Caledonia Gas And Storage

Original Volume No. 1

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Effective Date: 12/05/2007, Docket: RP08- 57-000, Status: Effective

First Revised Sheet No. 11 First Revised Sheet No. 11 : Effective

Superseding: Superseding Original Sheet No. 11

7. AUTHORIZATION, RATES, TERMS AND CHANGES

(a) Customer’s FSS Service Agreement(s) 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 Caledonia to

provide the storage service contemplated herein and to construct and operate

the gas storage facilities necessary to provide such storage service and for

any connected pipeline to transport natural gas to/from the Point(s) of

Receipt/Delivery necessary to effect the storage service provided

herein.

 

(b) Caledonia shall have the right to propose to FERC or any other

governing regulatory body such changes in its rates and terms of service as it

deems necessary, and this FSS Service Agreement shall be deemed to include any

changes which are made effective pursuant to an order or regulation or

provisions of law, without prejudice to Customer’s right to protest the same;

provided however, that any negotiated rates between Caledonia and its

Customer(s) shall remain in effect during the term of the FSS Service

Agreement(s).

 

8. RIGHT OF FIRST REFUSAL

(a) Right of First Refusal at End of Contract Term - on or after December

5, 2007. Caledonia may discontinue service to Customer at the end of a

primary term of an FSS Agreement with a primary term beginning date on or

after November 19, 2007, unless (i) Caledonia and Customer mutually agree to a

right of first refusal, which shall be negotiated on a not unduly

discriminatory basis, and (ii) Customer exercises its right of first refusal

for the capacity covered by the FSS Service Agreement by matching the

acceptable terms offered to Caledonia during an open season, conducted

pursuant to Section 3.1 of the General Terms and Conditions, for such capacity

by any qualified prospective successor Customer.

 

(b) Right of First Refusal at End of Contract Term - Prior to December 5,

2007. A right of first refusal shall be available on a one-time basis to

Customers holding a Long-term FSS Service Agreement with a primary term

beginning date prior to December 5, 2007. Caledonia may discontinue service

to Customer at the end of the primary term of Customer’s Long-term FSS Service

Agreement unless Customer exercises its right of first refusal for the

capacity covered by the Long-term FSS Agreement by matching the acceptable

terms offered to Caledonia during an open season, conducted pursuant to

Section 3.2 of the General Terms and Conditions, for such capacity by any

qualified prospective successor Customer. A "Long-term FSS Agreement," as

that term is used in this Section, is a FSS Service Agreement having a primary

term of three (3) years or more. A prospective successor Customer is

"qualified," within the meaning of this Section, if such prospective successor

Customer meets the creditworthiness criteria set forth in Sections 3 and 24 of

the General Terms and Conditions.