Canyon Creek Compression Company
Third Revised Volume No. 1
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Effective Date: 09/20/2002, Docket: GT02- 36-001, Status: Effective
Substitute Original Sheet No. 165A Substitute Original Sheet No. 165A : Effective
GENERAL TERMS AND CONDITIONS
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19.19 CANYON'S RIGHT TO TERMINATE A CAPACITY RELEASE
Canyon may elect to terminate a Replacement Shipper's
Agreement with Canyon upon prior written notice to the Replacement
Shipper at least equal in duration to the minimum notice period which is
provided for under Section 5.8 of these General Terms and Conditions for
termination of service to the Releasing Shipper from which the
Replacement Shipper obtained its capacity, under the following
conditions:
(a) The Releasing Shipper has failed to make timely
payment or maintain credit (or provide adequate assurance of payment) in
accordance in Sections 5.8 and/or 14 of these General Terms and
Conditions and Canyon has suspended or terminated service to the
Releasing Shipper or has provided notice under Section 5.8 which
ultimately results in suspension or termination of service; and
(b) The rate stated in the Replacement Shipper's Agreement
is less than the rate for service under Canyon's contract with the
Original Shipper; provided, however, that a Replacement Shipper which is
creditworthy can continue an existing capacity release by notifying
Canyon that it agrees to pay a rate which it specifies that equals or
exceeds the lower of: (i) the applicable maximum rate; or (ii) the
same rate as is in the original Agreement between Canyon and the
Releasing Shipper. Alternatively, notwithstanding Section 16.8(c) of
these General Terms and conditions, Canyon and the Replacement Shipper
may agree upon other pricing terms, in which case the release shall
continue. Such notification or agreement must be effectuated prior to
the end of the notice period.