Eastern Shore Natural Gas Company

Second Revised Volume No. 1

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Effective Date: 10/01/2000, Docket: RP00-537-000, Status: Effective

First Revised Sheet No. 128 First Revised Sheet No. 128 : Effective

Superseding: Original Sheet No. 128





13. Right of First Refusal Procedures (continued)


(g) Notwithstanding the above, Seller shall not be

obligated to accept any bid or execute any Service

Agreement(s) at a rate less than the maximum rate

allowable under the applicable Rate Schedule(s). If no

bids are received during the bidding period, or if Seller

does not accept any bids, Buyer shall be entitled to

continue to receive service at the maximum rate and at a

term selected by Buyer, provided that Buyer executes a

new Service Agreement(s) prior to the expiration of the

term of the existing Service Agreement(s) or within

thirty (30) calendar days following the date that Seller

tenders the new Service Agreement(s) to Buyer if the new

Service Agreement(s) is tendered by Seller on or after

the expiration date of the existing Service Agreement(s).

If Buyer is unwilling to pay the maximum rate for

continued service, Buyer and Seller may agree upon a

negotiated rate between the maximum and minimum allowable

rates, as well as other mutually agreeable terms and

conditions for continued service, provided, however, in

no event shall Buyer and Seller agree upon a rate which

is less than any bid received by Seller pursuant to

Section 13 of these General Terms and Conditions and

rejected by Seller. Buyer, however, under the newly

negotiated Service Agreement forfeits its right of first



(h) In the event a Buyer provides notice to Seller to

terminate service under a Service Agreement(s) or fails

to provide notice of its intent to exercise its right of

first refusal at least six (6) months prior to the

expiration of the Service Agreement; Buyer shall have

forfeited its right of first refusal provided herein.


(i) Notwithstanding any of the above, any Service Agreement

in effect prior to the effective date of this provision

which contains a discounted or negotiated rate shall be

granted a one-time exemption and the right of first

refusal shall apply. However, after the one-time

exemption is taken, the right of first refusal will not

apply if the re-executed Service Agreement is not at the

maximum tariff rate.