Saltville Gas Storage Company L.L.C.

Original Volume No. 1

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Effective Date: 07/07/2007, Docket: RP07-481-000, Status: Effective

First Revised Sheet No. 150 First Revised Sheet No. 150 : Effective

Superseding: Original Sheet No. 150

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

27. TERMINATION FOR DEFAULT

 

27.1 Termination of Service. If either Saltville or Customer shall

fail to perform any of the covenants or obligations imposed upon

it or them under and by virtue of an applicable rate schedule or

effective service agreement, then the other party may at its

option terminate such agreement by proceeding as described herein.

The party not in default shall provide written notice to the party

in default stating specifically the cause for terminating the

agreement and declaring it to be the intention of the party giving

the notice to terminate the same; thereupon the party in default

shall have thirty days after receipt of such notice to remedy or

remove the cause or causes stated in the notice, and if within the

thirty-day period the party in default does so remove and remedy

said cause or causes and fully indemnifies the party not in

default for any and all consequences of such breach, by a good and

sufficient indemnity bond or otherwise, then such notice shall be

withdrawn and the agreement shall continue in full force and

effect. In case the party in default does not so remedy and

remove the cause or causes or does not so indemnify the party

giving the notice for any and all consequences of such breach,

within the thirty-day period, then, after any necessary

authorization by regulatory bodies having jurisdiction, the

agreement shall become void at the expiration of said period,

provided that notice of termination has not been withdrawn prior

thereto. Any cancellation of such agreement pursuant to the

provisions of this paragraph shall be without prejudice to the

right of Saltville to collect any amounts then due to it for

service provided by Saltville prior to the time of cancellation,

and shall be without prejudice to the right of Customer to receive

any service for which it has paid but has not received, although

entitled thereto, prior to the time of cancellation, and without

waiver of any remedy to which the party not in default may be

entitled for violations of such agreement.

 

27.2 Suspension of Service. Prior to a termination for default,

Saltville may suspend service to any Customer who fails to comply

with the General Terms and Conditions, the applicable rate

schedule, or Customer's service agreement. Saltville's failure to

invoke its right to terminate an agreement for default shall not

be construed as a waiver of Saltville's right to terminate service

during any other period when Customer is in violation of the terms

of this FERC Gas Tariff or of Customer's service agreement.