Arlington Storage Company, LLC

First Revised Volume No. 1

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Effective Date: 11/08/2009, Docket: RP10-67-000, Status: Effective

Original Sheet No. 22A Original Sheet No. 22A

 

FSS RATE SCHEDULE

FIRM STORAGE SERVICE

(Continued)

 

5. TERM AND RIGHT OF FIRST REFUSAL

 

5.1 The term for service under this Rate Schedule shall be as set forth in the executed

Firm Storage Service Agreement.

 

5.2 Any Customer with a Firm Storage Service Agreement having a term of five (5) years or

more may exercise a right to continue to receive service under that Agreement for all

or a portion of the firm capacity under the Agreement at the expiration of the Agreement's

term, provided that Customer notifies ASC in writing twelve (12) months prior to the

expiration of the Agreement of its intent to continue service under the Agreement, and

matches the best offer made by others for such capacity or portion thereof by offering

a rate and term of Agreement that produces an equivalent or greater economic value (using

a term not to exceed five (5) years for evaluation purposes) for such capacity as

determined in accordance with the Bid Evaluation Procedures under Section 3.1(b) of the

General Terms and Conditions, provided that ASC shall not be obligated to enter into an

extension of any Agreement or continue service at any rate that does not yield an

acceptable return to ASC, nor shall ASC be obligated to enter into an extension of any

Agreement or continue service to any Customer or Replacement Customer who fails to meet

the Creditworthiness requirements set forth in Section 3.3(g) of the General Terms and

Conditions.

 

After Customer has notified ASC of its intent to continue service, the capacity available

under Customer's Agreement will be posted on ASC’s Internet website for bid in accordance

with the open season procedures set forth in Section 3.1(b)-(d) of the General Terms and

Conditions. ASC will accept bids for this capacity from the time of posting up to and

including a date designated by ASC that is no more than eleven (11) months and no less than

two (2) months prior to the date the existing Agreement is scheduled to expire. Within five

(5) Business Days of the date bidding ends, Seller will notify Customer of the bid received

having the greatest economic value, as determined by the Bid Evaluation Procedures in

accordance with Section 3.1(b) of the General Terms and Conditions. Customer will have

three (3) Business Days to notify ASC whether it will match the rate and term offered in the

best bid (term will be limited to five years), and if so will execute a new service

Agreement matching the offer prior to the termination of the existing Agreement. If no bids

are received, Customer may continue to receive service under a new Agreement at a rate agreed

to by Customer and ASC.

 

6. AUTHORIZATION, RATES, TERMS AND CHANGES

 

6.1 The Firm Storage Service Agreement and the respective obligations of the parties

hereunder are subject to all valid laws, orders, rules and regulations of duly

constituted authorities having jurisdiction, and are conditioned upon the issuance,

by FERC, and any state or local governmental agency having jurisdiction, of requisite

authorization for ASC to provide the storage service contemplated hereby and to

construct and operate the facilities necessary to provide such service and for any

connected pipeline to transport Gas to/from the Point(s) of Receipt/Delivery necessary

to effect the service provided for herein.