MidContinent Express Pipeline LLC

Original Volume No. 1

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Effective Date: 04/10/2009, Docket: RP09-136-000, Status: Effective

Original Sheet No. 228 Original Sheet No. 228

 

GENERAL TERMS AND CONDITIONS

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16. PRE-GRANTED ABANDONMENT, CONTRACT ROLLOVERS AND RIGHT OF FIRST

REFUSAL

 

16.1 GENERAL

 

Subject to Section 16.3, service performed by MEP under

Part 284 of the Commission's Regulations shall expire, and shall be

automatically abandoned, upon contract termination under: (a) any

FTS transportation Agreement with a primary term of less than one

(1) Year; and (b) any ITS, IBS or PALS Agreement regardless of term.

Service under any FTS transportation Agreement with a term of one

(1) Year or greater shall expire, and shall be automatically

abandoned, on contract termination unless service is continued

pursuant to Sections 16.2 or 16.3. Rights under this Section 16

shall not be available to the extent provided in Section 2.1(b)(7)

of these General Terms and Conditions (relating to limited time

period contracts). The right of first refusal under Section 16.2

hereof shall apply to Leased Capacity to the extent provided in such

section. In addition, contractual rollovers under Section 16.3

hereof may apply to Leased Capacity.

 

16.2 RIGHT OF FIRST REFUSAL

 

(a) Any Shipper under a firm service Agreement with a

term of one (1) Year or greater (including Leased Capacity) (unless

otherwise agreed) and with a rate equal to the applicable maximum

rate shall have the right to continue receiving service after the

expiration of its existing Agreement to the extent consistent with

this Section 16.2; provided however, that with respect to Leased

Capacity, Shipper shall only be entitled to continue receiving

service on the Leased Capacity pursuant to this section through the

then remaining term of the Enogex Lease. The prior sentence shall

(unless otherwise agreed) include any such firm Agreement which

incorporates a Negotiated Rate or Negotiated Rate Formula if (unless

otherwise agreed) the revenue under such an Agreement equals or

exceeds the revenue at the applicable maximum rate. MEP shall set

out in the posting described in subsection 16.2(b) below the forms

of bids which may be submitted in the Right of First Refusal. Bids

may always be submitted in the rate form underlying the applicable

maximum rate. Bids in the form of a Negotiated Rate or Negotiated

Rate Formula may only be submitted if permitted in the posting. A

match by the existing Shipper must be made in a bid form permitted

under the posting. MEP shall not be required to provide service

under the Right of First Refusal procedure at a discount from the