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

First Revised Sheet No. 18 First Revised Sheet No. 18

Superseding: Original Sheet No. 18

 

FSS-1 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-1 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 firm

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-1 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

lenders/note holders.

 

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

capacity.

 

(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, including any

lower FSS-1 injection or withdrawal priorities set forth in the

Customer's FSS-1 service agreement.

 

(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