Great Lakes Gas Transmission Limited Partner

Second Revised Volume No. 1

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Effective Date: 02/16/2009, Docket: RP09-218-000, Status: Effective

Fourteenth Revised Sheet No. 40 Fourteenth Revised Sheet No. 40

Superseding: Thirteenth Revised Sheet No. 40

 

GENERAL TERMS AND CONDITIONS

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(continued)

 

15.6 RATE (continued)

 

(E) In the event that the Capacity to be released is subject to a Negotiated Rate, as provided

under Subsection 4.5 of Rate Schedule FT, or Subsection 4.5 of Rate Schedule EFT, or

Subsection 4.5 of Rate Schedule LFT, the rate at which the Capacity may be released shall

be capped at the maximum applicable tariff rate for all purposes except the obligation of

the Releasing Shipper to pay Transporter the difference between the rate paid by a

Replacement Shipper and the Negotiated Rate.

 

However, if the release is for a term of one (1) year or less and is to take effect on or

before one (1) year from the date on which Transporter is notified of the release, the rate

at which capacity subject to a Negotiated Rate may be released shall not be capped at the

maximum applicable tariff rate.

 

15.7 DEFAULT BY REPLACEMENT SHIPPER. In the event that the Replacement Shipper defaults with respect

to any obligation owed to the Transporter, Transporter shall promptly notify Releasing Shipper

of the default. Transporter may seek performance directly from Replacement Shipper with respect

to any obligations owed by it to Transporter. After Transporter has made a reasonable effort to

seek performance from any such Replacement Shipper for any obligations owed by it to Transporter

under any Rate Schedule FT, EFT, or LFT Agreement, Transporter may seek performance of

Reservation Fee (or Volumetric Rate in the case of a Volumetric Rate Release) obligations from a

Releasing Shipper.

 

15.8 MARKETING FEE. Transporter may receive a marketing fee to be negotiated between Transporter and

Releasing Shipper if Releasing Shipper requests Transporter to actively market the Capacity.

This fee shall be billed separately to Releasing Shipper.

 

15.9 RATE REFUND. In the event a rate refund is ordered covering any portion of a

time period in which a release and assignment under this Section 15 was in effect, then such

refund will be made to the Releasing Shipper to the extent of any amounts paid by the Releasing

Shipper to the Transporter for the period (exclusive of fees under Subsection 15.8.) Any

remaining refund shall be paid to the Replacement Shipper. Other arrangements with respect to

rate refunds shall be allowed if specifically stated as a condition of the release pursuant to

Subsections 15.14(B) and 15.15(A).

 

15.10Unless otherwise superseded by this Section 15, a Replacement Shipper shall meet all

requirements of Transporter's Rate Schedule FT, Rate Schedule EFT, or Rate Schedule LFT, as

appropriate, which requirements must be met prior to the commencement of Transportation Service.

Notwithstanding any provision of Rate Schedule FT, Rate Schedule EFT, or Rate Schedule LFT, the

Replacement Shipper's rights under the release and assignment shall not be superior to those of

the Releasing Shipper.

 

(A) Transporter will maintain a list of potential bidders who have been approved for credit.

To be placed upon the credit list, a potential bidder shall submit a notice to Transporter

stating that it desires to be placed on such list, setting forth the amount of credit

approval it seeks and the potential bidder shall meet the requirements of Section 26 of the

General Terms and Conditions of this FERC Gas Tariff, Second Revised Volume No. 1. A

Shipper that has met Transporter's Rate Schedule FT, Rate Schedule EFT, or Rate Schedule

LFT requirements, as appropriate, and the Section 26 requirements shall be placed on the

credit list at the appropriate credit limit without any further creditworthiness review or

action by the Shipper.

 

(B) A potential bidder who is not yet approved for credit, who becomes a Replacement Shipper

shall provide a prepayment to Transporter. No later than 11 a.m.(C.C.T.) of the business

Day prior to the first Day in which Transportation Service is desired during a billing

month, Replacement Shipper shall provide to Transporter's bank a prepayment equal to the

reservation fees, utilization fees, and any other associated fees that are projected to

become payable to Transporter based on Replacement Shipper's Scheduled Daily Deliveries for

the lesser of one month or the term of the release. Unless directed otherwise by Releasing

Shipper, Transporter may, on a not unduly discriminatory basis, extend this deadline for

Replacement Shipper. Such prepayment option shall remain in effect until such time as

Replacement Shipper is deemed creditworthy or a credit enhancement has been put in place as

described in Section 26 of the General Terms and Conditions.