Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

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Effective Date: 09/23/1999, Docket: RP99-480-000, Status: Effective

Second Revised Sheet No. 469 Second Revised Sheet No. 469 : Effective

Superseding: First Revised Sheet No. 469

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

refunds, Pipeline will work out refunds with and among the various parties

with whom it dealt in the capacity release situation, and pending such

resolution with the various parties shall deposit such refunds in an escrow

account.

 

(2) Obligations of Customer

 

The service agreement of the Customer will remain in full force and effect,

with a portion of the proceeds attributable to any release and assignment

credited to the existing Customer's bill as provided in Section 3.14(H).

The Customer shall remain ultimately liable to Pipeline for all Reservation

Charges and Reservation Surcharges under the terms of its service agreement

with Pipeline. Under negotiated rate agreements, the Releasing Customer is

obligated to pay the Pipeline the difference by which the negotiated rate

exceeds the rate paid by the Replacement Customer. Under negotiated rate

agreements, Pipeline and the Releasing Customer may agree upon payment

obligations and crediting mechanisms which vary from or are different from

those set forth in Pipeline's capacity release provisions. However, no new

obligation or liability is created as a result of such assignments of the

rights and obligations under the service agreement. If Pipeline waives any

credit requirements for a Prearranged Customer or a Replacement Customer,

Pipeline shall limit the liability of the Customer to the extent of such

credit waiver, unless Customer agrees to the waiver. To the extent

Pipeline does not require continuing assurances of creditworthiness under

Section 3.5 of the General Terms and Conditions for Prearranged Customers

or Replacement Customers any less than it does its Customer, Customer

continues to be liable. For Customers under Rate Schedule SS-1 who elect,

under Section 2.5 of Rate Schedule SS-1, to convert all or a portion of

their service to service under Rate Schedule FT-1 and FSS-1 for the

duration of the capacity release, such SS-1 Customer shall be liable for

all Reservation Charges and reservation surcharges, attributable to such

released quantity. The Replacement or Prearranged Customer shall be liable

to Pipeline for all charges incurred by such Replacement or Prearranged

Customer, such as the Usage Charge(s), volumetric surcharges, Overrun

Charges, Excess Charges, imbalances or other volumetric costs. In the

event there is a permanent release of Customer's capacity, Pipeline will

agree to discharge the Customer of liability, on a prospective basis, in

whole or in part. Any Customer retaining the right of recall must provide

notification via the LINK® System to Pipeline and Replacement Customer by

8:00 am CT on the day nominations are due, provided such recall conforms to

the recall terms of such Customer's Notice and such recall does not

constitute a waiver or modification of Section 4 of Pipeline's General

Terms and Conditions and such recall of capacity is not for a partial day.

Any Customer may exercise a right of recall, subject to the provisions

herein, in the event a Replacement or Prearranged Customer fails to pay

part or all of the