Gulfstream Natural Gas System, L.L.C.

Original Volume No. 1

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Effective Date: 06/28/2010, Docket: RP10-792-000, Status: Effective

First Revised Sheet No. 198 First Revised Sheet No. 198

Superseding: Original Sheet No. 198

 

GENERAL TERMS AND CONDITIONS

(CONTINUED)

 

 

29. RIGHT OF FIRST REFUSAL

 

29.1 Purpose. The purpose of this Section 29 is to provide the

necessary information pertaining to the right of long-term

firm Shippers to continue firm Transportation Service at

the expiration of their Agreements by exercising a right of

first refusal.

 

29.2 Eligibility. Any Shipper with a firm Agreement under a Part

284 Rate Schedule with an initial term of greater than two

(2) years must give notice to the Transporter that Shipper

desires to continue its Agreement at least two yeas in

advance of the end of the primary term of the Agreement,

and any Shipper with a firm Agreement under a Part 284 Rate

Schedule with a primary term of (i) at least twelve (12)

months of consecutive Transportation Service, or (ii) firm

Transportation Service Agreements with a primary term of

more than one (1) year for service which is not available

for twelve (12) consecutive months ("seasonal contracts")

must give notice to Transporter that Shipper desires to

continue its Agreement at least six (6) months in advance

of the end of the primary term of the Agreement. Shipper

also must agree that it will match (a) the longest term, up

to the maximum term allowed by the Commission, and (b) the

highest rate for such Service, up to the maximum Recourse

Rate, that is offered by any other person desiring such

capacity; provided, however, that Transporter shall not be

obligated to provide service at less than the maximum

Recourse Rate(s). A Shipper paying a negotiated rate which

exceeds the maximum Recourse Rate will be considered for

purposes of this Section 29.2 to be paying the maximum rate

as set forth on the Statement of Transportation Rates.

Failure of the Shipper to give the notice specified will

constitute a waiver of the Shipper's right of first

refusal.