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. 96 Original Sheet No. 96 : Effective

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

26. MARKETING AFFILIATE RULE COMPLIANCE PROCEDURES (Continued)

 

26.3 Shared Facilities and Employees. Total Peaking shares no

facilities or operating employees with any marketing

affiliate.

 

27. REMOVAL OF INVENTORY

 

27.1 Removal. If (a) a Customer's storage capacity is curtailed under

the terms of this tariff, (b) a Customer's storage capacity is

released or recalled from release under Section 23 of these

General Terms and Conditions, or (c) a Customer's service

agreement terminates, then Customer shall remove its LNG

inventory at the maximum rate achievable by Total Peaking's

facilities commencing (i) at the earliest practicable time

following notice by Total Peaking but no later than twenty-four

hours following such notice, in the event of curtailments; (ii)

upon the effectiveness of the release, in the event of a capacity

release under Section 23; (iii) at the time specified in the

notice of recall, in the event of a capacity recall under

Section 23; or (iv) upon the termination of the service

agreement, in the event of a termination. If the Customer fails

to so remove such LNG then Total Peaking may, at its option, take

title to such LNG 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 the Customer to remove such LNG and the disposal of

such LNG by Total Peaking, including storage charges under the

applicable rate schedule. In the event that, notwithstanding its

exercise of due diligence, Customer is inhibited from so

withdrawing its LNG, Total Peaking shall pay to Customer any net

proceeds from Total Peaking's sale of the LNG. Total Peaking

shall use reasonable efforts to maximize the sales price of such

LNG.