Horizon Pipeline Company, L.L.C.

Original Volume No. 1

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Effective Date: 12/02/2002, Docket: RP03- 59-001, Status: Effective

Substitute Original Sheet No. 195A Substitute Original Sheet No. 195A : Effective

 

 

GENERAL TERMS AND CONDITIONS

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15.20 HORIZON'S RIGHT TO TERMINATE A CAPACITY RELEASE

 

Horizon may elect to terminate a Replacement Shipper's

Agreement with Horizon upon prior written notice of at least thirty

(30) days to the Replacement Shipper, under the following conditions:

 

(a) The Releasing Shipper has failed to make timely

payment or maintain credit (or provide adequate assurance of payment)

in accordance in Sections 3.8 and/or 13 of these General Terms and

Conditions and Horizon has suspended or terminated service to the

Releasing Shipper or has provided notice under Section 3.8 which

ultimately results in suspension or termination of service; and

 

(b) The rate stated in the Replacement Shipper's Agreement

is less than the rate for service under Horizon's contract with the

Original Shipper; provided, however, that a Replacement Shipper which

is creditworthy can continue an existing capacity release by notifying

Horizon that it agrees to pay a rate which it specifies that equals the

lower of: (i) the applicable maximum rate; or (ii) the same rate as

is in the original Agreement between Horizon and the Releasing Shipper.

Alternatively, notwithstanding Sections 15.8(c) of these General Terms

and Conditions, Horizon and the Replacement Shipper may agree upon

other pricing terms which are equal to or less than the lower of: (i)

the applicable maximum rate; or (ii) the same rate as is in the

original Agreement between Horizon and the Releasing Shipper, in which

case the release shall continue. Such notification or agreement must

be effectuated prior to the end of the notice period.