U-T Offshore System, L.L.C.
Third Revised Volume No. 1
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Effective Date: 06/01/1997, Docket: RP97-146-001, Status: Effective
First Revised Sheet No. 55 First Revised Sheet No. 55 : Superseded
Superseding: Original Sheet No. 55
GENERAL TERMS AND CONDITIONS
16. RIGHT OF FIRST REFUSAL
16.1 Purpose of Section. Subject to the procedures and conditions set forth in the
following subsections of this Section 16, an existing firm shipper that is
served by U-TOS pursuant to a Transportation Agreement under Rate Schedule FT
of this tariff with a primary term of one year or longer shall be afforded a
right of first refusal, at the end of such primary term or any extension thereof
of one (1) year or longer, to continue its firm capacity entitlements under the
Transportation Agreement. Any such existing firm shipper is hereinafter
referred to as an "Existing Shipper."
16.2 Limitation on Applicability of Section. If U-TOS and the Existing Shipper agree
on the terms and conditions of continued service before the posting of available
capacity described in subsection 16.4 of this Section 16, or if U-TOS is willing
to permit the automatic extension of the Transportation Agreement in accordance
with its terms, or if the Existing Shipper has given notice of termination of
the Transportation Agreement in accordance with its terms, then U-TOS shall
forego the posting, competitive bidding, and right of first refusal procedures
of this Section 16.
16.3 Communications With U-TOS. Any communication with U-TOS under this Section 16,
including any Qualified Bid under subsection 16.5, must be addressed to the
Manager, Business Operations
U-T Offshore System
c/o ANR Pipeline Company, Operator
500 Renaissance Center
Detroit, Michigan 48243
Attention: Manager, Business Operations
16.4 Posting of Available Capacity. Not less than 180 days nor more than 270 days
prior to the end of the primary term of a Transportation Agreement between U-TOS
and an Existing Shipper, or any extension thereof for one year or longer, U-TOS
may post notice, on its industry standard Electronic Delivery Mechanism, of the
forthcoming availability of the firm capacity covered by the Transportation
Agreement, without revealing the identity of the Existing Shipper. The posted
information shall include:
(a) The date upon which the capacity would become available;
(b) The amount of the available capacity, by receipt point, delivery point,
and in total;
(c) The maximum reservation charge stated on the then-effective Sheet No. 4 of
(d) Any other terms or conditions that would attend use of the capacity; and
(e) A statement that any bid for the capacity shall be subject to the right of
first refusal of the Existing Shipper, as specified in this Section 16.
The information specified in this subsection 16.4 shall be posted on U-TOS'
Electronic Delivery Mechanism until 150 days prior to the end of the primary
term of the existing Transportation Agreement.