Columbia Gas Transmission LLC
Third Revised Volume No. 1
Contents / Previous / Next / Main Tariff Index
Effective Date: 03/23/2009, Docket: RP09-375-001, Status: Effective
First Revised Sheet No. 280 First Revised Sheet No. 280
Superseding: Original Sheet No. 280
GENERAL TERMS AND CONDITIONS (Cont'd)
(2) If Shipper intends to exercise its right of first refusal as described at paragraph
(1) above, Shipper shall notify Transporter through Transporter's EBB of that intent at least six
months before the termination date of its Service Agreement.
(3) In the event that Shipper provides Transporter with a six-month notice of intent to
exercise its right of first refusal, Transporter shall promptly post on its EBB the information
described in Section 4.2 below, Transporter shall begin accepting bids from any prospective Shipper,
for all or a portion (volume but not geographic portion) of the service rights under the existing
Shipper's long-term Service Agreement, at least five months prior to the termination of such Service
Agreement, and for the posting time periods set forth in Section 4.2(a) below.
(4) If Transporter receives an offer for all or a portion (volume but not geographic
portion) of the service rights under Shipper's long-term Service Agreement, Transporter, within two
business days after the last day for receiving offers, shall notify Shipper through the EBB of the
offer having the greatest economic value to Transporter. For purposes of comparing the respective
values of offers under this section, Transporter shall evaluate all bids in accordance with the
criteria set forth at Section 4.2(c) below. If Shipper elects to match the offer, Shipper shall
notify Transporter of such election through the EBB within 15 days after receiving Transporter's
notice and shall execute a new Service Agreement matching the offer prior to the termination of the
existing long-term Service Agreement. The highest rate that Shipper must match to continue such
service is the Recourse Rate. If Shipper does not elect to match the offer within 15 days after
receiving Transporter's notice, Shipper's right of first refusal will immediately terminate.
(5) If no acceptable offers meeting Transporter's minimum terms are received, Transporter
will notify Shipper within two business days after the close of the capacity auction periods as set
forth in Section 4.2(a) below. Shipper may, thereafter, consistent with the terms of this Tariff,
continue to receive all or a portion (volume but not geographic portion) of its service (i) on a
month-to-month basis or for such other term and rate agreed to by Transporter and Shipper, or (ii) at
the applicable Recourse Rate for a term to be specified by Shipper. Shipper shall execute any new
Service Agreement prior to the termination of the existing long-term Service Agreement. Shipper
continuing service under either (i) or (ii) retains its right of first refusal on the portion
continued, if it is under a Service Agreement with a term of 12 or more consecutive months of service,
at the applicable Recourse Rate for that service, or is a firm multi-year seasonal Service Agreement
at the applicable Recourse Rate for that service. If Shipper does not continue all or a portion
(volume but not geographic portion) of its service pursuant to the provisions of (i) or (ii) above,
within 20 business days following Transporter's two day notification period as described in this
Section 4.1(c)(4) above, or such other period as may be mutually agreed to between Transporter and
Shipper on a not unduly discriminatory basis, Shipper's right of first refusal will immediately
(6) If no acceptable offers satisfying Transporter's stated minimum terms are received,
and no new long-term Service Agreement has been reached between Transporter and the Shipper holding the
capacity under the expiring Service Agreement, Transporter shall post such capacity for an indefinite
period as Generally Available Capacity. Transporter will post minimum price and other terms for such
Generally Available Capacity, as described at Section 4.2 below. Transporter may change those minimum
price and other terms, or may withdraw the posting of such Generally Available Capacity, at any time
prior to receipt of a bid satisfying the posted minimum terms for that capacity. Any such minimum
price or other terms shall be subject to the same limitations applicable to other available capacity,
as set forth in this Section 4.
(7) Transporter will accept Recourse Rate bids for posted Generally Available Capacity on
a first-come, first-served basis. If Transporter receives an acceptable bid for such Generally
Available Capacity that meets its stated minimum conditions but is at less than the Recourse Rate,
Transporter will post that bid on its EBB for the posting periods set forth in Section 4.2(a) below.
Any other competing bidder may obtain the capacity by submitting during the posting period a highest
value bid (a bid that exceeds the value of the initial posted bid), as determined in accordance with
the bid evaluation criteria set forth at Section 4.2(c) below.
(d) Termination of Other Long-Term Service Agreements.
(1) If a long-term Service Agreement is not continued by its own terms or by reason of
the Shipper's exercise of its right of first refusal, such long-term Service Agreement shall be subject to
pregranted abandonment unless otherwise specified in the Service Agreement and shall terminate as specified
therein and Transporter shall have no further obligation to Shipper.