Kern River Gas Transmission Company
Second Revised Volume No. 1
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Effective Date: 10/01/2002, Docket: RP02-482-000, Status: Effective
Second Revised Sheet No. 734 Second Revised Sheet No. 734 : Effective
Superseding: Sub First Revised Sheet No. 734
RATE SCHEDULE MO-1
Kern River Firm Transportation Services
ARTICLE VII - TERM OF AGREEMENT (Continued)
7.3 Right of First Refusal (Continued)
Rate that meets or exceeds the lowest rate Transporter is willing
to accept for such service, the existing Shipper may retain its
capacity by matching the bid on either a Negotiated Rate basis or
a Recourse Rate basis as provided in Section 23.2(c) of the
General Terms and Conditions; provided, however, that nothing
herein shall obligate Transporter to render service to Shipper or
to any competing prospective shipper if such persons do not agree
to pay the maximum rates then applicable. To exercise its rights
of first refusal, Shipper must agree to all other terms and
conditions of service to which the competing prospective shipper
is prepared to agree, or to such other terms and conditions as may
be acceptable to Transporter.
(b) If Shipper chooses to exercise the foregoing right of first
refusal, Shipper shall give written notice to that effect to
Transporter at least one hundred twenty (120) days prior to the
termination date of its Transportation Service Agreement.
Transporter shall post such notice on its Designated Site for a
minimum period of sixty (60) days and shall receive any competing
offers for such transportation service only during such period.
(c) If Shipper chooses to exercise the foregoing right of first
refusal, but wishes to retain only a portion of its capacity,
Shipper's MDQ, aggregate Maximum Receipt Volume entitlements and
aggregate Maximum Delivery Volume entitlements all must be
retained by the same percentage.
7.4 Extension to Correct Imbalance. The term of the Transportation Service
Agreement shall continue for a period of time reasonably sufficient to
allow the parties to correct any cumulative imbalances in receipts and
deliveries pursuant to Section 4.2.2 herein.