Cheniere Creole Trail Pipeline, L.P.

Original Volume No. 1

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Effective Date: 04/28/2008, Docket: RP08-137-000, Status: Effective

Original Sheet No. 186 Original Sheet No. 186 : Pending

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

e. the length of the term the bidder requests;

 

f. such other information as is required for the bid to be considered a valid

request.

 

3. At the end of the six-month bidding period, Transporter shall provide

the Shipper having the Right of First Refusal with notice of the terms of any

bid, or bids acceptable to Transporter. Such notice shall occur within 30 days

from the close of the bidding process.

 

4. If Transporter notifies the Shipper having the Right of First Refusal of

an acceptable bid or bids, the Shipper may elect to exercise its Right of

First Refusal with respect to all or a portion of its capacity under the

applicable Service Agreement.

 

5. If Shipper elects to exercise its Right of First Refusal for all or a

portion of its existing capacity under the applicable Service Agreement,

Shipper will have 30 days following the date of such notice to provide

Transporter notice under Section 21.B.3 above of its decision to match the

economic value, as set forth below, of the acceptable bid for the portion of

its existing capacity Shipper chooses to retain; provided however, that

Shipper having the Right of First Refusal is only required to match the rate

up to the maximum tariff rate under its existing Service Agreement.

 

The economic value of the bid shall be the Net Present Value of the

reservation charges the party would pay at the rate the party bid, which shall

not be less that the minimum rate nor greater than the maximum rate, as stated

on the currently effective rate sheet for the Service over the term of the

bid. The Net Present Value shall be determined using the overall rate of

return underlying Transporter's currently effective rates.

 

6. If Shipper matches the economic value of the acceptable bid, Shipper

shall execute a new Service Agreement within 30-days from the date

Transporter's tenders to Shipper the new Service Agreement. The rate under the

new Service Agreement will provide the economic value of the acceptable bid.