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Original Sheet No. 70 Original Sheet No. 70 : Superseded
GENERAL TERMS AND CONDITIONS
18.7 Effecting Service for the Replacement Downstream Shipper.
(a) An assignment of capacity under this Section 18 shall become effective on the later
of: (1) the effective date specified in the Assignment proposal; or (2) the date
that is one business day after U-TOS notifies the Assigning Shipper and the
Replacement Downstream Shipper that the assignment has been accepted, pursuant to
subsection 18.5(d) of this Section 18. U-TOS will not commence transportation
service under an effective assignment of capacity before the date that is at least
one business day after U-TOS receives from the Replacement Downstream Shipper or its
Nominating Agent a completed copy of the Nomination Request Form set forth on Sheet
No. 135 of this tariff.
(b) After U-TOS has made a determination that an Assignment Proposal will be accepted,
U-TOS shall execute the Transportation Agreement tendered by the Replacement
Downstream Shipper. U-TOS shall send copies of the fully-executed Transportation
Agreement to the Replacement Downstream Shipper and the Assigning Shipper.
18.8 Rights and Obligations of the Assigning Shipper and
the Replacement Downstream Shipper.
(a) General Commitment of Replacement Downstream Shipper. By acquiring assigned
capacity, a Replacement Downstream Shipper agrees that it will comply with all of the
provisions of this tariff, the terms and conditions of the executed Transportation
Agreement, and the applicable orders, rules, and regulations of the Federal Energy
(b) Continuing Responsibility of the Assigning Shipper. Unless the Assigning Shipper
requests and is granted a release from its obligations under its Transportation
Agreement with U-TOS, the Assigning Shipper shall be subject to the continuing
liability and responsibility for all charges associated with the assigned capacity,
as stated in subsection 18.8(e) of this Section 18. In assigning firm capacity to a
Replacement Downstream Shipper, the Assigning Shipper recognizes and agrees that such
assignment shall reduce the Assigning Shipper's firm capacity rights under its
underlying Transportation Agreement with U-TOS, beginning on the effective date of
(c) Release By Replacement Downstream Shipper. A release of assigned capacity by a
Replacement Downstream Shipper under the capacity release provisions of Section 17 of
this tariff shall not relieve the Assigning Shipper, or any Replacement Shipper in
the sequence of assignment and releases between the Assigning Shipper and the
Replacement Shipper holding the capacity, of their obligations under this tariff or
their respective Transportation Agreements with U-TOS.
(i) U-TOS shall bill a Replacement Downstream Shipper for all applicable rates and
charges under the Transportation Agreement between U-TOS and the Replacement
Downstream Shipper, and the Replacement Downstream Shipper shall pay the
billed amounts directly to U-TOS.
(ii) Payments received by U-TOS from a Replacement Downstream Shipper shall be
applied to amounts owed in the following order: (1) any penalty that is due;
(2) late charges: (3) interruptible overrun service charges; (4) commodity-
based charges; and (5) reservation charges.
(iii) If a Replacement Downstream Shipper fails to pay U-TOS all of the charges due
under its Transportation Agreement with U-TOS, then U-TOS shall notify the
Assigning Shipper of the amount due, including any late charges, and the
Assigning Shipper shall pay such amount to U-TOS. If U-TOS subsequently
receives any payment of the amount billed from the delinquent Replacement
Downstream Shipper, the amount of such payment shall be credited to the