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. 42 Original Sheet No. 42

 

8.5 Buy Down/Buy Out of Transportation Demand:

 

In the event a firm SHIPPER is subject to an event of force

majeure on adjacent facilities immediately upstream of a firm

Receipt Point listed on Exhibit A to its Service Agreement(s) with

COMPANY, and said event of force majeure remains in continuous

effect for a period of two (2) years, then any firm SHIPPER with a

Service Agreement that has an initial primary term of five (5)

years or more shall have the right to buy down its Transportation

Demand in accordance with the following terms and conditions:

 

(a) SHIPPER provides COMPANY with a written notice, verified and

sworn to by a senior officer so authorized by SHIPPER, that

SHIPPER has been subject to an event of force majeure on

facilities upstream of a firm Receipt Point listed on

Exhibit A to its Service Agreement(s) with COMPANY and that

said event of force majeure has been in continuous effect

for a period of two (2) years.

 

(b) The notice required by Section 8.5(a) shall specify the

portion of SHIPPER's Transportation Demand under its firm

Service Agreement(s) with COMPANY that it wishes to buy

down. SHIPPER shall have the right to buy down up to that

portion of its Transportation Demand equal to the portion of

its Maximum Daily Receipt Quantity at the affected Receipt

Point that it is not able to utilize as a result of the

force majeure on the upstream facilities; provided however

that, if said portion of its Maximum Daily Receipt Quantity

of at least seventy-five per cent of SHIPPER's

Transportation Demand, the SHIPPER may buy down up to one-

hundred per cent of its Transportation Demand.

 

(c) For the portion of its Transportation Demand that SHIPPER

elects to buy down, SHIPPER shall pay an amount equal to

said quantity multiplied by the higher of SHIPPER's

negotiated rate or COMPANY's then effective maximum recourse

rate multiplied by the number of months remaining on the

primary term of SHIPPER's firm Service Agreement, with said

product being discounted to a present value using the

Commission's then effective refund rate.

 

(d) SHIPPER's election to buy down a portion of its

Transportation Demand shall constitute its consent to the

termination of that portion of its Service Agreement(s) with

COMPANY, and SHIPPER shall not challenge, either directly or

indirectly, COMPANY's application to abandon that portion of

SHIPPER's transportation service or to abandon any of

COMPANY's facilities used to provide said service.