ANR Storage Company

Original Volume No. 1

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Effective Date: 12/15/2007, Docket: RP08- 63-000, Status: Effective

Fourth Revised Sheet No. 146 Fourth Revised Sheet No. 146 : Effective

Superseding: Third Revised Sheet No. 146

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

manner and with all reasonable dispatch, nor shall such

causes or contingencies affecting such performance

relieve Customer, in whole or in part, from its

obligations to pay the monthly charges provided for in

Section 8 of these General Terms and Conditions.

 

10. PRIORITY OF SERVICE REQUESTS AND SERVICE AGREEMENTS

 

10.1 FIRM STORAGE

 

(a) Priority Of Request For Initial Firm Storage

Agreements: After notification, pursuant to

Section 13 of these General Terms and Conditions

hereof, that Seller has available firm Storage

capacity which is not subject to contract or is

released pursuant to Section 7 of Rate Schedule

FS, Seller will accept requests that Seller enter

into an Agreement for firm Storage Service.

Except as provided in Section 10.1(b) below, the

order of priority among such requests shall be

based upon the economic value of the transaction

to Seller, with the transaction producing the

greatest economic value having the highest

priority of request, provided, however, that

nothing herein shall require Seller to provide

service at any rates less than Seller's applicable

Maximum Rates, and provided further, that Seller

shall not be required to enter into Service

Agreements with terms of more than one Year unless

Customer has a long-term debt rating of at least

Baa3 according to Moody's Investors Service or

BBB- according to Standard & Poor's Corporation or

if its obligations to the Seller are guaranteed by

a person with a long-term debt rating equal to or

greater than stated above. Economic value shall

be determined on the basis of the product of the

term of service in years in the request, (using a

term not to exceed twenty (20) years) and the

Reservation Charges for each year in the life of

the Agreement agreed to in the request by the

requesting party, discounted to present value by

the then-current interest rate determined in

accordance with Section 154.501(d) of the

Commission's Rules and Regulations. The sum of

the present value for each year in the life of the

Agreement shall be the economic value of the

Agreement. In the event two or more bids with

equal economic values are received for combined

capacity in excess of the quantity of available

firm capacity, the capacity will be allocated on a

first come first served basis.