Gas Transmission Northwest Corp.

Third Revised Volume No. 1-A

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Effective Date: 01/01/2007, Docket: RP06-407-000, Status: Effective

Third Revised Sheet No. 212 Third Revised Sheet No. 212 : Effective

Superseding: Second Revised Sheet No. 212

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

 

33. RIGHT OF FIRST REFUSAL UPON TERMINATION OF FIRM SHIPPER'S SERVICE

AGREEMENT (Continued)

 

33.2 (Continued)

 

capacity holder will have ten (10) business days from the date of

notice to match the accepted bid(s) in order of economic value

(highest to lowest), provided that the original capacity holder

shall not have to match any bid rate higher than the maximum

applicable rate and shall not be subject to the highest incremental

rate on the GTN system. GTN will announce the winning bid(s) as

soon as practicable after the close of the match period. If the

original capacity holder matches an accepted bid, the associated

capacity is awarded to the original capacity holder. If the

original capacity holder does not match an accepted bid, the

capacity shall be awarded to the highest acceptable bid(s). If

there is more than one equivalent winning bid, GTN shall award

capacity on a pro rata basis. New long-term Shippers will be

subject to the highest incremental fuel rate on the GTN system

where such fuel rate otherwise applies to expansion shippers on the

GTN system. New Shippers must execute a firm transportation service

agreement with GTN prior to service commencement. Original capacity

holder is allowed to retain a portion of its capacity by matching

the NPV of acceptable bids according to the procedure outlined in

this provision, provided that the original contract path is

maintained.

 

33.3 Bids shall be evaluated on the net present value methodology

described in Paragraph 18.1(e). The net present value of revenues

to be received from a Shipper bidding a Negotiated Rate shall be

calculated using the proposed reservation charge revenues and any

proposed usage charge revenues guaranteed by a minimum volume

commitment or otherwise. Where the Negotiated Rate is based on a

Negotiated Rate Formula, the future value of which cannot be

determined at the time of the bidding, GTN shall estimate the

future revenues to be received under the Negotiated Rate Formula

using currently available data.

 

33.4 If there are no acceptable bids received, the rate and terms of

continuing service is to be negotiated between original capacity

holder and GTN. GTN and original capacity holder shall have 20

business days from the end of the bid period to mutually agree to

acceptable terms. In the event GTN and original capacity holder do

not mutually agree to continue service, original capacity holder

shall no longer hold a right of first refusal and GTN shall subject

the capacity to a bidding process consistent with Section 33.8.

(Continued)