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RULE §8.7Waivers for Contracts for the Acquisition of Non-State Gas

(a) An agency requesting a waiver of approval for a contract for the purchase of non-state gas must make a written request to GLO for such waiver and provide the following information:

  (1) a letter from the agency requesting the waiver and stating the grounds justifying such waiver, including, without limitation, any ground for waiver set out in this chapter;

  (2) copies of the existing or proposed gas purchase agreement and any related transportation agreements;

  (3) in the case of a state agency desiring a contract to purchase natural gas on a month-to-month basis, a list of spot-prices for at least the immediate past six-month period;

  (4) additional price lists during September and February; and

  (5) any additional information required in the other sections of this chapter or other information requested by GLO.

(b) Waivers may be obtained any time during the fiscal year (September 1 through August 31). Waivers shall be effective for a period of six months. However, a waiver obtained any time during the months of September through February automatically expires on the last day of February, and a waiver obtained any time during the months of March through August automatically expires on the last day of August. Waivers will not be extended.

(c) Unless determined otherwise, GLO will grant approval upon written application of the agency under the following circumstances:

  (1) if GLO can provide state gas at the same or a lower price, but neither the agency nor GLO can arrange transportation at a price which, when added to the cost of state gas, is the same or less than the cost of gas and transportation under the proposed contract for non-state gas; or

  (2) if, in its sole determination, GLO does not have sufficient state gas available to meet the agency's needs.

Source Note: The provisions of this §8.7 adopted to be effective September 30, 1992, 17 TexReg 6450.

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