Egan Hub Storage, LLC

First Revised Volume No. 1

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Effective Date: 01/01/2009, Docket: RP09-77-000, Status: Effective

Second Revised Sheet No. 118 Second Revised Sheet No. 118

Superseding: First Revised Sheet No. 118

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

4.7 Best Bid. When Egan Hub makes awards of capacity for which there have been

multiple bids meeting minimum conditions, Egan Hub shall award the bids, best bid first, until

all offered capacity is awarded; provided, however, that in the event that both a contingent

bid and a non-contingent bid meet the minimum conditions stated in Section 4.1(l) above and

generate the "best bid," Egan Hub shall reject the contingent bid, even if the bid with no

contingency was received later in time. The capacity being awarded represents the Maximum

Daily Delivery Quantity, Maximum Daily Injection Quantity, Maximum Daily Receipt Quantity,

Maximum Daily Withdrawal Quantity, and Maximum Storage Quantity. These quantities are separate

parts of the capacity and are awarded until one of the quantities is fully awarded, at which

point all capacity is deemed to be fully awarded. Egan Hub shall evaluate and determine the

best bid among those otherwise consistent with any terms and conditions specified by the

Releasing Customer as follows:

 

(a) Egan Hub shall apply the standard or criteria for such determination

specified by the Releasing Customer, including the standard to be used for breaking ties. Any

standard or criteria so specified must be objective, economic, not unduly discriminatory, not

contrary to applicable provisions of this FERC Gas Tariff, applicable to all potential

Replacement Customers and require Egan Hub in applying such standard to exercise no more than a

ministerial function. The Releasing Customer shall indemnify and hold Egan Hub harmless from

and against all demands, losses, claims, expenses, causes of action and/or damages suffered or

incurred by Egan Hub arising out of or related to any determination of a "best bid" pursuant to

a standard specified, supplied, approved or provided by Releasing Customer.

 

(b) Egan Hub shall evaluate bids in accordance with the bid evaluation method

identified, pursuant to Section 4.1(f) of these General Terms and Conditions, in the Releasing

Customer's offer to release capacity.

 

(1) If there is only one valid bid, Egan Hub shall award the capacity to

the bidder that submitted such bid, subject to any Prearranged Customer's exercise of its

matching rights.

 

(2) If there is more than one valid bid, then, subject to any

Prearranged Customer's exercise of its matching rights, Egan Hub shall award the capacity to

the bidder whose bid yields the highest value based on the bid evaluation method specified in

the Releasing Customer's offer to release capacity, taking into account the price, volume and

term of the bid, as applicable. If more than one bid yields the same value under this

subsection (2), Egan Hub shall award the capacity according to the method specified in the

Releasing Customer's offer to release capacity as a means for awarding the released capacity

among multiple equal bids ("Tie Break Method").