GENERAL TERMS AND CONDITIONS OF SERVICE
(Continued)
10. RIGHT OF FIRST REFUSAL UPON TERMINATION OF FIRM SHIPPER'S SERVICE
AGREEMENT (Continued)
10.4 (Continued)
period the original capacity holder agrees to pay the maximum
authorized rate, the original capacity holder may determine the
term it desires and NBP must extend the original capacity holder's
contract accordingly. Only term extensions of one (1) year or
greater from the original termination date will allow the existing
shipper to retain its right of first refusal.
10.5 Shippers who terminate their service agreements are not liable for
any reservation charges or other charges applicable to the new
Shipper contracting for this capacity.
10.6 Only valid bids will be accepted. In order for a bid to be
considered valid, a bidder must be deemed creditworthy per
Paragraph 12 of these General Terms and Conditions of Service by
the close of the bid period. All bids not withdrawn prior to the
close of the bid period shall be binding. At the end of the bid
period, NBP will evaluate the bids and determine the bid(s) having
the greatest economic value as determined in Paragraph 9.1(d)of
these General Terms and Conditions of Service. Bidders may submit
valid bids for all or a portion of the capacity that is subject to
a right of first refusal provided that the original contract path
is maintained.
10.7 Right of first refusal rights held by Shipper continue to apply
following an election of termination pursuant to existing
evergreen language contained in Shipper's Firm Transportation
Service Agreement. A Shipper that holds evergreen rights in
addition to a right of first refusal under a Firm Transportation
Service Agreement must first elect termination under the evergreen
provision in order to initiate the right of first refusal process.
When either NBP or Shipper elects termination under an evergreen
provision, NBP shall not be obligated to continue Shipper's
evergreen rights on a contract extended through the right of first
refusal process. Shippers may exercise their right of first
refusal rights consistent with this Paragraph 10.
10.8 When a right of first refusal process has been completed and there
has been no award of capacity, the capacity will be offered
pursuant to General Terms and Conditions of Service Section 9.1,
which governs NBP's sale of generally available capacity where
there is no shipper with right of first refusal rights.
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