U-T Offshore System, L.L.C.
Third Revised Volume No. 1
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Effective Date: 11/01/1993, Docket: RS92- 88-006, Status: Effective
Original Sheet No. 66 Original Sheet No. 66 : Superseded
GENERAL TERMS AND CONDITIONS
17.11 Qualification for Participation in the Capacity Release Program.
(a) In order to qualify for participation in a Prearranged Transaction or to submit a
Qualified Bid for a posted Release Proposal, a prospective Replacement Shipper must
(i) Demonstrate, to U-TOS' reasonable satisfaction, that it is creditworthy in
accordance with Sections 2.2(k) and 5 of the General Terms and Conditions of
this tariff; and
(ii) Provide to U-TOS a statement of its willingness and ability to: (1) execute a
Transportation Agreement for firm transportation service that conforms to Rate
Schedule FT of this tariff; and (2) become a party to the Gas Allocation
Agreement between U-TOS and its shippers.
(b) U-TOS reserves the right to request additional or renewed credit evaluation materials
at any time for the purpose of reviewing a completed creditworthiness evaluation.
17.12 Rights and Obligations of the Releasing Shipper and the
(a) General Commitment of Replacement Shipper. By acquiring released capacity, a
Replacement Shipper agrees that it will comply with all of the provisions of this
tariff, the terms and conditions of the executed Rate Schedule FT Transportation
Agreement, and the applicable orders, rules, and regulations of the Federal Energy
Regulatory Commission. The Replacement Shipper shall remain fully liable to U-TOS at
the end of the term of the release transaction for all responsibilities under its
Transportation Agreement with U-TOS, including, but not limited to, all charges
incurred by the Replacement Shipper.
(b) Continuing Obligations of Releasing Shipper. The original Releasing Shipper in any
sequence of one or more releases involving the same capacity ("Original Releasing
Shipper") shall continue to be liable for all reservation charges associated with the
released capacity, up to the reservation charge specified in the Original Releasing
Shipper's underlying Rate Schedule FT Transportation Agreement with U-TOS. If any
Releasing Shipper agrees to accept a bid from a Replacement Shipper that specifies a
reservation charge that is lower than the reservation charge under the Transportation
Agreement between the Releasing Shipper and U-TOS, the Releasing Shipper shall remain
liable to pay the balance to U-TOS. By releasing firm capacity to a Replacement
Shipper, the Releasing Shipper recognizes and agrees that such release shall reduce
the Releasing Shipper's firm capacity rights under its underlying Transportation
Agreement with U-TOS during the term of the release, beginning on the effective date
thereof, except for any period that the released capacity is recalled by the