Keyspan LNG, LP (Alng)

Third Revised Volume No. 1

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Effective Date: 01/27/2003, Docket: RP03-241-000, Status: Effective

Original Sheet No. 54 Original Sheet No. 54 : Effective

 

 

GENERAL TERMS AND CONDITIONS

(continued)

 

13. PROCEDURES FOR AVOIDANCE OF PREGRANTED ABANDONMENT (continued)

 

retain its capacity and continue to receive service under a firm

service agreement with a primary term of one year or more ("long-term

firm service agreement") for which KLNG has served notice of

termination ("right of first refusal"). The right of first refusal

shall be applicable only to (i) firm service agreements requiring the

payment of the maximum applicable tariff rate with a primary term of

at least twelve (12) months of consecutive service, or (ii) firm

service agreements requiring the payment of the maximum applicable

tariff rate with a primary term of more than one (1) year for service

which is not available for twelve (12) consecutive months ("seasonal

contracts"). Service agreements which include negotiated rates

and/or discounted rates shall not be eligible for the right of first

refusal, with the exception that any service agreement in effect on

September 1, 2000, shall be granted a one-time exemption and the

right of first refusal provisions described in this section shall

apply; provided, however, that the right of first refusal shall be

applicable to a service agreement entered into or re-executed to

supersede a contract grandfathered under the prior provision only if

the new service agreement meets the requirements of (i) and (ii)

above. If Customer does not satisfy the bid matching requirements of

this Section 13 or KLNG and Customer do not reach agreement as

contemplated by Section 13.9, Customer shall no longer have, as of

the termination date of the contract, rights under the long-term firm

service agreement for which KLNG has served notice of termination,

and KLNG shall have all necessary abandonment authorization under the

Natural Gas Act except as provided in Section 13.9 below. Customer

is not entitled to retain a right to service following a termination

by the Customer of its long-term firm service agreement, and KLNG

shall have all necessary abandonment authorization under the Natural

Gas Act with respect to such service.

 

13.4 Notice and Posting. Within thirty days of the issuance by KLNG of a

notice of termination of a long-term firm service agreement in

accordance with the applicable service agreement, KLNG shall post on

its Internet Web site the following information:

 

(a) the specific quantity available under the terminated contract,

 

(b) the date of expiration, and

 

(c) the current maximum rate applicable to the terminated service.

 

13.5 Submission of Bids. Bids from Customers who desire service to be

provided in whole or in party by the capacity to be made available

upon termination of a long-term firm service agreement ("Potential

Customers") must be received by KLNG no later than sixty days before

the effective date of the termination of the service agreement

noticed pursuant to Section 13.4. A bid shall be considered to be an

offer to enter into a service agreement that remains open until