Millennium Pipeline Company, L. L. C.
Original Volume No. 1
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Effective Date: 11/01/2009, Docket: RP10-17-001, Status: Effective
Substitute First Revised Sheet No. 78 Substitute First Revised Sheet No. 78
Superseding: First Revised Sheet No. 78
GENERAL TERMS AND CONDITIONS
4. AUCTIONS OF AVAILABLE FIRM SERVICE
This Section governs the manner in which Transporter shall accommodate requests for firm
services when capacity is or becomes available, unless otherwise indicated in the applicable Rate
Schedule. With the exception of capacity referenced in Section 4.2(j)(i)(3), this Section applies
to existing firm capacity that may become available and not to new pipeline capacity.
4.1 Circumstances Under Which Capacity Becomes Available.
(a) Termination of Short-Term Service Agreements. Upon the termination of any firm
Service Agreement having a term of less than one year, the capacity associated with such
terminated Service Agreement will be made available for bidding under the procedures described at
Section 4.2 below, provided that: (i) the capacity is not previously committed under the terms of
this Tariff and (ii) facility capacity remains available.
(b) Continuing Service Under Certain Long-Term Agreements. (1) Transporter will notify
Shipper in writing of the upcoming expiration or termination of (i) any firm Service Agreement
incorporating a right of first refusal, or (ii) any firm Service Agreement with a term of 12
consecutive months or more at the applicable Recourse Rate for that service, or any Service
Agreement with a term longer than one year, for a service which is not available for 12
consecutive months at the applicable Recourse Rate for that service, (a "long-term Service
Agreement") and will provide such notice at least 30 days before Shipper is obligated to notify
Transporter of its intent to exercise its right of first refusal or other service continuation
rights under the Service Agreement as described in paragraph (c)(2) below. Upon completion of the
term of any long-term Service Agreement, Shipper will have the right to continue receiving service
under that long-term Service Agreement if that Service Agreement is at the Recourse Rate and (i)
contains a provision that continues service absent notice of termination by Transporter or Shipper
(an evergreen provision) and neither party has provided such notice, (ii) otherwise extends beyond
that term according to its terms, or (iii) does not provide for pregranted abandonment and Shipper
executes a new long-term Service Agreement at the Recourse Rate. If the above requirements are
not satisfied at the termination date of the primary term of a long-term Service Agreement,
service under that long-term Service Agreement (regardless of the origination date of that long-
term Service Agreement) will be subject to the termination and right of first refusal provisions
set forth at paragraph (c) below.
(2) Prior to the expiration of the term of a Recourse Rate, discounted rate or negotiated rate
long-term Service Agreement(s), Transporter and Shipper may mutually agree to renegotiate the
terms of such Agreement in exchange for Shipper's agreement to extend the use of at least part of
its existing service under a restructured Service Agreement. Such restructured Service
Agreement(s) will be negotiated on a case-by-case basis in a not unduly discriminatory manner. If
the Service Agreement has a regulatory right of first refusal, Transporter and Shipper must reach
agreement to extend prior to initiation of the right of first refusal procedure, which means the
Shipper notification pursuant to Section 4.1(c)(2). To the extent that Transporter and Shipper
mutually agree to such an arrangement, the requirements of Section 4.1(c) will not be applicable.