Midwestern Gas Transmission Company
Third Revised Volume No. 1
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Effective Date: 06/12/2005, Docket: RP05-341-000, Status: Effective
Second Revised Sheet No. 256 Second Revised Sheet No. 256 : Effective
Superseding: First Revised Sheet No. 256
GENERAL TERMS AND CONDITIONS
21. CAPACITY RELEASE (Continued)
21.7 Rights and Obligations of Releasing Shipper
Notwithstanding any release hereunder, Releasing Shipper(s) shall remain
responsible for payment of the demand charge associated with the released
capacity up to the demand charge specified in the Releasing Shipper's Firm
Transportation Agreement with Company. However, Company and Shipper may agree
to a Negotiated Rate under a Firm Transportation Agreement and agree upon
payment obligations and crediting mechanisms, in the event of a capacity
release, that vary from or are in addition to those set forth herein and in
Subsection 21.13(a) of these General Terms and Conditions; provided that
nothing in the foregoing provision shall authorize Company or Shipper to
violate the FERC's policy with respect to negotiation of terms and conditions
Any increase in Company's rates, charges, and surcharges shall remain the
responsibility of the Releasing Shipper; provided, however, that the Releasing
Shipper may provide, in its capacity release offer, for the rates, charges or
surcharges for released transportation rights to increase in accordance with
any increases in Company's rates, charges and surcharges.
If a Shipper releases firm capacity, then Releasing Shipper's firm capacity
rights shall be reduced by an amount equal to the quantity released, in
accordance with Subsection 21.2 of these General Terms and Conditions, for the
period of the capacity release, except for any period that the firm capacity is
recalled by the Releasing Shipper (if permitted in the successful bid) and
until such capacity is reput to the Replacement Shipper, in accordance with
this Subsection 21.12.
A release for the entire remaining term of the Releasing Shipper's Firm
Transportation Agreement shall effect a permanent release or a temporary
release. In the event Releasing Shipper designates the capacity release offer
as a permanent release, the Replacement Shipper shall be subject to all rights
and obligations associated with the released capacity.
If a Releasing Shipper elects a temporary release, all contractual rights and
obligations associated with the released capacity remain with the Releasing
Shipper at the end of the term of the temporary release.
In accordance with the terms of a permanent release or a temporary release, the
Replacement Shipper shall execute a new Firm Transportation Agreement under the
applicable rate schedule pursuant to Part 284 of the Commission's regulations.
A Releasing Shipper shall describe fully in its capacity release offer any
rights to recall the capacity being released and under what conditions the
capacity shall be reput to the Replacement Shipper following any such recall.
A release by a Replacement Shipper shall not relieve the original Shipper or
the Replacement Shipper of their obligations under this Section 21.