Black Marlin Pipeline Company

First Revised Volume No. 1

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Effective Date: 07/01/2003, Docket: RP03-472-000, Status: Effective

Fifth Revised Sheet No. 217 Fifth Revised Sheet No. 217 : Effective

Superseding: Fourth Revised Sheet No. 217

GENERAL TERMS AND CONDITIONS

(continued)

 

 

15. SERVICE AGREEMENT

 

15.1 Form: Shipper shall enter into a contract with Transporter under Transporter's

appropriate standard form of Service Agreement.

 

15.2 Term: The Primary term of the Service Agreement shall be agreed upon between

Shipper and Transporter at the time of the execution thereof.

 

15.3 Right of First Refusal:

 

For contracts at the maximum tariff rates and having a term of twelve consecutive months

or longer, upon expiration of the Primary term (and after expiration of any rollover

period), the Shipper will be entitled to continue service by matching the rate (not to

exceed the effective maximum rate) and term offered by another party. This right of first

refusal will be used as follows:

 

1. Transporter shall post capacity available for bids on its Internet web site at

least twelve (12) months prior to the expiration of the Service Agreement.

Potential Shippers shall have six (6) months to provide bona fide offers for the

capacity.

 

2. After the six-month bidding period, Transporter will provide Shipper with any bid

deemed acceptable to Transporter. Transporter shall not be obligated to accept

bids at less than the established maximum rate or bids from uncreditworthy

Shippers. If no acceptable bids are received, Transporter and Shipper will

negotiate a new term of service at the established maximum rate. Failure to

exercise right of first refusal or to reach a new agreement will result in

automatic abandonment of the Service Agreement.

 

3. If Shipper elects to match the rate and term of the bid, Shipper's Service

Agreement will be amended accordingly. Shipper shall notify Transporter of such

election within thirty (30) days of Transporter's presentation of an acceptable

bid.

 

16. PRESSURE

 

Shipper, unless otherwise agreed upon, shall deliver or cause to be delivered gas to

Transporter at the Point of Receipt at the existing operating pressure of Transporter's

pipeline which shall vary from time to time but which shall not exceed eleven hundred

(1100) psig. Transporter, unless otherwise agreed upon, shall delivery gas to Shipper or

Shipper's designee, at the Point of Delivery at the existing operating pressure of

Transporter's pipeline which shall vary from time to time but shall not be less than four

hundred fifty (450) psig.