Pine Needle LNG Company, LLC

Original Volume No. 1

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Effective Date: 02/22/2009, Docket: RP09-239-000, Status: Effective

Third Revised Sheet No. 72 Third Revised Sheet No. 72

Superseding: Second Revised Sheet No. 72

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

20. CAPACITY RELEASE (Continued)

 

20.7 Submission of Offers and Bids

 

(a) Offers for capacity to be released and bids for released capacity shall be

submitted to Pine Needle via its EBB service or electronic data interchange.

Offers are binding until electronic notice of withdrawal is received by Pine

Needle. For each business day, all objectively stated and nondiscriminatory

approved offers for release capacity received by Pine Needle from Releasing

Customers will be made available on Pine Needle's EBB service or through

electronic data interchange in accordance with Section 20.9. Where unanticipated

circumstances justify, such offers may be withdrawn unless a minimum bid has been

submitted for such capacity.

 

(b) All potential Replacement Customers must have satisfied Pine Needle's

requirements for credit worthiness pursuant to Section 22 of the General Terms

and Conditions of Pine Needle's Tariff prior to submitting a bid for firm

capacity posted by a Releasing Customer. If a party does not qualify as a

qualified Replacement Customer pursuant to this section, the party cannot bid on

a Releasing Customer's offer.

 

(c) Only demand charge bids will be allowed, stated either as a daily demand charge

per Dt per day of vaporization quantity entitlement applicable to the capacity

for storage reservation rate releases or as a daily demand charge per Dt per day

vaporized for storage volumetric releases. The maximum rate applicable to

capacity release transactions shall be Pine Needle's maximum reservation rates as

set forth under the applicable rate schedules. Such maximum rate shall be

inclusive of any applicable demand surcharges. For releases that become

effective on or after July 30, 2008, the maximum rate ceiling does not apply to

such releases provided the release is for a term of one year or less and the

release is to take effect on or before one year from the date on which the

pipeline is notified of the release. The rate paid in any capacity release

transaction not subject to the maximum rate ceiling will not be subject to

refund.

 

(d) Releasing and Replacement Customers shall hold Pine Needle harmless with regard

to any claim which may be raised by any party regarding the selection of a Best

Bid, except to the extent that such party successfully establishes that Pine

Needle has incorrectly selected the Best Bid as the result of the negligent

action or willful misconduct of Pine Needle.