Transcolorado Gas Transmission Company LLC

Second Revised Volume No. 1

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Effective Date: 08/29/2009, Docket: RP09-845-000, Status: Effective

First Revised Sheet No. 247 First Revised Sheet No. 247

Superseding: Original Sheet No. 247

 

GENERAL TERMS AND CONDITIONS

 

7. ROLLOVER RIGHTS AND RIGHT OF FIRST REFUSAL PROCEDURES

 

7.1 ROLLOVERS

A Shipper under any Firm Transportation Service which has entered into an Agreement

thereunder with a term of three (3) years or longer shall have a right to continue receiving

service on a firm basis beyond the term of the existing Agreement and to rollover such Agreement

for a three-year or greater term, subject to the following conditions:

 

A. Shipper must give TransColorado written notice that it will utilize the

rollover procedure the earlier of (a) the date of the notice period provided for in Shipper's

contract; or (b) one-hundred eighty (180) days prior to the expiration of the term of the

contract. Such notice shall be binding on the Shipper. Any request for an increase in MDQ in

total or at any primary point shall be treated as a request for new service, but only to the

extent of the increase. Any notice hereunder specifying a decrease in MDQ in total or at any

primary point shall not affect the existing Agreement during the remainder of its term.

 

B. TransColorado and Shipper under a firm contract may agree that Shipper shall

have the right to extend the term of its existing contract pursuant to a negotiated contractual

rollover provision. TransColorado is not obligated to offer or agree, nor is Shipper required to

agree, to any such contractual rollover provision, provided however, that to the extent

Transporter offers or agrees to any such rollover provision, it must do so on a nondiscriminatory

basis for similarly situated Shippers.

 

C. Within thirty (30) days after receipt of the notice described in 7.1A,

above, TransColorado will have evaluated the creditworthiness of Shipper. If Shipper meets the

requirements of TransColorado's credit appraisal procedures, TransColorado shall tender to Shipper

an amended Service Agreement consistent with the requirements of this Tariff. Any Agreement

amended pursuant to this Section 7.1 is expressly subject to agreement between TransColorado and

Shipper as to the applicable rate(s) during the extended term under the rollover. Shipper and

TransColorado shall execute such Service Agreement within thirty (30) days after TransColorado

tenders such amended Service Agreement to Shipper.

 

D. A Shipper utilizing the full length of the TransColorado System, in

conjunction with the Blanco-Meeker Expansion Project, under a Firm Transportation Service

Agreement that has a term of ten (10) years or longer shall have contract rollover rights,

renewable for one-year terms, to be effective after expiration of the initial term and each

subsequent extended term of that Shipper's Agreement, which shall be applicable at the same rate

and quantity (or any portion of the quantity) as set forth in the then-effective Agreement. A

Shipper shall provide notice to TransColorado of its intent to extend the term of its Agreement no

later than 180 Days prior to the expiration of the initial term and each subsequent term of its

Agreement.