Southeast Supply Header, LLC

Original Volume No. 1

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Effective Date: 09/04/2008, Docket: CP07-44-005, Status: Effective

Original Sheet No. 318 Original Sheet No. 318

 

GENERAL TERMS AND CONDITIONS

(CONTINUED)

 

25. CAPACITY RELEASE PROVISIONS (continued)

 

25.6 Transporter's Rights to suspend and/or Terminate Temporary

Capacity Release Transactions.

 

(a) In the event of a temporary release for which: (i) the

Releasing Shipper no longer maintains creditworthiness as

outlined in Section 27 of Transporter's General Terms and

Conditions and Transporter has terminated Releasing

Shipper's Agreement; and(ii) the reservation charge

specified in the applicable Addendum 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 commodity-type charges), then Transporter shall be

entitled to terminate the service described in the

Addendum, upon 30 Days' written notice to the Replacement

or Prearranged Shipper, unless the Replacement or

Prearranged Shipper agrees, at its sole election, prior to

the end of said 30-Day notice period to pay for the

remainder of the term specified in the Addendum 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 Recourse Rate, or

(iii) such rate as mutually agreed to by Transporter and

Replacement or Prearranged Shipper.

 

(b) In the event of a temporary release for which the

Replacement Shipper no longer satisfies Transporter's

credit requirements as set forth in Section 27 of the

General Terms and Conditions: (i) Transporter may notify

the Releasing Shipper, without any liability or prior

notice to Replacement Shipper, that the Replacement Shipper

no longer meets the credit requirements of Transporter's

Tariff; and (ii) subject to Transporter exercising its

rights under Section 27 of the General Terms and Conditions

to suspend and/or terminate such capacity release

transaction, the firm capacity subject to the release

transaction shall revert to Releasing Shipper immediately

upon the effectiveness, and for the duration, of such

suspension or permanently if the release transaction is

terminated.