Northern Border Pipeline Company

First Revised Volume No. 1

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Effective Date: 03/10/2003, Docket: RP03-251-000, Status: Effective

Second Revised Sheet No. 442 Second Revised Sheet No. 442 : Effective

Superseding: First Revised Sheet No. 442

 

NORTHERN BORDER PIPELINE COMPANY

CAPACITY RELEASE AGREEMENT

 

 

Article 3 - Shipper Obligations

 

Shipper shall continue to be responsible to Company for compliance with

all terms and conditions of the Service Agreement and for all charges

for firm gas transportation rights provided pursuant to Shipper's

Service Agreement.

 

All terms and conditions of the Service Agreement not in conflict with

the terms and conditions of this Capacity Release Agreement shall be

incorporated by reference into this Capacity Release Agreement as if

fully set out herein.

 

Article 4 - Subrogation

 

Company expressly recognizes the right of subrogation of Shipper in and

to all rights, claims, and privileges that Company has or may have

against Replacement Shipper(s), to the extent of all payments made by

Shipper to Company on account of or arising from Replacement Shipper(s)'

failure to comply with the terms and conditions of the Replacement

Shipper(s)' Rate Schedule T-1R or Rate Schedule T-1B Service Agreement.

Shipper and Company agree that Shipper may exercise this right of

subrogation with regard to such rights, claims and privileges at its

discretion. Further, Shipper and Company agree that Company has no

obligation to proceed against the Replacement Shipper for its failure to

make payments in accordance with the terms and conditions of its Rate

Schedule T-1R or Rate Schedule T-1B Service Agreement. Procedures

regarding notice, billing and crediting of accounts as concerns payment

obligations/liabilities of Replacement Shippers and Releasing Shippers

are set forth in Subsection 3.2 of Rate Schedule T-1R, Subsection 3.2 of

Rate Schedule T-1B, and Section 6 of the General Terms and Conditions.

 

Article 5 - Agreed Maximum Receipt Quantity

 

Shipper shall not nominate firm gas transportation service above the

Agreed Maximum Receipt Quantity (AMRQ).

 

Article 6 - Term

 

This Capacity Release Agreement shall be in full force and effect until

Shipper's Service Agreement is terminated.