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.