Total Peaking Services, L. L. C.

Original Volume No. 1

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Effective Date: 04/01/1998, Docket: CP96-339-001, Status: Effective

Original Sheet No. 61 Original Sheet No. 61 : Effective

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

5. OPERATING CONDITIONS (Continued)

 

5.4 Operating Conditions for the Storage of LNG

 

(i) Both the transferee and transferor of

the Storage Volume shall provide Total

Peaking with verification of the

transfer in writing; and

 

(ii) The transfer does not cause the Storage

Volume to exceed the MCSC specified in

the applicable Service Agreement.

 

(2) Customer may transfer by sale or otherwise all

or a portion of its Storage Volume to any

Customer that receives storage service under

Rate Schedule LSV-I or LNG-I, if:

 

(i) Customer receives prior approval from

Total Peaking for such transfer; and

 

(ii) All of the requirements of Section

5.4(b) are met.

 

(c) Cycling

 

By April 1 of each year, Customer shall cause to be withdrawn

from Total Peaking's Facilities at least 50% of the Customer's

Storage Volume as of November 1 of the preceding year. If

Customer fails to so withdraw such LNG, then Total Peaking may,

at its option, take title to any amount of LNG in excess of 50%

of the Customer's November 1 Storage Volume free and clear of any

adverse claims, in which case Customer shall indemnify Total

Peaking and hold it harmless from all costs, damages, and

liabilities arising out of the failure of Customer to remove such

LNG and the disposal of such LNG by Total Peaking, including

storage charges under the applicable rate schedule. Total

Peaking shall be permitted to retain any proceeds from the sale

of LNG to which it takes title hereunder. Total Peaking shall

extend the time available for Customer to remove its Gas from

Storage by one Day for every Day that Customer has been unable to

withdraw properly nominated Quantities due to operational or

force majeure conditions at Total Peaking's Facilities.