Richfield Gas Storage System

Substitute Volume No. 1

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Effective Date: 04/15/1993, Docket: CP92-285-002, Status: Effective

Original Sheet No. 15 Original Sheet No. 15 : Superseded

 

the case of a long term FSS-1 Agreement, the

Customer exercises its right of first refusal for the

capacity covered by the FSS-1 Agreement by matching the

terms of the highest bid offered to Richfield for such

capacity by any qualified prospective Successor Customer

during the open season held to allocate such capacity. In

determining which bid for the capacity is the highest,

Richfield will use the present value formula set forth in

Section 3 of the General Terms and Conditions of this

Tariff, except that a bid for capacity for a period in

excess of 20 years shall be evaluated as if it were a bid

for a period of 20 years. 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 one year. 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 10 of the

General Terms and Conditions of Richfield's FSS-1 tariff.

 

(b) Open Season. When a Customer or Richfield provides

notice that a long term FSS-1 Agreement will terminate at

the conclusion of its primary term or any renewed term,

Richfield will, within 30 days of receiving or giving such

notice, post on its Electronic Bulletin Board, information

describing the capacity and its availability. Such

information shall include the amount of capacity, the

maximum rate or rates therefor, and the date upon which the

capacity will first be available. Bids for such available

capacity will be received for a period of thirty (30) days,

or such greater period as Richfield may specify, after the

posting of such information. Richfield may reject any bids

below the maximum rate.

 

(c) Exercise of Right of First Refusal. Upon expiration of

the open season, Richfield 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 Richfield may specify, to execute a renewal

FSS-1 Agreement upon the same terms. If the current

capacity holder elects not to match the terms of such

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

conclusion of its term, and Richfield may enter into a new

FSS-1 Agreement with the qualified Successor Customer who

submitted the bid.

 

(d) Continuation of Service. If, during the open season,

Richfield receives no bids or rejects all bids, Richfield

and the current capacity holder may negotiate for