Freebird Gas Storage, L.L.C.

First Revised Volume No. 1

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Effective Date: 10/01/2008, Docket: RP08-304-002, Status: Effective

Substitute Original Sheet No. 136 Substitute Original Sheet No. 136

Superseding: Superseding Original Sheet No. 136

 

or Delivery Default in the form of allocation statements from the applicable

Transporter(s). With respect to any remedy for any Receipt Default or

Delivery Default, notwithstanding any provision in any Service Agreement to

the contrary, and in addition to all other remedies available to Freebird,

Shipper will be responsible for all charges that accrued before the date of the

Receipt Default or Delivery Default as well as all injection or withdrawal

charges that would otherwise be applicable to the Default Quantities under the

Defaulted Transaction had such Receipt Default or Delivery Default not

occurred.

 

(b) Firm Storage; Parking; Loaning. Except as provided in Sections

8.8(c) and 8.8(d) below, in the event of a Defaulted Transaction, the

Parties shall enter into a Corresponding Transaction or, if the Parties

cannot agree to the terms of a Corresponding Transaction (after attempting

in good faith to do so), the non-defaulting Party may collect damages from

the defaulting Party equal to the greater of (A) the absolute value of the

product of (x) the Default Quantity multiplied by (y) the spread between

the Daily Reference Price and the NYMEX Prompt Month settlement price for

the Day on which the relevant Nomination was made, as adjusted for the

applicable basis differential, and (B) the absolute value of the product of (x)

the Default Quantity multiplied by (y) the spread between the Daily

Reference Price and the NYMEX Prompt Month settlement price for the

Day on which the physical gas was actually supposed to flow pursuant to

such Nomination, as adjusted for the applicable basis differential.

In addition to the foregoing and notwithstanding anything else

in any Service Agreement to the contrary, Shipper shall at all times

remain obligated for the Storage Reservation Charge associated with

Shipper's FSS Service Agreement(s).

 

(c) Interruptible Storage. If the Defaulted Transaction is an ISS

Transaction, the Parties shall use commercially reasonable efforts to

re-nominate and deliver or receive the nominated gas, as the case may be, at

each Party's earliest possible convenience.

 

(d) After Termination or Expiration of Service Period. If the Defaulted

Transaction is a default by Shipper and results in: (i) Shipper's Storage

Inventory remaining in the Storage Facility after the end of a service period

(if the relevant Service Agreement is for either FSS, ISS, or IPS) or (ii)

Shipper failing to re-deliver all loaned quantities on or before the last Day

of the service period (if the relevant Service Agreement is for Loaning

Service), Freebird shall have the continuing option to assert, in addition to

the other remedies set forth in this Section 8.8, any remedies otherwise

available at law or as set forth in this Gas Tariff, including without

limitation those remedies set forth in the applicable Rate Schedules.

 

(e) For ILS transactions, Shipper shall nominate its withdrawals so that all

loaned Gas quantities are ratably withdrawn from the Storage Facility during

the Days available during the first calendar Month of the Service Agreement

period, and shall nominate such that the returned loaned quantities are

ratably injected into the Storage Facility during the Days available during

the last calendar Month of the Service Agreement period. For IPS

transactions, Shipper shall nominate its injections so that all parked volumes

are ratably injected into the Storage Facility during the Days available

during the first calendar Month of the Service Agreement period, and shall

nominate such that such parked volumes are ratably withdrawn from the Storage

Facility during the Days available during the last calendar Month of the

Service Agreement period.

 

(f) In the event of imbalances created under the Rate Schedules set

Forth in this FERC Gas Tariff, Freebird shall permit Shippers and their

agents to offset imbalances accruing on different contracts held by the

Shipper with Freebird and, upon prior notification to Freebird, to

Trade imbalance quantities with other Shippers.