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. 35 Fifth Revised Sheet No. 35
Superseding: Fourth Revised Sheet No. 35
SSS RATE SCHEDULE
SECONDARY FIRM STORAGE SERVICE
(Continued)
(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 Secondary 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 Secondary 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 Secondary 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 TERM
Prior to the end of the primary term or any renewed term of the Customer's Secondary 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neither has withdrawn the Gas or indicated in writing to Egan Hub that it desires to exercise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 adverse claims.
If Customer was unable to withdraw its Storage Inventory due to an interruption of
Customer's withdrawal service during the last ten (10) Days before termination, Customer shall
be allowed one extra Day following the end of the term of Customer's Secondary Firm Storage
Service Agreement for each Day of the interruption of Customer's withdrawal service, or such
other time period as agreed upon by Egan Hub and Customer, to withdraw its Storage Inventory.
In the event that Egan Hub retains and takes title to any of Customer's Gas pursuant to
this Section 9, Egan Hub shall dispose of such Gas by auction in accordance with the provisions
of Section 33.1 of the General Terms and Conditions of this FERC Gas Tariff and shall remit to
Customer the proceeds received from such auction less Storage Reservation Charges for the
period from the first day following the termination date until the inventory is sold to the
highest bidder and any applicable Fuel Reimbursement charges, Storage Withdrawal Charges and
any administrative costs incurred by Egan Hub to conduct the auction. Such Storage Reservation
Charges shall be calculated by multiplying the Storage Reservation Charge rate in effect on the
termination date Secondary Firm Storage Service Agreement by the quantity of Storage Inventory
sold at auction.