Arkansas Western Pipeline Company

First Revised Volume No. 1

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Effective Date: 12/01/1993, Docket: CP92-570-005, Status: Effective

Original Sheet No. 20 Original Sheet No. 20 : Superseded

 

 

 

14.2 Transporter shall provide notice to Shipper of termination

of the Service Agreement by the amount of time equal to one-

half of the primary term of the Service Agreement or twelve

(12) months, whichever is less. When Transporter provides

a notice of termination of a long-term service agreement

under Rate Schedule FTS, within thirty (30) days of the

issuance by Transporter of such notice of termination,

Transporter shall post on its TBB system the following

information:

 

a. Points of Receipt and Points of Delivery,

 

b. the specific quantity available under the terminated

agreement,

 

c. the date of expiration,

 

d. the current maximum rate applicable to the terminated

service.

 

14.3 The deadline for the submission of bids from potential

shippers, who desire service to be provided in whole or in

part by the capacity to be made available upon termination

of a long-term service agreement, shall be the last day of

the month following the month in which Transporter posts an

applicable notice pursuant to subsection 14.2. To be a

valid bid, a bid must comply with the bid requirements set

forth in subsection 14.4. At the close of such bidding

period, Transporter shall select among the valid bids the

"best bid", as determined pursuant to subsection 14.5, and

shall relay the relevant terms of such "best bid" to the

Shipper whose long-term service agreement is being

terminated by Transporter. If Shipper elects to match, as

determined by subsection 14.6, the "best bid", the Shipper

shall be entitled to retain its capacity and continue to

receive firm service under a long-term firm service

agreement which reflects the matching of the relevant terms

of the "best bid." If Shipper does not match the "best

bid", then Shipper's existing long-term service agreement

shall terminate and Transporter shall have all necessary

abandonment authorization under the Natural Gas Act. In the

event there is no "best bid" for Shipper to match,

subsection 14.7 shall determine whether Shipper shall be

entitled to retain its capacity and continue to receive

service.