| Liberty Gas Storage L.L.C. |
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Original Sheet No. 121 : Effective |
| FERC Gas Tariff |
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| Liberty Gas Storage L.L.C. |
GENERAL TERMS AND CONDITIONS
4.14 Libertys Rights to Terminate Temporary Capacity Releases.
(a) In the event of a temporary release for which (1) Liberty has given
notice of termination of the Releasing Customers Storage Service Agreement
pursuant to Section 29 of Libertys General Terms and Conditions and (2) the
reservation charge specified in the effective Addendum to the Replacement or
Prearranged Customers Capacity Release Umbrella Agreement is less than the
level of the reservation charge which the Releasing Customer was obligated to
pay Liberty, then Liberty shall be entitled to terminate the Addendum, upon 30
days written notice to the Replacement or Prearranged Customer, unless the
Replacement or Prearranged Customer agrees prior to the end of said 30-day
notice period to pay for the remainder of the term of the Addendum either (i)
the reservation and commodity charges at levels which the Releasing Customer
was obligated to pay Liberty, or (ii) such rate as mutually agreed by Liberty
and Replacement or Prearranged Customer. Customer may elect to pay the lesser
of the two foregoing options. Libertys right to terminate the Addendum is
subject to Liberty providing written notice of termination to the Replacement
or Prearranged Customer within 30 days of the determination by Liberty that the
Releasing Customer no longer satisfies Libertys credit requirements.
Termination of the Addendum shall not occur prior to termination of the
Releasing Customers contract.
(b) In the event that a Customer has received 30 days notice of
termination of the Addendum to Customers Capacity Release Umbrella Agreement
pursuant to Section 4.13(a) above for storage service and there is Gas in
storage for Customers account at the end of such 30-day period, the Addendum
shall continue in force and effect for the sole purpose of withdrawal of said
Gas by Customer until Customers Storage Inventory is zero. Liberty shall
require Customer to withdraw each Day a quantity equal to the MDWQ, or such
other lesser quantity acceptable to Liberty. The requirement to withdraw
storage quantities shall be suspended on any Day to the extent that Liberty
cannot accommodate a nomination or withdraw such storage quantities on such
Day. Customer may also transfer title of Gas remaining in Customers Storage
Inventory to another Customer pursuant to Section 20 of Libertys General Terms
and Conditions. In the event Customer fails to withdraw its entire Storage
Inventory within the time required by this Section, Liberty shall auction any
remaining Storage Inventory and credit the proceeds of such sale to Customer,
net of withdrawal charges and fuel, if applicable. Customer shall indemnify
Liberty and hold it harmless from all costs, damages and liabilities arising
out of the failure of Customer to remove such Storage Inventory and the
disposal of such Storage Inventory by sale by Liberty. Liberty shall post such
quantities on the Internet Web Site on the fifth Business Day following the
fifteenth of the month. Liberty shall accept bids only during the time period
from 7:00 a.m. until ll:00 a.m. CCT on the seventh Business Day following the
fifteenth of the month. Prior to 4:00 p.m., CCT of the same Day, Liberty shall
notify the Customer submitting the highest bid. When the Gas is purchased at
auction, Customer purchasing the Gas must provide identification of the
existing Storage Service Agreement with Liberty under which Customer shall
store all such Gas purchased. Customer purchasing the Gas agrees to pay the
applicable storage rate on the Gas purchased beginning on the date the bid was
accepted at auction.
| Issued by: William Rapp, Senior Counsel |
| Issue date: 06/10/05 |
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Effective date: 04/15/07 |