U S G Pipeline Company


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Effective Date: 10/01/2002, Docket: RP00-472-001, Status: Effective

First Revised Sheet No. 32 First Revised Sheet No. 32 : Effective

Superseding: Original Sheet No. 32






7.1 Termination of Long Term Firm Service Agreements. Any

Shipper with a Long Term (twelve or more consecutive

months) FT Service Agreement at the maximum applicable

tariff rate shall be eligible to exercise a right of

first refusal to continue to receive service pursuant to

the procedure outlined in this Section. If such an

eligible Shipper, pursuant to the terms of a Long Term FT

Service Agreement, elects to terminate its agreement or

exercise its right of first refusal thereunder, the firm

capacity under such agreement shall be made available in

accord with the following:


(a) If Shipper elects to terminate its service agreement

without invoking the right of first refusal, the

availability of the capacity will be posted on

Transporter's Internet website and will be awarded

on a first come/first served basis among requesting



(b) If Shipper desires to invoke its right of first

refusal, it must notify Transporter in writing at

least 180 days prior to the expiration of such

service agreement, or it will waive such rights. If

such notice is received by Transporter, the

following procedures will apply:


(1) Transporter shall post the capacity for bidding

on its Internet website at least 60 days prior

to the termination of the service agreement.

The capacity will remain posted on

Transporter's Internet website for a minimum of

10 days with such posting containing the

following information with respect to the



(i) daily and other applicable quantity

limitations of capacity available;


(ii) primary receipt and delivery points;


(iii)maximum reservation charge as set

forth in the Summary of Rates and Charges

in Transporter's Tariff;


(iv) any applicable restrictions; and


(v) the last day of the Bidding Period.