Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

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Effective Date: 02/26/2009, Docket: RP09-282-000, Status: Effective

Eighth Revised Sheet No. 348 Eighth Revised Sheet No. 348

Superseding: Seventh Revised Sheet No. 348

 

GENERAL TERMS AND CONDITIONS (continued)

 

(e) Notwithstanding any release hereunder, a Releasing Shipper shall remain

responsible for payment of the deliverability and space charges ("demand

storage charges") for the firm storage rights released; provided,

however, that Transporter and any Shipper may, in connection with their

agreement to a Negotiated Rate under a firm storage rate schedule, agree

upon Releasing Shipper payment obligations and procedures and crediting

mechanisms in the event of a capacity release that vary from or are in

addition to those set forth herein. The Releasing Shipper will be

billed for its full contractual demand storage charge liability, but

shall simultaneously receive a demand storage charge credit equaling the

demand storage charges which Transporter has invoiced the Replacement

Shipper. Transporter shall bill Replacement Shipper in accordance with

Article V of the General Terms and Conditions based upon the rates,

charges and surcharges contained in the Storage Service Agreement. Any

revenues received by Transporter from Replacement Shipper will be first

applied to the demand storage charge liability associated with the

released capacity, then to the usage charge liability. If the

Replacement Shipper fails to pay all or any portion of any bill by the

due date specified on the invoice, then Replacement Shipper shall pay a

Charge for Late Payment calculated in accord with Article VI, Section 2

of these General Terms and Conditions. If Replacement Shipper's failure

to pay has continued for thirty (30) days after payment is due,

Transporter shall so notify Replacement Shipper and Releasing Shipper

within a reasonably proximate time via e-mail and facsimile. If such

failure to pay continues for thirty (30) days after payment is due and

Transporter has provided the Releasing and Replacement Shippers with at

least thirty (30) days notice that service will terminate for

nonpayment, Transporter may terminate the service agreement; provided,

however, that such service agreement shall not terminate if Replacement

Shipper successfully exerts its rights under Article VI of these General

Terms and Conditions.

 

To the extent that the release is a non-permanent release and Replacement

Shipper's service agreement is past due, then Transporter may send to

Releasing Shipper an invoice for all unpaid amounts up to the amount of

the Releasing Shipper's reservation charge plus interest calculated from

the date the unpaid amount was due from Replacement Shipper, net of any

security held for Replacement Shipper, provided that prior to sending such

invoice to Releasing Shipper, Transporter will either terminate the

Replacement Shipper's service agreement or initiate the necessary legal

steps to do so. Releasing Shipper shall submit the payment to Transporter

within ten days of receipt of the invoice.

 

To the extent that Transporter suspends or terminates the service of a

Replacement Shipper pursuant to Article XXVIII, Section 4.5, Transporter

shall provide within a reasonably proximate time notice to the Replacement

Shipper and Releasing Shipper via e-mail and facsimile.

 

(f) Any increase in Transporter's rates, charges and surcharges shall remain

the responsibility of the Releasing Shipper; provided, however, that the

Releasing Shipper may provide in its Release Request for the rates,

charges or surcharges for released storage rights to increase in

accordance with any such increases in Transporter's rates, charges and

surcharges. In either circumstance, any refunds of any rates or charges

ordered by the FERC shall be paid to the Replacement Shipper either by

Transporter or by Releasing Shipper depending on which entity (the

Transporter or Releasing Shipper) received the proceeds of the excessive

rate; provided, however, for releases that became effective on or after

July 30, 2008, any rate paid by a Replacement Shipper in any capacity

release transaction with a term of one (1) year or less which is not

subject to the maximum rate cap is deemed to be a final rate and is not

subject to refund.