RATE SCHEDULE T-1
FIRM SERVICE
5. RIGHT OF FIRST REFUSAL
5.1 Service Continuation
A Shipper that has entered into a Service Agreement that
provides for at least 12 consecutive months of service at the
Maximum Rate shall have the right to continue service with
respect to all or a portion of Shipper's Maximum Receipt
Quantity, beyond the primary term specified in the Shipper's
Service Agreement provided Shipper satisfies the credit
worthiness requirements set forth in Section 41 of the General
Terms and Conditions and is current with its obligations and
otherwise is in compliance with the terms and conditions of
this Tariff. Unless Company and Shipper expressly agree
otherwise in Shipper's Service Agreement, a right of first
refusal does not apply to negotiated rate arrangements, to firm
service unless it has been performed at the applicable Maximum
Rate for at least 12 consecutive months or to off-system
services acquired for Shipper under Section 39 of the General
Terms and Conditions of Company's FERC Gas Tariff. A limited
right of first refusal shall be applicable to interim Service
Agreements for capacity that has been sold with a future
Billing Commencement Date as set forth in Subsections 26.2(iv)
or 26.5 of the General Terms and Conditions. The right of
first refusal also is subject to Article VI of the Stipulation
in Docket No. RP06-72-000, et al. A Shipper may not exercise a
right of first refusal for a geographic portion of its
historical service. Company shall give Shipper notice not less
than six months and no more than eighteen months prior to
termination of Shipper's Service Agreement that Shipper must
exercise its right of first refusal. However, in the event a
construction project is proposed that would utilize capacity on
Company's existing facilities, the sizing of which project
could be effected by Shipper's plans regarding the continuation
of service, Company will have the right to give Shipper such
notice no more than 36 months prior to termination of Shipper's
Service Agreement. Company shall not require a response from
Shipper in less than ten (10) business days from the date the
notice is issued. Such response shall be Shipper's
notification to Company of either 1) its intent to retain its
option to exercise its ROFR pursuant to this Section 5 or
2) its binding commitment to terminate its Service Agreement.
Service under the Service Agreement shall continue if:
5.11 The Service Agreement is extended for a term of at
least five years at the Maximum Rate under this Rate
Schedule, or
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Issued by: Bambi L. Heckerman, Manager, Regulatory Affairs
Issued on: August 7, 2008 Effective on: September 8, 2008 |