Trailblazer Pipeline Company

Fourth Revised Volume No. 1

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Effective Date: 12/28/2007, Docket: RP08-168-000, Status: Effective

Original Sheet No. 148 Original Sheet No. 148 : Effective

 

GENERAL TERMS AND CONDITIONS

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(c) Trailblazer and Balance Operator must not have

previously entered into such agreement which was terminated because of

Balance Operator's failure to perform. Nothing herein is intended to

restrict Trailblazer's rights to terminate in accordance with its terms

any agreement entered into hereunder, including without limitation the

right to terminate for Balance Operator's failure to perform consistent

with its obligations under the agreement.

 

10.13 SEGMENTATION OF CAPACITY

 

(a) Commencing on December 1, 2003, a Shipper may

segment the primary path of its own firm capacity to the extent

operationally feasible through the nomination process under this Section

10.13. In addition, any Shipper may segment the primary path of its firm

capacity on release of that capacity to the extent operationally feasible,

by following the procedures set out in Section 19 of these General Terms

and Conditions.

 

(b) For the purposes of this Section 10.13 and subject

to the other provisions hereof, a primary path segmentation of firm

capacity (whether of Shipper's own capacity or on release) shall be deemed

operationally feasible unless: (i) the segmentation would result in an

increase in firm contractual obligation by Trailblazer on any segment or

portion of its system; or (ii) the segmentation would result in a forward-

haul in a direction opposite to the primary path of the Agreement being

segmented, as further set out in (e) below [backhauls are also addressed

in (e) below].

 

(c) In the event a firm capacity path is segmented under

this Section 10.13, each segment shall have access to all secondary points

on Trailblazer's system, so long as Trailblazer's system is not zoned.

Any point which is outside the segmentation path defined by the point(s)

of segmentation within the original primary path of the underlying

Agreement shall be treated as out-of-path secondary in relation to

nominations for that segment. If the points nominated on an out-of-path

secondary basis for any segment fall within another nominated segment of

the original contract path, thereby creating an overlap, the following

rules apply: (i) if the holder(s) of the primary path rights in the area

of overlap has submitted (and Trailblazer has confirmed) nominations at or

above the original contract MDQ, then any confirmed nomination on behalf

of another segment in the area of overlap will be authorized overrun; and

(ii) if the holder(s) of the primary path rights in the area of overlap

has submitted (and Trailblazer has confirmed) nominations which are less

than the original contract MDQ, then any confirmed nomination on behalf of

another segment in the area of overlap will be authorized overrun only to