Williston Basin Interstate Pipeline Co.

Second Revised Volume No. 1

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Effective Date: 05/01/2003, Docket: RP03-323-000, Status: Effective

Original Sheet No. 388 Original Sheet No. 388 : Effective

 

GENERAL TERMS AND CONDITIONS (Continued)

 

51. NEGOTIATED RATES (Continued)

 

51.3 Impact on Capacity Allocation: For capacity allocation

purposes pursuant to Subsection 10.4 and for purposes of evaluating

bids pursuant to Subsection 24.4 of these General Terms and

Conditions, a Shipper paying a negotiated rate which exceeds the

Recourse Rate shall be treated as if the rate paid is equal to the

Recourse Rate for such service. Any Shipper, existing or new, paying

the Recourse Rate has the same right to capacity as a Shipper willing

to pay a higher negotiated rate. Where the negotiated rate is less

than the Recourse Rate, the negotiated rate shall be evaluated, for

purposes of Subsection 10.4 and 24.4, based on such lower rate and

shall be afforded a correspondingly lower priority than higher bids,

including bids at the Recourse Rate. If the negotiated rate is higher

than the corresponding Recourse Rate, the negotiated rate cannot be

used as the price cap for released capacity pursuant to Section 17 of

these General Terms and Conditions.

 

51.4 Right of First Refusal: For purposes of Section 24 of these

General Terms and Conditions, a Shipper paying a negotiated rate under

a firm Service Agreement with a term of one (1) year or longer shall

be eligible to exercise the right of first refusal using the following

procedures:

 

51.4.1 No less than nine (9) nor more than twelve (12) months

prior to the expiration of its firm Service Agreement, a Shipper

who chooses to retain its firm capacity must so notify Transporter

of its desire to execute a new firm Service Agreement at a rate

equal to or above the Recourse Rate and for a term at least as

long as the term of the expiring firm Service Agreement. Upon

notification Transporter will tender to Shipper a new firm Service

Agreement, which Shipper must execute within thirty (30) days of

the date of receipt, to become effective upon the termination of

such Shipper's currently effective firm Service Agreement.

Failure to give such notice and/or to execute the new firm Service

Agreement within the thirty (30) day period will authorize

Transporter to offer such firm capacity to others and will result

in the automatic abandonment of the current Shipper's entitlement

at the end of the existing firm Service Agreement term unless

Shipper elects to exercise its right to match bids from others as

outlined in Subsection 24.4.5.