Crossroads Pipeline Company

First Revised Volume No. 1

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Effective Date: 11/01/2001, Docket: RP02- 14-000, Status: Effective

Original Sheet No. 62 Original Sheet No. 62 : Superseded

 

GENERAL TERMS AND CONDITIONS

(Continued)

4. AUCTIONS OF AVAILABLE FIRM SERVICE

This Section governs the manner in which Transporter shall accommodate requests for firm services

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

Section applies to existing firm capacity that may become available and not to new pipeline capacity.

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. 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 (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.