper or Transporter. A

permanent release operates as an assignment of capacity and all of

the terms and conditions applicable to Firm Transportation

service, including the requirements related to creditworthiness,

must be met by the Replacement Shipper prior to the effective date

of the assignment. The Replacement Shipper shall execute an FT-1

Service Agreement for the released capacity at the rate bid by the

Replacement Shipper and accepted by the Releasing