East Tennessee Natural Gas, LLC
Third Revised Volume No. 1
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Effective Date: 04/20/2008, Docket: RP08-277-000, Status: Effective
Second Revised Sheet No. 356 Second Revised Sheet No. 356 : Effective
Superseding: First Revised Sheet No. 356
GENERAL TERMS AND CONDITIONS (Continued)
17.15 Transporter's Rights to Terminate Temporary Capacity Releases.
In the event of a temporary release for which (1) Transporter has
given notice of termination of the Releasing Shipper's contract
because the Releasing Shipper no longer satisfies Transporter's
credit requirements as outlined in Section 6 of Transporter's
General Terms and Conditions and (2) the reservation charge
specified in the effective Exhibit R to the Released
Transportation Service Agreement is less than the level of the
reservation charge which the Releasing Shipper was obligated to
pay Transporter (or, if the Releasing Shipper is paying a
negotiated rate, the sum of all reservation-type and usage-type
charges), then Transporter shall be entitled to terminate the
Exhibit, upon 30 Days' written notice to the Replacement or
Prearranged Shipper, unless the Replacement or Prearranged Shipper
agrees prior to the end of said 30-Day notice period to pay for
the remainder of the term of the Exhibit one of the following: (i)
the reservation and commodity charges at levels which the
Releasing Shipper was obligated to pay Transporter, (ii) the
applicable maximum tariff rate, or (iii) such rate as mutually
agreed to by Transporter and Replacement or Prearranged Shipper.
Shipper may elect to pay the lesser of the foregoing three
options. If the subject release was a segmented release,
Transporter shall not be required to permit Replacement or
Prearranged Shipper to retain its geographic segment of capacity,
and may require Replacement or Prearranged Shipper to pay for the
full capacity path of the defaulting Releasing Shipper at the
lower of the rate the defaulting Releasing Shipper paid or the
applicable maximum tariff rate. Transporter's right to terminate
the Exhibit is subject to Transporter providing written notice of
termination to the Replacement or Prearranged Shipper within 60
Days of the determination by Transporter that the Releasing
Shipper no longer satisfies Transporter's credit requirements.
Termination of the Exhibit shall not occur prior to termination of
the Releasing Shipper's contract.