GENERAL TERMS AND CONDITIONS OF SERVICE
(Continued)
19. CAPACITY RELEASE
19.1 Eligibility to Release
Any firm Shipper which contracts for firm transportation service
under Part 284 of the Commission's regulations (Releasing Shipper)
is eligible to release all or part of its capacity (Parcel) for
use by another party (Replacement Shipper). Any Replacement
Shipper, which has previously contracted for a Parcel, may also
release its capacity to another party as a Secondary Release
subject to the terms and conditions described herein.
Upon releasing a Parcel, consistent with the terms and conditions
described herein, all Releasing Shippers shall remain ultimately
liable for all reservation charges billable for the originally
contracted service. The Releasing Shipper, whether a primary or
secondary capacity holder, must post the capacity it seeks to
release on NBP's Internet website prior to the close of the
Posting Period defined herein.
A Releasing Shipper may release all or a portion of its capacity
for the remaining term of its contract on either a temporary or
permanent basis. In the event of a permanent capacity release by
a Shipper paying the maximum recourse rate, the Right of First
Refusal is conveyed to the Replacement Shipper for that portion
permanently released. NBP may not unreasonably refuse to relieve
the Releasing Shipper of liability under its contract and
extinguish Releasing Shipper's contractual obligations to NBP with
respect to that portion requested to be permanently released
provided that: 1) the Replacement Shipper is creditworthy
pursuant to NBP's credit standards; and 2) the rate paid by the
Replacement Shipper is no less than the rate contracted between
the Releasing Shipper and NBP for the remaining term of the
contract or the maximum tariff rate, whichever is less. NBP may
refuse to allow a permanent capacity release if it has a
reasonable basis to conclude that it will not be financially
indifferent to the release. If Shipper's request to permanently
release capacity is denied by NBP, NBP shall notify Shipper via e-
mail and shall include in the notification the reasons for such
denial.
(Continued)
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