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. 70 Second Revised Sheet No. 70

Superseding: First Revised Sheet No. 70

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

(b) contract issued within one hour

of award posting (with a new contract

number, when applicable); nomination

possible beginning at the next available

nomination cycle for the effective date

of the contract (CCT).

 

(b) Permanent releases of capacity shall be subject

to the following provisions:

 

(i) Any permanent release under this Section

shall require the Releasing Shipper to pay an

exit fee which shall be the net present value of

all demand and capacity charges payable to

Transporter by Releasing Shipper over the

remaining life of the Applicable Transportation

Service Agreement, if the accepted bid price

and/or contract term of the Acquired Capacity

Agreement would require Transporter to forego

future revenues. The Transporter by Releasing

Shipper over the remaining life of the

Applicable Transportation Service Agreement, if

the accepted bid price and/or contract term of

the Acquired Capacity Agreement would require

Transporter to forego future revenues. The exit

fee will not apply if the accepted bid price the

Acquiring Shipper is willing to pay is the

maximum contract rate set forth in the Releasing

Shipper's Transportation Service Agreement for

the maximum contract volumes and for a term

which is at least as long as the remaining

unexpired term under the Releasing Shipper's

contract.

 

(ii) Acquiring Shipper and Transporter shall

execute an Acquired Capacity Agreement prior to

the commencement of service which confirms the

terms of the accepted transaction for the

permanent release of capacity.

 

(iii) Effective with implementation of service

under the newly executed Acquired Capacity

Agreement, Releasing Shipper's Transportation

Service Agreement shall be deemed terminated and

Releasing Shipper shall have no further

obligations to Transporter with respect to the

released capacity.