GENERAL TERMS AND CONDITIONS OF SERVICE
(Continued)
10. RIGHT OF FIRST REFUSAL UPON TERMINATION OF FIRM SHIPPER'S SERVICE
AGREEMENT (Continued)
10.2 (Continued)
the expiration of its contract except by agreeing to pay the
maximum applicable tariff rate. If NBP accepts any bid(s), the
original capacity holder will have ten (10) business days from the
date of notice to match the accepted bid(s) in order of economic
value (highest to lowest), provided that the original capacity
holder shall not have to match any bid rate higher than the
maximum applicable rate. NBP will announce the winning bid(s) as
soon as practicable after the close of the match period. If the
original capacity holder matches an accepted bid, the associated
capacity is awarded to the original capacity holder. If the
original capacity holder does not match an accepted bid, the
capacity shall be awarded to the highest acceptable bid(s). If
there is more than one equivalent winning bid, NBP shall award
capacity on a pro rata basis. New Shippers must execute a firm
transportation service agreement with NBP prior to service
commencement or within 30 days of a capacity award, whichever is
sooner. Original capacity holder is allowed to retain a portion
of its capacity by matching price and term according to the
procedure outlined in this provision, provided that the original
contract path is maintained.
10.3 Bids shall be evaluated on the net present value incorporating
price and term. The net present value of revenues to be received
from a Shipper bidding a Negotiated Rate shall be calculated using
the proposed reservation charge revenues and any proposed usage
charge revenues guaranteed by a minimum volume commitment or
otherwise. Where the Negotiated Rate is based on a Negotiated Rate
Formula, the future value of which cannot be determined at the
time of the bidding, NBP shall estimate the future revenues to be
received under the Negotiated Rate Formula using currently
available data.
10.4 If there are no acceptable bids received, the rate and terms of
continuing service is to be negotiated between original capacity
holder and NBP. NBP and original capacity holder shall have
twenty (20) business days from the end of the bid period to
mutually agree to acceptable terms. In the event NBP and original
capacity holder do not mutually agree to continue service,
original capacity holder shall no longer hold a right of first
refusal and NBP shall subject the capacity to a bidding process
consistent with Section 10.8. However, if during this 20-day
(Continued)
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