Pine Needle LNG Company, LLC

Original Volume No. 1

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Effective Date: 10/10/2004, Docket: RP04-589-000, Status: Effective

Second Revised Sheet No. 88 Second Revised Sheet No. 88 : Effective

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

 

27. POLICY FOR CONSOLIDATION OF SERVICE AGREEMENTS

 

27.1 Pine Needle and Customer may mutually agree to consolidate (and terminate, as

necessary) multiple service agreements into a single service agreement provided the

service agreements to be combined meet the following threshold requirements.

 

(a) The service agreements are with the same Customer, under the same rate

schedule, and the maximum rate applicable to each service agreement and the

actual rate being charged under each service agreement are the same; and

 

(b) None of the service agreements pertain to capacity acquired through temporary

capacity release; and

 

(c) The service agreements have the same termination date.

 

27.2 Subject to the foregoing, Pine Needle will permit service agreements to be

consolidated provided the following conditions are met:

 

(a) Customer's and Pine Needle's rights and obligations under the consolidated

service agreement will be the same as Customer's and Pine Needle's collective

rights and obligations under the individual service agreements prior to

consolidation; and

 

(b) The consolidation will not, in Pine Needle's sole opinion, affect Pine

Needle's ability to provide firm service to Customer or other Customers; and

 

(c) The consolidation will not, in Pine Needle's sole opinion, place an

unreasonable burden on Pine Needle or impose an adverse financial impact on

Pine Needle; and

 

(d) Any regulatory authorizations required to effectuate the consolidation are

granted in a manner acceptable to Pine Needle and Customer.

 

27.3 Termination of service agreements, if required as part of the consolidation process,

shall not initiate right-of-first-refusal procedures, or initiate the procedures for

allocating available firm capacity as set forth in Section 24 of the General Terms

and Conditions.

 

27.4 All rights and obligations specified in the individual service agreements to be

consolidated will be specified in the consolidated service agreement.

 

27.5 Pine Needle's agreement to consolidate service agreements pursuant to this Section

27 shall not be withheld or granted in an unduly discriminatory manner.