Egan Hub Storage, LLC

First Revised Volume No. 1

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

Original Sheet No. 118A Original Sheet No. 118A

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

(3) For purposes of determining the value of a bid, Egan

Hub shall use only the reservation charge (including reservation charges

stated on a volumetric basis). If the bid evaluation method specified by the

Releasing Customer is present value, Egan Hub shall use a discount rate of

ten (10) percent.

 

(4) If the winning bid is a contingent bid, the bidder

that submitted such contingent bid will be required to satisfy or eliminate

any contingency in accordance with the capacity release timeline set forth

in Section 4.3 or in the Releasing Customer's offer to release capacity, as

applicable, and shall confirm to Egan Hub via e-mail to link-

help@spectraenergy.com that the contingency has been satisfied or

eliminated. In the event that such bidder fails to satisfy or eliminate its

contingency pursuant to this subsection (4), the capacity will be awarded to

the next highest bidder(s) as determined pursuant to Section 4.7(b).

 

(c) In the event that Prearranged Customer desires to exercise

its right to match the "best bid," Prearranged Customer must notify Egan Hub

via the LINK® System..

 

4.8 Qualification of Prospective Replacement Customer. A prospective

Replacement Customer must be on Egan Hub's approved bidders list before bids

may be posted on the LINK® System, must satisfy all requirements of the

applicable rate schedule and the General Terms and Conditions of this FERC

Gas Tariff and must have executed a Capacity Release Umbrella Agreement. To

be on the approved bidders list, the prospective Replacement Customer must

satisfy Egan Hub's credit requirements as outlined in Section 3 of the

General Terms and Conditions, and provide the information required by

Section 3 of the General Terms and Conditions. Such credit appraisal shall

be reevaluated and updated pursuant to Section 3.4 of the General Terms and

Conditions. The prospective Replacement Customer shall remain on the

approved bidders list until such prospective Replacement Customer (i)

notifies Egan Hub to the contrary, (ii) no longer meets the credit

qualifications established in Section 3 of the General Terms and Conditions,

or (iii) is suspended from the approved bidders list in the event, and for

such time as, such Replacement or Prearranged Customer fails to pay part or

all of the amount of any bill for service in accordance with Section 14 of

the General Terms and Conditions. Egan Hub will apply its creditworthiness

criteria to assess the submission. Egan Hub will waive the creditworthiness

requirement on a non-discriminatory basis for Replacement Customers and

permit them to submit bids, if the Releasing Customer provides Egan Hub with

a guarantee or other form of credit assurance in form and substance

satisfactory to Egan Hub of all financial obligations of the Replacement

Customer with respect to the capacity being released by Releasing Customer

prior to the commencement of service to the Replacement Customer.

 

4.9 Nominations. Following its selection, and prior to the flow of

Gas, the Replacement Customer shall be permitted to submit nominations

pursuant to the terms and conditions of the applicable rate schedule and the

General Terms and Conditions of this FERC Gas Tariff.