Southeast Supply Header, LLC

Original Volume No. 1

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Effective Date: 09/04/2008, Docket: CP07-44-005, Status: Effective

Original Sheet No. 339 Original Sheet No. 339

 

GENERAL TERMS AND CONDITIONS

(CONTINUED)

 

28. RIGHT OF FIRST REFUSAL (continued)

 

28.3 Procedure.

 

(a) Transporter shall notify Shipper no later than three (3)

Months prior to the expiration of the Agreement whether any

outstanding bona fide offers exist for Transporter's

capacity at a higher rate and/or for a longer term which

could be satisfied by the relinquishment of Shipper's

capacity. Offers will be deemed bona fide if made in

compliance with Section 26 of these General Terms and

Conditions. Any party that has an outstanding request for

firm service under Section 26 of these General Terms and

Conditions shall be notified and given the opportunity to

specify the rate and term it is willing to offer for

Shipper's capacity. If Transporter has received any such

offers, Transporter shall inform Shipper of the rate, up to

the Maximum Recourse Rate, and the term, up to a maximum

time allowable by the Commission, that has been offered for

Shipper's capacity. Shipper shall notify Transporter

within ten (10) Business Days after notification whether it

desires to match the rate and term offered, and, if so, to

provide a binding commitment in writing to Transporter to

execute a contract containing said terms within the next

thirty (30) Business Days.

 

(b) If Transporter does not notify Shipper of the existence of

any offers for Shipper's capacity under Section 28.3(a),

Transporter and Shipper may negotiate the terms and

conditions of a new Agreement; provided, however, that in

no event shall Shipper have any automatic right to renew

service at a negotiated or discounted rate; provided

further, however, Shipper may select the term of the

Agreement after agreeing to pay the Maximum Recourse Rates,

and all applicable surcharges.