Transcontinental Gas Pipe Line Company, LLC
Fourth Revised Volume No. 1
Contents / Previous / Next / Main Tariff Index
Effective Date: 12/31/2008, Docket: RP09-158-000, Status: Effective
Original Sheet No. 468 Original Sheet No. 468
GENERAL TERMS AND CONDITIONS
(Continued)
48. RIGHT OF FIRST REFUSAL PROCEDURES
48.3 Seller shall evaluate and determine the best bid relating to each service agreement in accordance
with one of the following two methods, with the specific method identified in its notice for bid
solicitation:
(a) Highest net present value of reservation charges, or
(b) Highest rate bid, provided such bid meets Seller's minimum stated term.
For purposes of determining (i) the highest bid under Section 48.3(a) and (b) and (ii) the bid
Buyer may elect to match pursuant to Section 48.4, Seller will utilize the reservation rates bid,
not to exceed Seller's applicable maximum reservation rates. In the event Seller receives two or
more bids of equal value, then under method (a) the best bid shall be the bid with the shortest
term and under method (b) the best bid shall be the bid with the longest term. If, after
performing the aforementioned calculations, two or more bids are tied, a random and blind
selection process will be used to select the best bid.
48.4 Buyer shall have the right to continue to receive service by notifying Seller in writing within
fifteen (15) business days of receiving Seller's notification of the best bid, that Buyer agrees
to match the best bid. The evaluation method used to determine whether Buyer's bid matches the
best bid shall be the same method used to determine the best bid pursuant to Section 48.3 above.
In the event Buyer matches the best bid, Buyer and Seller shall, prior to the expiration of the
service agreement, execute a new service agreement setting forth terms and conditions of the
matching bid. Such service agreement shall be effective as of the day following the expiration
of the expiring service agreement.
48.5 If Buyer elects not to match the best bid, then such election shall constitute an irrevocable
waiver of Buyer's right of first refusal and Seller shall execute a service agreement with Buyer
submitting the best bid and shall provide such service pursuant to the terms and conditions
contained in the best bid.
48.6 Notwithstanding the above, Seller shall not be obligated to accept any bid or execute any service
agreement at a rate less than the maximum rate allowable under such Rate Schedule. Seller shall
notify Buyer in writing if no bids are received during the bidding period, or if Seller does not
accept any bids. Buyer and Seller shall have fifteen (15) business days following the date of
Seller's notification to Buyer to reach a binding written commitment regarding the rate and term
of continued service to Buyer. In that binding written commitment, Buyer shall be entitled to
continue to receive service at the maximum rate and at a term selected by Buyer, or Buyer and
Seller may agree upon a negotiated rate or a rate between the maximum and minimum allowable
rates, as well as other mutually agreeable terms and conditions for continued service. In no
event shall Buyer and Seller agree upon a rate which is less than any bid received by Seller
pursuant to this Section 48 and rejected by Seller. If Buyer and Seller reach a binding written
commitment for continued service, Buyer must execute a new service agreement prior to the
expiration of the term of the existing service agreement (or within 30 days following the date
that Seller tenders the new service agreement to Buyer if the new service agreement is tendered
by Seller on or after the expiration date of the existing agreement). If Buyer and Seller fail
to reach a binding written commitment within fifteen (15) business days following the date of
Seller's notification as provided herein, then Buyer's right of first refusal shall terminate and
Seller will post the available firm capacity in accordance with Section 49 of the General Terms
and Conditions.
48.7 In the event a Buyer or Seller provides notice to terminate service under a service agreement and
Buyer does not notify Seller in accordance with Section 48.1(b) that Buyer may desire to continue
to receive all or a portion of its service entitlement under such service agreement, then Buyer
shall have forfeited its right of first refusal provided herein.
48.8 The provisions of this Section 48 shall not apply to releases of capacity under Section 42 of the
General Terms and Conditions unless that release is a permanent release for the remaining term of
the Service Agreement and that Service Agreement is eligible for right of first refusal provided
for herein.