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.