B-R Pipeline Company

Original Volume No. 1

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Effective Date: 05/01/2004, Docket: RP04-224-000, Status: Effective

Original Sheet No. 119 Original Sheet No. 119 : Effective

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

22. AVAILABLE CAPACITY (Continued)

 

22.5 Right of First Refusal (Continued)

 

wishes to retain only a portion of its capacity and Transporter

has indicated in the special conditions of its posting that it

has determined that partial use or segmentation of the posted

capacity may create operational problems (such as reducing the

existing Shipper's ability to respond to an OFO pursuant to

Section 13.15), Shipper will be subject to a contract-specific

flow requirement on its retained segment or must be willing to

take other action that is acceptable to Transporter.

 

(d) If an existing Shipper chooses not to match the incremental

economic value of the best bid(s) as determined by Transporter,

capacity will be awarded to the selected bidder(s), and the

existing Shipper's right of first refusal will expire.

 

(e) If no creditworthy bids are submitted for any portion of

the capacity, an existing Shipper will be entitled to continue

its existing service for any portion of the capacity, for any

term desired, provided Transporter and Shipper agree to

mutually acceptable rates for the service at a level within the

posted maximum and minimum tariff rates for the applicable

service. If Transporter and Shipper fail to agree on rates

within thirty (30) days of the bid close date, Shipper's right

of first refusal will be deemed to have terminated. If an

existing Shipper wishes to retain only a portion of its

capacity and Transporter has indicated in the special

conditions of its posting that it has determined that partial

use or segmentation of the posted capacity may create

operational problems (such as reducing the existing Shipper's

ability to respond to an OFO pursuant to Section 13.15),

Shipper will be subject to a contract-specific flow requirement

on its retained segment or must be willing to take other action

that is acceptable to Transporter.

 

22.6 Notwithstanding anything to the contrary set forth in this Section

22, Transporter will not be required to provide service at any rate

less than the maximum tariff rate as set forth on Sheet No. 4, as

such rate may vary from time to time.