Millennium Pipeline Company, L. L. C.

Original Volume No. 1

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Effective Date: 12/22/2008, Docket: CP98-150-011, Status: Effective

Original Sheet No. 191 Original Sheet No. 191

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

14.8 Billing.

 

(a) Transporter, in accordance with the terms of this Tariff,

shall: (i) bill the Releasor for the full reservation charge, applicable

reservation-related surcharges and any other fixed charges for which Releasor

is otherwise obligated to Transporter, less either the reservation charge bid

by Releasor's Replacement Shipper, or the reservation charge portion of

amounts billed to Replacement Shippers paying one-part volumetric rates; and

(ii) bill the Replacement Shipper for (A) the reservation charge bid by that

Replacement Shipper (except for periods during which the Releasor has

recalled the capacity), (B) all commodity charges, or all payments under one-

part volumetric rates, and any minimum volumetric commitment agreed to but

not met by the Replacement Shipper, (C) any commodity surcharges, (D) any

penalties or imbalance correction costs associated with the assigned

capacity, and (E) any applicable overrun charges, as any of these charges may

change from time to time upon approval of the Commission. For all payments

received from Replacement Shipper, Transporter shall allocate such payment

first to the reservation charge (or to the reservation charge component under

a one-part rate) and then any amounts above that level to the commodity

charge (or to the commodity charge component under a one-part rate).

Replacement Shipper may, upon notice to Transporter and approval of the

Releasor, appoint Releasor as its agent to receive such billings from

Transporter. The charges shall be pro-rated for a Billing Month if

necessary.

 

(b) For all assignments of service rights, Releasor shall remain

ultimately responsible to Transporter for full payment of the reservation

charge, any applicable reservation-related surcharges, and any other fixed

charges for which Releasor is otherwise obligated to Transporter. For

releases of capacity for the remainder of the service agreement term,

Transporter may in its reasonable discretion agree to release the Releasor

from this responsibility, making the release a permanent release. Such

discretion shall be exercised by Transporter in a nondiscriminatory manner.

Until payment by Replacement Shipper to Transporter of any unpaid reservation

charges, any claims Releasor may have relating to those charges shall be

subordinated to those of Transporter. Any reservation charge payments made

by Replacement Shipper to Transporter will not be withheld from Releasor by

Transporter due to Replacement Shipper's failure to pay Transporter other

amounts owed that are unrelated to the released capacity.

In the event of termination of Releasor's Service Agreement with Transporter,

Replacement Shipper's Service Agreement with Transporter is deemed terminated

unless Replacement Shipper agrees to pay the lower of: (1) the former

Releasing Shipper's contract rate, or (2) the maximum tariff rate for the

service for the remainder of the Replacement Shipper's Service Agreement.