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Original Sheet No. 86 Original Sheet No. 86 : Superseded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.