Caledonia Gas And Storage

First Revised Volume No. 1

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Effective Date: 09/30/2010, Docket: RP10-1032-000, Status: Effective

Original Sheet No. 120 Original Sheet No. 120

 

23.7 Current Value. With regard to a terminated Service Agreement

Current Value shall be determined on the basis of quotations from

Reference Market-makers. The Current Value of each terminated Service

Agreement will be the amount, if any, that would be paid to the Non-

Defaulting Party (expressed as a negative number) or by the Non-

Defaulting Party (expressed as a positive number) in consideration of

an agreement between the Non-Defaulting Party and a Reference Market-

maker to enter into a transaction that would have the effect of

preserving for the Non-Defaulting Party the economic equivalent of any

payment, Delivery, or service under the Service Agreement that would,

but for the occurrence of the early termination on the Early

Termination Date, have been required of the Parties after that date

(but not including Unpaid Amounts in respect of the terminated Service

Agreement). The Non-Defaulting Party will request such quotation from

three (3) Reference Market-makers and will request that each Reference

Market-maker provide its quotation to the extent reasonably practicable

as of the same day and time (without regard to different time zones)

on or as soon as reasonably practicable after the Early Termination

Date. The market quotation used in determining the Current Value will

be the quotation remaining after disregarding the highest and lowest

quotations; for this purpose, if more than one quotation has the same

highest value or lowest value, then one of such quotations shall be

disregarded. If the Non-Defaulting Party cannot, after using its best

efforts, obtain three quotations as provided above, two such quotations

may be used and the Current Value will be the average of the two

quotations. If no such quotations are available, the Current Value

with respect to such Service Agreement shall be based on the Non-

Defaulting Party’s Loss as of the Early Termination Date. The Non-

Defaulting Party will cause all market quotations to be documented by

the Reference Market-maker and will make all such documentation

available for review by the Defaulting Party.

23.8 Insufficient Proceeds. In the event Customer’s Gas in the

Caledonia System is liquidated and the proceeds therefrom are

insufficient to satisfy all outstanding payment obligations due to

Caledonia under the terminated Service Agreements, Customer will

remain liable for all such outstanding and unsatisfied obligations

that exceed the proceeds of such liquidation, including interest

thereon, and Caledonia shall be entitled to pursue all other remedies

available to it at law or in equity to secure the satisfaction of such

obligations.

23.9 No Waiver of Other Rights. Each Party’s rights under this Section

23 are in addition to, and not in limitation or exclusion of, any and

all other rights that a Party may have (whether by agreement, operation

of law, or otherwise).