Sabine Pipe Line Company LLC

Original Volume No. 1

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Effective Date: 06/19/2006, Docket: RP06-363-000, Status: Effective

Third Revised Sheet No. 249 Third Revised Sheet No. 249 : Effective

Superseding: Second Revised Sheet No. 249

 

10. CAPACITY RELEASE

 

10.1 Eligibility

 

Any Shipper with an executed Firm Service Agreement under

Sabine's FT-1 Rate Schedule is eligible to release all or

part of its capacity to a Replacement Shipper on a permanent

or temporary basis, subject to the provisions of this

Section 10 and Sabine's FT-1 Rate Schedule.

 

10.2 Types of Capacity Releases

 

a) Permanent Release of Firm Capacity

 

A Releasing Shipper may release all or part of its

firm capacity under a Firm Service Agreement for the

entire remaining primary term of the Agreement

(Permanent Release). The Replacement Shipper must

contract for the Primary Receipt and Delivery Point(s)

specifically set forth in a Releasing Shipper?s Firm

Service Agreement. A Permanent Release operates as an

assignment of capacity and all of the terms and

conditions applicable to firm transportation service

including the requirements related to credit

worthiness must be met by the Replacement Shipper

prior to the effective date of the assignment. The

Replacement Shipper shall execute a separate Firm

Service Agreement for the released capacity at the

rate bid by the Replacement Shipper and accepted by

the Releasing Shipper up to the maximum rate and for

the primary term originally set forth in the Releasing

Shipper's Firm Service Agreement with Sabine. The

Releasing Shipper will remain obligated to pay the

difference, if any, between the accepted bid and the

applicable rate for the remainder of the existing

contract term. In the event there is a discount

agreement in effect between Sabine and the Releasing

Shipper for service utilizing all or any portion of

the permanently released capacity, Sabine will enter

into a discount agreement with the permanent

Replacement Shipper for the same time period, volumes,

receipt points, delivery points and discount, subject

to any terms contained in Releasing Shipper's discount

agreement on the same basis as with the Releasing

Shipper. Under Negotiated Rate agreements, the

Releasing Shipper is obligated to pay Sabine the

Difference, if ant, by which the Negotiated Rate

exceeds the rate paid by the Replacement Shipper.