Trans-Union Interstate Pipeline, L.P.

Original Volume No. 1

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Effective Date: 02/07/2006, Docket: RP06-217-000, Status: Effective

Original Sheet No. 138 Original Sheet No. 138 : Effective

 

 

Transportation Agreement which is at the maximum recourse rate

for a term of

twelve (12) or more consecutive months of service contains no

automatic

extension provision, Transporter at its option shall either

accept Shipper's

requested extension period, or shall require Shipper to exercise

its right of

first refusal (ROFR) by making the capacity under the Firm

Transportation

Agreement available in accordance with the following procedures.

Transporter

shall post the capacity for bidding on its Web Site no later than

280 days

prior to the expiration of Shipper's Firm Transportation

Agreement. The

capacity will remain posted on the Web Site for a minimum of 20

days ("ROFR

Bidding Period") with such posting containing the following

information with

respect to the capacity:

 

(a) Daily and other applicable quantity limitations of capacity

available;

 

(b) Receipt and Delivery Points;

 

(c) Maximum reservation charge;

 

(d) Any applicable restrictions; and

 

(e) The last day of the ROFR Bidding Period.

 

Transporter may require bidders to insure that offers are bona

fide by

providing financial assurances satisfactory to Transporter.

 

A Shipper's ROFR rights apply only when the Shipper is seeking to

contract for

its entire geographic historical Contracted Capacity, however a

Shipper may

elect to retain a portion of its Contracted Capacity subject to

ROFR rights,

in which case Transporter's pregranted abandonment authority

would apply to

the remainder of the service.

 

29.2 Upon conclusion of the ROFR Bidding Period, Transporter

shall evaluate

the bids in accordance with the procedures set forth in section

26.5(e),

provided that the term used for purposes of the formula will be

the lesser of

the term proposed by the bidder or five years; and provided

further that any

bid rate higher than the maximum applicable recourse rate shall

be deemed to

be equal to the maximum applicable recourse rate. Transporter

shall not be

required to accept any bid at less than Transporter's maximum

applicable

recourse rate.

 

29.3 If Transporter receives no bids, or if Transporter

receives no bids at

its maximum applicable recourse rate and Transporter determines

not to accept

any bids below the maximum applicable recourse rate, Transporter

shall notify

Shipper of the bid having the highest value to Transporter

("Highest Bid"), or

that no bids were received. If Transporter receives a bid at its

maximum

applicable recourse rate, or if it accepts any bid below the

maximum

applicable recourse rate, Transporter shall, within five days of

the close of

the ROFR Bidding