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.