Columbia Gas Transmission LLC

Third Revised Volume No. 1

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Effective Date: 05/01/2010, Docket: RP10-577-000, Status: Pending

First Revised Sheet No. 278 First Revised Sheet No. 278

Superseding: Original Sheet No. 278

 

GENERAL TERMS AND CONDITIONS (Cont'd)

 

4. AUCTIONS OF AVAILABLE FIRM SERVICE

 

This Section governs the manner in which requests for firm services shall be accommodated by

Transporter when capacity is or becomes available, unless otherwise indicated in the applicable Rate Schedule.

With the exception of capacity referenced in Section 4.2(j)(i)(3), this Section applies to existing firm

capacity that may become available and not to new pipeline capacity. Additional provisions governing auctions

of service under specific Rate Schedules are set forth in individual Rate Schedules in this Tariff.

 

4.1 Circumstances Under Which Capacity Becomes Available.

 

(a) Termination of Short-Term Service Agreements. Upon the termination of any firm Service

Agreement having a term of less than one year, the capacity associated with such terminated Service Agreement

shall be made available for bidding under the procedures described at Section 4.2 below, provided that: (i)

the capacity is not previously committed under the terms of this Tariff and (ii) facility capacity remains

available.

 

(b) Continuing Service Under Certain Long-Term Agreements.

 

(1) Transporter shall notify Shipper in writing of the upcoming expiration or termination

of any firm Service Agreement with a term of 12 or more consecutive months of service or any firm

multi-year seasonal Service Agreement (a long-term Service Agreement) at the applicable Recourse Rate

for that service, and will provide such notice at least 30 days before Shipper is obligated to notify

Transporter of its intent to exercise its right of first refusal or other service continuation rights

under the Service Agreement as described in paragraph (c)(2) below. Upon completion of the term of any

long-term Service Agreement, Shipper shall have the right to continue receiving service under that

long-term Service Agreement if that Service Agreement is at the Recourse Rate and (i) contains a

provision that continues service absent notice of termination by Transporter or Shipper (an evergreen

provision) and neither party has provided such notice, (ii) otherwise extends beyond that term

according to its terms, or (iii) does not provide for pregranted abandonment and Shipper executes a new

long-term Service Agreement at the Recourse Rate. If the above requirements are not satisfied at the

termination date of the primary term of a long-term Service Agreement, service under that long-term

Service Agreement (regardless of the origination date of that long-term Service Agreement) shall be

subject to the termination and right of first refusal provisions set forth at paragraph (c) below.

 

(2) Prior to the expiration of the term of any Recourse Rate, discounted rate or

negotiated rate long-term Service Agreement(s), Transporter and Shipper may mutually agree to

renegotiate the terms of such agreement(s) in exchange for Shipper's agreement to extend the use of at

least part of its existing service under such restructured Service Agreement(s). Such restructured

Service Agreements shall be negotiated on a case-by-case basis in a not unduly discriminatory manner.

If the Service Agreement(s) has a regulatory right of first refusal, Transporter and Shipper must reach

the agreement to extend prior to initiation of the right of first refusal procedure, which is the date

the capacity must be posted for auction pursuant to Section 4.1(c)(3). To the extent that Transporter

and Shipper mutually agree to such an arrangement, the requirements of Section 4.1(c) shall not be

applicable.