Maritimes & Northeast Pipeline, L.L.C.

First Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index



Effective Date: 01/01/2009, Docket: RP09-73-000, Status: Effective

Fourth Revised Sheet No. 257 Fourth Revised Sheet No. 257

Superseding: Third Revised Sheet No. 257





9. CAPACITY RELEASE (continued)


(c) Obligations of Replacement or Prearranged Customers. The Replacement or

Prearranged Customer must satisfy all other Pipeline Tariff provisions

governing Customer eligibility and must execute all required agreements and

acknowledgements before it may contract with Pipeline for the released

capacity. In addition, as a pre-requisite to becoming a Replacement or

Prearranged Customer, a party must have been placed by Pipeline on Pipeline's

pre-approved bidder list that is posted on the LINK® System and on Pipeline's

Web site. To be placed on such list, a party must have been accepted by

Pipeline as satisfying the credit standards of Section 3 of the GT&C and must

continue to satisfy the credit standards of Section 3 when its bid is made

and accepted or it is offered as a Prearranged Customer, as applicable.

Pipeline shall process requests for credit approval with diligence. Any

previously listed party that fails to continue to satisfy the standards of

Section 3 of the GT&C shall be deleted from the list. A Replacement or

Prearranged Customer will be deemed to have satisfied the credit requirements

of Section 3 of the GT&C if the Releasing Customer agrees to guarantee the

credit of such Replacement or Prearranged Customer. Any bid submitted via

the LINK® System or electronic data interchange shall include an e-mail

address for at least one contact person, which will not be posted. It is the

bidder's responsibility to update e-mail address information provided to

Pipeline, as necessary. Any bid submitted will legally bind the Replacement

or Prearranged Customer to the terms of the bid if Pipeline chooses such bid

as the Best Bid until written or electronic notice of withdrawal is received

by Pipeline. Any Replacement Customer may make an upward revision to or

withdraw its bid during the Bid Period through the LINK® System; however,

bids cannot be withdrawn after the Bid Period ends. Pipeline will allow any

Prearranged Customer to match, in accordance with Section 9.3(a), the Best

Bid after the close of the Bid Period; however, if Replacement Customer

submits more than one bid for the same capacity, the lower bid will

automatically expire. Replacement Customer shall not have the opportunity to

use its ability to withdraw its bid in order to submit a lower bid. Once the

Replacement or Prearranged Customer is provided with an addendum to its

Capacity Release Umbrella Agreement reflecting the terms of the capacity

release transaction, the Replacement or Prearranged Customer becomes an

existing Customer like any other Customer and is subject to the applicable

provisions of Pipeline's FERC Gas Tariff, including but not limited to

Pipeline's billing and payment and operational provisions. In addition, the

Replacement or Prearranged Customer as an existing Customer may also release

its capacity pursuant to this section, subject to the re-release rights

specified by Releasing Customer pursuant to Section 9.2(a)(20) above.

Nominations may be submitted upon the finalization of all contractual

arrangements, and such nominations will be processed in accordance with the

nomination and scheduling requirements of Sections 5 and 6 of the GT&C;

provided, however, in no circumstances will gas flow prior to the effective

date of the release as specified in the Releasing Customer's Notice.


9.7 Billing.


(a) Pipeline will bill the Customer releasing capacity the amount it is obligated

to pay Pipeline for (1) Reservation Charges (mainline and/or MNLFT)

reservation surcharges, other fixed costs and (2) Usage Charge(s), volumetric

surcharges, imbalances and/or other volumetric costs attributable to any

capacity retained by such Releasing Customer and Pipeline shall credit the

invoice of the Releasing Customer an amount equal to the Reservation Charges

(mainline and/or MNLFT), surcharges and/or other fixed costs attributable to

capacity rights released by such Customer, (hereinafter called "Credit

Back"); provided, however, Pipeline shall have the right to reverse such

Credit Back and to charge applicable carrying charges calculated in

accordance with Section 154.501(d) of the Commission's Regulations to the

Releasing Customer in the event Pipeline is not paid such charges for the

released capacity.