Empire Pipeline, Inc.

Original Volume No. 1

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Effective Date: 12/10/2008, Docket: CP06-5-010, Status: Effective

Original Sheet No. 196 Original Sheet No. 196

 

GENERAL TERMS AND CONDITIONS

 

 

15. PREGRANTED ABANDONMENT AND RIGHT OF FIRST REFUSAL

 

 

15.1 Eligible Service Agreements

 

Unless Transporter and Shipper expressly agree otherwise in

Shipper's service agreement, this Section 15 shall apply only to

long-term service agreements under the FT Rate Schedule at the

applicable Maximum Rates (but not those agreements excluded by

Section 14.5 or Section 17 of these General Terms and

Conditions) ("Qualifying Agreements").

 

To the extent a Shipper holding a Qualifying Agreement satisfies

the bid matching requirements of this Section 15 or Transporter

and Shipper reach agreement as contemplated by Section 15.7,

such Shipper may retain its capacity and continue to receive

firm service for which Transporter or Shipper has served notice

of termination. If Transporter receives one or more acceptable

bids for such capacity and Shipper does not satisfy the bid

matching requirements of this Section 15 or if Transporter does

not receive any acceptable bids for such capacity and

Transporter and Shipper do not reach agreement as contemplated

by Section 15.7, Shipper shall no longer have, as of the

effective date of Transporter's or Shipper's notice of

termination, rights under the Qualifying Agreement and

Transporter shall have all necessary abandonment authorizations

under the Natural Gas Act. Service agreements that are not

Qualifying Agreements ("Non-Qualifying Agreements") are not

subject to the abandonment protection of this Section 15. Upon

termination of a Non-Qualifying Agreement, Transporter shall

have all necessary abandonment authorization under the Natural

Gas Act effective as of such termination date. For purposes of

this Section 15, the term "long-term service agreement" shall

include any service agreement with a primary or extended term of

one (1) year or longer. Where Transporter and a shipper under a

Non-Qualifying Agreement agree that this Section 15 applies to

such agreement, the parties may agree to limit the applicability

of Shipper's Right of First Refusal ("ROFR") under this section

in certain respects; for example, to circumstances where

Transporter initiates the termination of the agreement, or to a

single ROFR exercise as of the end of the primary term of the

service agreement.