Michigan Gas Storage Company

First Revised Volume No 1

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Effective Date: 03/27/2000, Docket: RP00-523-000, Status: Effective

Third Revised Sheet No. 63 Third Revised Sheet No. 63 : Superseded

Superseding: Second Revised Sheet No. 63

 

GENERAL TERMS AND CONDITIONS

(continued)

by executing a Service Agreement that matches the terms

of the higher offer within one (1) Business Day after MGS

tenders the Service Agreement to the Designated

Replacement Shipper. If the Designated Replacement

Shipper does not execute the Service Agreement, MGS will

tender a Service Agreement to the party that submitted

the offer providing the highest economic value.

 

(e) If the Releasing Shipper has arranged for a Designated

Replacement Shipper, such assignment shall not be

extended or rolled over without posting unless the

assignment is at the maximum tariff rate and there is no

waiver of the rate ceiling in effect for such assignment.

 

(f) Offers of and bids for capacity shall be binding until

notice of withdrawal is received by MGS in writing or

electronically.

 

(g) Bids for capacity cannot be withdrawn after the bid

period ends.

 

21.6 Rights and Obligations of Releasing Shipper

 

(a) If the Releasing Shipper's Service Agreement is assigned

permanently for the remaining term of the agreement,

subject to MGS' agreement, the Releasing Shipper shall

have no further responsibility or obligations under the

Service Agreement.

 

(b) If the aforementioned condition is not met, then the

Releasing Shipper shall continue to be responsible to MGS

for all reservation charges, including reservation

surcharges, applicable to the Service Agreement unless

MGS agrees otherwise. A credit will be included on each

of the Releasing Shipper's monthly bills to reflect the

reservation fee(s) invoiced to the Replacement Shipper.

 

(c) When a Releasing Shipper assigns Service rights, the

Service rights under the original Service Agreement will

be reduced by the amount of the Service rights assigned.

Any imbalance related to this reduction must be reduced

to the new tolerance level in the month following the

completion of the assignment to avoid any balancing

charges.