Southern Trails Pipeline Must Revise Non-Conforming Contract Provision That Confers Unilateral Contract Termination Right

摘要

FERC granted, in part, a request for rehearing by Questar Southern Trails Pipeline Co. (RP10-388) of a March 24 order that found an impermissible material deviation in firm transportation (FT) service agreement No. 4027 with Sempra Energy Trading Inc. (Sempra contract). The contract is for 40,000 dth/d with a primary term of 7/1/08 to 10/31/12, and the issue is whether an "evergreen" right that only a shipper can terminate is a valuable option not found in the FT pro forma service agreement.