Maritimes & Northeast Pipeline, L.L.C.

First Revised Volume No. 1

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Effective Date: 01/01/2009, Docket: RP09-73-000, Status: Effective

Second Revised Sheet No. 255 Second Revised Sheet No. 255

Superseding: First Revised Sheet No. 255

 

GENERAL TERMS AND CONDITIONS

(continued)

 

9. CAPACITY RELEASE (continued)

 

(4) Pipeline shall reject any bid which does not meet the other

minimum specifications set forth in the Releasing Customer's

Notice. In the event both a contingent bid and a non-

contingent bid generate the same value, Pipeline shall reject

the contingent bid even if the bid with no contingency was

received later in time. If multiple bids meet the minimum

conditions stated in the Releasing Customer's Notice, Pipeline

shall award the capacity, best bid first, until all offered

capacity has been awarded. For purposes of the foregoing, a

Customer paying a Negotiated Rate is subject to the provisions

of Section 24.

 

(e) In the event that the Prearranged Customer desires to exercise its

right to match the "best bid," the Prearranged Customer must notify

Pipeline via the LINK® System.

 

(f) Pipeline shall not award capacity release offers to the

Replacement Customer until and unless the Replacement Customer

meets Pipeline's creditworthiness requirements applicable to all

services that it receives from Pipeline, including the service

represented by the capacity release.

 

9.6 Obligations of All Parties.

 

(a) Obligations of Pipeline. Pipeline will be required pursuant to

Section 2 of the GT&C to provide the LINK® System for access by

Customers, Replacement Customers or Prearranged Customers

participating in this Section 9. If the Replacement or

Prearranged Customer satisfies Pipeline's applicable tariff

provisions governing Customer eligibility and its bid is accepted

by Pipeline, Pipeline will tender to the Replacement or

Prearranged Customer an addendum to the Capacity Release Umbrella

Agreement incorporating the terms of the accepted bid. Pipeline

will notify the Releasing Customer with recall rights of the name

of new Replacement Customers who subsequently obtain such capacity

after the Service Agreement is executed.

 

(b) Obligations of the Releasing Customer.

 

(1) The Service Agreement of the Releasing Customer will remain

in full force and effect, with a portion of the proceeds

attributable to any release and assignment credited to the

existing Releasing Customer's invoice as provided in Section

9.7. The Releasing Customer shall remain ultimately liable

to Pipeline for all Reservation Charges (mainline and/or

MNLFT) and Reservation Surcharges, if any, under the terms of

its Service Agreement with Pipeline. However, no new

obligation or liability is created as a result of such

releases of the rights and obligations under the Service

Agreement.

 

(2) If Pipeline waives any credit requirements for a Prearranged

Customer or a Replacement Customer, Pipeline shall limit the

liability of the Releasing Customer to the extent of such

credit waiver, unless the Releasing Customers agrees to the

waiver. To the extent Pipeline