MidContinent Express Pipeline LLC
Original Volume No. 1
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Effective Date: 04/10/2009, Docket: RP09-136-000, Status: Effective
Original Sheet No. 225 Original Sheet No. 225
GENERAL TERMS AND CONDITIONS
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14.18 DISCHARGE OF RELEASING SHIPPER IN PERMANENT RELEASES
(a) In the event that a Released Firm Transportation
Agreement covers the remaining term of the Eligible Firm
Transportation Agreement at the higher of either (i) the applicable
maximum rate under a release for more than one (1) year, (ii) a rate
in excess of any applicable maximum rate under a release for one (1)
year or less, or (iii) any applicable Negotiated Rate or Negotiated
Rate Formula, then the Original Shipper may request in writing that
the Original Shippers' rights and obligations under the Eligible Firm
Transportation Agreement shall be prospectively assigned to, and be
assumed by, the Replacement Shipper. Following such request, in
order to effectuate the permanent release, the following conditions
must be satisfied: (1) the Replacement Shipper must demonstrate
compliance with the creditworthiness standards set forth in Section
12 hereof; and (2) MEP must be financially indifferent to the release
in order to consent to such release. Once these conditions have been
satisfied, MEP shall send the Original Shipper and Replacement
Shipper an assignment agreement to so provide. In the event that the
Original Shipper and the Replacement Shipper both execute such an
assignment agreement, the Original Shipper shall be released from all
liability under the Eligible Firm Transportation Agreement arising
after such execution date.
(b) MEP shall agree to an assignment where the
released Firm Transportation Agreement covers the remaining term of
the Eligible Firm Transportation Agreement but specifies a lower rate
than specified in subsection (a) above. In such a case, the
Releasing Shipper shall remain liable and responsible for the payment
of all reservation charges applicable to the Agreement unless and
until the following conditions have been met:
(i) The Capacity Release shall be for the
remaining term of the Agreement;
(ii) The Replacement Shipper shall agree to pay a
rate equal to or greater than the reservation rate which the
Releasing Shipper paid under the Agreement (or such other rate as MEP
shall agree to accept); and
(iii) The Replacement Shipper shall meet the
creditworthy standards set forth in Section 12 of the General Terms
and Conditions of MEP's Tariff and MEP must be financially
indifferent to the release in order to consent to such release.