Southern Star Central Gas Pipeline, Inc.

Original Volume No. 1

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Effective Date: 07/10/2009, Docket: RP09-758-000, Status: Effective

Second Revised Sheet No. 215 Second Revised Sheet No. 215

Superseding: First Revised Sheet No. 215

 

GENERAL TERMS AND CONDITIONS

 

6. RIGHT OF FIRST REFUSAL AT EXPIRATION OF AGREEMENTS (Cont'd)

 

Within 5 business days following the bid closing date, Southern

Star will evaluate the bids received. Southern Star will not

disclose the identity of the bidder making the best bid. If the

best bid is a contingent bid, Southern Star will notify the bidder

making the best bid within 5 business days following the bid

closing date. That bidder will have 5 business days following

such notification to satisfy or waive the contingency or Southern

Star may disregard such bid.

 

Southern Star will notify the existing capacity holder of the best

bid or that no bids were received within 5 business days after

resolution of any contingencies and determining the best bid. The

existing capacity holder will have a right of first refusal to

match the best bid received for such capacity within 30 days after

receiving the notification of the best bid. The highest rate that

the existing capacity holder must match, if it desires to retain

all or a portion of its capacity, is the applicable maximum tariff

rate, including surcharges, for such service. The existing

capacity holder's right of first refusal will expire if it fails

to match the best bid and Southern Star executes a service

agreement with the bidder making the best bid.

 

6.3 Prepayment

 

To ensure that competing bids are bona fide, the bidding party

must tender a prepayment and meet the credit-worthiness

requirements, both as set forth in Section 8.

 

6.4 No Bids Received

 

If no bids are received, service may continue at a negotiated rate

and term, but in no event shall Southern Star be required to

provide service at less than maximum rates. If no bids are

received or the party that submitted the best bid does not execute

and return the Service Agreement within five (5) business days,

the existing capacity holder will be given ten (10) business days

to notify Southern Star whether it wants to retain the capacity at

the best bid level or at the maximum rate and the desired term,

consistent with Section 7.

 

6.5 Acceptance of Bids

 

Southern Star is not required to provide service at any rate less

than the maximum rate, or charge, as specified on the applicable

Tariff Sheet No. 10, 10A, or 11.