Hardy Storage Company, LLC
Original Volume No. 1
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Effective Date: 04/01/2007, Docket: CP05-150-003, Status: Effective
Original Sheet No. 58 Original Sheet No. 58 : Effective
GENERAL TERMS AND CONDITIONS (Cont'd)
4. AUCTIONS OF AVAILABLE FIRM SERVICE
This Section governs the manner in which requests for firm storage service
shall be accommodated by Seller when capacity is or becomes available,
unless otherwise indicated in the applicable Rate Schedule. This Section
applies to existing firm storage capacity that may become available and not
to new storage capacity. Additional provisions governing auctions of service
under specific Rate Schedules are set forth in individual Rate Schedules in
4.1 Circumstances Under Which Capacity Becomes Available.
(a) Termination of HSS Service Agreements. Upon the termination of
any HSS Service Agreement having a term of less than one year, the capacity
associated with such terminated HSS Service Agreement shall be made
available for bidding under the procedures described at Section 4.2 below,
provided that: (i) the capacity is not previously committed under the terms
of this Tariff and (ii) facility capacity remains available.
(b) Continuing Service Under Certain Long-Term HSS Service Agreements.
Seller shall notify Customer in writing of the upcoming expiration or
termination of any HSS Service Agreement with a term of 12 or more
consecutive months of service at the applicable Recourse Rate for that
service (a long-term HSS Service Agreement), and will provide such notice at
least 30 days before Customer is obligated to notify Seller of its intent to
exercise its right of first refusal or other service continuation rights
under the HSS Service Agreement as described in paragraph (c)(2) below.
Upon completion of the term of any long-term HSS Service Agreement, Customer
shall have the right to continue receiving service under that long-term HSS
Service Agreement if that HSS Service Agreement is at the Recourse Rate and
(i) extends beyond that term according to its terms, or (ii) does not
provide for pregranted abandonment and Customer executes a new long-term HSS
Service Agreement at the Recourse Rate. If the above requirements are not
satisfied at the termination date of the primary term of a long-term HSS
Service Agreement, service under that long-term HSS Service Agreement shall
be subject to the termination and right of first refusal provisions set
forth at paragraph (c) below.