conjunction with Releasing Shipper’s exercise of its retained

rights, will not violate any maximum or minimum quantity requirements or

limitations applicable under the Rate Schedule or the respective Service

Agreements. Releasing Shipper shall be responsible for ensuring, if

applicable, whether by the withdrawal or transfer-in-place of a portion of its

Storage Inventory or otherwise as required, that such storage capacity, and the

corresponding ability to inject/withdraw Gas up to the Maximum Storage

Quantity released, in accordance with the terms and conditions of the Rate

Schedule and within the time remaining in the injection and/or withdrawal

period, as applicable, shall be available upon the commencement of the

release. A Replacement Shipper under Rate Schedule FSS shall be responsible

for arranging transportation to and from the Point of Injection/Withdrawal

consistent with its rights and obligations under its Service Agreement and

Rate Schedule FSS. The Replacement Shipper under Rate Schedule FSS must

comply with all obligations imposed under such Rate Schedule and its rights to

store, withdraw and/or inject Gas will be subject to the provisions thereof.

If the Releasing Shipper proposes to, or requires a transfer-in-place of

capacity rights to the Replacement Shipper, it shall so specify in its offer

to release and such transfer shall be implemented contemporaneously with the

release and assignment subject to compliance with the provisions of Section 18

of these General Terms and Conditions. The Replacement Shipper must withdraw

the portion of its Storage Inventory by the end of the term of the release.

In lieu of withdrawing the portion of its Storage Inventory, the Replacement

Shipper can also attempt to effect a transfer of the portion of its Storage

Inventory to another storage service Shipper as provided in Section 18 of

these General Terms and Conditions. If the Replacement Shipper fails to

withdraw or transfer the portion of its Storage Inventory by the end of the

term of its release, title to the portion of Shipper’s remaining Storage

Inventory will be vested in Freebird pursuant to the terms of Section 8 of the

FSS Rate Schedule.


 

4.14 Freebird’s Rights to Terminate Temporary Capacity Releases.

(a) In the event of a temporary release for which (1) Freebird has given

notice of termination of the Releasing Shipper’s Service Agreement because the

Releasing Shipper no longer satisfies Freebird’s credit requirements as

outlined in Sections 3.5(g) and 3.5(h) of Freebird’s General Terms and

Conditions; and (2) the Storage Reservation Charge specified in the effective

Addendum to the Replacement Shipper’s Capacity Release Umbrella Agreement is

less than the level of the Storage Reservation Charge which the Releasing

Shipper was obligated to pay Freebird, then Freebird shall be entitled to

terminate the Addendum, upon thirty (30) Days’ written notice to the

Replacement Shipper, unless the Replacement Shipper agrees prior to the end of

the said 30-Day notice period to pay for the remainder of the term of the

Addendum either (i) the Storage Reservation Charges and commodity charges at

levels which the Releasing Shipper was obligated to pay Freebird, or (ii) such

rate as mutually agreed to by Freebird and the Replacement Shipper.

Replacement Shipper may elect to pay the lesser of the two foregoing options.

Freebird’s right to terminate the Addendum is subject to Freebird providing

written notice of termination to the Replacement Shipper within sixty (60)

Days of the determination by Freebird that the Releasing Shipper no longer

satisfies Freebird’s credit requirements. Termination of the Addendum shall

not occur prior to termination of the Releasing Shipper’s Service Agreement.


 

(b) In the event that a Replacement Shipper has received thirty (30) Days’

notice of termination of the Addendum to Replacement Shipper’s Capacity

Release Umbrella Agreement pursuant to Section 4.14(a) above for storage

service, and there is Gas in storage for Replacement Shipper’s account at the

end of such 30-Day period because (1) Replacement Shipper’s MDWQ rights were

not adequate to withdraw all of its Gas before the end of such 30-Day period,

or (2) Freebird could not accommodate Replacement Shipper’s requested

withdrawals because of capacity constraints, the Addendum shall continue in

force and effect for the sole purpose of withdrawal of said Gas by Replacement

Shipper until Replacement Shipper’s Storage Inventory is zero. Freebird shall

require Replacement Shipper to