Trunkline LNG Company, LLC
Second Revised Volume No. 1-A
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Effective Date: 08/01/2009, Docket: RP09-799-000, Status: Effective
First Revised Sheet No. 104 First Revised Sheet No. 104
Superseding: Original Sheet No. 104
GENERAL TERMS AND CONDITIONS
(Continued)
11. RIGHT OF FIRST REFUSAL
11.1 TLNG shall continue to provide firm service pursuant to a
Long-Term Agreement beyond the term specified in such
Agreement if:
(A) The Long-Term Agreement is extended according to its
terms; or
(B) Shipper exercises its Right of First Refusal pursuant
to Section 11.2.
11.2 The Right of First Refusal process shall apply to a Long-
Term Agreement for firm service that (1) is in effect
prior to August 1, 2000; or (2) commences on or after
August 1, 2000 and Shipper has agreed to pay the Maximum
Rate or a Negotiated Rate which equals or exceeds the
Maximum Rate applicable for the service, or, if the
service is not available for twelve (12) consecutive
months, the Long-Term Agreement is for more than one year
and provides for service at the Maximum Rate or a
Negotiated Rate which equals or exceeds the Maximum Rate
applicable to the service; or (3) commences on or after
August 1, 2000, Shipper has agreed to pay a Negotiated
Rate, and TLNG has agreed to afford Shipper a Right of
First Refusal. Shipper may exercise its Right of First
Refusal as follows:
(A) If TLNG receives an acceptable offer for all or any
portion of the capacity used to provide service under
Shipper's Long-Term Agreement, TLNG shall notify
Shipper of such offer and its terms no later than six
(6) months prior to the expiration of the primary
term of the Long-Term Agreement.
(B) Shipper shall be permitted to designate an MCSC/MDQ
less than its existing MCSC/MDQ which Shipper wishes
to retain under the Right of First Refusal.
(C) Shipper shall respond to TLNG within thirty (30) days
after TLNG's notification whether it will match the
economic value of the offer for the level of service
Shipper wishes to retain as defined in this Section
11.2; provided that for purposes of the value
comparisons under this Section, the rate utilized
shall not exceed the Maximum Rate that can be charged
the Shipper for its existing service.
(D) If Shipper agrees to match the economic value of such
offer for the MCSC/MDQ Shipper wishes to retain,
Shipper shall execute a new Service Agreement
matching the economic value of the offer within
thirty (30) days after TLNG tenders the Service
Agreement to Shipper.