Monroe Gas Storage Company, LLC

Original Volume No. 1

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Effective Date: 04/29/2009, Docket: RP09-447-000, Status: Effective

Original Sheet No. 167 Original Sheet No. 167

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

8. CAPACITY RELEASE (Continued)

 

8.14 Operator's Rights to Terminate Temporary Capacity Releases.

 

(a) In the event of a temporary release for which (i) Operator has

given notice of termination of the Releasing Customer's contract

because the Releasing Customer no longer satisfies Operator's

credit requirements as outlined in Section 2.3(d) of these General

Terms and Conditions and (ii) the reservation charge specified in

the effective Addendum to the Replacement or Prearranged

Customer's Capacity Release Umbrella Agreement is less than the

level of the reservation charge which the Releasing Customer was

obligated to pay Operator, then Operator shall be entitled to

terminate the Addendum, upon 30 Days' written notice to the

Replacement or Prearranged Customer, unless the Replacement or

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

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

(a) the reservation and commodity charges at levels which the

Releasing Customer was obligated to pay Operator, or (b) such rate

as mutually agreed to by Operator and Replacement or Prearranged

Customer. Customer may elect to pay the lesser of the two

foregoing options. Operator's right to terminate the Addendum is

subject to Operator providing written notice of termination to the

Replacement or Prearranged Customer within 60 Days of the

determination by Operator that the Releasing Customer no longer

satisfies Operator's credit requirements. Termination of the

Addendum shall not occur prior to termination of the Releasing

Customer's contract.