Petal Gas Storage, L. L. C.
Original Volume No. 1
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Effective Date: 11/01/2010, Docket: RP10-1219-000, Status: Effective
Eighth Revised Sheet No. 7 Eighth Revised Sheet No. 7
Superseding: Seventh Revised Sheet No. 7
FSS RATE SCHEDULE
FIRM STORAGE SERVICE (Continued)
4.2 Obligations of Customers for Payment of Charges.
A Customer (including a Replacement Customer), who releases its right
to capacity on any basis for a period less than the remaining term of
the original Customer's FSS Agreement, remains responsible for
compliance with all terms and conditions of such Agreement, which shall
remain in effect, and for payment to Petal of the amount of any Storage
Capacity and Deliverability Charge not paid by the Replacement
Customer. A Customer (including a Replacement Customer) who releases
its right to capacity for the full remaining term of such original
Customer's FSS Agreement, shall be released from its obligations under
such Agreement subject to the following conditions: First, upon
obtaining the consent of Petal, which consent shall not be unreasonably
withheld, and second, upon receiving the approval of Petal's
4.3 Notification to Petal.
To release its capacity rights, a Customer must notify Petal in writing
or via Petal's Internet website of the terms and conditions of the
release. The notification must include:
(a) The Releasing Customer's name, contract number, and phone number
of the individual responsible for authorizing the release of
(b) The effective date(s) of the release.
(c) The volume(s) subject to release.
(d) The MDIQs, TMDIQ, MDWQs and TMDWQ subject to release.
(e) The minimum acceptable rate(s). NAESB Standard 5.3.26 (Version
1.9) states: The Releasing Customer should specify which one of
the following methods is acceptable for bidding on a given capacity
release offer: 1) Non-index based release - dollars and cents, 2)
Non-index based release - percentage of maximum rate, or 3) Index-
based formula as detailed in the capacity release offer. The bids
for the capacity release offer should adhere to the method
specified by the Releasing Customer. The bidder may bid the
maximum reservation rate, in Petal's tariff or general terms and
conditions, as an alternative to the method specified by the
Releasing Customer, except when the release is index-based for a
term of one year or less or utilizes market-based rates.
(f) Whether the capacity is offered on a permanent or temporary basis,
and on a firm or recallable basis. If on a recallable basis,
include the conditions, if any, upon which the Releasing Customer
may recall the capacity.
(g) The criteria by which Petal shall evaluate the bids. A Releasing
Customer may select: 1) the present-value formula specified in
Section 4.2 of the General Terms and Conditions of this Tariff, 2)
net revenue, 3) highest rate, or 4) state its own nondiscriminatory
criteria, subject to Petal's approval.
(h) The method by which capacity shall be awarded if tied bids are
received. If no method for awarding capacity to tied bids is
specified, the capacity will be awarded