Florida Gas Transmission Company, LLC

Fourth Revised Volume No. 1

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Effective Date: 02/23/2009, Docket: RP09-253-000, Status: Effective

First Revised Sheet No. 297 First Revised Sheet No. 297

Superseding: Original Sheet No. 297

 

GENERAL TERMS AND CONDITIONS

(continued)

 

 

C. Relinquishment Types:

 

1. Permanent Relinquishment

 

This Section sets forth the terms and conditions applicable to the

permanent relinquishment of eligible capacity ("Permanent

Relinquishment"). Eligible capacity can be permanently relinquished

solely on a reservation basis either pursuant to a transaction prearranged

by Relinquishing Shipper or pursuant to the bidding procedures in Section

18.F. An Acquiring Shipper who obtains capacity relinquished hereunder

shall be required to execute a separate firm service agreement with

Transporter for the relinquished capacity for the primary and secondary

terms set forth in the Relinquishing Shipper's service agreement.

 

Transporter is not required to but, may choose to

accept a bid at less than the maximum rate provided

that (i) Relinquishing Shipper remits as an exit fee,

a lump sum payment for the difference between the

maximum rate and the bid rate for the full term of the

relinquishment, or agrees to remain liable for the

difference between the maximum rate and the bid rate

for the full term of the relinquishment, and (ii)

Transporter and Acquiring Shipper reach agreement on a

mechanism permitting the periodic adjustment to the

bid rate to reflect subsequent rate adjustments filed

for and approved by the FERC.

 

To the extent Transporter elects to accept bids at

other than the maximum rate, Transporter shall award

the capacity or portion thereof in accordance with

Section 18.F.4. Transporter's decision to accept a

permanent relinquishment at less than the maximum rate

must be reached in a nondiscriminatory manner.

 

At the time the Acquiring Shipper and Transporter

enter into a Service Agreement for the acquired

capacity, Acquiring Shipper may, if the Relinquishing

Shipper had not elected the ten-year rollover

described in Section 20C, elect such ten-year rollover

in the manner set forth in Section 20C.