TransColorado Gas Transmission Company
Original Volume No. 1
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Effective Date: 07/01/2002, Docket: RP02-328-000, Status: Effective
Second Revised Sheet No. 227H Second Revised Sheet No. 227H : Superseded
Superseding: First Revised Sheet No. 227H
GENERAL TERMS AND CONDITIONS
6. CAPACITY RELEASE BY FIRM SHIPPERS (Continued)
(b) Credit applications shall be completed in full with all
information required to establish creditworthiness under the credit
criteria included in Section 18 of these General Terms and Conditions.
Should a potential bidder fail to satisfy such credit criteria, the
potential bidder may still become a Qualified Bidder by providing a
prepayment, letter of credit, or other good and sufficient security
satisfactory to TransColorado as further set forth in Section 18 of these
General Terms and Conditions.
(c) Based on TransColorado's continuing review of a
Shipper's financial records, TransColorado shall have the right to amend a
Shipper's line of credit and lower or increase the quantity and term.
(d) TransColorado's determination of a Shipper's
creditworthiness is solely for TransColorado's purposes under
TransColorado's Tariff and such determination is neither a representation
nor a guarantee to a Releasing Shipper or any other entity as to the
ability of a Replacement or Subreplacement Shipper to pay any outstanding
amount under a Released Firm Transportation Agreement.
6.16 Compliance by Shipper. By acquiring released capacity, a
Shipper agrees that it will comply with all provisions of TransColorado's
Tariff and all applicable Commission orders, rules and regulations. Such
Shipper also agrees to be responsible to TransColorado for compliance with
all applicable terms and conditions of TransColorado's Tariff, as well as
the terms and conditions of the Released Firm Transportation
6.17 Obligations of Releasing Shipper.
(a) The Releasing Shipper shall continue to be liable and
responsible for all reservation charges associated with the released
capacity up to the reservation charge specified in such Releasing
Shipper's Agreement with TransColorado. The Releasing Shipper agrees that
the award of capacity to a Replacement Shipper or Subreplacement Shipper
shall automatically reduce the Releasing Shipper's firm capacity rights
under the Agreement with TransColorado effective on the effective date of
the release for the period of the release, except for any period that the
firm capacity is recalled by the Releasing Shipper (if the successful bid
so permits) until such capacity is reput to the Replacement or
Subreplacement Shipper, in accordance with this Section 6.
(b) A release by a Replacement Shipper shall not relieve the
Original Shipper or the Replacement Shipper of their obligations under
this Section 6.