Southern Natural Gas Company
Seventh Revised Volume No. 1
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Effective Date: 09/01/2009, Docket: RP09-427-002, Status: Effective
Substitute Sixth Revised Sheet No. 160 Substitute Sixth Revised Sheet No. 160
Superseding: Sixth Revised Sheet No. 160
GENERAL TERMS AND CONDITIONS
(Continued)
Section 20 (continued)
As early as the date on which notice of termination specified in Exhibit B to SHIPPER'S firm
Service Agreement is due, but no later than forty-five (45) days prior to the effective
termination date of SHIPPER'S firm Service Agreement or any applicable package thereunder,
COMPANY shall post on SoNet Premier for bidding the capacity which will be available upon
the termination of SHIPPER'S firm Service Agreement or any applicable package thereunder.
If COMPANY and SHIPPER can not agree on a notice of termination specified in Exhibit B to
SHIPPER'S firm Service Agreement, then the earliest that COMPANY would be able to initiate a
ROFR is twelve (12) months prior to the expiration date of the SHIPPER's applicable firm
Service Agreement, or package of capacity thereto. Prior to the expiration of the term of a
Service Agreement(s), or package thereto, COMPANY and SHIPPER may mutually agree to
renegotiate the terms of such Service Agreement(s) to extend the use of at least a portion
of the TD under its existing Service Agreement, or package thereto. Such extension of the
Service Agreement or package thereto, shall be negotiated on a case-by-case basis in a not
unduly discriminatory manner. If a Service Agreement has pregranted abandonment rights, the
agreement to extend must be reached prior to COMPANY posting the capacity for bidding
pursuant to Section 20 of these General Terms and Conditions. To the extent that COMPANY
and SHIPPER have mutually agreed to such an extension, the requirements of Section 20 of
these General Terms and Conditions shall not apply. Alternatively, if the SHIPPER provides
to COMPANY notice of termination on or prior to the required notice date as defined in
Exhibit B to the Service Agreement, any right of first refusal hereunder will be deemed by
COMPANY as waived unless SHIPPER specifically requests to retain its rights under this
section in its notice of termination.
Each bidder for SHIPPER'S firm capacity, or any portion of TD or MDQ being offered under
this section, must submit its bid to COMPANY in writing or through SoNet Premier (with the
appropriate service request form and any required prepayment under COMPANY'S FERC Gas
Tariff applicable to the service, unless already on file with COMPANY) within the time
specified by COMPANY on SoNet Premier. 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. If COMPANY 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 minimizes the impact on the rates for other services
given the terms and conditions of the other services at the time ("best bid"); provided,
however that COMPANY reserves the right to reject any bid which is for less than 100% of
the maximum rate applicable to SHIPPER'S firm service.
COMPANY will notify SHIPPER of the best bid received in an arm's length transaction that
COMPANY is willing to accept, and SHIPPER shall have a specified time, but no less than
fifteen (15) days, within which it must match the rate or price percentage and contract
term offered in the best bid in order to retain its firm capacity; provided, however, in
the event the bidder bids a negotiated rate at more than the effective maximum rate,
SHIPPER shall only be required to match the bid at the maximum rate applicable to the
service in order to retain its capacity. SHIPPER shall have the right to bid a volumetric
portion of its capacity, but in no event shall SHIPPER have the right to divide its
capacity in geographic or seasonal portions.
Notwithstanding the above, for those Service Agreements referenced under Article III,
Section 7 of the Stipulation and Agreement dated March 10, 2000 in Docket No. RP99-496 or
Article III, Paragraph 1 of the Stipulation and Agreement dated April 29, 2005 in Docket
No. RP04-523("Settlements"), at the end of the extended term or primary term applicable
under the Settlements, respectively, SHIPPER will only be required to match a contract term
not to exceed five (5) years, regardless of the contract term bid. If SHIPPER matches the
best bid, COMPANY and SHIPPER will enter into a new firm Service Agreement or package
reflecting the terms of SHIPPER'S matching bid. If SHIPPER fails to match the best bid
within the time allowed by COMPANY, SHIPPER'S existing firm Service Agreement, or package
thereto or portion thereof, will be subject to pregranted abandonment upon the effective
termination date of SHIPPER'S Service Agreement, or package thereto, and COMPANY will enter
into a new firm Service Agreement with the party or parties offering the best bid.