GENERAL TERMS AND CONDITIONS
(CONTINUED)
29. RIGHT OF FIRST REFUSAL
29.1 Purpose. The purpose of this Section 29 is to provide the
necessary information pertaining to the right of long-term
firm Shippers to continue firm Transportation Service at
the expiration of their Agreements by exercising a right of
first refusal.
29.2 Eligibility. Any Shipper with a firm Agreement under a Part
284 Rate Schedule with an initial term of greater than two
(2) years must give notice to the Transporter that Shipper
desires to continue its Agreement at least two yeas in
advance of the end of the primary term of the Agreement,
and any Shipper with a firm Agreement under a Part 284 Rate
Schedule with a primary term of (i) at least twelve (12)
months of consecutive Transportation Service, or (ii) firm
Transportation Service Agreements with a primary term of
more than one (1) year for service which is not available
for twelve (12) consecutive months ("seasonal contracts")
must give notice to Transporter that Shipper desires to
continue its Agreement at least six (6) months in advance
of the end of the primary term of the Agreement. Shipper
also must agree that it will match (a) the longest term, up
to the maximum term allowed by the Commission, and (b) the
highest rate for such Service, up to the maximum Recourse
Rate, that is offered by any other person desiring such
capacity; provided, however, that Transporter shall not be
obligated to provide service at less than the maximum
Recourse Rate(s). A Shipper paying a negotiated rate which
exceeds the maximum Recourse Rate will be considered for
purposes of this Section 29.2 to be paying the maximum rate
as set forth on the Statement of Transportation Rates.
Failure of the Shipper to give the notice specified will
constitute a waiver of the Shipper's right of first
refusal.
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