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.