Transwestern Pipeline Company, LLC
Third Revised Volume No. 1
Contents / Previous / Next / Main Tariff Index
Effective Date: 04/05/2010, Docket: RP10-476-000, Status: Effective
Second Revised Sheet No. 180 Second Revised Sheet No. 180
Superseding: First Revised Sheet No. 180
GENERAL TERMS AND CONDITIONS
(continued)
E. Creditworthiness: Qualification for participation in the capacity release program -
Any potential Replacement Shipper that wishes to acquire released capacity under the
capacity release program must satisfy the creditworthiness requirements contained in
Section 13 of the General Terms and Conditions of this Tariff by pre-qualifying prior
to submitting a bid for capacity. Upon pre-qualification, Transporter shall continue
to review potential Replacement Shipper's financial records and other sources of
public information for creditworthiness. Transporter shall have the right to amend a
potential Replacement Shipper's line of credit from time to time and thereby lower or
increase the quantity and term for which potential Replacement Shipper is qualified to
submit future bids for released capacity. A potential Replacement Shipper cannot bid
for released capacity which exceeds its qualified level of creditworthiness.
Notwithstanding the determination of creditworthiness, Transporter does not guarantee
the payment of any outstanding amounts by a Replacement Shipper.
F. Shipper Liability: In the event capacity is temporarily released hereunder, liability
for payment of reservation charges and any surcharges applicable to the reservation
charge will remain with the Releasing Shipper. If the Releasing Shipper permanently
releases capacity hereunder, Transporter will relieve said Releasing Shipper from its
obligations under its Service Agreement, if (1) the release is at or above the rates
provided for under (and for the remaining term of) Releasing Shipper's Service
Agreement or, (2) the release is at less than rates provided for in Releasing
Shipper's Service Agreement and the Releasing Shipper remits as an exit fee, a lump
sum payment for the positive difference between the Releasing Shipper's contract rate
and the bid rate for the full term of the capacity release, and, when the Releasing
Shipper's contract is at maximum tariff rates, the Replacement Shipper and Transporter
reach agreement on a mechanism permitting the periodic adjustment to the bid rate to
reflect subsequent rate adjustments filed for and approved by the FERC. The
Replacement Shipper and any of its subsequent assignees shall be responsible for any
amounts billed to them under Section 30.7(D) of this Tariff, but shall not be
responsible for any other amounts billed to the Releasing Shipper.
G. Transporter's Right to Terminate a Temporary Capacity Release: Transporter may elect
to terminate a Replacement Shipper's Service Agreement, upon 30 days written notice to
the Replacement Shipper, under the following conditions:
1. The Releasing Shipper has failed to maintain creditworthiness in accordance with
Section 13 of the General Terms and Conditions of this Tariff;
2. Transporter has terminated the Releasing Shipper's Service Agreement in accordance
with Sections 13 and 16 of the General Terms and Conditions of this Tariff; and
3. The rate stated in the effective Replacement Shipper's Service Agreement is less
than the Releasing Shipper's contract rate.
The Replacement Shipper may avoid termination of the temporary capacity release if,
prior to the end of the 30-day notice period, the Replacement Shipper agrees that,
beginning the first day after the end of the 30-day notice period, it will pay the
lower of (1) the former Releasing Shipper's contract rate, or (2) the maximum
applicable reservation and usage rates as stated in this tariff for the applicable
service for the remainder of the Replacement Shipper's contract term.
H. Term Limitation: The term of any agreement providing for the release of capacity
cannot extend beyond the term of the underlying Service Agreement. Released capacity
may be allocated with a future effective date.