Cimarron River Pipeline, LLC
Original Volume No. 1
Contents / Previous / Next / Main Tariff Index
Effective Date: 09/01/2008, Docket: CP08-17-001, Status: Effective
Original Sheet No. 305 Original Sheet No. 305
GENERAL TERMS AND CONDITIONS
19. SHIPPERS' RELEASE OF FIRM CAPACITY
19.1 General:
This Section 19 sets forth the sole means by which a Shipper under Rate
Schedule FT ("Releasing Shipper") may release its firm capacity rights under
a FT TSA with Transporter to a third party ("Replacement Shipper"). This
Section 19 pertains solely to release of firm capacity rights under a FT TSA
for subsequent service under Rate Schedule FT.
19.2 Capacity Eligible For Release:
A Releasing Shipper with a FT TSA may release all or any part of its firm
capacity pursuant to this Section 19. In the case of segmented capacity
releases, for the MDQ released, the upstream segment Shipper shall be
permitted to nominate as a secondary point all points both upstream of the
Receipt Point and in the same direction as the Releasing Shipper's Primary
Path, and the downstream segment Shipper shall be permitted to nominate as a
secondary point all points both downstream of the Delivery Point and in the
same direction as the Releasing Shipper's Primary Path, provided that the
nominations of the Releasing and Replacement Shippers do not result in an
overlap with another capacity release transaction.
19.3 Types of Releases:
(a) Permanent Release: A Releasing Shipper may release all or part of
its firm capacity under a FT TSA for the entire remaining term of the FT TSA
("Permanent Release") under this Section 19. A Permanent Release is an
assignment of capacity and any associated rights of the Releasing Shipper
under Section 18 hereof for avoiding pregranted abandonment. Therefore, the
Replacement Shipper must meet Transporter's creditworthiness requirements in
these General Terms and Conditions. The Replacement Shipper is required to
execute a separate FT TSA for the released capacity at the rate applicable
to and for the primary term remaining under the Releasing Shipper's FT TSA,
unless Transporter agrees otherwise in a nondiscriminatory manner.
Furthermore, the Replacement Shipper must contract for the Primary Receipt
Point(s) and Primary Delivery Point(s) specifically stated in a Releasing
Shipper's offer of firm capacity.
(b) Release by Replacement Shipper: The Replacement Shipper then has
the right to release its capacity on a permanent or temporary basis under
the terms and conditions of this Section 19. Upon the successful completion
of a Permanent Release, the Releasing Shipper shall be responsible only for
those charges under its FT TSA incurred with respect to the released
capacity prior to the effective date of the Permanent Release, as well as
charges it continues to incur for capacity not released on a permanent
basis.