Sabine Pipe Line Company LLC

Second Revised Volume No. 1

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Effective Date: 07/31/1993, Docket: RS92- 78-003, Status: Effective

Original Sheet No. 249 Original Sheet No. 249 : Superseded

 

 

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.

 

10.2 Types and Conditions of Releases

 

a) Permanent Release

 

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