GENERAL TERMS AND CONDITIONS OF SERVICE
(Continued)
10. RIGHT OF FIRST REFUSAL UPON TERMINATION OF FIRM SHIPPER'S SERVICE
AGREEMENT
Firm Shippers (original capacity holders) under NBP's firm transportation
rate schedules of this FERC Gas Tariff, Original Volume No. 1 who: (1)
hold capacity for terms greater than or equal to one (1) year at the
maximum authorized reservation charge or rate; or (2) hold multi-year
seasonal contracts at the maximum authorized reservation charge or rate,
shall have the right of first refusal at the expiration of their service
agreements, subject to the following procedures. Original capacity holders
must notify NBP one (1) year prior to the primary expiration date of their
service agreements whether they elect to terminate or not to terminate the
service agreements. The right of first refusal does not apply to interim
service agreements for capacity that has been sold on a pre-arranged basis
pursuant to Paragraph 8.1(b) of these General Terms & Conditions.
One (1) year prior to the expiration of the service agreement, NBP will
post a notice on its Internet website that the original capacity holder's
service agreement will expire and whether the original capacity holder has
either elected or not elected to terminate pursuant to this paragraph.
10.1 In the event original capacity holder elects termination, original
capacity holder shall no longer hold a right of first refusal and
NBP shall subject the capacity to a bidding process. NBP will
commence open bidding no later than three (3) months prior to the
service agreement expiration. The bid period will be no less than
five (5) business days in duration. NBP will announce the bid
winner(s) as soon as practicable after the close of the bid period,
provided, however, that NBP will have no obligation to accept any
bid(s) at rates less than the maximum applicable rate in effect.
Tied bids will be awarded on a pro rata basis. Winning Shipper(s)
and NBP must execute a new firm transportation service agreement
prior to service commencement or within thirty (30) days of a
capacity award, whichever is sooner.
10.2 In the event original capacity holder does not elect termination,
NBP will commence open bidding no later three (3) months prior to
the service agreement expiration. The bid period will be no less
than five (5) business days in duration. NBP will notify the
original capacity holder of any acceptable bid(s) as soon as
practicable, provided, however, that NBP will have no obligation to
accept any bid(s) at rates less than the maximum applicable rate in
effect. Acceptable bids will be those having the greatest economic
value as determined in Paragraph 9.1(d) of these General Terms and
Conditions of Service. In the event that NBP does not receive any
acceptable bids, the original capacity holder shall not be entitled
to continue to receive transportation service upon (Continued)
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