East Tennessee Natural Gas, LLC
Third Revised Volume No. 1
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Effective Date: 05/21/2009, Docket: RP09-528-000, Status: Effective
Second Revised Sheet No. 375 Second Revised Sheet No. 375
Superseding: First Revised Sheet No. 375
GENERAL TERMS AND CONDITIONS (Continued)
22. WARRANTIES
22.1 Warranty of Title to Gas. This Section 22 shall apply to all
transportation service unless otherwise provided in the applicable
Rate Schedule or transportation contract. Shipper and Transporter
both warrant for itself, its successors and assigns, that it will
have, at the time of delivery of gas hereunder, good title or the
right to acquire title to the gas it delivers and that the gas it
delivers hereunder shall be free and clear of all liens,
encumbrances and claims whatsoever. In the event of a breach of
this warranty, the breaching party shall indemnify the other and
save it harmless from all suits, actions, debts, accounts,
damages, costs, losses, and expenses arising from or out of any
adverse claims of any and all persons to said gas and/or to
royalties, taxes, license fees or charges thereon applicable for
such delivery of gas, and that the breaching party will indemnify
the other and save it harmless from all taxes or assessments that
may be levied and assessed upon such delivery and which are by law
payable by, and the obligation of, the party making such delivery.
If Shipper's title or right to deliver gas to be transported is
questioned or involved in any action, Shipper shall not qualify
for or shall be ineligible to continue to receive service until
such time as Shipper's title or right to deliver is free from
question; provided, however, Transporter shall allow Shipper to
qualify for or continue receiving service until such time as
Shipper's title or right to deliver is free from question;
provided, however, Transporter shall allow Shipper to qualify for
or continue receiving service under this Tariff if Shipper
furnishes a bond satisfactory to Transporter. Title to the gas
received by Transporter at the Receipt Point(s) shall not pass to
Transporter, except for title to gas delivered for Transporter's
system fuel and use and gas lost and unaccounted for, which shall
pass to Transporter upon delivery at the Receipt Point(s).
22.2 In addition to the warranties set forth in Section 22.1 above,
Shipper warrants the following:
(a) Shipper warrants that all upstream and downstream
transportation arrangements are in place, or will be in
place, as of a requested effective date of service. Shipper
agrees to indemnify and hold Transporter harmless for refusal
to transport gas under any service agreement in the event any
upstream or downstream transporter fails to receive or
deliver gas as contemplated by such service agreement.
(b) Shipper agrees to indemnify and hold Transporter harmless
from all suit actions, debts, accounts, damages, costs,
losses, and expenses (including reasonable attorney's fees)
arising from or out of breach of any warranty by Shipper.
(c) Shipper warrants that it will have title or the right to
acquire title to the gas delivered to Transporter under any
service agreement.
(d) Transporter shall not be obligated to provide or continue
service under any service agreement in the event of any
breach of warranty; provided, Transporter shall give Shipper
and the Commission thirty days notice prior to any
termination of service. Service will continue if, within the
thirty days' notice period, Shipper cures the breach of
warranty.