Texas Eastern Transmission, L P

Seventh Revised Volume No. 1

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Effective Date: 11/16/2009, Docket: RP10-53-000, Status: Effective

Fourth Revised Sheet No. 539 Fourth Revised Sheet No. 539

Superseding: Third Revised Sheet No. 539

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

(K) Uncommitted Capacity:

 

Pipeline will post on the LINK® System and the Web site its available

uncommitted firm or interruptible capacity, and the terms and conditions

applicable to such capacity. Replacement Customers may elect, at their

discretion, to contract for Pipeline's uncommitted firm capacity, the released

capacity or interruptible capacity.

 

(L) [Reserved for Future Use]

 

(M) Pipeline's Rights to Terminate Temporary Capacity Releases:

 

(1) In the event of a temporary release for which (a) Pipeline has given

notice of termination of the Releasing Customer's contract because the

Releasing Customer no longer satisfies Pipeline's credit requirements as

outlined in Section 3.3 of Pipeline's General Terms and Conditions and (b)

the reservation charge specified in the effective Addendum to the

Replacement or Prearranged Customer's Capacity Release Umbrella Agreement

is less than the level of the reservation charge which the Releasing

Customer was obligated to pay Pipeline (or, if the Releasing Customer is

paying a Negotiated Rate, the total of all reservation-type and commodity-

type charges), then Pipeline shall be entitled to terminate the Addendum,

upon 30 Days' written notice to the Replacement or Prearranged Customer,

unless the Replacement or Prearranged Customer agrees prior to the end of

said 30-Day notice period to pay for the remainder of the term of the

Addendum one of the following: (i) the reservation and commodity charges

at levels which the Releasing Customer was obligated to pay Pipeline, (ii)

the applicable maximum tariff rate, or (iii) such rate as mutually agreed

to by Pipeline and Replacement or Prearranged Customer. Replacement or

Prearranged Customer may elect to pay the lesser of the foregoing three

options. If the subject release was a segmented release, Pipeline shall

not be required to permit Replacement or Prearranged Customer to retain

its geographic segment of capacity, and may require Replacement or

Prearranged Customer to pay for the full capacity path of the defaulting

Releasing Customer at the lower of the rate the defaulting Releasing

Customer paid or the applicable maximum tariff rate. Pipeline's right to

terminate the Addendum is subject to Pipeline providing written notice of

termination to the Replacement or Prearranged Customer within 60 Days of

the determination by Pipeline that the Releasing Customer no longer

satisfies Pipeline's credit requirements. Termination of the Addendum

shall not occur prior to termination of the Releasing Customer's contract.