Freebird Gas Storage, L.L.C.

First Revised Volume No. 1

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Effective Date: 10/01/2008, Docket: RP08-304-000, Status: Effective

Original Sheet No. 41 Original Sheet No. 41 : Suspended

 

have not been withdrawn / re-delivered to Freebird

after the end of the new service period. Freebird’s resort to any remedy

under this Article 7 will not relieve Shipper of its obligation to pay

Freebird for any applicable charges accruing to Shipper’s account before such

actions are taken.

 

7.2 Transfer of Title. Pursuant to the provisions of Section 7.1 above, but

subject to Section 7.3 below, at Freebird’s sole option, Freebird shall (A) in

the case of IBS Gas quantities improperly left in the Storage Facility: (i)

take title to such Gas quantities free and clear of all liens, encumbrances,

and adverse claims of any kind, at a price per Dth equal to the Current Market

Price of such Gas, less Freebird’s costs related to Shipper’s failure to

timely remove its gas, with "Current Market Price" being measured on the date

on which Freebird liquidates Shipper’s outstanding IBS Gas quantities and

which is the greater of (a) the NYMEX Prompt Month settlement price, as

adjusted for the applicable basis differential, and (b) the "balance of month"

market price as reflected by Intercontinental Exchange ("ICE") (or the open

market price, if ICE has no relevant balance of month price information

available on a timely basis); and/or (B) in the case of IBS Gas quantities

borrowed by Shipper but not returned: charge Shipper, and Shipper shall pay

within ten (10) Days of Freebird’s invoice, for a quantity of Gas thermally

equivalent to the IBS Gas quantities that were not returned to Freebird, at a

price per Dth equal to the Current Market Price of such Gas (as defined above)

plus Freebird’s costs related to Shipper’s failure to timely return the loaned

Gas.

 

7.3 Force Majeure. The provisions of Sections 7.1 and 7.2 are subject to the

provisions of this Section 7.3. To the extent Shipper is unable to deliver to

the Storage Facility IBS Gas quantities borrowed by Shipper before the end of

the applicable service period by reason of suspension of injection rights

during the service period caused by Force Majeure declared by Freebird or

other curtailment of injection rights declared by Freebird, Shipper shall be

allowed to nominate to deliver to the Storage Facility all remaining IBS Gas

quantities under such Service Agreement, on an interruptible basis and in

accordance with Shipper’s MDIQ, and Freebird shall refrain from exercising its

rights under Sections 7.1 and 7.2, for a reasonable time after the expiry of

such Force Majeure or curtailment period (i.e., the same number of Days as

Shipper’s injection rights were subject to such Force Majeure and/or

curtailment period during the initial service period), provided, however, that

after such reasonable time the terms of Sections 7.1 and 7.2 shall once again

apply. Likewise, to the extent Shipper is unable to withdraw IBS Gas

quantities before the end of the applicable service period by reason of a

suspension of withdrawal rights during the service period caused by Force

Majeure declared by Freebird or other curtailment of withdrawal rights

declared by Freebird, Shipper shall be allowed to nominate to remove all

remaining inventories under such Service Agreement, on an interruptible basis

and in accordance with Shipper’s MDWQ, and Freebird shall refrain from

exercising its rights under Sections 7.1 and 7.2, for a reasonable time after

the expiry of such Force Majeure or curtailment period (i.e., the same number

of Days as Shipper’s withdrawal rights were subject to such Force Majeure

and/or curtailment period during the service period), provided, however, that

after such reasonable time the terms of Sections 7.1 and 7.2 shall once again

apply.

 

8. GENERAL TERMS AND CONDITIONS

Applicable provisions of the General Terms and Conditions of this FERC Gas

Tariff, as such provisions may be amended from time to time, are hereby

incorporated by reference and made a part of this Rate Schedule IBS, where

applicable, and shall supplement the terms and conditions governing service

rendered hereunder, as though stated herein; provided, however, that in the

event of any inconsistency, the terms of this Rate Schedule IBS shall

control.