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

Fifth Revised Sheet No. 259A Fifth Revised Sheet No. 259A

Superseding: Fourth Revised Sheet No. 259A

 

GENERAL TERMS AND CONDITIONS

(continued)

 

9. CAPACITY RELEASE (continued)

 

9.9 Pipeline's Rights to Terminate Temporary Capacity Releases.

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

Pipeline's General Terms and Conditions and (2) 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 Releasing Customer is paying a negotiated

rate, the sum 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. The 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.

 

9.10 Notices to Releasing Customers.

Pipeline shall provide the original Releasing Customer with

Internet E-mail notification reasonably proximate in time with

any of the following formal notices given by Pipeline to the

Releasing Customer's Replacement Customer(s), of the

following:

 

(1) Notice to the Replacement Customer regarding the

Replacement Customer's past due, deficiency, or default

status pursuant to Pipeline's Tariff;

(2) Notice to the Replacement Customer regarding the

Replacement Customer's suspension of service notice;

(3) Notice to the Replacement Customer regarding the

Replacement Customer's contract termination notice due to

default or credit-related issues; and

(4) Notice to the Replacement Customer that the Replacement

Customer(s) is no longer creditworthy and has not

provided credit alternative(s) pursuant to Pipeline's

Tariff.