East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

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Effective Date: 01/01/2009, Docket: RP09-76-000, Status: Effective

Second Revised Sheet No. 369 Second Revised Sheet No. 369

Superseding: First Revised Sheet No. 369




the term of the Exhibit one of the following: (i) the reservation and

commodity charges at levels which the Releasing Shipper was obligated to

pay Transporter, (ii) the applicable maximum tariff rate, or (iii) such

rate as mutually agreed to by Transporter and Replacement or Prearranged

Shipper. Shipper may elect to pay the lesser of the foregoing three

options. Transporter's right to terminate the Exhibit is subject to

Transporter providing written notice of termination to the Replacement or

Prearranged Shipper within 60 Days of the determination by Transporter that

the Releasing Shipper no longer satisfies Transporter's credit

requirements. Termination of the Exhibit shall not occur prior to

termination of the Releasing Shipper's contract.


(b) In the event that a Shipper has received 30 Days' notice of termination of

the Exhibit R to the Released Storage Service Agreement pursuant to Section

18.14(a) above and there is gas remaining in Shipper's Storage Balance at

the end of such 30-Day period, the Exhibit shall continue in force and

effect for the sole purpose of withdrawal and delivery of said gas to

Shipper until Shipper's Storage Balance is zero. Transporter shall require

Shipper to withdraw each Day a quantity equal to the Maximum Daily LNGS

Quantity, or such other lesser quantity acceptable to Transporter. The

requirement to withdraw storage quantities shall be suspended on any Day to

the extent that Transporter cannot accommodate a nomination to withdraw

such storage quantities on such Day. Shipper may also transfer title of

gas remaining in Shipper's Storage Balance to another Shipper pursuant to

Section 8 of Rate Schedule LNGS, provided such other Shipper has an

executed service agreement under Rate Schedule LNGS and that such transfer

does not cause such other Shipper to exceed its Maximum Winter Season LNGS

Quantity as specified in such service agreement.


In the event Shipper fails to withdraw its entire Storage Balance within

the time required by this section, Transporter shall auction any remaining

Storage Balance pursuant to the timeline specified in Section 48 of these

General Terms and Conditions and shall credit the proceeds of such sale to

Shipper, net of fuel, if applicable. Shipper shall indemnify Transporter

and hold it harmless from all costs, damages, and liabilities arising out

of the failure of Shipper to remove such Storage Balance and the disposal

of such Storage Balance by sale by Transporter. Transporter reserves the

right to reject all bids submitted in response to the auction When the gas

is purchased at auction, Shipper purchasing the gas must provide

identification of the existing transportation service agreement with

Transporter under which Shipper shall nominate, transport and deliver all

gas by the end of the Month following the Month in which the gas is

purchased. Shipper purchasing the gas agrees to pay the applicable

transportation rate and the current LNGS rate for storage on the average

daily balance for each Month applicable to the period beginning when the

bid was accepted at auction and ending when the quantity of gas is

delivered. Shipper purchasing the gas further agrees that the gas is

subject to cash-out provisions, prospectively from the date of Shipper's

purchase, at the Point(s) of Delivery, net of the accumulated LNGS charge

and subject to all penalties contained in Transporter's FERC Gas Tariff.