Southern Natural Gas Company
Seventh Revised Volume No. 1
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Effective Date: 07/30/2008, Docket: RP09-288-000, Status: Effective
Seventh Revised Sheet No. 169 Seventh Revised Sheet No. 169
Superseding: Sixth Revised Sheet No. 169
GENERAL TERMS AND CONDITIONS
Section 22.3(b)(4) (continued)
subject to a right of recall, the capacity then released by the RELEASING SHIPPER, and
any subsequent Secondary Release of the capacity thereafter, shall also be subject to
the right of recall.
(c) Prearranged Release of Firm Capacity:
A RELEASING SHIPPER who wishes to release its firm capacity to a prearranged bidder on a
temporary basis may do so without posting an offer for its firm capacity, unless it elects to
post its offer for competitive bidding, if the proposed capacity release is:
(i) for a term of thirty one (31) days or less,
(ii) for a term of more than one (1) year for which SHIPPER has obtained a
Prearranged SHIPPER and the Prearranged SHIPPER is paying the maximum rate
and all other terms and conditions of the release are met,
(iii) to an asset manager as defined in Section 284.8(h)(3) of the Commission's
(iv) to a marketer participating in a state-regulated retail access program as
defined in Section 284.8(h)(4) of the Commission's regulations.
If such prearranged bid qualifies under (i)-(iv) above, the release shall not be subject to
the competitive bidding requirements of Section 22.6 below, but shall be subject to all other
provisions of this Section 22.
Unless capacity is released pursuant to either an asset management arrangement or state-
regulated retail access program, a firm shipper may not roll over, extend, or in any way
continue the release to the same replacement shipper using the 31 days or less bidding
exemption until 28 days after the first release period has ended. The 28-day hiatus does not
apply to any re-release to the same replacement shipper that is posted for bidding or that
qualifies for any of the other exemptions from bidding set forth herein.
The minimum term for a release of capacity for a period of thirty-one (31) days or less shall
be one (1) contract day and the term must be for a consecutive number of days.
The timetables set forth in Appendix H hereto shall not apply to the non-posted releases set
forth above, except for those releases of 31 days or less which the RELEASING SHIPPER elects
to post for competitive bidding. Under any type of non-posted release, the RELEASING SHIPPER
AND ACQUIRING SHIPPER shall notify COMPANY electronically on SoNet of the terms of the release
at least 1 hour prior to the applicable nomination deadline in which the release will go into
effect so that the ACQUIRING SHIPPER may have the ability to nominate on the next available
nomination cycle. In the event the ACQUIRING SHIPPER's first nomination opportunity on the
release is on an intraday cycle, the maximum quantity of gas ACQUIRING SHIPPER may nominate
shall be prorated based on the number of hours remaining in the day at the effective time of
the nomination cycle. It is provided, however, that the offer and bid for a prearranged
release of capacity on a permanent basis shall be entered into SoNet by 5:00 p.m. two business
days prior to the nomination deadline for the effective date of the release. The ACQUIRING
SHIPPER must also be prequalified pursuant to the requirements of Section 22.6(e) below.
COMPANY shall post on SoNet the terms of a prearranged release entered into under this Section
22.3(c) as soon as possible, but no later than forty-eight (48) hours after the effective date
of such released transaction.