Young Gas Storage Company, Ltd.

Original Volume No. 1

 Contents / Previous / Next / Main Tariff Index

 

 

Effective Date: 08/01/2010, Docket: RP10-921-000, Status: Effective

Ninth Revised Sheet No. 61 Ninth Revised Sheet No. 61

Superseding: Eighth Revised Sheet No. 61

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

4.3(b) Right of First Refusal (Continued)

 

(vi) If Shipper provides notice of its desire to extend the firm

agreement for a term of five years and at the maximum tariff

rates, Shipper shall be entitled to retain the capacity

underlying its firm agreement without Transporter seeking

competitive bids. In all other cases, Transporter shall

proceed to a "Solicitation of Bids" as described in this

Section.

 

(c) Solicitation of Bids. If Shipper has given notice of intent to

extend the term of its firm agreement pursuant to the provisions

of Section 4.3(b), and not at maximum rates for a term of five

years or more, then Transporter shall solicit competing bids for

the subject capacity. Beginning not later than thirty days after

the "Notice Date," and continuing for thirty days (the "Bid

Period") thereafter, Transporter shall post on its electronic

bulletin board notice of the capacity which will be available as

a result of the expiring firm agreement and any minimum

acceptable terms for bidding on such capacity. Any Party may

submit a bid for the subject capacity during the "Bid Period".

 

(d) Notification of Existing Shipper and Right to Match. If Shipper

has given notice of intent to extend the term as described in

Section 4.3(b), but not at maximum tariff rates for a term of

five years or more, then within ten days after the close of the

"Bid Period," Transporter shall notify the existing Shipper of

any offers deemed superior to Shipper's offered terms of

extension. Transporter's evaluation shall be based upon the net

present value of the proposed storage capacity charge and the

reservation charge and the proposed term of agreement, discounted

at Transporter's then-effective rate of return on equity. The

term of any competing offer shall be capped at five years for

comparison purposes. Within ten days after such notification by

Transporter, Shipper must notify Transporter of its intent to

match the highest competing offer. If Shipper does not provide

notice accepting the terms of a superior offer within the ten-day

period, Transporter may enter into a firm agreement with the

bidder submitting the highest superior offer. If a superior offer

is not received, Shipper shall be entitled to the term extension

proposed by Shipper provided Shipper agrees to pay Transporter's

maximum tariff rates.