Columbia Gulf Transmission Company

Second Revised Volume No. 1

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Effective Date: 02/10/2008, Docket: RP08-160-000, Status: Effective

Ninth Revised Sheet No. 144 Ninth Revised Sheet No. 144 : Effective

Superseding: Eighth Revised Sheet No. 144

GENERAL TERMS AND CONDITIONS (Continued)

 

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 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 a Recourse rate, discounted rate or negotiated

rate long-term Service Agreement, Transporter and Shipper may mutually agree to renegotiate the terms

of such agreement in exchange for Shipper's agreement to extend the use of at least part of its

existing service under a restructured Service Agreement. Such restructured Service Agreements shall be

negotiated on a case-by-case basis in a not unduly discriminatory manner. If the Service Agreement 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 pursuant to Section 4.1(c). To the extent that

Transporter and Shipper mutually agree to such an arrangement, the requirements of Section 4.1(c) shall

not be applicable.

 

(c) Termination of Long-Term Service Agreements; Exercise of Right of First Refusal.

 

(1)(a) If Shipper's long-term Service Agreement is at the applicable Recourse Rate for that

service and does not extend according to its terms or otherwise continue as described at Section 4.1(b)

above, or Shipper declines to extend the contract under the provisions described at Section 4.1(b)

above, Shipper may continue service upon termination of that Service Agreement by (i) agreeing to match

the highest value bid offered to Transporter for Shipper's firm service, or any portion (volume but not

geographic portion) thereof, through the bidding process described at Section 4.2 below, and

(ii) executing a new Service Agreement incorporating the new rate and term. This right of first

refusal shall apply only to (1) firm Service Agreements with a term of 12 or more consecutive months of

service at the applicable Recourse Rate for that service, or (2) firm multi-year seasonal Service

Agreements at the applicable Recourse Rate for that service. Discounted long-term Service Agreements in

effect as of the effective date of Order No. 637 (March 27, 2000) are grandfathered in that a right of

first refusal shall apply only at the expiration of such Service Agreements; provided, a right of first

refusal shall not apply to any new Service Agreement entered into, unless it has (1) a term of 12 or

more consecutive months of service and is at the applicable Recourse Rate for that service, or (2) is a

firm multi-year seasonal Service Agreement at the applicable Recourse Rate for that service. A " firm

multi-year seasonal Service Agreement" as used in this Section 4 is a Service Agreement that has a

firm multi-year term but does not provide for 12 consecutive months of service.