Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

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Effective Date: 08/01/1997, Docket: RP97- 3-007, Status: Effective

First Revised Sheet No. 461 First Revised Sheet No. 461 : Superseded

Superseding: Original Sheet No. 461

GENERAL TERMS AND CONDITIONS

(Continued)

 

(B) Pipeline shall post at least twelve (12) months but no more

than twenty-four (24) months prior to the proposed

termination of a firm long term service agreement under an

Open-Access Rate Schedule on the LINKþ System and the Web

site the following information:

 

(1) Point(s) of Receipt and Point(s) of Delivery,

(2) the specific quantity available under the service

agreement to be terminated,

(3) the date of expiration,

(4) the current maximum rate applicable to the service

agreement to be terminated.

 

(C) The deadline for the submission of bids from Replacement

Customers, 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 fifth month following the month in which Pipeline posts

an applicable notice pursuant to Section 3.13(B). To be a

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

forth in Section 3.13(D). At the close of such bidding

period, Pipeline shall select among the valid bids the "best

bid(s)", as determined pursuant to Section 3.13(E), and

shall relay the relevant terms of such "best bid(s)" to the

Customer whose long-term service agreement is being

terminated by Pipeline. If Customer elects to match, as

determined by Section 3.13(F), the "best bid(s)", the

Customer 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 contractual provisions of the "best bid(s)". If

Customer does not match the "best bid(s)", then Customer's

existing long-term service agreement shall terminate and

Pipeline shall have all necessary abandonment authorization

under the Natural Gas Act. In the event there is no "best

bid(s)" for Customer to match, Section 3.13(G) shall

determine whether Customer shall be entitled to retain its

capacity and continue to receive service.

 

(D) To be a valid bid, the Replacement Customer must provide all

information and data required by Section 3.2 through 3.4 of

the General Terms and Conditions. In particular, without

limitation, the Replacement Customer must pay Pipeline a

bona fide prepayment equal to one (1) month's prepayment of

the Reservation Charge determined based on the Replacement

Customer's requested price and the desired contractual

quantity. If such Replacement Customer's bid is accepted by

Pipeline and is not matched by the Customer then, upon

commencement of service, the bona fide prepayment shall be

promptly credited to such Customer's initial bill for such

service rendered. If Replacement Customer's bid is not

considered a "best bid(s)" if it is matched or if the

Replacement Customer fails to satisfy all of Pipeline's

tariff provisions governing Customer eligibility, Pipeline