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. 122 Original Sheet No. 122 : Suspended
Gas Tariff, and of its Service
Agreement incorporating its bid terms. In accordance with the terms of the
release, the Replacement Shipper shall pay or be liable for the usage charges
(plus all applicable surcharges, Fuel Reimbursement, taxes, penalties, etc.)
applicable under the relevant Rate Schedule attributable to its usage of the
released capacity. Freebird shall continue
to bill the Releasing Shipper all applicable charges under its existing
Service Agreement, excluding usage charges (plus all applicable surcharges,
Fuel Reimbursement, taxes, penalties, etc.) billed to the Replacement Shipper
and attributable to its usage of the released capacity. Invoices sent to the
Releasing Shipper shall reflect a credit equal to any Storage Reservation
Charges (plus all surcharges applicable thereto) being billed to the
Replacement Shipper for the released capacity rights, or as otherwise agreed.
If the Replacement Shipper fails to pay when due all or part of the amounts
credited to the Releasing Shipper, Freebird shall pursue payment from the
Replacement Shipper by notifying such Shipper by registered letter, return
receipt requested, that it has five (5) days from receipt of such letter to
pay the amount due including any applicable interest. If the Replacement
Shipper fails to pay such amount by the end of the fifth day, Freebird shall
reverse the credit and bill the Releasing Shipper for such past due amounts,
plus applicable interest.
4.11 Rights and Obligations of the Parties.
(a) The Service Agreement between the Releasing Shipper and Freebird shall
remain in full force and effect, with the Releasing Shipper to receive a
credit to its invoice as described in Section 4.10 above. If the Replacement
Shipper fails to pay all or part of the amounts credited to the Releasing
Shipper after the five-day notification period specified in Section 4.10,
Freebird shall reverse the credit and bill the Releasing Shipper for such past
due amounts, plus applicable interest. The Service Agreement executed by the
Replacement Shipper shall be fully effective and enforceable by and against
the Replacement Shipper. The Replacement Shipper may also release capacity
pursuant to this Section, and in such event and for such purposes, shall be
considered the Releasing Shipper.
(b) Freebird shall accept nominations, schedule service, afford priority of
service and interrupt service based on instructions and communications from
the Releasing Shipper and the Replacement Shipper which are consistent with
one another and with the terms and conditions of Freebird’s FERC Gas Tariff
and their respective Service Agreements. In the event that instructions or
nominations from the Releasing Shipper and Replacement Shipper are, in
Freebird’s opinion, inconsistent or conflicting, Freebird shall comply with
the instructions of the Releasing Shipper; provided, however, that such
instructions must not be inconsistent with Freebird’s FERC Gas Tariff or the
terms of either the Releasing Shipper’s or Replacement Shipper’s Service
Agreement. The Releasing Shipper will indemnify Freebird against any claim or
suit by the Replacement Shipper, its successors or assigns, arising from any
action taken by Freebird in reliance upon the Releasing Shipper’s nominations
and instructions, and will hold Freebird harmless for any action taken by
Freebird in reliance upon the nominations and scheduling instructions of the
Replacement Shipper; provided, however, that the Releasing Shipper shall not
be liable for the Replacement Shipper’s failure to pay the usage charges (plus
all applicable surcharges, Fuel Reimbursement, taxes, penalties, etc.) billed
to the Replacement Shipper and attributable to its usage of the released
capacity. The Replacement Shipper will indemnify Freebird against any claim
or suit by the Releasing Shipper, its successors or assigns, arising from any
action taken by Freebird in reliance upon the nominations and scheduling
instructions of the Replacement Shipper and will hold Freebird harmless for
any actions taken by Freebird in reliance upon the instructions of the
Releasing Shipper.
4.12 Marketing Fee. If Freebird and the Releasing Shipper so agree, Freebird
may receive a negotiated fee for its marketing efforts.