Petal Gas Storage, L. L. C.

Original Volume No. 1

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Effective Date: 05/01/2002, Docket: RP02-188-000, Status: Effective

Original Sheet No. 81 Original Sheet No. 81 : Effective

 

 

 

FTS RATE SCHEDULE (Continued)

 

 

10.4 Right of First Refusal. If the right of first refusal applies, Petal

will notify an existing Customer of the best bid, if any, received that

Petal is willing to accept. Customer must provide Petal written

notification, which may be transmitted by fax or other similar

electronic means, that it intends to exercise its right of first

refusal. Customer shall have a specified time, but not less than five

(5) business days, within which Customer must match the best bid. In

order to match the best bid, Customer must agree to pay a rate up to the

maximum rate, for an agreement term, not to exceed five (5) years, that

will provide Petal at least the same net present value. If Customer

matches the best bid, Petal and Customer will enter into a new FTS

Agreement, or modify the existing FTS Agreement, reflecting the terms of

the best bid. If Customer fails to match the best bid within the time

allowed by Petal, Customer's existing FTS Agreement will be abandoned

upon the termination of the FTS Agreement and Petal will enter into a

new FTS Agreement with the Customer offering the best acceptable bid.

The highest rate that Customer must match through the bidding process if

it wishes to continue such service is the maximum rate.

 

10.5 Negotiated Rate. Customers requesting service at a Negotiated Rate that

exceeds the Maximum Rate will be considered to be paying the Maximum

Rate for purposes of determining the economic value of request(s) for

service rights.

 

10.6 Acceptable Bids. In the event Petal does not receive any bids for

Customer's capacity or any bids that are acceptable to Petal, Customer

shall have the right to retain its firm capacity at the maximum rate

applicable thereto, or any negotiated discount agreed to by Petal, for

an additional term as requested by Customer. If Customer refuses to

renew its existing FTS Agreement at the maximum rate, absent an

agreement by Petal to discount, such FTS Agreement shall be subject to

abandonment upon its termination.

 

10.7 Abandonment. Petal shall be relieved of its transportation service

obligations for any FTS Agreement with a primary term of less than one

(1) year, regardless of any subsequent roll-over term provided by an

evergreen provision, upon the expiration or termination of such FTS

Agreement. Petal shall be relieved of its transportation service

obligations for any FTS Agreement with a primary term of one (1) year or

more upon the expiration of such FTS Agreement, provided that Customer

gives notice to terminate its FTS Agreement pursuant to the provisions

contained therein, or Customer fails to match the best bid under its

right of first refusal option as described in Section 4.2 of the General

Terms and Conditions, or Customer fails to submit a bid acceptable to

Petal.