Mojave Pipeline Company

Second Revised Volume No. 1

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Effective Date: 06/03/2010, Docket: RP10-706-000, Status: Effective

Third Revised Sheet No. 240 Third Revised Sheet No. 240

Superseding: Second Revised Sheet No. 240

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

9. Capacity Release Program (Continued)

 

9.7 Marketing Fee: Subject to the agreement of the Releasing Shipper,

Transporter shall have the right to market all or a portion of the

released capacity to potential Replacement Shippers who, as a result

of such marketing activity, bid for such capacity during the

competitive bidding procedure. If Transporter contracts with a

Replacement Shipper found by Transporter, Transporter shall be

entitled to a marketing fee negotiated beforehand between Transporter

and Releasing Shipper. Each Replacement Shipper found by Transporter

shall submit with its bid a statement attesting to Transporter's

marketing efforts in connection with such Replacement Shipper's

decision to purchase released capacity.

 

9.8 Billing Adjustment: Transporter shall continue to bill Releasing

Shipper for the released capacity as follows:

 

(a) Releasing Shipper shall continue to be billed for its

contractual Reservation Fee.

 

(b) The Releasing Shipper's invoice shall include a credit for the

Reservation Fee billed by Transporter to its Replacement Shipper

that Month, up to the amount of the Reservation Fee per MMBtu

set forth in Releasing Shipper's transportation Service

Agreement.

 

(c) If Replacement Shipper's Reservation Fee is greater than

Releasing Shipper's contractual Reservation Fee, Releasing

Shipper's invoice shall include a credit for the amount paid

over its maximum contractual Reservation Fee.

 

(d) In the event that Replacement Shipper has not paid all or a

portion of its Reservation Fee in the previous month by the date

required pursuant to Section 12 of the General Terms and

Conditions, Releasing Shipper shall also be billed for the

unpaid portion of the Reservation Fee, up to its contractual

Maximum Reservation Fee.

 

(e) In the event that Transporter is entitled to a marketing fee

pursuant to Section 9.7 of the General Terms and Conditions,

Transporter shall deduct such marketing fee from the credits

otherwise due Releasing Shipper pursuant to paragraphs (c) and

(d) hereof.