Rendezvous Pipeline Company, L.L.C.
Original Volume No. 1
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Effective Date: 02/08/2007, Docket: RP07- 6-000, Status: Effective
Original Sheet No. 57 Original Sheet No. 57 : Pending
19.9 Permanent Releases of Capacity.
(a) Bidding Procedures and Exit Fee.
(i) To the extent that any Releasing Shipper
desires to release all or any part of its
firm contract rights on a permanent basis,
the bidding procedures specified in Section
19 will apply. The procedures for
establishment of credit must be complied with
before Transporter effectuates any permanent
releases of capacity under this Section 19.9.
(ii) Any permanent releases under this Section
19.9(a) shall require Releasing Shipper to
pay an exit fee, but only to the extent
necessary to fully compensate Transporter if
the accepted bid price and/or contract term
of the replacement Service Agreement(s) would
require Transporter to forego future
(iii)The exit fee described in Section
19.9(a)(ii) above shall be the net present
value of all reservation charges payable to
Transporter by the Releasing Shipper over the
remaining life of the applicable Service
Agreement, reduced by the net present value
of such charges payable to Transporter by all
applicable Replacement Shippers.
(i) Replacement Shipper(s) and Transporter shall
execute a new Service Agreement(s) prior to
the commencement of service which confirms
the terms of the accepted transaction for the
permanent release of capacity.
(ii) Effective with implementation of service
under the new executed Service Agreements,
Releasing Shipper's Service Agreement shall
be deemed terminated and Releasing Shipper
shall have no further obligations to
Transporter with respect to the released
capacity, except as to unsatisfied
obligations which arose prior to the
execution of the new Service Agreement(s).