El Paso Insists FERC's Gulf South Order Is Model for Changes to the Right-of-First-Refusal Process That it Seeks, Despite Objection from MGI Supply

摘要

On 6/5/09 El Paso Natural Gas Co. (EPNG) (RP09-601), answering a protest filed by MGI Supply Ltd. (MGI) on June 1, attempted to further clarify the right-of-first-refusal (ROFR) process on its system and to support changes. Among the changes, EPNG specified a 10-day period to allow it and the existing shipper to negotiate a new contract if no acceptable bids were received during an open season. Additionally, if no acceptable bids were received, the existing shipper may unilaterally elect to retain the capacity in a new contract by agreeing to pay the applicable maximum rate for a term of one year or more. If, after the ten days, EPNG and the existing shipper do not agree or the existing shipper is unwilling to retain the capacity, the capacity would become generally available under the pipeline's tariff for all shippers including the existing shipper.