East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

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Effective Date: 08/02/2010, Docket: RP10-946-000, Status: Effective

Sixth Revised Sheet No. 339 Sixth Revised Sheet No. 339

Superseding: Fifth Revised Sheet No. 339

 

GENERAL TERMS AND CONDITIONS (Continued)

 

 

17. RELEASE OF RIGHTS TO FIRM TRANSPORTATION SERVICE

 

17.1 Applicability - This Section 17 implements Section 284.8 of the Commission's

regulations and is applicable to any Shipper that holds rights to firm

transportation that elects to temporarily or permanently release all or a portion

of such firm transportation rights ("Releasing Shipper"). For purposes hereof, the

term "transportation," "transportation service" or "transportation rights" shall

include firm transportation service offered under Rate Schedules FT-A and FT-L, and

the term "release" or "released" shall apply to permanent as well as temporary

releases unless otherwise noted. A Releasing Shipper shall have the right to

release any portion of its firm transportation rights and obligations but only to

the extent that the rights so released are acquired by another party pursuant to

the provisions of this Section 17, that executes either a Released Transportation

Service Agreement for a temporary release or a Service Agreement pursuant to Rate

Schedule FT-A or FT-L, as applicable, for a permanent release. Such party shall be

referred to herein as "Replacement Shipper". A person that desires to bid on and

obtain firm transportation rights released under the provisions of this Section 17

shall be known as a "Bidder."

 

Permanent Capacity Releases. To the extent that any Shipper desires to release all

or any part of its firm transportation rights under Rate Schedule FT-A or FT-L on a

permanent basis, the procedures specified in this Section 17 shall apply. In

addition, the Replacement Shipper that will acquire the capacity from Shipper must

submit a request for service electronically via the LINK® System as required by

Section 5 herein and provide the credit information as required by Section 6

herein. For any permanent capacity release, the minimum bid acceptable to

Transporter shall be a bid for the remainder of the term of Shipper's service

agreement at the rate(s) Shipper is obligated to pay Transporter for the capacity

to be permanently released. Transporter may refuse to allow a permanent capacity

release if it has a reasonable basis to conclude that it will not be financially

indifferent to the release. If Shipper's request to permanently release capacity

is denied by Transporter, Transporter shall notify Shipper via e-mail and shall

include in the notification the reasons for such denial.

 

For the purpose of this Section 17, for releases that become effective on or after

July 30, 2008, a Releasing Shipper, a Replacement Shipper or a Bidder may specify a

rate in excess of the maximum tariff rate for the applicable service if the term of

the proposed release is one (1) year or less.

 

17.2 Releasing Shipper's Request - A Releasing Shipper that desires to release its

rights to transportation on a basis that does not qualify for an exemption from

posting pursuant to Section 17.11 hereof, must post directly via LINK®, a Release

Request containing the following information:

 

(a) Releasing Shipper's name and transportation service agreement number;

 

(b) the Maximum Daily Transportation Quantity, expressed as a numeric quantity,

to be released ("Release Quantity") (including any minimum acceptable

Release Quantity), subject to the calculations described in Section 17.14

below;

 

(c) the proposed commencement date and term of the release (including any

minimum acceptable term);

 

(d) the points defining the Contract Path for the released capacity and, if

such points are Primary Receipt and/or Primary Delivery Points and the

Releasing Shipper is proposing to release any of its primary points and

associated point quantities, the Maximum Daily Receipt Obligation and

Maximum Daily Delivery Obligation, as applicable and expressed as a numeric

quantity, to be released at each such point;