Guardian Pipeline, L.L.C.

Original Volume No. 1

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Effective Date: 08/01/2010, Docket: RP10-926-000, Status: Effective

Third Revised Sheet No. 196 Third Revised Sheet No. 196

Superseding: Second Revised Sheet No. 196

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

23. RIGHT OF FIRST REFUSAL AND PREGRANTED ABANDONMENT (Continued)

 

23.5 Bidding Procedures

 

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

thereof, must submit its bid to Transporter through

Transporter's Web Site within the time specified by

Transporter. Each bid shall contain the term for which the

capacity is sought and the percentage of the maximum rate

or the negotiated rate in effect during said term which the

bidder is willing to pay for the capacity. If Transporter

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, having the highest Net

Present Value to Transporter, provided, however, that for

purposes of comparing bids, negotiated rates above the

maximum rate will be treated equal to the maximum rate,

provided further, that Transporter reserves the right to

reject any bid which is for less than one-hundred percent

(100%) of the maximum rate applicable to Shipper's firm

service.

 

23.6 Pregranted Abandonment

 

(a) Transporter will notify Shipper within two (2)

Business Days of the best bid received in an arm's

length transaction that Transporter is willing to

accept, and Shipper shall have a specified time, but

not less than fifteen (15) Days, within which it must

match the price and contract term, not to exceed five

(5) years, offered in the best bid in order to retain

its firm capacity. If Shipper matches the best bid,

Transporter and Shipper will enter into a new service

agreement for firm service reflecting the terms of

Shipper's matching bid. If Shipper fails to match the

best bid within the time allowed by Transporter,

Shipper's existing service agreement for firm service

will be subject to pregranted abandonment upon the

effective termination date of Shipper's service

agreement for firm service and Transporter will enter

into a new service agreement for firm service with the

party or parties offering the best bid.