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.