Pine Needle LNG Company, LLC
Original Volume No. 1
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Effective Date: 03/06/2007, Docket: RP07-167-002, Status: Effective
Sec. Sub. Second Revised Sheet No. 140 Sec. Sub. Second Revised Sheet No. 140 : Effective
Superseding: Second Revised Sheet No. 140
GENERAL TERMS AND CONDITIONS (Continued)
28. Off-System Capacity
From time to time, Petal may enter into transportation and/or storage
agreements and/or other approved types of services (such as Park and
Loan) with other interstate and intrastate pipeline and storage companies
or other third party providers of such services ("off-system capacity").
In the event that Petal acquires off-system capacity, Petal will use such
capacity for operational reasons or to render service for its Customers.
In the event that Petal uses off-system capacity to render service for
its Customers, it will only render service to Customers on the acquired
off-system capacity pursuant to Petal's FERC Gas Tariff and subject to
Petal's approved rates, as such tariff and rates may change from time to
time. For purposes of transactions entered into subject to this Section
28, the "shipper must have title" requirement is waived.
29. Operational Sales
29.1 Petal may sell gas from time to time to which it has retained or taken
title pursuant to the provisions of the Tariff and which is excess to its
operational requirements. Such operational sales may be made to the extent
necessary: (i) to maintain cavern pressure; (ii) to balance fuel
quantities under storage agreements; (iii) to manage storage imbalance
quantities, and (iv) to perform other operational functions in connection
with the storage services provided by Petal under the Tariff.
29.2 Operational Sales shall be subject to the Section 4.1 priority of service
provisions of the General Terms and Conditions and shall be afforded the
lowest service priority.
29.3 Petal will include in its semi-annual storage reports, filed pursuant to
Section 284.13(e) of the FERC's regulations, the source of the operational
quantities sold, the date of such sales, the quantities, the sales price,
the revenues from such operational sales, the reasons for the operational
sales, and support that the sales are limited and incidental to the
primary storage services Petal provides.
29.4 Petal will post its operational sales on its Internet website or
alternatively will utilize a third party electronic bulletin board(s).
Petal's posting on its Internet website shall include at a minimum; (1)
the level of daily quantities and whether such sales quantities shall be
made on a firm or interruptible basis; (2) the requested effective date
and term of the sale; (3) the points of delivery of gas; (4) any
additional information as may be required by Petal. Petal will request
prospective bidders to place a bid on its Internet website or in writing
(via fax or email), with such bid(s) containing the following information:
(1) bidder's legal name and the name, title, address and phone number of
the individual authorized to purchase gas; (2) bidder's price; (3)
completed bid form addressing all criteria requested by Petal in its
posting; and (4) any conditions on the prospective bidder's offer to
purchase gas. Petal shall evaluate bids and shall award such sale of gas
to the prospective bidder with the highest bid that otherwise matches all
terms and conditions requested by Petal in its posting. Petal reserves
the right, in its sole discretion, (1) to withdrawal its postings; (2)
reject all bids due to operational changes; and (3) reject any bids which
are not complete, which contain modifications to terms of the postings or
which contain terms that are operationally unacceptable.