Young Gas Storage Company, Ltd.

Original Volume No. 1

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

Seventh Revised Sheet No. 62 Seventh Revised Sheet No. 62

Superseding: Sixth Revised Sheet No. 62

 

GENERAL TERMS AND CONDITIONS

(Continued)

4.3 Right of First Refusal (Continued)

(e) Continuation If No Firm Agreement Is Executed. If the existing

Shipper declines to match a superior competing offer, and a

firm agreement is not executed for the subject capacity on or

before expiration of the existing Shipper's firm agreement,

the existing Shipper shall have the right to continue service

at Transporter's maximum Tariff rates, for an agreed term

between the Parties. If the existing Shipper declines to

continue service as of the date of contract expiration, or if

the Parties are unable to reach agreement on the term of

extension, then Shipper's rights to the subject capacity shall

terminate as if the existing Shipper had given notice of

intent to terminate its firm agreement.

 

(f) Right of First Refusal Clause in Firm Agreement. Transporter

and Shipper may agree to include a right of first refusal

rollover or evergreen clause in their firm agreement. The

contractual right of first refusal, rollover or evergreen

clause would allow the Shipper to exercise a right of first

refusal in situations where the regulatory right would not

apply. In such case, Shipper may rely on its contractual

rights in lieu of the regulatory right of first refusal.

 

4.4 Amendment. The Agreement shall be amended only by an instrument

executed by both Parties in writing.

 

4.5 Creditworthiness. Transporter shall not be required to commence

service or to continue to perform service under Rate Schedules FS-1

or IS-1 for any Shipper who fails to demonstrate creditworthiness as

reasonably determined by Transporter. Transporter's determination of

creditworthiness shall be based upon a review of Shipper's financial

statements, bank references, trade references, and such other

information relating to Shipper's financial status, obligation

payment history, and other relevant factors as may be necessary to

satisfy Transporter that Shipper is creditworthy. Upon Shipper's

request, Transporter shall provide a written explanation of any

credit limitation applied to Shipper. Transporter may require

Shipper to deposit with Transporter and maintain, on prepaid

account, or to establish and maintain an escrow account or to

furnish a letter of credit in an amount equal to Transporter's

estimate of 2 Months of charges for performing such service at the

level of Shipper's Maximum Daily Withdrawal Quantity or to furnish

within 15 days, good and sufficient security, as determined solely

by Transporter, of a continuing nature and in an amount equal to

Transporter's estimate of 2 months of charges for performing said

service at the level of Shipper's Maximum Daily Withdrawal Quantity

and/or Maximum Available Capacity, or may require such other

measures as Transporter may specify.