Westgas Interstate, Inc.

First Revised Volume No. 1

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Effective Date: 03/06/2009, Docket: RP09-342-000, Status: Effective

Second Revised Sheet No. 65 Second Revised Sheet No. 65

Superseding: First Revised Sheet No. 65

 

GENERAL TERMS AND CONDITIONS

 

23. CAPACITY RELEASE PROGRAM

 

23.1 PURPOSE - This Section 23 sets forth the specific

terms and conditions applicable to the implementation by

Transporter of a Capacity Release Program on its

interstate pipeline system.

 

23.2 (a) Applicability - This Section 23 is applicable

to any Shipper who has a Part 284 Transportation

Service Agreement under Rate Schedule FT contained

in this Volume No. 1 Tariff or an Acquired Capacity

Agreement and who elects to release, subject to the

Capacity Release Program set forth herein, all or a

portion of its firm transportation rights. Shipper

shall have the right to release any portion of the

firm capacity rights held under a Transportation

Service Agreement or an Acquired Capacity Agreement.

 

(b) Maximum Rate Ceiling. The maximum rate ceiling

does not apply to capacity release transactions with

a term of one year or less if the release is to take

effect on or before one year from the date

Transporter receives notice of the release in

accordance with Section 23.4. The maximum rate

ceiling also does not apply to payments or other

consideration exchanged in capacity release

transactions in a release to an asset manager, as

defined in Section 284.8(h)(3) of the FERC’s

regulations, 18 C.F.R. § 284.8(h)(3).

 

(c) Rollover Prohibition. A prearranged release of

capacity of 31 days or less, except for a release to

an asset manager, as defined in Section 284.8(h)(3)

of the FERC’s regulations, 18 C.F.R. § 284.8(h)(3)

or to a marketer participating in a state-regulated

retail access program, as defined in Section

284.8(h)(4) of the FERC’s regulations, 18 C.F.R.

§ 284.8(h)(4), may not roll over or extend without

complying with Section 23.4 and 23.8.

 

23.3 DEFINITIONS - For purposes of this Section 23, the

following definitions shall apply:

 

(a) Acquired Capacity Agreement - an agreement

between Transporter and the Acquiring Shipper

setting forth rate(s) and the terms and conditions

of service for using capacity rights acquired

pursuant to this Section 23, in the form contained