Egan Hub Storage, LLC

First Revised Volume No. 1

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Effective Date: 02/26/2009, Docket: RP09-298-000, Status: Effective

Sixth Revised Sheet No. 117 Sixth Revised Sheet No. 117

Superseding: Fifth Revised Sheet No. 117

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

4.4 Pre-arranged Releases. Customer may designate an entity (a "Prearranged Customer")

to which it has agreed to release the capacity upon specified terms and conditions. Customer's

offer to release under such a pre-arranged transaction shall be subject to the prior posting

and bidding procedures described in Sections 4.5 and 4.6, herein, with the Prearranged Customer

being given a right to match the best bid submitted during the bid period. If a proposed

transaction with a Prearranged Customer is for a period of 31 Days or less, the Releasing

Customer shall provide notice to Egan Hub in accordance with this section and may implement the

release without complying with such prior posting and bidding procedures; provided, however,

when a release of capacity for a period of thirty-one (31) days or less is not subject to the

bidding requirements under this Section 4.3, a Releasing Customer may not rollover, extend, or

in any way continue the capacity release to the same Replacement Customer which utilizes the

same capacity or overlaps such capacity using the thirty-one (31) Days or less bidding

exemption described in Section 4.3(d)(1) above until twenty-eight (28)days after the first

release period has ended. The twenty-eight (28) Day hiatus does not apply to any re-release to

the same Replacement Customer that is posted for bidding or that qualifies for any of the other

exemptions from bidding described in Section 4.3(d)(1) above. Notice of such exempted releases

shall be posted on the LINK® System in accordance with Section 4.3 herein.

 

4.5 Posting. Following receipt of a notice of offer to release capacity which

satisfies the requirements set forth in this section, Egan Hub will display such information on

the LINK® System in accordance with the timeline set forth in Section 4.3 herein; however, Egan

Hub shall not post any minimum conditions that Releasing Customer has elected not to disclose.

Egan Hub shall also post offers to purchase capacity from those who desire current Customers to

release capacity upon receipt of the applicable information as set forth in Section 4.17 below.

 

4.6 Bidding and Selection of Replacement Customer. All bids must contain the

applicable information required in this section. If Releasing Customer desires to solicit bids

for releases of 31 Days or less, it may direct Egan Hub to post notice of the availability of

such capacity and, in lieu of permitting bids during the otherwise applicable posting period,

award the capacity to the bidder which submits first in time a valid bid meeting any minimum

terms specified by the Releasing Customer. Any bid submitted by a Replacement Customer shall

include an e-mail address for at least one contact person, and it is the Replacement Customer's

responsibility to update e-mail address information provided to Egan Hub, as necessary. Any

contingencies included in the bid shall not be contrary to any applicable provision of this

FERC Gas Tariff. A bidder may not have more than one eligible bid for the same release offer

at any time. Bids shall be binding until written or electronic notice of withdrawal is

received by Egan Hub before the end of the bid period. Bids cannot be withdrawn after the bid

period ends. Once a bid is withdrawn, that bidder may only submit a new bid pursuant to that

release offer if it is at a higher rate than the withdrawn bid. Egan Hub shall evaluate the

bids in accordance with the provisions of Section 4.7 herein and shall determine the best bid

in accordance with the timelines set forth in Section 4.3 herein. Egan Hub shall not award

capacity release offers to the Replacement Customer until and unless the Replacement Customer

meets Egan Hub's creditworthiness requirements applicable to all services that it receives from

Egan Hub, including the service represented by the capacity release. Egan Hub shall notify

Releasing Customer, the best bidder, and any Prearranged Customer of such determination in

accordance with the timelines set forth in Section 4.3 herein. If there is a Prearranged

Customer, such Prearranged Customer may exercise its right to match such best bid by providing

notice of such exercise to Egan Hub via the LINK® System in accordance with the timelines set

forth in Section 4.3 herein. After the Replacement Customer is selected, Egan Hub will provide

an appropriate Addendum to the Capacity Release Umbrella Agreement in the form contained in

this FERC Gas Tariff to the Replacement Customer via e-mail, at which time the Replacement

Customer will have the same rights and obligations as any other existing Customer on Egan Hub's

system, including capacity release under this Section 4, subject to the re-release rights

specified by Releasing Customer pursuant to Section 4.1(t) above. Egan Hub will notify the

Releasing Customer with recall rights of the name of new Replacement Customers who subsequently

obtain all or a portion of such capacity after the Addendum to the Capacity Release Umbrella

Agreement is tendered. Following implementation of the release, Egan Hub shall post notice of

the winning bidder on the LINK® System.