Destin Pipeline Company, L.L.C.

Original Volume No. 1

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Effective Date: 01/14/2005, Docket: RP05-123-000, Status: Effective

Third Revised Sheet No. 96 Third Revised Sheet No. 96 : Effective

Superseding: Sub Second Revised Sheet No. 96

GENERAL TERMS AND CONDITIONS

(Continued)

 

17. PREGRANTED ABANDONMENT OF LONG-TERM, FIRM SERVICE AGREEMENTS

 

The following provisions shall apply to all firm

transportation Service Agreements in effect prior to March

27, 2000, or, which have a primary term for service

thereunder of one (1) year or more where the Shipper is

paying the applicable maximum rate. For purposes of this

Section, firm transportation Service Agreements under Rate

Schedule FT-2 shall be deemed to meet this term requirement.

No later than forty-five (45) days prior to the termination

of any primary or renewal term of SHIPPER's firm Service

Agreement, whether such date is specified in the Service

Agreement or in COMPANY's notice of termination as allowed

by such Service Agreement, COMPANY shall post on Company's

Internet Web Site the capacity which will be available upon

the termination of SHIPPER's firm Service Agreement.

 

Each bidder for SHIPPER's firm capacity, or any part

thereof, must submit its bid to COMPANY electronically on

Company's Interactive Internet Website or in writing (with

the appropriate service request form and prepayment) within

the time specified by COMPANY on Company's Interactive

Internet Website. Each bid shall contain the term for which

the capacity is sought and the percentage of the maximum

rate in effect during said term which the bidder is willing

to pay for the capacity, not to exceed 100% of the maximum

rate. If COMPANY receives more than one bid for SHIPPER's

capacity, and it does not reject all bids as provided below,

it will choose the bid, or combination of bids, which

generates the greatest present value of revenues (best bid);

provided, however that COMPANY reserves the right to reject

any bid which is for less than 100% of the maximum rate

applicable to SHIPPER's firm service.

 

COMPANY will notify SHIPPER of the best bid received that

COMPANY is willing to accept, and SHIPPER shall have a

specified time, but no less than fifteen (15) days, within

which it must match the price percentage and contract term

offered in the best bid in order to retain its firm

capacity. If SHIPPER matches the best bid, COMPANY and

SHIPPER will enter into a new firm Service Agreement

reflecting the terms of SHIPPER's matching bid. If SHIPPER

fails to match the best bid within the time allowed by

COMPANY, SHIPPER's existing firm Service Agreement will be

subject to