Egan Hub Storage, LLC

First Revised Volume No. 1

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

Third Revised Sheet No. 34 Third Revised Sheet No. 34

Superseding: Second Revised Sheet No. 34

 

SSS RATE SCHEDULE

SECONDARY FIRM STORAGE SERVICE

(Continued)

 

 

8. RIGHT OF FIRST REFUSAL

 

8.1 (a) Contractual Right of First Refusal at End of Contract Term. Egan Hub may

discontinue service to Customer at the end of a primary term of a Secondary Firm Storage

Service Agreement with a primary term begin date on or after August 25, 2006, unless (i) Egan

Hub and Customer mutually agree to a contractual right of first refusal, which was negotiated

on a not unduly discriminatory basis, and (ii) Customer exercises its contractual right of

first refusal for the capacity covered by the Secondary Firm Storage Service Agreement by

matching the terms offered to Egan Hub during an open season conducted pursuant to Section 3.8

of the General Terms and Conditions of this FERC Gas Tariff, for such capacity by any Qualified

Prospective Successor Customer.

 

(b) Regulatory Right of First Refusal. A regulatory right of first refusal

shall be available on a one-time basis to Customers holding a Long Term SSS Agreement with a

primary term begin date prior to August 25, 2006. Egan Hub may discontinue service to such

Customer at the end of such primary term unless Customer exercises its right of first refusal

for the capacity covered by such Long Term SSS Agreement by matching the terms offered to Egan

Hub during an open season, conducted pursuant to Section 3.8 of the General Terms and

Conditions of this FERC Gas Tariff for such capacity by any Qualified Prospective Successor

Customer.

 

(c) A "Long Term SSS Agreement," as that term is used in this Section 8, is a

Secondary Firm Storage Service Agreement having a primary term of one (1) year or more. A

"Qualified Prospective Successor Customer," as that term is used in this Section 8, is a

prospective successor customer that meets the creditworthiness criteria set forth in Section

3.4 of the General Terms and Conditions this FERC Gas Tariff.

 

8.2 Exercise of Right of First Refusal

 

(a) Not less than three (3) Months prior to the termination or expiration of a

Long Term SSS Agreement subject to a negotiated right of first refusal or, if applicable, the

regulatory right of first refusal, an open season will be held for the purpose of awarding the

capacity that is to become available upon termination or expiration of such Long Term SSS

Agreement. This open season will be conducted pursuant to the terms and conditions set forth

in Section 3.8 of the General Terms and Conditions of this FERC Gas Tariff.

 

(b) Bids from Qualified Prospective Successor Customers who desire, in whole or

in part, the capacity to be made available upon the expiration or termination of such Long Term

SSS Agreement must be submitted to Egan Hub no later than thirty (30) days after commencement

of the open season. Upon expiration of the open season, Egan Hub will select the highest

acceptable bid received from a 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 Secondary

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 Secondary

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.