Caledonia Gas And Storage

First Revised Volume No. 1

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Effective Date: 09/30/2010, Docket: RP10-1032-000, Status: Effective

Original Sheet No. 72 Original Sheet No. 72


If Releasing Customer proposes a Permanent Release of its capacity,

Caledonia will agree to discharge the Releasing Customer of its

obligations on a prospective basis in whole or in part provided (i)

the Replacement Customer meets the requirements of Section 4 and

Section 5, and (ii) Caledonia would be financially indifferent, as

determined by Caledonia in its reasonable discretion, to the discharge

if such discharge is granted.

5.12 Rights and Obligations of the Parties.

(a) The Service Agreement between the Releasing Customer and Caledonia

shall remain in full force and effect, with the Releasing Customer to

receive a credit to its invoice as described in Section 5.11 above. If

the Replacement Customer fails to pay all or part of the amounts

credited to the Releasing Customer after the five-day notification

period specified in Section 5.11, Caledonia shall reverse the credit

and bill the Releasing Customer for such past due amounts, plus

applicable interest. The Service Agreement executed by the Replacement

Customer shall be fully effective and enforceable by and against the

Replacement Customer. The Replacement Customer may also release

capacity pursuant to this Section, and in such event and for such

purposes, shall be considered the Releasing Customer.

(b) Caledonia shall accept nominations, schedule service, afford

priority of service and interrupt service based on instructions and

communications from the Releasing Customer and the Replacement Customer

which are consistent with one another and with the terms and conditions

of Caledonia’s FERC Gas Tariff and their respective Service Agreements.

Gas shall be injected or withdrawn at a uniform flow rate equal to

1/24th of the scheduled quantity. In the event that instructions or

nominations from the Releasing Customer and Replacement Customer are,

in Caledonia’s opinion, inconsistent or conflicting, Caledonia shall

comply with the instructions of the Releasing Customer; provided,

however, that such instructions must not be inconsistent with

Caledonia’s FERC Gas Tariff or the terms of either the Releasing

Customer’s or Replacement Customer’s Service Agreement. The Releasing

Customer will indemnify Caledonia against any claim or suit by the

Replacement Customer, its successors or assigns, arising from any

action taken by Caledonia in reliance upon the Releasing Customer’s

nominations and instructions, and will hold Caledonia harmless for any

action taken by Caledonia in reliance upon the nominations and

scheduling instructions of the Replacement Customer; provided, however,

that the Releasing Customer shall not be liable for the Replacement

Customer’s failure to pay the usage charges (plus all