Southeast Supply Header, LLC

Original Volume No. 1

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Effective Date: 06/28/2010, Docket: RP10-783-000, Status: Effective

First Revised Sheet No. 338 First Revised Sheet No. 338

Superseding: Original Sheet No. 338

 

GENERAL TERMS AND CONDITIONS

(CONTINUED)

 

28. RIGHT OF FIRST REFUSAL

 

28.1 Purpose. The purpose of this Section 28 is to provide the

necessary information pertaining to the right of long-term firm

Shippers to continue firm Transportation Service at the

expiration of their Agreements by exercising a right of first

refusal.

 

28.2 Eligibility. Any Shipper with a firm Agreement under a Part 284

Rate Schedule with an initial term of greater than two (2) years

must give notice to the Transporter that Shipper desires to

continue its Agreement at least two years in advance of the end

of the primary term of the Agreement, and any Shipper with a firm

Agreement under a Part 284 Rate Schedule with a primary term of

(i) at least twelve (12) Months of consecutive Transportation

Service, or (ii) firm Transportation Agreements with a primary

term of more than one (1) year for service which is not available

for twelve (12) consecutive months ("seasonal contracts") must

give notice to Transporter that Shipper desires to continue its

Agreement at least six (6) months in advance of the end of the

primary term of the Agreement. Shipper also must agree that it

will match (a) the longest term, up to the maximum term allowed

by the Commission, and (b) the highest rate for such Service, up

to the Maximum Recourse Rate, that is offered by any other person

desiring such capacity; provided, however, that Transporter shall

not be obligated to provide service at less than the Maximum

Recourse Rate(s). A Shipper paying a Negotiated Rate which

exceeds the Maximum Recourse Rate will be considered for purposes

of this Section 28.2 to be paying the Maximum Recourse Rate as

set forth in the Statements of Rates. Failure of the Shipper to

give the notice specified will constitute a waiver of the

Shipper's right of first refusal.