Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 09/01/2009, Docket: RP09-427-002, Status: Effective

Seventh Revised Sheet No. 161 Seventh Revised Sheet No. 161

Superseding: Fifth Revised Sheet No. 161

 

GENERAL TERMS AND CONDITIONS

(Continued)

Article 20 (continued)

 

Notwithstanding the above, unless COMPANY and Shipper expressly agree otherwise in Shipper's Service

Agreement, or package thereto, any Shipper that has entered into an interim-term firm service

agreement or package for reserved capacity pursuant to Section 2.1(b)(vi) of these General Terms and

Conditions or a firm service agreement associated with off-system capacity pursuant to Section 23.1

below or leased capacity, shall not have the right to extend the term of such capacity under the

provisions of this Article 20 beyond the in-service date of the applicable expansion project or

beyond the term of the service agreement or lease entered into by COMPANY with the third party

Service Provider for the off-system capacity or the leased capacity.

 

In the event COMPANY does not receive any bids for SHIPPER'S capacity or any bids which are

acceptable to COMPANY, SHIPPER shall have fifteen (15) days, or such other period as may be mutually

agreed to between COMPANY and SHIPPER, to notify COMPANY that SHIPPER wishes to retain its rights to

its firm capacity at the maximum rate applicable thereto, or any discount or negotiated rate agreed

to by COMPANY, for an additional term as requested by SHIPPER. In the event SHIPPER matches the best

bid at less than the maximum rate or COMPANY agrees to allow SHIPPER to retain its firm capacity at a

discounted or negotiated rate for an additional term as provided above, then the new or amended

Service Agreement shall no longer be subject to the terms of this Section 20 upon termination of said

agreement. If SHIPPER refuses to renew its firm Service Agreement at the maximum rate, absent an

agreement by COMPANY to discount, said Service Agreement shall be subject to pregranted abandonment

on the effective date of termination.

 

If SHIPPER gives notice to terminate its firm Service Agreement pursuant to the provisions contained

therein and does not give COMPANY notice that it wants to exercise its rights hereunder pursuant to

Section 284.221(d)(2)(ii) of the Commission's Regulations, said agreement shall be subject to

pregranted abandonment on the effective date of SHIPPER'S termination notice.