Algonquin Gas Transmission, LLC

Fifth Revised Volume No. 1

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Effective Date: 01/01/2009, Docket: RP09-72-000, Status: Effective

Second Revised Sheet No. 542 Second Revised Sheet No. 542

Superseding: First Revised Sheet No. 542

 

GENERAL TERMS AND CONDITIONS

(continued)

 

14. CAPACITY RELEASE (continued)

 

(3) For purposes of determining the value of a bid, Algonquin 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, Algonquin shall use a discount rate

of ten (10) percent.

 

(4) In the event of a tie, a bid with no contingency shall be accepted over a

bid with a contingency even if the bid with no contingency was received

later in time.

 

(5) 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

14.4(b) or in the Releasing Customer's Notice, as applicable, and shall

confirm to Algonquin 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 (5), the capacity will be awarded to the next highest

bidder(s) as determined pursuant to this Section 14.5(c).

 

(d) In the event that the Prearranged Customer desires to exercise its right to

match the "best bid," the Prearranged Customer must notify Algonquin via the

LINK® System.

 

(e) Algonquin shall not award capacity release offers to the Replacement Customer

until and unless the Replacement Customer meets Algonquin's creditworthiness

requirements applicable to all services it receives from Algonquin, including

the service represented by the capacity release.

 

(f) Algonquin shall post on the LINK® System and by electronic data interchange the

winning bid and the identity of the winning bidder immediately upon accepting

the winning bid.

 

14.6 Effect of Acceptance of Bid. Algonquin's acceptance of a bid shall, subject to the

other provisions hereof, result in and constitute a binding agreement (a) between

Algonquin and the Releasing Customer pursuant to which the Releasing Customer

releases the rights described in the accepted bid without being released from any of

its obligations under the Existing Service Agreement (the "Release") and (b) between

Algonquin and the bidder whose bid was accepted ("Successful Bidder") pursuant to

which the Successful Bidder acquires from Algonquin all of the Releasing Customer's

released rights under its firm Service Agreement with Algonquin that are described in

the accepted bid and the Successful Bidder agrees to perform timely and irrevocably

all obligations under the terms of the Service Agreement applicable to the released

capacity, in the form of an addendum to the Capacity Release Umbrella Agreement

incorporating the specific terms of the accepted bid ("New