Questar Southern Trails Pipeline Company

Original Volume No. 1

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Effective Date: 06/01/2002, Docket: RP02-318-000, Status: Effective

Original Sheet No. 62 Original Sheet No. 62 : Effective

 

GENERAL TERMS AND CONDITIONS

 

7.12 Permanent Release of Capacity.

 

(a) Where a portion of a Shipper's capacity has

been released for the entire remaining term of the releasing

Shipper's service agreement without recall or interruption

rights, the releasing Shipper may request Southern Trails to

amend or terminate its service agreement to reflect a

permanent release of the capacity.

 

(b) Southern Trails shall not be obligated to amend

the releasing Shipper's service agreement to reflect a

permanent release of capacity unless the capacity is released

at the higher of the maximum rate or negotiated rate and for

the full term of the agreement and the replacement Shipper

meets Southern Trails' creditworthiness requirements.

Southern Trails may also condition an amendment to or

termination of the original agreement on payment of exit fees.

In lieu of exit fees, the replacement Shipper may enter into a

new service agreement containing terms and conditions

acceptable to Southern Trails. Southern Trails will not amend

or enter into a service agreement for a permanent release of

capacity at a volumetric rate.

 

(c) Unless agreed otherwise by Southern Trails,

the releasing Shipper shall remain liable for payment of the

reservation fee under the agreement. Southern Trails will not

unreasonably refuse to relieve the releasing Shipper from any

liabilities under the agreement. If capacity is permanently

released, and Southern Trails agrees to amend or terminate the

releasing Shipper's service agreement to reflect the permanent

release of capacity, the releasing Shipper will not be liable

for the payment of the reservation charges associated with the

permanently released capacity effective the date of the

amendment or termination of the releasing Shipper's agreement.

 

(d) If capacity is permanently released, the

replacement Shipper will acquire the right of first refusal

held by the releasing Shipper as described in 8 to this

tariff for the capacity acquired by the replacement Shipper.

 

7.13 Notice of Completed Transactions. Within one

business day after capacity has been awarded, Southern Trails

shall post the following information regarding each

transaction on Questline for a period of 30 days:

 

(a) The name of the replacement Shipper and the

release transaction number.