Great Lakes Gas Transmission Limited Partner

Second Revised Volume No. 1

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Effective Date: 08/01/2007, Docket: RP07-490-000, Status: Effective

Tenth Revised Sheet No. 40A Tenth Revised Sheet No. 40A : Effective

Superseding: Ninth Revised Sheet No. 40A

 

GENERAL TERMS AND CONDITIONS

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(continued)

 

15.11A release and assignment under this Section 15 shall not release Releasing Shipper from any of

the obligations of its Transportation Service Agreement with Transporter, which shall remain in

full force and effect and unmodified as if the release and assignment and the related

Replacement Shipper's Rate Schedule FT, Rate Schedule EFT, or Rate Schedule LFT service

agreement had never been entered into, except:

 

(A) Releasing Shipper shall not be entitled to any of the capacity rights under its

Transportation Service Agreement that are released by it for the period of the release and

assignment. Recall or reput rights retained by the Releasing Shipper pursuant to

Subsections 15.14(B)(4), 15.14(B)(5), 15.15(A)(4) and 15.15(A)(5) are not considered to be

rights released by the Releasing Shipper, and

 

(B) Transporter shall bill Releasing Shipper for all amounts due to Transporter from Releasing

Shipper under its Transportation Service Agreement. Transporter shall provide the

Releasing Shipper with a concurrent credit on this bill equal to any Reservation Fees

billed to the related Replacement Shipper(s) by Transporter for the released Capacity. Fees

billable under Subsection 15.8 shall be billed separately.

 

(C) Payments made by a Replacement Shipper shall be applied first to any Reservation Fees

incurred by the Replacement Shipper under its Rate Schedule FT, Rate Schedule EFT, or Rate

Schedule LFT Agreement and next to any Utilization Fees incurred by the Replacement Shipper

under its Rate Schedule FT, Rate Schedule EFT, or Rate Schedule LFT Agreement. The

calculations in Subsection 15.11(B) above shall be revised to reflect the actual payments

made by the Replacement Shipper.

 

(D) Transporter and a Releasing Shipper may, in connection with their agreement to a Negotiated

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

Subsection 4.5 of Rate Schedule LFT, agree upon payment obligations and crediting

mechanisms in the event of a capacity release that vary from or are in addition to those

set forth within this Section 15.11. Nothing in the foregoing provision, however, shall

authorize Transporter or a Shipper to violate the Commission's policy with respect to the

negotiation of terms and conditions of service.

 

(E) In the event of a permanent Primary Point Adjustment pursuant to Subsection 15.4(E) by a

Replacement Shipper under a temporary capacity release transaction, Releasing Shipper's

Transportation Service Agreement with Transporter shall be permanently revised to reflect

such adjustment.

 

15.12PERMANENT RELEASES. A Shipper may offer to permanently release all or part of its capacity

pursuant to the procedures of Subsections 15.14 or 15.15 of this FERC Gas Tariff, Second Revised

Volume No. 1. However, a permanent release must be for the entire remaining term of the

Releasing Shipper's Transportation Service Agreement and may not utilize a volumetric rate form

otherwise permitted under Section 15.6. Any potential Replacement Shipper under this Subsection

15.12 must meet the creditworthiness standards stated in Section 26 of the General Terms and

Conditions. Section 15.10 (B) shall not apply to Replacement Shippers for permanent capacity

releases. Upon the consent of Transporter and the execution of a Transportation Service

Agreement with the Replacement Shipper, Transporter will release Releasing Shipper from all of

its obligations arising from service provided pursuant to the Transportation Service Agreement

prospectively from the date of permanent assignment. However, Releasing Shipper will remain

obligated for any fees, surcharges, or other obligations related to service provided under

Releasing Shipper's Transportation Service Agreement prior to the date of its permanent

assignment. Transporter may require that the Replacement Shipper agree to a rate and/or term

equal to those in the Releasing Shipper's Transportation Service Agreement, or to any other

provision in Releasing Shipper's Transportation Service Agreement. Transporter's consent to

allow a permanent release shall not be unreasonably withheld, and shall be applied on a non-

discriminatory basis.

 

15.13 This section reserved for future use.