Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 01/09/2009, Docket: RP09-147-000, Status: Effective

Third Revised Sheet No. 165 Third Revised Sheet No. 165

Superseding: Second Revised Sheet No. 165

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

COMPANY for the entire remaining term of the Service Agreement or for

a fixed period each year (i.e. month or season) for the entire

remaining term of the Service Agreement

("Permanent Release") pursuant to the provisions of this Section 22.

A Permanent Release is an assignment of capacity and any associated

rights of the RELEASING SHIPPER under Section 20 hereof for

avoiding pregranted abandonment. Therefore, the ACQUIRING

SHIPPER must meet the COMPANY'S requirements related to

creditworthiness set forth in Section 2.1(d) of the General Terms and

Conditions applicable to the RELEASING SHIPPER'S Service

Agreement. The ACQUIRING SHIPPER shall be required to execute

a separate firm Service Agreement with the COMPANY for the

released capacity (i) at the discounted, negotiated, or maximum rate

applicable to the RELEASING SHIPPER'S Service Agreement (and Exhibits

thereto) and (ii) for the primary term remaining under the RELEASING

SHIPPER'S Service Agreement with the COMPANY, unless the COMPANY agrees

other-wise in a nondiscriminatory manner. Furthermore, the ACQUIRING

SHIPPER must contract for the firm Receipt and Delivery Points

specifically set forth in a RELEASING SHIPPER'S Offer of firm capacity

under Section 22.6(c) below or alternate Receipt or Delivery Points that

are within the capacity path and rate zone of the RELEASING SHIPPER'S firm

Receipt or Delivery Points, subject to the availability of capacity

at such points. For purposes of this Section 22, the capacity path of a

Delivery Point is that portion of COMPANY'S pipeline system from

which an ACQUIRING SHIPPER may select upstream Delivery

Points for use on a firm basis hereunder, subject to the availability of

excess meter station capacity at each such point. COMPANY shall

maintain on SoNet a list of all upstream Delivery Points which are

eligible for selection on each capacity path.

 

The ACQUIRING SHIPPER then has the right to release its capacity

on a permanent or temporary basis under the terms and conditions of

this Section 22. Upon the successful completion of a Permanent

Release, the RELEASING SHIPPER shall be responsible only for

those charges under its Service Agreement incurred with respect to the

released capacity prior to the effective date of the Permanent Release