Maritimes & Northeast Pipeline, L.L.C.

First Revised Volume No. 1

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Effective Date: 01/01/2005, Docket: RP04-360-000, Status: Effective

Original Sheet No. 227C Original Sheet No. 227C : Superseded

 

 

GENERAL TERMS AND CONDITIONS

(continued)

 

4. ALLOCATION OF CAPACITY ENTITLEMENTS (continued)

 

(g) In the event Pipeline does not receive any bids

pursuant to Section 4.2(c) or Pipeline rejects all

bids received due to the fact that such bids were

premised on rate discount levels or rate discount

periods unacceptable to Pipeline, Pipeline and

Customer may mutually agree upon the terms and

conditions under which Customer shall be entitled to

retain its capacity and continue to receive service.

In no event shall Pipeline and Customer agree upon

terms which yield to Pipeline a net present value less

than any bid received pursuant to Section 4.2(c) and

rejected by Pipeline, and in no event shall Pipeline

be obligated to sell capacity at less than the maximum

lawful price for such capacity. In the event Pipeline

and Customer have not reached agreement on the terms

and conditions under which service will be extended,

at Customer's election, such election to be exercised

prior to the date which is five months before the

termination date, Pipeline shall tender and Customer

shall execute, within 20 Days of receipt, a new

Service Agreement reflecting service for all or part

of the contractual quantity, so long as such Customer

agrees to pay the maximum rate; provided, however, if

Pipeline and Customer mutually agree to a lower rate

which yields to Pipeline a net present value equal to

or greater than any bid received pursuant to Section

4.3 and rejected by Pipeline, the Customer does not

have to pay the maximum rate to retain the capacity.

 

(h) In the event Pipeline and Customer do not execute a

new Service Agreement pursuant to the provisions of

this Section 4.2, Pipeline shall have all necessary

pregranted abandonment authorization as to any part of

the contractual quantity which is not covered by a new

Service Agreement. The new Service Agreement must

meet all the requirements of the definition of ROFR

Agreement for Customer to continue to have the right

of first refusal pursuant to Section 4.2.

 

4.3 Capacity which is not subject to the right of first

refusal claim pursuant to Section 4.2 shall be posted as

available capacity on Pipeline's Website and shall be

marketed in accordance with Section 4.1 of Pipeline's

GT&C.