Stingray Pipeline Company, L. L. C.

Third Revised Volume No. 1

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Effective Date: 11/01/2008, Docket: RP08-436-000, Status: Effective

Third Revised Sheet No. 175 Third Revised Sheet No. 175

Superseding: Second Revised Sheet No. 175

 

GENERAL TERMS AND CONDITIONS

 

 

16.17 OBLIGATIONS OF RELEASING SHIPPER

 

(a) Subject to Section 16.17(c), the Releasing Shipper

shall continue to be liable and responsible for all

reservation charges associated with the released

capacity up to the reservation charge specified in

such Releasing Shipper's Agreement with Stingray. The

Releasing Shipper agrees that the award of capacity to

a Replacement Shipper or Subreplacement Shipper shall

automatically reduce the Releasing Shipper's firm

capacity rights under the Agreement with Stingray

effective on the effective date of the release for the

period of the release, except for any period that the

firm capacity is recalled by the Releasing Shipper (if

the successful bid so permits) until such capacity is

reput to the Replacement or Subreplacement Shipper, in

accordance with this Section 16.

 

(b) A release by a Replacement Shipper shall not relieve

the Original Shipper or the Replacement Shipper of

their obligations under this Section 16.

 

(c) In the event that a Released Transportation Service

Contract covers the remaining term of the Eligible

Firm Transportation Agreement at maximum rates, or

higher if applicable pursuant to Section 16.7(c)

hereof, then the Original Shipper may request in

writing that the Original Shippers' rights and

obligations under the Eligible Firm Transportation

Agreement shall be prospectively assigned to, and be

assumed by, the Replacement Shipper. Following such

request, Stingray shall send the Original Shipper and

Replacement Shipper an assignment agreement to so

provide. In the event that the Original Shipper and

the Replacement Shipper execute such assignment

agreement, subject to the approval of Stingray's

lenders if Stingray's loan agreement so requires, the

Original Shipper shall be released from all liability

under the Eligible Firm Transportation Agreement

arising after such execution date.