Transwestern Pipeline Company

Second Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index



Effective Date: 04/14/2003, Docket: RP03-307-000, Status: Effective

Fifth Revised Sheet No. 95J Fifth Revised Sheet No. 95J : Effective

Superseding: Substitute Fourth Revised Sheet No. 95J




e) Creditworthiness: Qualification for Participation in the Capacity Release Program - Any potential

Replacement Shipper that wishes to acquire released capacity under the Capacity Release Program must

satisfy the creditworthiness requirements contained in Section 13 of the General Terms and Conditions of

this Tariff by pre-qualifying prior to submitting a bid for capacity. Upon pre-qualification, Transporter

shall continue to review potential Replacement Shipper's financial records and other sources of public

information for creditworthiness. Transporter shall have the right to amend a potential Replacement

Shipper's line of credit from time to time and thereby lower or increase the quantity and term for which

potential Replacement Shipper is qualified to submit future bids for released capacity. A potential

Replacement Shipper cannot bid for released capacity which exceeds its qualified level of

creditworthiness. Notwithstanding the determination of creditworthiness, Transporter does not guarantee

the payment of any outstanding amounts by a Replacement Shipper.


f) Shipper Liability: In the event capacity is temporarily released hereunder, liability for payment of

reservation charges and any surcharges applicable to the reservation charge will remain with the

Releasing Shipper. If the Releasing Shipper permanently releases capacity hereunder, Transporter will

relieve said Releasing Shipper from its obligations under its Service Agreement, if (1) the release is at

or above the rates provided for under (and for the remaining term of) Releasing Shipper's Service

Agreement or, (2) the release is at less than rates provided for in Releasing Shipper's Service Agreement

and the Releasing Shipper remits as an exit fee, a lump sum payment for the positive difference between

the Releasing Shipper's contract rate and the bid rate for the full term of the capacity release, and,

when the Releasing Shipper's contract is at maximum tariff rates, the Replacement Shipper and Transporter

reach agreement on a mechanism permitting the periodic adjustment to the bid rate to reflect subsequent

rate adjustments filed for and approved by the FERC. The Replacement Shipper and any of its subsequent

assignees shall be responsible for any amounts billed to them under Section 30.8(e) of this Tariff, but

shall not be responsible for any other amounts billed to the Releasing Shipper.


g) Transporter's Right to Terminate a Temporary Capacity Release: Transporter may elect to terminate a

Replacement Shipper's Service Agreement, upon 30 days written notice to the Replacement Shipper, under

the following conditions:

(i) The Releasing Shipper has failed to maintain creditworthiness in accordance with Rate Schedule

FTS-1 and Section 13 and this Section 30 of the General Terms and Conditions of this Tariff;

(ii) Transporter has terminated the Releasing Shipper's Service Agreement in accordance with

Sections 13 and 16 of the General Terms and Conditions of this Tariff; and

(iii) The rate stated in the effective Replacement Shipper's Service Agreement is less than the

Releasing Shipper's contract rate.

The Replacement Shipper may avoid termination of the Temporary Capacity Release if, prior to the end

of the 30-day notice period, the Replacement Shipper agrees that, beginning the first day after the

end of the 30-day notice period, it will pay the lower of (1) the former Releasing Shipper's contract

rate, or (2) the maximum applicable Reservation and Commodity rates as stated in this tariff for the

applicable service for the remainder of the Replacement Shipper's contract term.


h) Term Limitation: The term of any agreement providing for the release of capacity cannot extend beyond the

term of the underlying Service Agreement. Released capacity may be allocated with a future effective date.