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neither has withdrawn the Gas or indicated in writing to Egan Hub that it desires to exercise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.