American Midstream (AlaTenn), LLC

Fifth Revised Volume No. 1

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Effective Date: 11/01/2010, Docket: RP10-1269-000, Status: Effective

First Revised Original Sheet No. 139 First Revised Original Sheet No. 139

Superseding: Original Sheet No. 139

 

GENERAL TERMS AND CONDITIONS (continued)

 

 

 

3.13 Determination of Successful Bidder

 

Transporter shall determine the successful Bidder in accordance with the following

procedures:

 

(a) Bid evaluation methodologies: The Releasing Shipper shall specify in the Release

Request one of the following bid evaluation methodologies: (i) highest rate, (ii) maximum

net revenue, or (iii) highest present value. For index-based capacity release

transactions, the Releasing Shipper should provide the necessary information and

instructions to support the chosen methodology. A Release Request may specify a

different bid evaluation methodology, but such alternate methodology may delay the

award of the capacity. If Releasing Shipper fails to specify a bid evaluation

methodology, then Transporter will use the maximum net revenue methodology to

evaluate any bids received and accepted which meet Releasing Shipper's minimum

requirements specified in the Release Request.

 

(b) Net revenue method: If the net revenue ("NR") method is chosen, Transporter shall

determine the bid or bids having the highest NR using the following formula:

 

NR = (Bid Rate) X (Bid Term) X (Bid MDQ)

 

where

 

Bid Rate = the reservation charge which Bidder

has agreed to pay; for volumetric bids the rate

is calculated by multiplying the bid rate by

30.4167 (average Days per Month in a 365 Day

Year).

 

Bid Term = the term proposed by the Bidder, in

Months.

 

Bid MDQ = the MDQ stated in the Bid.