Colorado Interstate Gas Company

First Revised Volume No. 1

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Effective Date: 06/01/2010, Docket: RP10-689-000, Status: Effective

Nineteenth Revised Sheet No. 272 Nineteenth Revised Sheet No. 272

Superseding: Eighteenth Revised Sheet No. 272

 

GENERAL TERMS AND CONDITIONS

(Continued)

4.7 (continued)

 

(i) If No Firm Transportation or Storage Agreement Is Executed. If

the existing Shipper declines to match a superior competing

offer, and an agreement is not executed for the subject capacity

on or before expiration of the existing Shipper's agreement, the

existing Shipper shall have the right to continue service at

Transporter's maximum applicable Tariff rate (including

applicable reservation surcharges) for an agreed term between

the Parties. If the existing Shipper declines to continue

service as of the date of contract expiration, or if the Parties

are unable to reach agreement on the term of extension, then

Shipper's rights to the subject capacity shall terminate as if

the existing Shipper had given notice of intent to terminate its

agreement.

 

4.8 Carryover of Rights Upon Conversion. If an existing Shipper desires

to convert to firm service under a different rate schedule upon

contract expiration, and if such conversion can be accomplished

without impairing system integrity, the right of first refusal

described above shall carry over from the expiring service to the

new service, to the extent of the capacity rights embodied in the

expiring agreement.

 

4.9 Right of First Refusal Clause in Firm Transportation or Storage

Agreement. Transporter and Shipper may agree to include a right of

first refusal, rollover or evergreen clause in their agreement. The

contractual right of first refusal, rollover or evergreen clause

would allow the Shipper to exercise a right of first refusal in

situations where the regulatory right would not apply. In such case,

Shipper may rely on its contractual rights in lieu of the regulatory

right of first refusal. However, if a Shipper has entered into a

firm agreement utilizing off-system capacity contracted for pursuant

to Section 4.3 of the General Terms and Conditions, it may not elect

to extend the term of its agreement beyond the term of Transporter's

agreement for such off-system capacity. A contractual right of

first refusal, rollover or evergreen clause in a Rate Schedules FS-Y

and TSB-Y agreement is subject to, and limited by, the term of

Transporter's acquired Young Storage capacity.

 

4.10 Capacity that is sold on an interim basis up to the commencement

date of a prospective firm transportation agreement, pursuant to

Section 4.1(a)(5) of the General Terms and Conditions, shall not be

eligible for a right of first refusal.