East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

 

 

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

Fifth Revised Sheet No. 360 Fifth Revised Sheet No. 360

Superseding: Fourth Revised Sheet No. 360

 

GENERAL TERMS AND CONDITIONS (Continued)

 

18. RELEASE OF RIGHTS TO LNGS SERVICE

 

18.1 Applicability - This Section 18 implements Section 284.8 of the Commission's

regulations and is applicable to any Shipper that holds rights to LNGS Service

pursuant to Transporter's Rate Schedule LNGS that elects to temporarily or

permanently release all or a portion of such storage rights ("Releasing Shipper").

A Releasing Shipper shall have the right to release any portion of its storage

rights but only to the extent that the rights so released are acquired by another

party pursuant to the provisions of this Section 18, that executes either a

Released Storage Service Agreement for a temporary release or a Service Agreement

pursuant to Rate Schedule LNGS for a permanent release. Such party shall be

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

obtain storage rights released under the provisions of this Section 18 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 storage rights under Rate Schedule LNGS on a permanent

basis, the procedures specified in this Section 18 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 18, 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.

 

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

rights to LNG storage in a manner that does not qualify for an exemption from

posting pursuant to Section 18.11, must post directly via LINK®, a Release Request

containing the following information:

 

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

 

(b) the Maximum Daily LNGS Quantity and Winter Season LNGS Quantity, expressed

as a numeric quantity, to be released (including any minimum acceptable

quantity);

 

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

minimum acceptable annual term);

 

(d) the reservation rates and all other applicable rates, charges, and

surcharges for the released storage, including any applicable minimum

rate(s). For purposes of bidding and awarding, any maximum and/or minimum

rates specified by Releasing Shipper shall include the tariff reservation

rate and all demand surcharges, specified as a total number or as stated

separately. For releases that become effective on or after July 30, 2008,

the maximum and/or minimum rates specified by Releasing Shipper may exceed

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

proposed release is one (1) year or less.