Petal Gas Storage, L. L. C.

Original Volume No. 1

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Effective Date: 01/09/2010, Docket: RP10-229-000, Status: Effective

Original Sheet No. 28 Original Sheet No. 28

 

FSS-1 RATE SCHEDULE

FIRM STORAGE SERVICE (Continued)

 

 

9. CURTAILMENT

 

If, due to any cause whatsoever, Petal's capability to receive or deliver

volumes is impaired so that Petal is unable to receive or deliver the volumes

provided for in its FSS-1 Agreements with Customers, then capacity, withdrawals

and/or injections will be allocated according to the priority of service as set

forth in Section 4 of the General Terms and Conditions of this Tariff.

 

10. RIGHT OF FIRST REFUSAL

 

10.1 Right of First Refusal at End of Contract Term. Petal may discontinue

service to a Customer at the end of the primary term or any renewed term

of the Customer's FSS-1 Agreement unless (i) the Customer exercises any

applicable renewal right in the FSS-1 Agreement; or (ii) in the case of

a long term FSS-1 Agreement, the Customer exercised its right of first

refusal for the capacity covered by the FSS-1 Agreement by matching the

terms offered to Petal during an open season for such capacity by any

qualified prospective successor customer. Petal shall retain its right

to require a minimum rate for bids during any such open season. In

determining which bid for the capacity is the highest, Petal will use

the present value formula set forth in Section 4 of the General Terms

and Conditions of Petal's Tariff. A "long term FSS-1 Agreement," as

that term is used in this Section is an FSS-1 Agreement having a primary

term greater than or equal to five (5) years. A prospective successor

customer is "qualified," within the meaning of this section, if such

prospective successor customer meets the creditworthiness criteria set

forth in Section 3 of the General Terms and Conditions of this Tariff.

 

10.2 Exercise of Right of First Refusal. Upon expiration of the open season,

Petal will communicate the terms of the highest bid received from a

qualified successor customer to the current capacity holder, who may

elect, within ten (10) Business Days or such greater time as Petal may

specify, to execute a renewal FSS-1 Agreement upon the same terms. If

the current capacity holder does not elect to match the terms of such

highest bid, its FSS-1 Agreement will expire at the conclusion of its

term, and Petal may enter into a new