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.