Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 08/01/2009, Docket: RP09-317-003, Status: Superseded

Substitute Second Revised Sheet No. 2200 Substitute Second Revised Sheet No. 2200

Superseding: First Revised Sheet No. 2200

 

GENERAL TERMS AND CONDITIONS

Section 10

 

 

10. Pre-Granted Abandonment and Right of First Refusal

 

10.1 Applicability of Pre-Granted Abandonment

 

(a) Reserved;

 

(b) Upon the expiration of the contractual term of any Part 284, Subpart G

transportation agreement entered into pursuant to Pipeline's

interruptible Rate Schedules;

 

(c) Upon the expiration of the contractual term of any Part 284, Subpart G

transportation agreement entered into pursuant to Pipeline's firm Rate

Schedules, if such agreement provides for fewer than twelve (12)

consecutive months of service; and

 

(d) Upon the expiration of the contractual term of any Part 284, Subpart G

transportation agreement entered into pursuant to Pipeline's firm Rate

Schedules if such agreement provides for twelve (12) or more

consecutive months of service or is a multiple year seasonal agreement

where service is not offered for twelve (12) consecutive months,

subject to the right of first refusal procedure contained in Section

10.4, herein.

 

10.2 Extensions of Firm and Interruptible Transportation Service

 

(a) Pipeline will agree to bilateral evergreen clauses (the exact length

of which to be negotiated on a case-by-case basis) in all

transportation service agreements, except limited-term service

agreements involving capacity available for a limited time due to (i)

expansion/extension projects as set forth in Section 20.4 of the

General Terms and Conditions or (ii) pre-arranged Contract Demand

increases as set forth in Section 3.3 of the FT Rate Schedule, Section

2.4 of the NNS Rate Schedule, or Section 2.6 of the NNL Rate Schedule;

however, pre-granted abandonment will still be applicable as stated in

Section 10.1, above, at the end of the contractual term.

 

(b) Except in the case of limited-term service agreements involving

capacity available for a limited time due to (i) expansion/extension

projects as set forth in Section 20.4 of the General Terms and

conditions or (ii) pre-arranged Contract Demand increases as set forth

in Section 3.3 of the FT Rate Schedule, Section 2.3 of the NNS Rate

Schedule, or Section 2.5 of the NNL Rate Schedule, in place of a

bilateral evergreen clause in firm transportation service agreements,

Pipeline will agree to a continuous unilateral rollover term,

exercisable only by Customer; however, such rollover term must be for

at least five (5) years, and customer must agree to pay the applicable

maximum rate. Such rollover will be automatic unless Customer

notifies Pipeline in writing at least one year in advance of the

expiration of the primary term of its agreement, or any succeeding

rollover term, that it intends to exercise its right of first refusal

or wishes to negotiate a different extension period.

 

(c) Customer and Pipeline may agree to extend a service agreement for a

term of at least five years at mutually agreeable rates when Pipeline

has agreed to pay for all or part of the cost of modification or

construction of Customer's facilities required at a delivery point(s)

to effectuate the delivery of natural gas thereunder.

 

Pre-granted abandonment will still be applicable as stated in Section 10.1

above, at the end of the contractual term.