Trunkline Gas Company, LLC

Third Revised Volume No. 1

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Effective Date: 06/13/2010, Docket: RP10-731-000, Status: Effective

First Revised Sheet No. 270G First Revised Sheet No. 270G

Superseding: Original Sheet No. 270G

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

11. CONTRACT ROLLOVER, RIGHT OF FIRST REFUSAL AND REDUCTION (Continued)

 

(D) Buyouts

 

(1) Eligibility

 

Shipper may elect to reduce some or all of the contract

quantity on its firm Service Agreement by making one or

more of the following cash payments to Trunkline.

 

The total amount of the cash payment that Shipper must

pay Trunkline shall be 100 percent of the net present

value of the reservation charge payments applicable to

the reduced quantities that Trunkline would have

otherwise received had Shipper continued to pay

Trunkline under the remaining term of the Service

Agreement. The economic value shall be calculated in

accordance with Section 10.3 hereof.

 

(2) Notice

 

Shipper shall give Trunkline sixty (60) days prior

written notice of the date it elects to exercise this

contract Quantity reduction option.

 

(3) Level of Reduction

 

Unless otherwise agreed, any reduction in contract

quantity shall result in a pro rata reduction in

Shipper's Quantities at primary Points of Receipt and

primary Points of Delivery.

 

(4) Effective Date

 

The reduction shall take effect on the requested date

following the sixty (60) days notice period. The

payment required under Section 11.7(D)(1) must be

received by Trunkline prior to the effective date of

the reduction.