National Fuel Gas Supply Corporation

Fourth Revised Volume No. 1

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Effective Date: 09/30/2006, Docket: RP06-291-004, Status: Effective

Sub. Second Revised Sheet No. 370 Sub. Second Revised Sheet No. 370 : Pending

Superseding: First Revised Sheet No. 370

 

GENERAL TERMS AND CONDITIONS

 

 

11. PREGRANTED ABANDONMENT AND RIGHT OF FIRST REFUSAL (Cont'd.)

 

 

11.6 Notification of and Right to Match Best Bid

 

Transporter shall notify Shipper of the Best Bid by overnight

courier, provided the courier service used by Transporter makes

overnight deliveries to the address designated by Shipper for

formal written notices under Shipper's contract; otherwise

Transporter shall provide such notice in accordance with the

provisions of such contract. Upon receipt from Transporter of

notice of the Best Bid(s), Shipper shall have the right for a

period of fifteen (15) Business Days to notify Transporter whether

the Shipper is willing to match the Best Bid(s) with respect to all

or a quantitative portion of the capacity bid upon. This right to

match the Best Bid(s) shall be referred to herein as the "Right of

First Refusal" or "ROFR". Failure to notify Transporter within

said period constitutes an irrevocable waiver of Shipper's ROFR.

In order to exercise its ROFR, Shipper must agree to a combination

of rate and term that is equivalent to the Best Bid(s) on a net

present value basis, consistent with the criteria specified in

Transporter's posting.

 

If the Best Bid(s) apply to a quantitative portion of Shipper's

contract quantity, Shipper need only match the Best Bid(s) with

respect to such quantitative portion, in which case, the remaining

quantitative portion of Shipper's contract quantity will be subject

to Section 11.7 hereof.

 

If a Shipper elects to exercise its ROFR as to only a quantitative

portion of its capacity or as to only a quantitative portion of the

capacity bid upon, its rights under its service agreement shall be

reduced as follows: (i) Shipper's maximum entitlement shall be

reduced in the same proportion on each Day that Shipper is entitled

to receive service during the year; (ii) if the election is made

under a storage service agreement, then the Maximum Storage

Quantity, Maximum Daily Withdrawal Quantity and Maximum Daily

Injection Quantity shall be reduced proportionately; and (iii)

Shipper may specify the allocation of the reduction among primary

receipt and delivery points, provided however, that Transporter may

require a different allocation among receipt and/or delivery points

if Shipper's proposal is operationally infeasible or would result

in a reduction in Shipper's per unit reservation rate for capacity

and Transporter provides a written explanation to Shipper of that

result. If Shipper does not specify a particular allocation of the