Steckman Ridge, LP

Original Volume No. 1

 Contents / Previous / Next / Main Tariff Index

Effective Date: 04/01/2009, Docket: RP09-389-000, Status: Effective

Original Sheet No. 246 Original Sheet No. 246

GENERAL TERMS AND CONDITIONS

(Continued)

5. CAPACITY RELEASE (continued)

5.15 Steckman Ridge's Rights to Terminate Temporary Capacity Releases.

(a) In the event of a temporary release for which (1) Steckman

Ridge has given notice of termination of the Releasing

Customer's contract because the Releasing Customer no longer

satisfies Steckman Ridge's credit requirements as outlined

in Section 4 of the General Terms and Conditions and (2) the

Storage Reservation Charge specified in the effective

Addendum to the Replacement Customer's Capacity Release

Umbrella Agreement is less than the level of the Storage

Reservation Charge which the Releasing Customer was

obligated to pay Steckman Ridge, then Steckman Ridge shall

be entitled to terminate the Addendum, upon 30 Days' written

notice to the Replacement Customer, unless the Replacement

Customer agrees prior to the end of said 30-Day notice

period to pay for the remainder of the term of the Addendum

either (i) the reservation and commodity charges at levels

which the Releasing Customer was obligated to pay Steckman

Ridge, or (ii) such rate as mutually agreed to by Steckman

Ridge and Replacement Customer. Customer may elect to pay

the lesser of the two foregoing options. Steckman Ridge's

right to terminate the Addendum is subject to Steckman Ridge

providing written notice of termination to the Replacement

Customer within 60 Days of the determination by Steckman

Ridge that the Releasing Customer no longer satisfies

Steckman Ridge's credit requirements. Termination of the

Addendum shall not occur prior to termination of Releasing

Customer's contract.

(b) In the event that a Customer has received 30 Days' notice of

termination of the Addendum to Customer's Capacity Release

Umbrella Agreement pursuant to Section 5.15(a) above for

storage service and there is Gas in storage for Customer's

account at the end of such 30-Day period, the Addendum shall

continue in force and effect for the sole purpose of

withdrawal of said Gas by Customer until Customer's Storage

Inventory is zero. Steckman Ridge shall require Customer to

withdraw each Gas Day a quantity equal to the MDWQ, or such

other lesser quantity acceptable to Steckman Ridge. The

requirement to withdraw storage quantities shall be

suspended on any Gas Day to the extent that Steckman Ridge

cannot accommodate a nomination to withdraw such storage

quantities on such Gas Day. Customer may also transfer

title of Gas remaining in Customer's Storage Inventory to

another Customer pursuant to Section 15 of these General

Terms and Conditions. In the event Customer fails to

withdraw its entire Storage Inventory as required by this

section, Steckman Ridge shall auction any remaining Storage

Inventory pursuant to the timeline specified in Section 18

of these General Terms and Conditions, and shall remit the

proceeds of such auction to Customer, less Storage

Reservation Charges for the period from the first day

following the termination date until the inventory is sold

to the highest bidder and any applicable Fuel Reimbursement

charges, Storage Withdrawal Charges and any administrative

costs incurred by Steckman Ridge to conduct the auction.

The Storage Reservation Charges shall be calculated by

multiplying the Storage Reservation Charge rate in effect on

the termination date of the Firm Storage Service Agreement

by the quantity of Gas sold at auction.