Pine Needle LNG Company, LLC

Original Volume No. 1

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Effective Date: 08/22/2005, Docket: RP05-516-000, Status: Effective

First Revised Sheet No. 82 First Revised Sheet No. 82 : Effective

Superseding: Original Sheet No. 82

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

 

23. RIGHT OF FIRST REFUSAL PROCEDURES (Continued)

 

23.7 In the event a Customer or Pine Needle provides notice to terminate service under a

service agreement and Customer does not notify Pine Needle in accordance with Section

23.1(b) that Customer may desire to continue to receive all or a portion of its

service entitlement under such service agreement, then Customer shall have forfeited

its right of first refusal provided herein.

 

23.8 The provisions of this Section 23 shall not apply to releases of capacity under

Section 20 of the General Terms and Conditions unless that release is a permanent

release for the remaining term of the Service Agreement and that Service Agreement is

eligible for right of first refusal provided for herein.

 

24. PROCEDURES FOR ALLOCATING AVAILABLE FIRM STORAGE CAPACITY

 

In the event firm storage capacity on Pine Needle's system becomes available other than

through the applicable provisions of Section 23, Pine Needle shall post on its EBB all

relevant terms and conditions pertaining to such capacity and will solicit bids for at least

the following periods:

 

(a) one business day for firm capacity which will be available for one month or less;

 

(b) five business days for firm capacity which will be available for more than one month

but less than 12 months; and

 

(c) 30 days for periods of 12 months or longer.

 

24.1 Pine Needle shall evaluate and determine the best bid in accordance with one of the

following two methods, with the specific method identified in its notice for bid

solicitation:

 

(a) Highest net present value of demand charges, or

 

(b) Highest rate bid, provided such bid meets Pine Needle's minimum stated term.

 

In the event Pine Needle receives two or more bids of equal value, then under method

(a) the best bid shall be the bid with the shortest term and under method (b) the best

bid shall be the bid with the longest term.

 

24.2 If two or more potential Customers submit best bids such capacity shall be allocated

to such potential Customers ratably on the basis of the quantities bid.

 

24.3 In the event a potential Customer's bid is accepted, and such potential Customer

otherwise meets all qualifications for service under Rate Schedule LNG-1 and these

General Terms and Conditions, Pine Needle shall submit a service agreement to Customer

which sets forth the terms of such bid. Customer shall execute the service agreement

within thirty (30) days of receipt of the same.

 

24.4 Notwithstanding the above, Pine Needle shall not be obligated to accept any bid or

execute a service agreement at a rate less than the maximum rate allowable under such

Rate Schedule.