Columbia Gas Transmission LLC
Third Revised Volume No. 1
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Effective Date: 05/01/2010, Docket: RP10-577-000, Status: Pending
First Revised Sheet No. 278 First Revised Sheet No. 278
Superseding: Original Sheet No. 278
GENERAL TERMS AND CONDITIONS (Cont'd)
4. AUCTIONS OF AVAILABLE FIRM SERVICE
This Section governs the manner in which requests for firm services shall be accommodated by
Transporter when capacity is or becomes available, unless otherwise indicated in the applicable Rate Schedule.
With the exception of capacity referenced in Section 4.2(j)(i)(3), this Section applies to existing firm
capacity that may become available and not to new pipeline capacity. Additional provisions governing auctions
of service under specific Rate Schedules are set forth in individual Rate Schedules in this Tariff.
4.1 Circumstances Under Which Capacity Becomes Available.
(a) Termination of Short-Term Service Agreements. Upon the termination of any firm Service
Agreement having a term of less than one year, the capacity associated with such terminated Service Agreement
shall be made available for bidding under the procedures described at Section 4.2 below, provided that: (i)
the capacity is not previously committed under the terms of this Tariff and (ii) facility capacity remains
(b) Continuing Service Under Certain Long-Term Agreements.
(1) Transporter shall notify Shipper in writing of the upcoming expiration or termination
of any firm Service Agreement with a term of 12 or more consecutive months of service or any firm
multi-year seasonal Service Agreement (a long-term Service Agreement) at the applicable Recourse Rate
for that service, and will provide such notice at least 30 days before Shipper is obligated to notify
Transporter of its intent to exercise its right of first refusal or other service continuation rights
under the Service Agreement as described in paragraph (c)(2) below. Upon completion of the term of any
long-term Service Agreement, Shipper shall have the right to continue receiving service under that
long-term Service Agreement if that Service Agreement is at the Recourse Rate and (i) contains a
provision that continues service absent notice of termination by Transporter or Shipper (an evergreen
provision) and neither party has provided such notice, (ii) otherwise extends beyond that term
according to its terms, or (iii) does not provide for pregranted abandonment and Shipper executes a new
long-term Service Agreement at the Recourse Rate. If the above requirements are not satisfied at the
termination date of the primary term of a long-term Service Agreement, service under that long-term
Service Agreement (regardless of the origination date of that long-term Service Agreement) shall be
subject to the termination and right of first refusal provisions set forth at paragraph (c) below.
(2) Prior to the expiration of the term of any Recourse Rate, discounted rate or
negotiated rate long-term Service Agreement(s), Transporter and Shipper may mutually agree to
renegotiate the terms of such agreement(s) in exchange for Shipper's agreement to extend the use of at
least part of its existing service under such restructured Service Agreement(s). Such restructured
Service Agreements shall be negotiated on a case-by-case basis in a not unduly discriminatory manner.
If the Service Agreement(s) has a regulatory right of first refusal, Transporter and Shipper must reach
the agreement to extend prior to initiation of the right of first refusal procedure, which is the date
the capacity must be posted for auction pursuant to Section 4.1(c)(3). To the extent that Transporter
and Shipper mutually agree to such an arrangement, the requirements of Section 4.1(c) shall not be