Maritimes & Northeast Pipeline, L.L.C.

First Revised Volume No. 1

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Effective Date: 01/01/2009, Docket: RP09-73-001, Status: Effective

Sub Fourth Revised Sheet No. 246 Sub Fourth Revised Sheet No. 246

Superseding: Fourth Revised Sheet No. 246

 

GENERAL TERMS AND CONDITIONS

(continued)

 

9. CAPACITY RELEASE

 

This Section 9 sets forth a firm capacity release mechanism

pursuant to which existing Customers can voluntarily release all

or part of their firm service rights to others that want to

obtain that firm capacity by entering into an agreement with

Pipeline. Customers may release and assign their firm capacity

on Pipeline under any firm, open access, Part 284 Service

Agreement only under this Section 9 of Pipeline's GT&C.

Pipeline will use an open bidding format and will post each

Releasing Customer's offer to release capacity (herein called

"Releasing Customer's Notice") and all the bids against that

Releasing Customer's Notice, except for the names of the

bidders. Bids are to be based on the Reservation Charge

(mainline and/or MNLFT) only, provided the Reservation Charge

may be converted into a volumetric charge. The maximum rate for

such volumetric releases shall be no greater than the 100% load

factor equivalent of Pipeline's maximum Reservation Charge

currently applicable to the service released, and for purposes

of this Section 9, a Customer is entitled to specify a rate for

capacity to be released equal to the maximum Reservation Charge,

plus all applicable reservation surcharges. For releases that

become effective on or after July 30, 2008, Customer,

Replacement Customer or Prearranged Customer may specify in an

offer to release capacity or a bid for capacity, as applicable,

a rate in excess of the maximum rates referenced above if (i)

the term of the release is one (1) year or less, and (ii) the

effective date of the proposed release is on or before one (1)

year from the date on which Pipeline is notified of the release,

subject to the restrictions in Section 9.11 herein. The bidding

procedures set forth herein shall govern bidding for capacity

that is made available pursuant to Section 4.2.

 

Pipeline has entered into that certain Backstop Agreement with

Mobil Natural Gas Inc. ("Mobil"), pursuant to which Pipeline has

agreed to provide reasonable notice to Mobil of any Request for

firm transportation service (excluding Requests for Backhaul or

displacement services), including the volume, terms and

conditions requested, at a time when such capacity is not

available directly from Pipeline in the primary market. Mobil

has agreed to notify Pipeline, within twenty (20) days of

receiving notice of such Request, whether Mobil desires to

release its firm capacity under the Backstop Agreement for

service to the requesting shipper. Pipeline and Mobil

acknowledge in the Backstop Agreement that Pipeline cannot

compel a requesting shipper to take capacity from any specific

existing shipper.