Algonquin Gas Transmission, LLC

Fifth Revised Volume No. 1

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Effective Date: 11/30/2009, Docket: RP10-77-000, Status: Effective

Third Revised Sheet No. 530 Third Revised Sheet No. 530

Superseding: Second Revised Sheet No. 530

 

GENERAL TERMS AND CONDITIONS

(continued)

 

9. PREGRANTED ABANDONMENT AND RIGHT OF FIRST REFUSAL (continued)

 

(f) Upon receipt from Algonquin of the "best bid(s)", Customer shall have the right for

a thirty (30) day period in which to notify Algonquin in writing whether the

Customer is willing to match the "best bid(s)" for the capacity in whole or in part,

made available by (i) the termination of such service agreement, (ii) expiration of

the contract term by its own terms, or (iii) partial reduction pursuant to

contractual right or the reduction of service level pursuant to a right of first

refusal. Commencing January 1, 2006, such notification must be submitted online via

the LINK® System. Failure to notify Algonquin within said thirty (30) day period

constitutes a non-revocable waiver of Customer's right to match the "best bid(s)"

and termination of the right of first refusal for the capacity. In order to match

the "best bid(s)", Customer must agree to a rate up to the maximum rate and contract

term that provide Algonquin with at least the same net present value, for an

equivalent amount of capacity, as the valid "best bid(s)" submitted by the

Replacement Customer(s); provided, however, the maximum rate a Customer must match

is the maximum rate Algonquin can charge for delivery to the Customer's Point(s) of

Delivery under the Agreement which is subject to the Customer's right to match the

"best bid".

 

(g) In the event Algonquin does not receive any bids pursuant to Section 9.2(c) or

Algonquin rejects all bids received due to the fact that such bids were premised on

rate discount levels or rate discount periods unacceptable to Algonquin, Algonquin

and Customer may mutually agree upon the terms and conditions under which Customer

shall be entitled to retain its capacity and continue to receive service. In no

event shall Algonquin and Customer agree upon terms which yield to Algonquin a net

present value less than any bid received pursuant to Section 9.2(c) and rejected by

Algonquin and in no event shall Algonquin be obligated to sell capacity at less than

the maximum lawful price for such capacity. In the event Algonquin and Customer

have not reached agreement on the terms and conditions under which service will be

extended, at Customer's election, such election to be exercised prior to the date

which is five months before the termination date, Algonquin shall tender and

Customer shall execute within 20 days of receipt, a new service agreement reflecting

service for all or part of the contractual quantity, so long as such Customer agrees

to pay the maximum rate; provided, however, if Algonquin and Customer mutually agree

to a lower rate which yields to Algonquin a net present value equal to or greater

than any bid received pursuant to Section 9.3 and rejected by Algonquin, the

Customer does not have to pay the maximum rate to retain the capacity.

 

(h) In the event Algonquin and Customer do not execute a new service agreement pursuant

to the provisions of this Section 9.2, Algonquin shall have all necessary pregranted

abandonment authorization as to any part of the contractual quantity which is not

covered by a new service agreement. The new service agreement must meet all the

requirements of the definition of ROFR Agreement for Customer to continue to have

the right of first refusal pursuant to Section 9.2.

 

 

9.3 Capacity which is not subject to the right of first refusal claim pursuant to this

Section 9 shall be posted as available capacity on Algonquin's Web Site and shall be

marketed in accordance with Section 2 of Algonquin's General Terms and Conditions.