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 Third Revised Sheet No. 98 Substitute Third Revised Sheet No. 98 : Effective

Superseding: Superseding Second Revised Sheet No. 98

 

GENERAL TERMS AND CONDITIONS (continued)

 

(b) Right of First Refusal:

 

Any Customer or Replacement Customer with an FSS

Agreement having a term of one (1) year or more

may exercise a right to continue to receive

service under that Agreement for all or a portion

of the firm capacity under the Agreement at the

expiration of the Agreement's term provided that

Customer notifies Seller in writing twelve (12)

months prior to the expiration of the Agreement of

its intent to continue service under the

Agreement, and will match the best offer made by

others for such capacity or portion thereof by

offering a rate and term of Agreement that

produces an equivalent or greater economic value

(using a term not to exceed five (5) years) for

such capacity as defined in Section 10.1(a),

above, provided that Seller shall not be obligated

to enter into an extension of any Agreement or

continue service at any rate that does not yield

an acceptable return to Seller, nor shall Seller

be obligated to enter into an extension of any

Agreement or continue service to any Customer or

Replacement Customer who fails to meet the

Creditworthiness requirements set forth in Section

11.5 of these General Terms and Conditions.

 

After Customer has notified Seller of its intent

to continue service, the capacity available under

Customer's Agreement will be posted on Seller's

Internet website for bid. Seller will accept bids

for this capacity from the time of posting up to

and including a date designated by Seller that is

no more than ninety (90) days and no less than

forty five (45) days prior to the date the

existing Agreement is scheduled to expire. Within

five (5) Business Days of the date bidding ends,

Seller will notify Customer of the bid received

having the greatest economic value, as defined by

Section 10.1(a) of this tariff. Customer will

have ten (10) Business Days to notify Seller

whether it will match the rate and term offered in

the best bid (term will be limited to five (5)

years, and if so will execute a new service

Agreement matching the offer prior to the

termination of the existing Agreement. If no bids

are received, Customer may continue to receive

service under a new Agreement at a rate agreed to

by Customer and Seller.

 

(c) Priority Of Firm Storage Under Agreements: All firm

Storage Service Agreements under Rate Schedule FSS shall

have equal priority as to service, and shall have priority

over interruptible Storage Services under Rate Schedule ISS.

The priority of service shall be (i) firm service under Rate

Schedule FSS and (ii) interruptible storage service in the

form of Overrun Service under Rate Schedule FSS and ISS and

interruptible storage service under Rate Schedule ISS. If

some but not all requests for interruptible services can be

satisfied, the service shall be allocated on the basis of

the highest rate offered for such service (pro rata for

customer's offering the same rate for service).