Egan Hub Storage, LLC

First Revised Volume No. 1

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Effective Date: 02/01/2009, Docket: RP09-160-000, Status: Effective

Fifth Revised Sheet No. 24 Fifth Revised Sheet No. 24

Superseding: Fourth Revised Sheet No. 24

 

FSS RATE SCHEDULE

FIRM STORAGE SERVICE

(Continued)

 

Qualified Prospective Successor Customer and communicate the terms of the highest acceptable

bid to the current capacity holder, who may elect, within ten (10) Business Days or such

greater time as Egan Hub may specify, to execute a renewal Firm Storage Service Agreement for

the same or better terms as contained in the highest acceptable bid received from a Qualified

Prospective Successor Customer. The current capacity holder's right of first refusal under

this Section 8.2 shall attach irrespective of which party provides written notice of

termination in accordance with Article V of Customer's Firm Storage Service Agreement. In

determining which bid for the capacity is the highest, Egan Hub will use the evaluation method

specified in the notice of the open season posted on its Internet Web site.

 

(c) If the current capacity holder does not elect to match the terms of such

highest acceptable bid or the current capacity holder and Egan Hub do not agree on terms of

service pursuant to Section 8.3 below, then its Firm Storage Service Agreement will expire at

the conclusion of its term and Egan Hub will be deemed to have all necessary abandonment

authorization under the NGA with respect to such service. Egan Hub may enter into a new Firm

Storage Service Agreement with the Qualified Prospective Successor Customer who submitted the

highest acceptable bid.

 

(d) Egan Hub shall retain the right to require a minimum rate, which shall be

market-based, for bids during any such open season.

 

8.3 If during the open season, Egan Hub receives no bids or rejects all bids, Egan Hub

will post the capacity as unsubscribed capacity and Egan Hub and the current capacity holder

may negotiate for continuation of service under mutually satisfactory rates, terms, and

conditions. During such negotiations with the current capacity holder, Egan Hub may also enter

into negotiations with other potential customers for service to commence upon the effective

date of the termination of the current capacity holder's Firm Storage Service Agreement. In no

event, however, may the current capacity holder retain capacity subject to the right of first

refusal at a rate lower than the highest rate contained in a bid, if any, that was submitted

for such capacity by a Qualified Prospective Successor Customer during the open season but

rejected pursuant to Section 3.8(c)(ii) of the General Terms and Conditions of this FERC Gas

Tariff.

 

9. EXPIRATION OF CONTRACT TERM

 

Prior to the end of the primary term or any renewed term of the Customer's Firm Storage

Service Agreement, the Customer must either physically withdraw the Gas or indicate to Egan Hub

in writing that it desires to have Egan Hub cash out the Gas on mutually agreeable terms. If,

by the end of the Day that is the last Day of the contract term, the Customer neither has

withdrawn the Gas or indicated in writing to Egan Hub that it desires to exercise the cash out

option, then Egan Hub may take, free and clear of any adverse claims, title to such Storage

Inventory as Customer was required, but failed, to withdraw or cash out; provided, however,

that only those quantities not withdrawn or cashed out on mutually agreeable terms shall become

the property of Egan Hub, free and clear of any adverse claims.