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

revenues.

 

(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.

 

(b) Procedures.

 

(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).