Natural Gas Pipeline Company Of America

Seventh Revised Volume No. 1

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Effective Date: 04/18/2008, Docket: RP08-319-000, Status: Effective

Original Sheet No. 442 Original Sheet No. 442 : Pending

 

GENERAL TERMS AND CONDITIONS

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provide. In the event that the Original Shipper and the Replacement

Shipper execute such assignment agreement, the Original Shipper

shall be released from all liability under the Eligible Firm

Transportation Agreement arising after such execution date.

 

19.18 CONVERSIONS BETWEEN MONTHLY AND DAILY RESERVATION RATES

 

For less than maximum rate transactions only, to convert

a daily rate to a monthly rate, multiply the daily rate by the

number of days in the rate period, and then divide the result by the

number of months in the rate period, taking the remainder out to

five (5) decimal places and rounding up or down to the decimal place

used in Natural's applicable schedule of rates. To convert a monthly

rate to a daily rate, multiply the monthly rate by the number of

months in the rate period, and then divide the result by the number

of days in the rate period, taking the remainder out to five (5)

decimal places and rounding up or down to the decimal place used in

Natural's applicable schedule of rates.

 

19.19 NATURAL'S RIGHT TO TERMINATE A CAPACITY RELEASE

 

Natural may elect to terminate a Replacement Shipper's

Agreement with Natural upon at least thirty (30) days' prior written

notice of termination 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 in Sections 5.11, 5.12 and/or 16 of these

General Terms and Conditions and Natural has suspended or terminated

service to the Releasing Shipper or has provided notice under

Section 5.11 or Section 5.12 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 Natural's contract

with the Original Shipper; provided, however, that a Replacement

Shipper which is creditworthy can continue an existing capacity

release by notifying Natural that it agrees to pay a rate which it

specifies that equals or exceeds the lower of: (i) the applicable

maximum rate; or (ii) the same rate as is in the original Agreement

between Natural and the Releasing Shipper. Alternatively,

notwithstanding Sections 19.5(d)(2) and 19.8(c) of these General

Terms and conditions, Natural and the Replacement Shipper may agree

upon other pricing terms, in which case the release shall continue.

Such notification or agreement must be effectuated prior to the end

of the notice period.