Cimarron River Pipeline, LLC

Original Volume No. 1

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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.