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. 126 Original Sheet No. 126 : Suspended
conjunction with Releasing Shipper’s exercise of its retained
rights, will not violate any maximum or minimum quantity requirements or
limitations applicable under the Rate Schedule or the respective Service
Agreements. Releasing Shipper shall be responsible for ensuring, if
applicable, whether by the withdrawal or transfer-in-place of a portion of its
Storage Inventory or otherwise as required, that such storage capacity, and the
corresponding ability to inject/withdraw Gas up to the Maximum Storage
Quantity released, in accordance with the terms and conditions of the Rate
Schedule and within the time remaining in the injection and/or withdrawal
period, as applicable, shall be available upon the commencement of the
release. A Replacement Shipper under Rate Schedule FSS shall be responsible
for arranging transportation to and from the Point of Injection/Withdrawal
consistent with its rights and obligations under its Service Agreement and
Rate Schedule FSS. The Replacement Shipper under Rate Schedule FSS must
comply with all obligations imposed under such Rate Schedule and its rights to
store, withdraw and/or inject Gas will be subject to the provisions thereof.
If the Releasing Shipper proposes to, or requires a transfer-in-place of
capacity rights to the Replacement Shipper, it shall so specify in its offer
to release and such transfer shall be implemented contemporaneously with the
release and assignment subject to compliance with the provisions of Section 18
of these General Terms and Conditions. The Replacement Shipper must withdraw
the portion of its Storage Inventory by the end of the term of the release.
In lieu of withdrawing the portion of its Storage Inventory, the Replacement
Shipper can also attempt to effect a transfer of the portion of its Storage
Inventory to another storage service Shipper as provided in Section 18 of
these General Terms and Conditions. If the Replacement Shipper fails to
withdraw or transfer the portion of its Storage Inventory by the end of the
term of its release, title to the portion of Shipper’s remaining Storage
Inventory will be vested in Freebird pursuant to the terms of Section 8 of the
FSS Rate Schedule.
4.14 Freebird’s Rights to Terminate Temporary Capacity Releases.
(a) In the event of a temporary release for which (1) Freebird has given
notice of termination of the Releasing Shipper’s Service Agreement because the
Releasing Shipper no longer satisfies Freebird’s credit requirements as
outlined in Sections 3.5(g) and 3.5(h) of Freebird’s General Terms and
Conditions; and (2) the Storage Reservation Charge specified in the effective
Addendum to the Replacement Shipper’s Capacity Release Umbrella Agreement is
less than the level of the Storage Reservation Charge which the Releasing
Shipper was obligated to pay Freebird, then Freebird shall be entitled to
terminate the Addendum, upon thirty (30) Days’ written notice to the
Replacement Shipper, unless the Replacement Shipper agrees prior to the end of
the said 30-Day notice period to pay for the remainder of the term of the
Addendum either (i) the Storage Reservation Charges and commodity charges at
levels which the Releasing Shipper was obligated to pay Freebird, or (ii) such
rate as mutually agreed to by Freebird and the Replacement Shipper.
Replacement Shipper may elect to pay the lesser of the two foregoing options.
Freebird’s right to terminate the Addendum is subject to Freebird providing
written notice of termination to the Replacement Shipper within sixty (60)
Days of the determination by Freebird that the Releasing Shipper no longer
satisfies Freebird’s credit requirements. Termination of the Addendum shall
not occur prior to termination of the Releasing Shipper’s Service Agreement.
(b) In the event that a Replacement Shipper has received thirty (30) Days’
notice of termination of the Addendum to Replacement Shipper’s Capacity
Release Umbrella Agreement pursuant to Section 4.14(a) above for storage
service, and there is Gas in storage for Replacement Shipper’s account at the
end of such 30-Day period because (1) Replacement Shipper’s MDWQ rights were
not adequate to withdraw all of its Gas before the end of such 30-Day period,
or (2) Freebird could not accommodate Replacement Shipper’s requested
withdrawals because of capacity constraints, the Addendum shall continue in
force and effect for the sole purpose of withdrawal of said Gas by Replacement
Shipper until Replacement Shipper’s Storage Inventory is zero. Freebird shall
require Replacement Shipper to