Mogas Pipeline LLC (Fomerly Missouri Interstate Gas)

First Revised Volume No. 1

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Effective Date: 06/01/2008, Docket: CP06-407-002, Status: Effective

Original Sheet No. 74 Original Sheet No. 74 : Pending

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

21. Capacity Release Program (continued)

 

(l) The term "Release Offer" shall mean the information

required by Section 21.4 herein provided by a Releasing Shipper

that desires to assign its Part 284 firm capacity, excluding any

capacity certificated pursuant to Part 157 of the Commission's

regulations, to a Replacement Shipper.

 

(m) The term "Releasing Shipper" shall mean any Shipper

holding firm capacity on Transporter's system that desires to

release its capacity on a temporary or permanent basis subject to

the terms and conditions set forth in this Section 21.

 

(n) The term "Replacement Shipper" shall mean a Shipper

receiving firm capacity rights of a Releasing Shipper pursuant to

a Release Offer under this Section 21.

 

(o) The term "Winning Bidder" shall mean the Approved

Bidder that submits the Winning Bid or, as applicable, a Pre-

Arranged Replacement Shipper who exercises the right to match the

Winning Bid pursuant to Section 21.3(d) below.

 

21.2 This Section 21 implements Section 284.8 of the FERC

regulations and is applicable to any Shipper that holds rights to

firm transportation and that elects to release temporarily or

assign permanently all or a portion of such firm transportation

rights ("Releasing Shipper"). For purposes of this Section 21,

the term "transportation," "transportation service" or

"transportation rights" shall include firm transportation service

offered under Rate Schedule FT, and the terms "capacity release,"

"release" or "released" shall apply to permanent assignments as

well as temporary releases unless otherwise noted. A Releasing

Shipper shall have the right to release any portion of its firm

transportation rights and obligations but only to the extent that

the rights so released are acquired by another party pursuant to

the provisions of this Section 21 that executes either a Released

Transportation Service Agreement for a temporary release or a Pre-

Assignment Agreement for a permanent assignment. Such party

shall be referred to herein as "Replacement Shipper." A person

that desires to bid on and obtain firm transportation rights

released under the provisions of this Section 21 shall be known

as a "Bidder."

 

21.3 (a) Prior to the commencement of service pursuant to

any release request, the Replacement Shipper shall submit to

Transporter, in accordance with Section 6.3 of Transporter's

General Terms and Conditions, a check equal to the lesser of

$10,000 or the total reservation charges under its Released

Transportation Service Agreement (or corresponding exhibit)

applicable to the released service for a three month period.

 

(b) Subject to any restrictions in the original

release, a Replacement Shipper shall be allowed to release the

capacity under its Released Transportation Service Agreement,

provided that the original release was not volumetrically based.

 

(c) The capacity release timeline is applicable to all

parties involved in the capacity release process; however, it is

only applicable if 1) all information provided by the parties to

the transaction is valid and the acquiring shipper has been

determined to be credit worthy before the capacity release bid is

tendered, 2) the Replacement Shipper is a party to a Released

Transportation Service Agreement, and 3) there are no special

terms or conditions of the release.