Crossroads Pipeline Company
First Revised Volume No. 1
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Effective Date: 07/08/2006, Docket: RP06-387-000, Status: Effective
First Revised Sheet No. 79 First Revised Sheet No. 79 : Effective
Superseding: Substitute Original Sheet No. 79
GENERAL TERMS AND CONDITIONS
(Continued)
(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 firm Service Agreement that has a multi-year term
but does not provide for 12 consecutive months of service.
(b) Notwithstanding the provisions of Section
4.1(c)(1)(a), Transporter and its Shippers may mutually agree on
a not unduly discriminatory basis, to include in discount rate or
negotiated rate firm Service Agreements that bear either a
multi-year seasonal term or a term of 12 or more consecutive
months of service, a contractual right of first refusal
equivalent to the right of first refusal set forth from time to
time in this Section 4.