Saltville Gas Storage Company L.L.C.

Original Volume No. 1

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Effective Date: 03/01/2009, Docket: RP08-479-002, Status: Pending

Fifth Revised Sheet No. 113 Fifth Revised Sheet No. 113

Superseding: Fourth Revised Sheet No. 113

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

4. CAPACITY RELEASE

 

Any Customer under Rate Schedule FSS may seek to release to others any or all of its firm

service entitlements on a full Day or a partial Day basis, on a permanent or a temporary

basis, and on a recallable or non-recallable basis, subject to the procedures set forth in

this Section 4.

 

4.1 Notice of Offer. A Customer offering to release firm service entitlements shall

notify Saltville of the terms of its offer via the LINK® System, by the posting

deadline as determined pursuant to Section 4.3 herein. Saltville will display this

information on the LINK® System. Customer may propose a pre-arranged designated

Replacement Customer ("Prearranged Customer") to which the capacity would be

released. The releasing party has the right to withdraw its offer during the bid

period where unanticipated circumstances justify and no minimum bid has been made.

Offers shall be binding until written or electronic notice of withdrawal is

received by Saltville. The notice of withdrawal, which Saltville shall post on the

LINK® System, must contain the reason for withdrawal. Any contingencies or special

terms and conditions included in the offer to release capacity shall not be

contrary to any applicable provision of this FERC Gas Tariff. The offer shall

contain the following minimum information:

 

(a) Customer's legal name and the name of the individual who has authorized the

offer to release the capacity;

 

(b) Saltville's service agreement number;

 

(c) A description of the capacity to be released. Release quantity shall be

expressed as a numeric quantity only.

The offer must state the Maximum Storage Quantity, the Maximum Daily

Injection Quantity, and the Maximum Daily Withdrawal Quantity and the

associated Primary Point of Receipt and Primary Point of Delivery, subject

to the proposed release and subject to the daily quantity limitations

described in Section 4.2 below;

 

(d) Whether the release is on a permanent or a temporary basis;

 

(e) The proposed effective date and term of the release;

 

(f) The identity of any Prearranged Customer, whether the Prearranged Customer

is affiliated with the Releasing Customer;

 

(g) For biddable releases, the method to be applied in evaluating bids,

allocating capacity and breaking ties, as described in Section 4.6 below;

provided, however, if the Releasing Customer specifies a bid evaluation

methodology other than the standard methods of highest rate, net revenue or

present value, such alternative bid evaluation method, which may include,

but is not limited to, the application of the Risk of Default Factor as set

forth in Section 3.8(h), must be set forth with sufficient specificity that

Saltville's evaluation of the bids to determine the "best bid" is a purely

ministerial matter that does not require any discretionary exercise of

judgment by Saltville. In addition, Releasing Customer must specify the

Tie Break Method that Saltville will apply to award capacity among multiple

bids that yield the same value;

 

(h) Whether, to what extent, and the conditions pursuant to which capacity will

be subject to recall for a full Day or a partial Day; and if recallable,

(1) whether the Releasing Customer's recall notification must be provided

exclusively on a Business Day, and (2) any reput methods and rights

associated with returning the previously released capacity to the

Replacement Customer. These rights and methods may be either: (i) reput

must be accepted by the original Replacement Customer for the original

terms of the release, or (ii) reput may be accepted at the option of the

original Replacement Customer for the original terms of the release.