East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

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Effective Date: 03/01/2009, Docket: RP08-487-002, Status: Effective

Substitute Fifth Revised Sheet No. 317 Substitute Fifth Revised Sheet No. 317

Superseding: Fourth Revised Sheet No. 317

 

GENERAL TERMS AND CONDITIONS (Continued)

 

7. TERMINATION OF AGREEMENTS

 

7.1 [Reserved for Future Use]

 

7.2 [Reserved for Future Use]

 

7.3 Termination of Long Term Firm Service Agreements. If a Shipper, pursuant to the

terms of an FT-A, FT-GS, FT-L, or LNGS Service Agreement, elects to terminate its

agreement or exercise its right of first refusal thereunder, the capacity under

such agreement shall be made available in accord with the following:

 

(a) If Shipper elects, pursuant to the applicable notice requirement included

in Shipper's Service Agreement, to terminate its service agreement, whether

such termination is applicable to the full or only a volumetric portion of

the Maximum Daily Transportation Quantity of the service agreement, the

availability of the capacity will be posted on LINK® and will be allocated

pursuant to the open season provisions specified in Section 5.8 of these

General Terms and Conditions. Any such volumetric termination shall reduce

the MDRO and MDDO rights, as applicable, specified in Shipper's service

agreement based on the ratio of the volumetric quantities to be terminated

and the Maximum Daily Transportation Quantity in effect immediately prior

to the termination, effective on the date such reduction is effective. In

the event that Shipper elects to terminate, either at the end of the stated

primary term or any extension thereof, pursuant to the applicable terms and

notice requirements included in the service agreement, only a volumetric

portion of its Maximum Daily Transportation Quantity included in such

service agreement, then Shipper's prior written notification to Transporter

of its intention to partially terminate such service agreement must

expressly state (i) the volumetric quantity of the Maximum Daily

Transportation Quantity Customer is terminating; and (ii) the volumetric

quantity of the Maximum Daily Transportation Quantity Customer is

retaining. To the extent that Shipper delivers to Transporter a valid

notice pursuant to this Section 7.3(a), Shipper thereafter shall have no

right of first refusal pursuant to Section 7.3(b) below with respect to the

volumetric portion of the Maximum Daily Transportation Quantity terminated

pursuant to this Section 7.3(a). Shipper will continue to have a right of

first refusal for that volumetric portion of the Maximum Daily

Transportation Quantity not terminated pursuant to this Section 7.3(a).