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.