National Fuel Gas Supply Corporation

Fourth Revised Volume No. 1

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Effective Date: 10/16/2002, Docket: RP02-547-001, Status: Effective

Sub. Second Revised Sheet No. 366 Sub. Second Revised Sheet No. 366 : Effective

Superseding: First Revised Sheet No. 366

 

GENERAL TERMS AND CONDITIONS

 

10. CAPACITY RELEASE (Cont'd)

 

In no event shall the communication of an award pursuant to Section

10.6 be deemed as the grant of a request to release the Existing

Shipper from further obligations to Transporter.

 

10.8 Rights and Obligations of Replacement Shippers

 

(a) Subject to the provisions of Subsections (b)-(g) of this

Section 10.8, once the Replacement Shipper obtains an award of

capacity subject to a service agreement with Transporter, the

Replacement Shipper becomes an Existing Shipper like any other

Shipper and is subject to the provisions set forth in this

FERC Gas Tariff including all requirements concerning

nominations and scheduling. In addition, the Replacement

Shipper as an Existing Shipper (hereinafter called a

"Secondary Existing Shipper") may also release its capacity

pursuant to this section.

 

(b) Upon termination of a source service agreement or a capacity

award under a Master Service Agreement for Capacity Release

Transactions by reason of shipper default, Transporter shall

have the right to terminate any Replacement Shipper's capacity

award derived from that agreement or award in default, whether

the Replacement Shipper obtained its capacity award in a

release by the defaulting shipper or by a non-defaulting

Secondary Existing Shipper.

 

(c) In order to exercise its right under subsection 10.8(b),

Transporter must cause a written notice to be served on the

Replacement Shipper, at least thirty (30) days prior to the

effective date of termination of the capacity award. Such

notice shall inform the Replacement Shipper of the following:

 

(i) that notice of termination has been served upon the

defaulting shipper;

 

(ii) that such termination notice informed the defaulting

shipper of Transporter's intent to terminate its

agreement or award if the cause for termination is not

remedied within thirty (30) days after the service of

such notice;

 

(iii) that the Replacement Shipper's capacity award will be

terminated if such cause for termination of the

defaulting shipper's agreement or award has not been

remedied within such time period;