Sea Robin Pipeline Company, LLC

Second Revised Volume No. 1

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Effective Date: 12/31/2004, Docket: RP05- 87-000, Status: Effective

Original Sheet No. 165 Original Sheet No. 165 : Effective

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

11. RIGHT OF FIRST REFUSAL

 

11.1 The following provisions shall apply to any FTS Agreement which

has a primary term of one (1) year or more that (a) is in

effect prior to September 4, 2000 or (b) commences on or after

September 4, 2000 and the Service Agreement provides for twelve

(12) months or more of consecutive service at the maximum rate

applicable to the service or, if the service is not available

for twelve (12) consecutive months, the Service Agreement

provides for service for more than one year at the maximum rate

applicable to the service. No later than forty-five (45) days

prior to the effective termination date of Shipper's FTS

Agreement, whether such date is specified in the Service

Agreement or in Sea Robin's notice of termination as allowed by

such Service Agreement, Sea Robin shall post on Messenger the

capacity which will be available upon the termination of

Shipper's FTS Agreement.

 

11.2 Each bidder for Shipper's firm capacity, or any part thereof,

must submit its bid to Sea Robin in writing or through

Messenger with the appropriate service request form and any

required prepayment under Sea Robin's FERC Gas Tariff

applicable to the service unless already on file with Sea

Robin, within the time specified by Sea Robin on Messenger .

Each bid shall contain the term for which the capacity is

sought and the percentage of the maximum rate in effect during

said term which the bidder is willing to pay for the capacity,

not to exceed 100% of the maximum rate. If Sea Robin receives

more than one bid for Shipper's capacity, and it does not

reject all bids as provided below, it will choose the bid, or

combination of bids, which generates the most revenue on a net

present value basis, (best bid); provided, however, that Sea

Robin reserves the right to reject any bid which is for less

than 100% of the maximum rate applicable to Shipper's firm

service. Net present value will be determined by multiplying

the rate bid by the volume bid discounted to present value

based on the currently effective interest rates issued by the

Commission.