Steuben Gas Storage Company

Original Volume No. 1

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Effective Date: 10/01/2002, Docket: RP02-429-000, Status: Effective

Fourth Revised Sheet No. 148 Fourth Revised Sheet No. 148 : Effective

Superseding: Third Revised Sheet No. 148

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

(b) Right of First Refusal:

 

Any Customer or Replacement Customer with an FS Agreement paying

maximum rates and (1) having a term of twelve (12) consecutive

Months or more, or (2) a term for more than one year for a

service not available 12 consecutive Months and, upon twelve

(12) months written notice prior to the expiration of the

Agreement, may exercise a right to continue to receive service

under that Agreement for all or a portion of the firm capacity

under the Agreement at the expiration of the Agreement's term.

To continue service, Customer must agree to match the bona fide

best offer made by others for such capacity or portion thereof

by offering a rate and term of Agreement that produces an

equivalent or greater economic value (using a term not to exceed

five (5) years) for such capacity as defined in Section 10.1(a),

above, provided that Seller shall not be obligated to enter into

an extension of any Agreement or continue service at any rate

less than the rate contained in the expiring FS Agreement, nor

shall Seller be obligated to enter into an extension of any

Agreement or continue service to any Customer or Replacement

Customer who fails to meet the Creditworthiness requirements set

forth in Section 11.5 of these General Terms and Conditions.

After Customer has notified Seller of its intent to continue

service, the capacity available under customer's Agreement will

be posted on Seller's Internet Site for bid. Seller will accept

bids for this capacity from the time of posting up to and

including, but on later than, the forty fifth (45) day prior to

the date the existing Agreement is scheduled to expire. Within

five (5) business days of the date bidding ends, Seller will

notify Customer of the bid received having the greatest economic

value, as defined by Section 10.1(a) of this tariff. Customer

will have ten (10) business days to notify Seller whether it

will match the rate and term offered in the best bid (term will

be limited to five(5) years), and if so will execute a new

service Agreement matching the offer prior to the termination of

the existing Agreement.

 

If no bids are received, Customer may continue to receive

service under a new Agreement at its current agreed to rate, or

at a new rate agreed to by Customer and Seller.