GENERAL TERMS AND CONDITIONS

(continued)


 


 

11. CAPACITY RELEASE


 

This Section 11 sets forth a firm capacity release mechanism subject to the

provisions of Subpart G of Part 284 of the Commission's Regulations,

pursuant to which existing Shippers can voluntarily release and assign all

or part of their firm service rights to (1) a shipper(s) that has executed

a Capacity Release Umbrella Agreement and has acquired all or part of the

firm service rights of a firm shipper through the Pipeline's capacity

release procedures ("Replacement Shipper") using Pipeline's Capacity

Release Bid Form, or (2) a Replacement Shipper(s) that has executed a

Capacity Release Umbrella Agreement and is specifically designated by the

shipper releasing capacity to obtain its released capacity ("Prearranged

Shipper"). Shippers may release and assign their firm capacity on Pipeline

under any firm, open access Service Agreement only under this Section 11

("Releasing Shipper"). Pipeline will use an open bidding format and will

post each Releasing Shipper's offer to release capacity ("Releasing

Shipper's Notice") and all the bids against that Releasing Shipper's

Notice, provided that bidders' names shall not be posted except for the

names of the Successful Bidders. Bids are to be based on the Reservation

Rate only, provided the Reservation Rate may be converted into a volumetric

charge. For capacity releases for a term longer than one year, the maximum

rate for such volumetric releases shall be no greater than the 100% load

factor equivalent of Pipeline's maximum Reservation Rate currently

applicable to the service released as set forth Tariff Sheet No. 6. For

purposes of this Section 11, and for capacity releases for a term longer

than one year, a Shipper is entitled to specify a rate for capacity to be

released equal to no more than the maximum Reservation Rate, plus all

applicable surcharges.