Energy West Development, Inc.

Original Volume No. 1

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Effective Date: 06/11/2010, Docket: RP10-732-000, Status: Effective

Second Revised Sheet No. 69 Second Revised Sheet No. 69

Superseding: First Revised Sheet No. 69

 

GENERAL TERMS AND CONDITIONS

 

(ii) The Best Bid will be the bid that provides the highest present value

calculated by using the interest rate published by the Commission pursuant

to 18 C.F.R. Section 154.67 or any successor regulation; and

 

(iii) If two or more bids offer the same highest present value, Transporter will

prorate available capacity among the Offering Shippers.

 

(i) Bid Matching Procedure. If Transporter accepts a Best Bid as a Competing Offer

for purposes of this Bid Matching Procedure, Transporter will inform the Existing

Shipper of the terms of the Competing Offer. Within 30 days of receiving the terms

of the Competing Offer, the Existing Shipper must notify Transporter whether the

Existing Shipper agrees to match the Competing Offer. Failure to notify Transporter

within the 30 day period shall constitute an irrevocable waiver of the Existing

Shipper's Right of First Refusal with respect to the Competing Offer. To match

the Competing Offer, the Existing Shipper must either (i) match the Competing

Offer or (ii) match the rate contained in the Competing Offer for a period of

at least five Years. If the Existing Shipper agrees to match the Competing Offer,

Transporter will provide Transportation Service to the Existing Shipper

upon execution of a Transportation Service Agreement containing the terms

specified in the Competing Offer. If the Existing Shipper elects not to match

the Competing Offer, Transporter has pregranted authority to abandon that service

and Transporter shall have no further obligation to render service under the

Existing Shipper's Transportation Service Agreement pursuant to Section 7 (b) of

the Natural Gas Act. Transporter will provide Transportation Service to the

Shipper that offered the Competing Offer upon execution of a Transportation Service

Agreement containing the terms agreed upon in the Competing Offer. Transporter

will post the terms of the accepted offer on its Public Internet.

 

(j) Negotiation Procedures Between Transporter and Existing Shipper. Transporter must

accept a bid as the Best Bid if there are any bids at the maximum rate. However,

if no Shipper offers a competing bid or if there are only bids at less than the

maximum rate and Transporter rejects all such bids, Transporter and the Existing

Shipper may negotiate and mutually agree to terms and conditions applicable to a

new Transportation Service Agreement. If Transporter and the Existing Shipper have

not reached agreement on the terms and conditions for a new Transportation Service

Agreement upon termination of the existing Transportation Service Agreement,

Transporter must continue to provide service to the Existing Shipper only if that

Shipper agrees to pay the maximum rate permitted under this Tariff for a term that

the Existing Shipper elects; provided, however, that an Existing Shipper is not

required to match a Competing Offer with a term greater than five (5) Years.

Furthermore, the Existing Shipper must elect the length of the extended term 60

days prior to termination of the existing Transportation Service Agreement.

If the Existing Shipper refuses to pay the maximum authorized rate, Transporter

has pregranted authority to abandon service and Transporter shall have no further

obligation to render service under the Existing Shipper's Transportation Service

Agreement pursuant to Section 7(b) of the Natural Gas Act.

 

(k) Failure to Execute a Transportation Service Agreement. If the Offering Shipper

fails to execute a Transportation Service Agreement according to the agreed upon

terms 30 days from the date the Transportation Service Agreement is tendered to the

Offering Shipper, Transporter will continue to provide the Existing Shipper service

at the maximum applicable rate and Transporter will hold a further open season

as prescribed in Section 26.5(d) of the General Terms and Conditions of this Tariff.

The Bid Notification and Bid Matching Procedure will be repeated.