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. 215 Original Sheet No. 215 : Effective
GENERAL TERMS AND CONDITIONS
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19.19 TRAILBLAZER'S RIGHT TO TERMINATE A CAPACITY RELEASE
Trailblazer may elect to terminate a Replacement Shipper's
Agreement with Trailblazer upon prior written notice of at least thirty
(30) days to the Replacement Shipper, 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 with Sections 6.9, 6.10 and/or 17 of these General Terms and
Conditions and Trailblazer has suspended or terminated service to the
Releasing Shipper or has provided notice under Section 6.9 or Section
6.10 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 Trailblazer's contract with the
Original Shipper; provided, however, that (except as provided later in
this paragraph) a Replacement Shipper which is creditworthy can
continue an existing capacity release by notifying Trailblazer that it
agrees to pay a rate which it specifies that equals the lower of: (i)
the applicable maximum rate; or (ii) the same rate as is the original
Agreement between Trailblazer and the Releasing Shipper. Alternatively,
Trailblazer and the Replacement Shipper may agree upon other pricing
terms that are equal to or lower than the rate options in the prior
sentence, in which case the release shall continue. Notwithstanding
the provision in the prior two sentences, with respect to an Expansion
2002 Agreement which was entered into in support of Expansion 2002, or
any successor contract or Shipper, Trailblazer may terminate such
release unless that release is at a rate which equals the negotiated
rate under the Expansion 2002 Agreement, including the negotiated
reservation rate, the negotiated commodity rate and applicable
Expansion 2002 fuel charges. Such notification or agreement must be
effectuated prior to the end of the notice period.