U-T Offshore System, L.L.C.
Third Revised Volume No. 1
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Effective Date: 06/01/1997, Docket: RP97-146-001, Status: Effective
Second Revised Sheet No. 68 Second Revised Sheet No. 68 : Superseded
Superseding: First Revised Sheet No. 68
GENERAL TERMS AND CONDITIONS
18. ASSIGNMENT OF CAPACITY TO CUSTOMERS OF DOWNSTREAM PIPELINES
18.1 Eligibility. Subject to the procedures and conditions set forth in the
following subsections of this Section 18, any interstate natural gas pipeline
company that: (1) offers transportation service on a firm basis under Subpart
B or G of the Federal Energy Regulatory Commission's Regulations in 18 CFR Part
284; (2) owns and operates interstate pipeline facilities downstream from U-TOS'
facilities at Johnson's Bayou, Cameron Parish, Louisiana, and (3) holds firm
capacity on the U-TOS system under a Transportation Agreement with U-TOS, may
assign all such rights, or a part thereof, to its own firm customer(s) served
by its downstream facilities. Any such interstate pipeline shipper that seeks
to assign firm capacity rights is hereinafter referred to as an
"AssigningsShipper." The downstream firm customer to whom such rights are
assigned is hereinafter referred to as the "Replacement Downstream Shipper."
18.2 Limitations on Assignments. Any proposed assignment of capacity under this
Section 18 shall be subject to the following limitations:
(a) Qualification of Replacement Downstream Shipper. Any prospective
Replacement Downstream Shipper that would take assigned capacity must
qualify for such assignment under the requirements of subsection 18.5 of
this Section 18.
(b) Permanence of the Assignment. Any assignment of capacity shall be
permanent, and shall not be subject to recall by the Assigning Shipper.
(c) Volume of Assignment. Any assignment of capacity must be in an amount of
no less than 100 Dth at any specific receipt point, and no more than the
Assigning Shipper is entitled to, by receipt point, delivery point, and in
total, under its Transportation Agreement with U-TOS.
(d) Terms and Conditions of Assignment. A Replacement Downstream Shipper that
takes assigned capacity must accept all of the terms and conditions of the
Assigning Shipper's Transportation Agreement with U-TOS, including the
remaining primary term thereof. A Replacement Downstream Shipper that
takes assigned capacity shall execute a Rate Schedule FT Transportation
Agreement with U-TOS covering use of the assigned capacity.
(e) Provision Regarding Continuing Obligation of Assigning Shipper. The
Assigning Shipper may request from U-TOS a release from its obligations
under the Assigning Shipper's Transportation Agreement with U-TOS; subject
to the approval of U-TOS' creditors to whom said Transportation Agreement
has been pledged, U-TOS shall act on Assigning Shipper's request for
release from its obligations on a non-discriminatory basis, and shall not
unreasonably withhold approval thereof. Inasmuch as the Replacement
Shipper must at all times meet U-TOS' creditworthiness standard under
Section 5 of this Tariff, the criteria for creditors' approval shall
generally be satisfied thereby, absent extenuating circumstances.