Viking Gas Transmission Company
Original Volume No. 1
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Effective Date: 11/01/1993, Docket: RS92- 52-001, Status: Effective
Original Sheet No. 86 Original Sheet No. 86 : Superseded
GENERAL TERMS AND CONDITIONS (Continued)
respect of the Shipper under the Federal Bankruptcy Act or any other applicable
federal or state law, or appointing a receiver, liquidator, assignee, trustee,
sequestrator (or other similar official) of the Shipper or of any substantial part
of its property, or the ordering of the winding-up or liquidation of its affairs,
with said order or decree continuing unstayed and in effect for a period of sixty
(60) consecutive days.
XXIII. EXTENSION OF LONG TERM FIRM SERVICE AGREEMENTS
If a Shipper, prior to the expiration of a Transportation Agreement with a term of at least
one year, elects to extend the Transportation Agreement for less than the automatic extension
period provided therein or if the Transportation Agreement contains no automatic extension
provision, then Transporter, at its option, shall either accept Shipper's requested extension
period or shall require Shipper to exercise its right-of-first-refusal by making the capacity
under the Transportation Agreement available in accordance with the following procedures:
a) Transporter shall post the capacity for bidding on its electronic bulletin board no
later than 180 days prior to the expiration of the current Transportation Agreement.
The capacity will remain posted on the electronic bulletin board for a minimum of 20
days ("Bidding Period") with such posting containing the following information with
respect to the capacity:
i) daily and other applicable quantity limitations of capacity available;
ii) receipt and delivery points;
iii) maximum reservation charge;
iv) any applicable restrictions; and
v) the last day of the Bidding Period.
b) Upon conclusion of the Bidding Period, Transporter shall evaluate the bids in accordance
with the present value formula set forth for the evaluation of bids under Transporter's
capacity release mechanisms, provided that the term used for purposes of the formula
will be the lesser of the term proposed by the bidder or twenty years.
c) Within five days of the close of the Bidding Period, Transporter shall notify Shipper of
the bid having the highest present value to Transporter ("Highest Bid"). Shipper shall
have 25 days after receiving notice to notify Transporter as to whether it will match
the Highest Bid. If the Shipper elects to match the Highest Bid, it must execute a new
Transportation Agreement that contains the terms of the Highest Bid.