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. 226 Original Sheet No. 226
GENERAL TERMS AND CONDITIONS
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(c) Once the conditions in subsections (a) or (b) are
met, upon written request by the Releasing Shipper and consent by
MEP, the Releasing Shipper shall be discharged from its obligation
assumed by the Replacement Shipper.
14.19 CONVERSIONS BETWEEN MONTHLY AND DAILY RESERVATION RATES
For less than maximum rate transactions only, converting
the Daily rate to a Monthly rate is accomplished by multiplying the
Daily rate times the number of Days in the rate period, dividing the
result by number of Months in the rate period and taking the
remainder out to five (5) decimal places and rounding up or down to
MEP's specified decimal place. Converting a Monthly rate to a Daily
rate is accomplished by multiplying the Monthly rate by number of
Months in rate period, dividing the result by number of Days in rate
period and taking the remainder out to five (5) decimal places and
rounding up or down to MEP's specified decimal place.
14.20 MEP'S RIGHT TO TERMINATE A CAPACITY RELEASE
MEP may elect to terminate a Replacement Shipper's
Agreement with MEP upon prior written notice of at least thirty (30)
days to the Replacement Shipper, under the following conditions:
(a) The Releasing Shipper has failed to make timely
payment or maintain credit (or provide adequate assurance of payment)
in accordance in Sections 2.8 and/or 12 of these General Terms and
Conditions and MEP has suspended or terminated service to the
Releasing Shipper or has provided notice under Section 2.8 or 12.2
which ultimately results in suspension or termination of service; and
(b) The rate stated in the Replacement Shipper's
Agreement is less than the rate for service under MEP's contract with
the Original Shipper; provided, however, that a Replacement Shipper
which is creditworthy can continue an existing capacity release by
notifying MEP that it agrees to pay the same rate as is in the
original Agreement between MEP and the Releasing Shipper. In the
alternative, MEP and the Replacement Shipper may agree upon other
pricing terms, including payment of the maximum tariff rate or some
other rate that is acceptable to the pipeline, in which case the
release shall continue. Such an arrangement must be effectuated prior
to the end of the notice period.