Caledonia Gas And Storage

Original Volume No. 1

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Effective Date: 06/07/2007, Docket: RP07-444-000, Status: Effective

First Revised Sheet No. 50 First Revised Sheet No. 50 : Effective

Superseding: Original Sheet No. 50

end of the fifth Day, Caledonia shall reverse the credit and bill the

Releasing Customer for such past due amounts, plus applicable interest.

If Releasing Customer proposes a Permanent Release of its capacity,

Caledonia will agree to discharge the Releasing Customer of its

obligations on a prospective basis in whole or in part provided

(i) the Replacement Customer meets the requirements in Section 24 of

these General Terms and Conditions, (ii) Caledonia would be financially

indifferent, as determined by Caledonia in its reasonable discretion,

to the discharge if such discharge is granted, and (iii) Caledonia’s

lenders agree to such discharge.

 

9.11 Rights and Obligations of the Parties.

 

(a) The Service Agreement between the Releasing Customer and Caledonia

shall remain in full force and effect with the Releasing Customer to

receive a credit to its invoice as described in Section 9.10 above.

If the Replacement Customer fails to pay all or part of the amounts

credited to the Releasing Customer after the five day notification period

specified in Section 9.10, Caledonia shall reverse the credit and bill

the Releasing Customer for such past due amounts, plus applicable

interest. The Service Agreement executed by the Replacement Customer

shall be fully effective and enforceable by and against the Replacement

Customer. The Replacement Customer may also release capacity pursuant

to this section, and in such event and for such purposes, shall be

considered the Releasing Customer,

 

(b) Caledonia shall accept nominations, schedule service, afford

priority of service and interrupt service based on instructions and

communications from the Releasing Customer and the Replacement

Customer which are consistent with one another and with the terms

and conditions of Caledonia’s FERC Gas Tariff and their respective

Service Agreements. In the event that instructions or nominations

from the Releasing Customer and Replacement Customer are, in Caledonia’s

opinion, inconsistent or conflicting, Caledonia shall comply with the

instructions of the Releasing Customer; provided, however, that such

instructions must not be inconsistent with Caledonia’s FERC Gas Tariff

or the terms of either the Releasing Customer’s or Replacement Customer’s

Service Agreement, in Caledonia’s opinion. The Releasing Customer

will indemnify Caledonia against any claim or suit by the Replacement

Customer, its successors or assigns, arising from any action taken by

Caledonia in reliance upon the Releasing Customer’s nominations and

instructions and will hold Caledonia harmless for any action taken by

Caledonia in reliance upon the nominations and scheduling instructions

of the Replacement Customer; provided, however, that the Releasing

Customer shall not be liable for the Replacement Customer’s failure to

pay the usage charges (plus all applicable surcharges, Fuel

Reimbursement, taxes, penalties, etc.) billed to the Replacement

Customer and attributable to its usage of the released capacity. The

Replacement Customer will indemnify Caledonia against any claim or suit

by the Releasing Customer, its successors or assigns, arising from any

action taken by Caledonia in reliance upon the nominations and

scheduling instructions of the Replacement Customer and will hold

Caledonia harmless for any actions taken by Caledonia in reliance

upon the instructions of the Releasing Customer.

 

9.12 Marketing Fee. If Caledonia and the Releasing Customer so

agree, Caledonia may receive a negotiated fee for its marketing efforts.