Kentucky West Virginia Gas Company

Third Revised Volume No. 1

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Effective Date: 07/01/1993, Docket: RS92- 18-002, Status: Effective

Original Sheet No. 44 Original Sheet No. 44 : Superseded

 

GENERAL TERMS AND CONDITIONS (Continued)

 

24. PREGRANTED ABANDONMENT

24.1 Short Term and Interruptible Agreements

A customer receiving service under a firm service agreement

having a primary term of less than one year ("short term firm

service agreement") or under an interruptible service agreement

retains no right to continued service after the termination of

such agreement. Upon termination of a short term or interruptible

service agreement, Pipeline shall have all necessary abandonment

authorization under the Natural Gas Act as of such termination

date, and shall not be required to seek case-specific

authorization prior to abandoning service.

 

24.2 Long Term Agreements -- Right of First Refusal

Service agreements which have a primary term of one year or more

and which contain a rollover or evergreen provision are not

subject to pre-granted abandonment under this Section 24.

A customer receiving service under a firm service agreement having

a primary term of one year or more ("long term firm service

agreement") which does not contain a rollover provision may avoid

pregranted abandonment of service in connection with the

termination of its service agreement and continue to receive

service by matching the rate and contract term bid by a competing

customer in accordance with the procedures described below. If

the customer does not satisfy the bid matching requirements of

this section, customer shall no longer have a right to continued

service as of the effective date of Pipeline's notice of

termination. If no other bids are received and the customer does

not agree to pay the maximum rate, and Pipeline and the Customer

do not otherwise agree on the continuation of service, then the

customer shall no longer have a right to continued service as of

the effective date of Pipeline's notice of termination. In the

event of termination, Pipeline shall have all necessary

abandonment authorization under the Natural Gas Act. However, a

customer agreeing to pay the maximum rate is entitled to continued

service for whatever term it chooses.

24.3 Notice and Posting

At least sixty (60) business days prior to the expiration of a

long term firm service agreement, Pipeline will serve on the

affected customer a notice of termination advising the customer of

the pending termination of its agreement and of the customer's

right to retain its service entitlement by matching the rate and

contract term bid by a competing customer. At the same time,

Pipeline will post the available capacity on its electronic

bulletin board, including the quantity available, receipt and

delivery points and maximum applicable rate. The notice will

remain posted for thirty (30) days until the end of the bidding

period.