Midwestern Gas Transmission Company

Third Revised Volume No. 1

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Effective Date: 08/09/2006, Docket: RP06-430-001, Status: Effective

Sixth Revised Sheet No. 247 Sixth Revised Sheet No. 247 : Effective

Superseding: Substitute Fourth Revised Sheet No. 247

 

GENERAL TERMS AND CONDITIONS

 

 

16. ELECTION OF RIGHT-OF-FIRST REFUSAL AND EXTENSION OF LONG TERM FIRM SERVICE AGREEMENTS

(Continued)

 

16.2 Right of First Refusal

 

A Shipper holding a qualifying agreement may exercise a right-of-first refusal

in accordance with, and subject to, the procedures and limitations set forth

below; provided, however, that if the qualifying agreement is at a negotiated

or less than maximum rate, such agreement must be extended at the applicable

maximum rate for a term of one year or more in order to retain a right-of-first

refusal beyond the extended term.

 

Company shall provide notice to a Shipper receiving service from Company

pursuant to Part 284 of the Commission's regulations under a qualifying

agreement thirteen (13) months prior to the expiration of the agreement's

primary term.

 

For agreements with a primary term extending for more than one year and less

than five years, unless Shipper elects upon six (6) months prior written notice

to Company to terminate the agreement in whole or to request a lesser extension

of term, the agreement will automatically extend upon the expiration of the

primary term for a term of five years. Thereafter the agreement shall

repeatedly extend for successive five year terms unless Shipper provides notice

as described herein in advance of the expiration of a succeeding term.

 

For agreements with a primary term extending for a minimum term of five years,

unless Shipper elects upon one year's prior written notice to Company to

terminate the agreement or to request a lesser extension of term, the agreement

will automatically extend upon the expiration of the primary term for a term of

five years. Thereafter the agreement shall repeatedly extend for successive

five year terms unless Shipper provides notice as described herein in advance

of the expiration of a succeeding term.

 

Unless Company and Shipper expressly agree otherwise in Shipper's service

agreement, a right-of-first refusal does not apply to negotiated rate

arrangements, to firm service agreements at less than the applicable maximum

rate or to firm service agreements with a term of less than one year. In

addition, the right of first refusal will not be applicable to interim service

agreements for entitlement associated with expansion/extension projects as set

forth in Section 35 of the General Terms and Conditions.

 

16.3 Extension of Less Than One Year

 

If a Shipper, pursuant to the terms of a qualifying agreement, elects to

1) extend its agreement or any portion thereof for less than one year or

2) terminate its agreement in its entirety or 3) request an extension of its

agreement for a term less than five (5) years which is rejected by Company or

4) request an extension of its agreement at a rate less than the maximum rate,

then Company, at its option, shall either accept Shipper's lesser extension

period or Shipper's request at less than the maximum rate or the capacity under

such agreement shall be made available in accordance with the following:

 

(a) Company shall post the capacity for bidding on the System 180 days prior

to the termination of the service agreement. The capacity will remain

posted on the System for a minimum of 20 days with such posting containing

the following information with respect to the capacity:

 

(i) daily and other applicable quantity limitations of capacity available;

 

(ii) Transportation Path;