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.
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.