Horizon Pipeline Company, L.L.C.

Original Volume No. 1

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Effective Date: 04/18/2002, Docket: CP00-129-001, Status: Effective

Original Sheet No. 199 Original Sheet No. 199 : Effective

 

GENERAL TERMS AND CONDITIONS

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however, that if the original Shipper seeks to retain only a

portion of its MDQ, the analysis of whether the original Shipper

has matched the best bid may take into account the MDQ requested

under the best bid relative to the MDQ the original Shipper seeks

to retain. The original Shipper may provide a counteroffer which

contains either a higher price than the best bid or a longer term

than the best bid to offset a shorter term or a lower price than

that offered in the best bid. Horizon shall determine whether such

a counteroffer constitutes a match, utilizing the same criteria as

were applied to determine the best bid.

 

(e) (1) If the original Shipper matches the best bid,

it shall be entitled to continuation of service and shall be

obligated to sign an Agreement tendered by Horizon which reflects

the best bid or any counteroffer by the original Shipper which

matches such best bid.

 

(2) If the existing Shipper fails to match the

best bid, the existing Agreement shall terminate at the end of its

term and service to the existing Shipper shall be automatically

abandoned.

 

(3) Submission of a bid shall be binding on the

bidder. The bidder submitting the best bid shall be obligated to

sign an Agreement reflecting its bid if the original Shipper fails

to match. Nothing herein shall preclude negotiation of a more

acceptable Agreement by mutual consent of Horizon and such bidder;

provided, however, that service may not be agreed upon under terms

and conditions less favorable to Horizon than the best bid without

providing the original Shipper an additional opportunity to match

such revised terms and conditions.

 

(f) In the absence of a qualified bid, Horizon shall

notify Shipper of the rate (within applicable maximums and

minimums) and the term shall be negotiated between Horizon and the

Shipper. No discount or other special terms shall apply to a

rollover Agreement unless Horizon and Shipper mutually agree. If no

agreement is reached prior to the end of the two (2) week period

following Horizon's notice to Shipper, Shipper may, at that time,

require that Horizon enter into an Agreement to provide service at

the applicable maximum rate for a term specified by Shipper and

running from the date the existing Agreement expires. Unless

Shipper so elects at the end of the two (2) week period following

Horizon's notice to Shipper, Horizon may negotiate with any

Shipper, with the original Shipper having no further rights under

this Section 18 and service under the existing Agreement shall be

terminated and automatically abandoned at the expiration thereof.