Mogas Pipeline LLC (Fomerly Missouri Interstate Gas)
First Revised Volume No. 1
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Effective Date: 06/01/2008, Docket: CP06-407-002, Status: Effective
Original Sheet No. 81 Original Sheet No. 81 : Pending
GENERAL TERMS AND CONDITIONS
(Continued)
22. Evergreen and Right of First Refusal
22.1 For all firm transportation service with a primary term of
two (2) years or longer, Transporter and Shipper may agree, on a
not unduly discriminatory basis, to contract extensions,
including evergreens, rollovers and other extensions that the
Service Agreement shall continue to be in effect until terminated
by either Transporter or Shipper by written notice to the other
delivered at least twelve (12) months prior to the date of
intended termination.
22.2 A Shipper may exercise a right of first refusal (ROFR) to
continue receiving service at the end of the term of any
agreement, including any term extended pursuant to any
contractual rollover or evergreen provision, provided that
Shipper is receiving service at the maximum rate for a term of
twelve consecutive months or longer (or for one year or longer
where service is not available for twelve consecutive months); or
if Transporter and Shipper have so agreed, at other rates.
Shipper must provide written notice to Transporter at least six
(6) months prior to the termination date if the Shipper wants to
exercise its ROFR.
22.3 To exercise such ROFR, Shipper must agree to match the rate
or rates, up to the maximum rate or rates then applicable, and
the agreement term, up to a term of five years, to which a
competing prospective Shipper is willing to agree with
Transporter for all or any portion of the transportation rights
then held by Shipper; provided, however, that nothing herein
shall obligate Transporter to render service to Shipper or to any
competing prospective Shipper if such persons do not agree to pay
Transporter's maximum rates then applicable. If the highest bid
submitted by a competing prospective Shipper is a Negotiated Rate
that meets or exceeds the lowest rate Transporter is willing to
accept for such service, the existing Shipper may retain its
capacity by matching the bid on either a Negotiated Rate basis or
a Recourse Rate basis.
22.4 If a Shipper chooses to exercise a ROFR for only a portion
of its capacity, or chooses to extend the primary term of its
agreement pursuant to a contractual rollover or evergreen
provision for only a portion of its capacity, Shipper's MDQ,
aggregate Maximum Receipt Volume entitlements and aggregate
Maximum Delivery Volume entitlements all must be retained by the
same percentage.
22.5 If an existing Shipper chooses not to match the economic
value of the best bid(s) as determined by Transporter, capacity
will be awarded to the selected bidder(s), and the existing
Shipper's ROFR will expire.
22.6 If no creditworthy bids are submitted for any portion of
the capacity, an existing Shipper will be entitled to continue
its existing service for any portion of the capacity, for any
term desired, provided Transporter and Shipper agree to mutually
acceptable rates for the service at a level within the posted
maximum and minimum tariff rates for the applicable service or at
a mutually acceptable Negotiated Rate for the applicable service.
If Transporter and Shipper fail to agree on rates within thirty
(30) days of the bid close date, Shipper's ROFR will be deemed to
have terminated.