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

(Continued)

 

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.