Central New York Oil And Gas Company, LLC

Original Volume No. 1

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Effective Date: 02/06/2006, Docket: RP06-171-003, Status: Effective

Substitute Original Sheet No. 75A Substitute Original Sheet No. 75A : Effective

 

 

GENERAL TERMS AND CONDITIONS (continued)

2.2 Pre-arranged Storage Service and Interim Service

(a) Pre-arranged Service. Seller may enter

into a binding precedent agreement with a

Customer for firm storage service for a

future period ("Pre-arranged Service") for

unsubscribed firm Expansion Capacity (not

existing capacity), as posted on Seller's

website, that is available or will become

available as a result of completion of

construction or acquisition of facilities,

and is not subject to a right of first

refusal pursuant to Section 10.1(b) of the

General Terms and Conditions of this FERC Gas

Tariff Volume No. 1, or to any other Customer

renewal rights.

(b) Interim Service. Expansion Capacity

that is under contract for a future period

may be available for storage service on an

interim basis up to the commencement date of

the Pre-arranged Service. The availability

of interim capacity, including any limitation

thereon, will be posted on Seller's website.

 

(c) Capacity Reservation. In order to

reserve Expansion Capacity under a Pre-

arranged Service, Seller reserves the right

to limit any Customer renewal rights,

including the right of first refusal, which

might otherwise apply to interim sales of the

capacity. The following terms shall apply to

Pre-arranged Service:

 

(1) Within thirty (30) days after entering into a Pre-

arranged Service for which Expansion Capacity is to be

reserved including Pre-arranged Service for which renewal

rights on any interim sales of such capacity are to be

limited, Seller will post a notice on its website indicating

the terms of the Pre-arranged Service, and that the pre-

arranged capacity is available for bidding.

 

Seller shall post a request for bids and award the pre-

arranged Expansion Capacity as set forth below in accordance

with Section 10 of the General Terms and Conditions. Pre-

arranged Expansion Capacity shall be available for bidding

for at least five (5) Business Days, and Seller shall

evaluate acceptable bids on a net present value (NPV) basis.

The criteria for acceptable bids shall be included in the

posting for bids. Bids may be for service to commence on

the earliest date such capacity is available or some other

future date. At the end of the bidding period, Seller shall

evaluate acceptable bids on a net present value (NPV) basis,

using the FERC approved interest rate as the discount rate,

with the current value of any future bids reduced by the

time value of the delay in the receipt of revenue. NPV

shall only include revenue generated by the reservation

rate, or any other form of revenue guarantee, as proposed in

a bid for capacity. If an acceptable bid yields a higher

NPV than that of the Pre-arranged Service, the pre-arranged

Customer shall have a one-time right, to be exercised within