Exception for Sale of Shipper Interests Subject to Dedication Clause Samples
The 'Exception for Sale of Shipper Interests Subject to Dedication' clause defines circumstances under which a shipper may sell or transfer its interests that are otherwise contractually dedicated to a particular pipeline or service. Typically, this clause allows for the release of such interests from dedication obligations if the shipper sells them to a third party, often subject to certain conditions or approvals. This ensures that shippers retain flexibility to divest assets without being unduly restricted by prior dedication agreements, thereby facilitating asset transfers while balancing the interests of both the shipper and the service provider.
Exception for Sale of Shipper Interests Subject to Dedication. If a Shipper assigns to a non-Affiliate third party interests that are subject to the dedication described in Section 1.1 of this Agreement, then all liabilities hereunder shall be several and not joint as between Shippers and any such third party shall be several and not joint if such liability arises after such assignment.