Elba Express Company, L.L.C.

Original Volume No. 1

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Effective Date: 03/01/2010, Docket: RP10-342-000, Status: Effective

Original Sheet No. 20 Original Sheet No. 20

 

(b) If, pursuant to Section 7.1(a)(i), COMPANY notifies SHIPPER

that deliveries of parked quantities must be suspended or be

reduced, only those quantities parked in violation of the

notification shall become the property of COMPANY at no cost

to COMPANY, free and clear of any adverse claims.

 

(c) In the event the operational conditions on COMPANY's system

permit, COMPANY, at its option, may forego its rights under

Section 7.1(a)(iii) above provided that SHIPPER agrees to

implement a new PAL transaction at a new rate(s) for a period

specified by COMPANY. COMPANY's agreement to enter into a

new transaction for a new period as provided above shall not

forego COMPANY's rights under this section at the termination

date of the new PAL transaction.

 

(d) In the event that a PAL account for Park Service reflects a

negative balance at the termination date of the executed PAL

Agreement, those overdrawn quantities shall be sold to

SHIPPER at 150% of the highest weekly index price per Dth, as

provided in Section 7.2(a) below, during the term of the

transaction.

 

7.2 Loan Service:

 

(a) In the event any of the following occurs, loaned quantities

shall be sold to SHIPPER at 150% of the highest weekly index

price per dth established under Natural Gas Intelligence's

Average Weekly Price Index, Southern Natural - Louisiana,

during the term of the agreed upon transaction:

 

(i) COMPANY's prevailing operations require COMPANY to

notify SHIPPER that receipt of SHIPPER's loaned

quantities must be suspended or be reduced, and SHIPPER

continues to nominate loaned quantities; and/or

 

(ii) COMPANY's prevailing operations require COMPANY to

notify SHIPPER that all or part of SHIPPER's loaned

quantities must be returned to COMPANY, and SHIPPER

fails to comply within the specified time frame; and/or

 

(iii) the PAL account reflects a negative balance at the

termination date of the executed PAL Agreement and

COMPANY and SHIPPER have not otherwise agreed to extend

the termination date; and/or

 

(iv) SHIPPER does not comply with the terms of the loaned

transaction.