Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index



Effective Date: 06/15/2003, Docket: RP03-479-000, Status: Effective

Fifth Revised Sheet No. 281 Fifth Revised Sheet No. 281 : Superseded

Superseding: Fourth Revised Sheet No. 281





15.6 Rights and Obligations of Releasing Shipper


(a) Except as provided in Section 15.6(f), the Releasing

Shipper shall continue to be responsible to Panhandle

for all reservation charges and reservation

surcharges for Transportation or Storage service

provided pursuant to the Shipper's applicable Service

Agreement and all other charges and surcharges that

would be charged to the Releasing Shipper if the

Service Agreement had not been assigned. The

Releasing Shipper will not be responsible for

Commodity charges or volumetric surcharges which are

applicable under Panhandle's Tariff to Quantities of

Gas actually transported except as provided in Section

15.6(b) below for a Releasing Shipper with a

Negotiated Rate.


(b) A credit will be included on each of the Releasing

Shipper's monthly bills to reflect the reservation

fee invoiced to Replacement Shippers less any

negotiated marketing fee retained by Panhandle

pursuant to Section 15.8 provided, however, that

Panhandle and Releasing Shipper may, in connection with

a Negotiated Rate based on a rate design other than

straight fixed variable, agree upon a payment

obligation and crediting mechanism that varies from or

is in addition to the provisions of this Section 15.6

in order to establish the basis of accounting for

revenues from a Replacement Shipper as a means of

preserving the economic bases of the Negotiated Rate.

In the event of a release with a volumetrically stated

rate, the rate shall be no greater than the 100% load

factor equivalent of Panhandle's maximum reservation

charge currently applicable to the service released and

shall be credited to the Releasing Shipper's monthly

bill for reservation charges applicable to such



If a Replacement Shipper fails to pay all or any part

of the reservation fee so credited within thirty (30)

days of its due date, then such unpaid amount will be

charged to the Releasing Shipper's next monthly bill

and will be due and payable by the Releasing Shipper in

accordance with Section 17 of these General Terms and



The payment of the reservation charge by the

Replacement Shipper on a one-part volumetric basis

shall not relieve Panhandle, the releasing Shipper or

the Replacement Shipper from their obligations to

conform to all of the terms and conditions of this

Section 15.