Iroquois Gas Transmission System, L.P.

FIRST REVISED VOLUME NO. 1

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Effective Date: 10/17/2006, Docket: RP06-177-000, Status: Effective

Original Sheet No. 39I Original Sheet No. 39I : Effective

 

 

 

 

7. CONTRACT TERMINATION

 

Unless a shorter period of time is imposed in a notice

issued in accordance with Section 6 above, Shipper shall

eliminate any outstanding Loan Balance within sixty (60)

days of termination of its Hub Service Contract. If Shipper

fails to eliminate such balance, Transporter shall cash out

any balance quantity remaining after sixty (60) days in one

or two ways, based upon Transporter’s determination as to

whether or not such Loan Balance will cause operational

difficulties or affect the integrity of Transporter’s

system.

 

If Transporter determines that such Loan Balance will not

cause operational difficulties or affect the integrity of

Transporter’s system, then Transporter shall cash out any

negative Loan Balance remaining at ninety percent (90%) of

the average New York City Gate Price for the previous month

as published in Natural Gas Week and posted on

Transporter’s Electronic Bulletin Board; and for any

positive Loan Balance remaining, at 110% of the average New

York City Gate Price for the previous month as published in

Natural Gas Week and posted on Transporter’s Electronic

Bulletin Board.

 

If Transporter determines that such Loan Balance will cause

operational difficulties or affect the integrity of

Transporter’s system, then Transporter shall cash out any

Loan Balance remaining at the replacement cost of

gas plus ten percent (10%) for negative Loan Balances or

the sale price of the gas less ten percent (10%) for

positive Loan Balances. For the purposes of the preceding

sentence, the replacement cost and sale price of gas

shall be computed as described in Section 6.2 above.

 

8. CASHOUT PROVISIONS and PENALTIES

 

8.1 Transporter may issue a notice requiring any

Shipper with a Loan Balance of less than 50 Dth to

eliminate its existing Loan Balance under this Section

8 within thirty (30) days. If Shipper fails to comply with

this notice, any negative Loan Balance remaining after

thirty (30) days will be cashed out at ninety percent (90%)

of the average New York City Gate Price for the previous

month as published in Natural Gas Week and posted on

Transporter's Electronic Bulletin Board; and any positive

Loan Balance remaining after thirty (30) days will be

cashed out at 110% of the average New York City Gate Price

for the previous month as published in Natural Gas Week and

posted on Transporter's Electronic Bulletin Board.