Carolina Gas Transmission Corporation

Original Volume No. 1

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Effective Date: 11/01/2006, Docket: CP06- 71-001, Status: Effective

Original Sheet No. 129 Original Sheet No. 129 : Effective

 

(b) Rollover.

 

(1) For Long Term Service Agreements subject to a Right

of First Refusal under Section 4.6, the Service

Agreement automatically will extend on the expiration

of the primary term or any extension thereof for a

term of five (5) more years at the Recourse Rate

unless, within 60 days of the expiration notice,

Shipper gives written notice to Pipeline to either

terminate the Service Agreement or request a lesser

extension term at the Recourse Rate. If Shipper

gives notice to extend its Service Agreement, or any

portion of its MDTQ, for less than the five (5) year

automatic extension period, Pipeline may within 30

days of such notice either: (i) accept Shipper’s

requested extension period; or (ii) make the capacity

available under the bidding procedure set forth in

Sections 4.5 and 4.6.

 

(2) For all other Long Term Service Agreements, the

Service Agreement automatically will extend on the

expiration of the primary term or any extension

thereof for a term of one (1) more year unless,

within 60 days of the expiration notice, Shipper or

Pipeline gives written notice to the other party to

terminate the Service Agreement. Upon such

termination by either party, Pipeline will make the

capacity available under the bidding procedure set

forth in Section 4.5

 

(c) Notwithstanding the foregoing, before the expiration of a

Long Term Service Agreement and before Pipeline posts the

availability of capacity under the bidding procedure set

forth in Section 4.5, if applicable, Pipeline and Shipper

mutually may agree to an extension of the term of the

Service Agreement without posting the capacity for bidding

(the exact length and rate of which is to be negotiated on

a case-by-case basis in a not unduly discriminatory

manner).