Cheniere Creole Trail Pipeline, L.P.
Original Volume No. 1
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Effective Date: 04/28/2008, Docket: RP08-137-000, Status: Effective
Original Sheet No. 186 Original Sheet No. 186 : Pending
GENERAL TERMS AND CONDITIONS
e. the length of the term the bidder requests;
f. such other information as is required for the bid to be considered a valid
3. At the end of the six-month bidding period, Transporter shall provide
the Shipper having the Right of First Refusal with notice of the terms of any
bid, or bids acceptable to Transporter. Such notice shall occur within 30 days
from the close of the bidding process.
4. If Transporter notifies the Shipper having the Right of First Refusal of
an acceptable bid or bids, the Shipper may elect to exercise its Right of
First Refusal with respect to all or a portion of its capacity under the
applicable Service Agreement.
5. If Shipper elects to exercise its Right of First Refusal for all or a
portion of its existing capacity under the applicable Service Agreement,
Shipper will have 30 days following the date of such notice to provide
Transporter notice under Section 21.B.3 above of its decision to match the
economic value, as set forth below, of the acceptable bid for the portion of
its existing capacity Shipper chooses to retain; provided however, that
Shipper having the Right of First Refusal is only required to match the rate
up to the maximum tariff rate under its existing Service Agreement.
The economic value of the bid shall be the Net Present Value of the
reservation charges the party would pay at the rate the party bid, which shall
not be less that the minimum rate nor greater than the maximum rate, as stated
on the currently effective rate sheet for the Service over the term of the
bid. The Net Present Value shall be determined using the overall rate of
return underlying Transporter's currently effective rates.
6. If Shipper matches the economic value of the acceptable bid, Shipper
shall execute a new Service Agreement within 30-days from the date
Transporter's tenders to Shipper the new Service Agreement. The rate under the
new Service Agreement will provide the economic value of the acceptable bid.