Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 09/01/2009, Docket: RP09-427-000, Status: Suspended

First Revised Sheet No. 162 First Revised Sheet No. 162

Superseding: Original Sheet No. 162

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

21. ASSIGNMENT OF FIRM CAPACITY ON UPSTREAM PIPELINES

 

21.1 Purpose:

 

The purpose of Section 21 of the General Terms and Conditions is to

establish the procedures for the COMPANY, and for a SHIPPER, to release

firm capacity pursuant to Section 284.242 of the Commission's Regulations.

 

21.2 COMPANY'S Firm Transportation Capacity on Upstream Pipelines:

 

(a) In accordance with Section 284.242 of the Commission's Regulations,

the COMPANY shall make available for assignment to its SHIPPERS

and other parties the COMPANY'S firm transportation capacity rights

on upstream pipelines.

 

(b) The COMPANY will post on SoNet:

 

(1) the upstream pipelines on which the COMPANY holds capacity

pursuant to a firm transportation contract;

 

(2) the contract quantity of each firm transportation contract and

the rate the COMPANY pays for the reserved capacity;

 

(3) the remaining primary term associated with each firm

transportation contract.

 

(4) the receipt point(s) and delivery point(s) through which the

COMPANY may transport natural gas under each firm

transportation contract.

 

(c) Any party desiring the assignment of all or any part of the firm

transportation capacity under the terms and conditions posted by the

COMPANY pursuant to Section 21.2(b) above shall notify the

COMPANY electronically through SoNet or in writing and provide

proof of creditworthiness within the time specified by the COMPANY

in its notice. The COMPANY will provide all offers and credit

information to the upstream pipeline. A party who accepts assignment

of all or part of the COMPANY'S firm transportation capacity rights

shall contract directly with the upstream pipeline for the firm capacity

assigned, under the terms and conditions existing in the COMPANY'S

firm transportation contract with the upstream pipeline, including the

terms and conditions thereunder related to assignment, unless the

upstream pipeline agrees otherwise. Thereafter, the COMPANY shall

be relieved of all contractual obligations with the upstream pipeline

with respect to the capacity assigned. The COMPANY shall not be

responsible to indemnify against any loss, costs or expenses associated

with the assignee's failure to perform all obligations under the terms

of its contract with the upstream pipeline and the assignee shall agree

to hold COMPANY harmless therefrom.

 

(d) If the COMPANY receives competing offers from parties which exceed

the upstream capacity that is actually available to the COMPANY

under the terms of a specific firm transportation contract, the

COMPANY shall assign the capacity available first to firm SHIPPERS

requesting capacity on a pro rata basis