Vector Pipeline L.P.

Original Volume No. 1

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Effective Date: 06/01/2010, Docket: RP10-678-000, Status: Effective

Third Revised Sheet No. 157 Third Revised Sheet No. 157

Superseding: Second Revised Sheet No. 157

 

32. TRANSPORTATION SERVICE AGREEMENT EXTENSION AND RIGHT OF FIRST REFUSAL

 

1. If a Shipper, prior to the expiration of a Firm Transportation

Agreement which is at the maximum recourse rate for a term of

twelve (12) or more consecutive months of service, or for a

negotiated rate contract in effect as of March 27, 2000, elects to

extend the Firm Transportation Agreement for less than the

automatic extension period provided therein, or if the Firm

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 EBB no

later than 180 days prior to the expiration of Shipper's Firm

Transportation Agreement. The capacity will remain posted on

Transporter's EBB 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.

 

2. Upon conclusion of the ROFR Bidding Period, Transporter shall

evaluate the bids in accordance with the procedures set forth in

section 29.6 (b) and (c) for the evaluation of bids under

Transporter's capacity release mechanism, provided 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.