North Baja Pipeline, LLC

Original Volume No. 1

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Effective Date: 07/30/2008, Docket: RP09-208-000, Status: Effective

Original Sheet No. 164A Original Sheet No. 164A

 

GENERAL TERMS AND CONDITIONS OF SERVICE

(Continued)

 

19. CAPACITY RELEASE

 

19.2 Types of Release

 

PREARRANGED RELEASES - BIDDING NOT REQUIRED (continued)

 

(2) A release for more than one year at the maximum applicable

tariff rate does not require bidding.

 

(3) A permanent release of a long-term contract at the maximum

applicable tariff rate when the remaining term is less than

three hundred and sixty-five (365) days does not require

bidding.

 

(4) Asset Management Agreements. A release of capacity to an

Asset Manager is exempt from bidding if the release contains a

condition that the Releasing Shipper may call upon the

Replacement Shipper to deliver to or purchase from the

Releasing Shipper a volume of gas up to 100 percent of the

daily contract demand of the released transportation capacity.

If the capacity release is for a period of one year or less,

the Asset Manager's delivery or purchase obligation must apply

on any day during a minimum period of the lesser of five

months (or 155 days) or the term of the release. If the

capacity release is for a period of more than one year, the

Asset Manager's delivery or purchase obligation must apply on

any day during a minimum period of five months (or 155 days)

of each twelve-month period of the release, and on five-

twelfths of the days of any additional period of the release

not equal to twelve months.

 

Payments or other consideration exchanged between the

Releasing and Replacement Shippers in a release to an Asset

Manager are not subject to the maximum rate.

 

(5) Retail Access Programs. A release to a marketer participating

in a state-regulated retail access program is exempt from

bidding when the released capacity will be utilized by the

Replacement Shipper to provide the gas supply requirement of

retail customers pursuant to a retail access program approved

by the state agency with jurisdiction over the local

distribution company that provides delivery service to such

retail customers.