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.