Sea Robin Pipeline Company

First Revised Volume No. 1

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Effective Date: 08/04/1997, Docket: RP97-411-001, Status: Effective

First Sub. Second Rev. Sheet No. 60 First Sub. Second Rev. Sheet No. 60 : Superseded

Superseding: Second Revised Sheet No. 60

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

21. SHIPPER RELEASE OF FIRM CAPACITY

 

21.1 This Section 21 sets forth the sole means by which a firm Shipper

("Releasing Shipper") may, pursuant to Section 284.243 of the Commission's Regulations

release its firm capacity rights under an FTS Agreement or FTS-2 Agreement with

Transporter to a third party ("Acquiring Shipper") provided that the Releasing Shipper

does not have any past due amount owing to Transporter under the Agreement for which

it wishes to release capacity.

 

21.2 Types of Releases:

 

(a) Permanent Release: A Releasing Shipper may release all or part of

its firm capacity under a FTS or FTS-2 Agreement with Transporter at

any time for the entire remaining primary term of the Agreement

("Permanent Release") pursuant to the provisions of this Section 21.

A Permanent Release operates as an assignment of capacity.

Therefore, the Acquiring Shipper must meet Transporter's requirements

related to creditworthiness set forth in Transporter's FTS or FTS-2 Rate

Schedules. The Acquiring Shipper shall be required to execute a separate

FTS Agreement or FTS-2 Agreement and a Reserve Commitment Agreement with

Transporter for the released capacity under the same Rate Schedule,

at the maximum rate and for the primary term originally

set forth in the Releasing Shipper's Agreement with

Transporter, unless Transporter agrees otherwise in a

nondiscriminatory manner. The Acquiring Shipper may contract for

either the firm Receipt and Delivery Point/s specifically set forth in

a Releasing Shipper's offer of firm capacity under Section 21.5(c)

below or other Receipt and Delivery Points subject to the terms of

Section 21.5(f) below. The Acquiring Shipper then has the right to

release its capacity on a permanent or temporary basis under the

terms and conditions of this Section 21. Upon the successful

completion of a Permanent Release, the Releasing Shipper shall be

responsible only for those charges under its FTS