Chandeleur Pipe Line Company

Second Revised Volume No. 1

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Effective Date: 02/01/2003, Docket: RP03-220-000, Status: Effective

Fifth Revised Sheet No. 43 Fifth Revised Sheet No. 43 : Effective

Superseding: Fourth Revised Sheet No. 43

GENERAL TERMS

AND CONDITIONS

 

7.0 FIRM CAPACITY RELEASE UNDER ORDER NO. 636 (Cont'd)

 

7.8 Right of First Refusal/Pregranted Abandonment

 

Chandeleur's long-term firm Transportation

Service Agreements (over one year) contain roll-

over or evergreen clauses which allow the

Agreement to remain in force until Shipper or

Chandeleur gives ninety (90) days written notice

of its intent to terminate the Agreement. Within

thirty (30) days of either Party giving notice to

terminate, firm capacity under this contract shall

be posted on Chandeleur's internet website and

subjected to third-party bids pursuant to Section

6.2 of FT Rate Schedule. Chandeleur will notify

existing Shipper of the best offer received as a

result of the bidding process described above.

Within thirty (30) days of receipt of written

notice from Chandeleur detailing the terms of the

best offer, the existing Shipper, including any

Shipper who has acquired capacity pursuant to

Section 7.2 of this capacity release provision,

may elect to retain all or a volumetric portion of

its capacity subject to its exercise of its right

of first refusal by agreeing to match the price up

to the applicable maximum monthly Reservation

Charge and length of term of the best offer to

acquire long-term firm transportation from

Chandeleur. The Right of First Refusal provision

of this Section will not apply to discounted or

negotiated firm Transportation Service Agreements.

Chandeleur will have the authority for pregranted

abandonment of its obligations at the expiration

of that long-term firm transportation contract

with the existing Shipper, if Shipper is unwilling

to match the price up to the maximum monthly

Reservation Charge, and match the length of the

contract of the best offer. To be eligible to

exercise this right of first refusal, the existing

Shipper's contract must be for firm Transportation

service for a minimum of twelve consecutive months

at the applicable maximum monthly Reservation

Charge for firm Transportation service.