B-R Pipeline Company

Original Volume No. 1

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Effective Date: 05/01/2004, Docket: RP04-224-000, Status: Effective

Original Sheet No. 92 Original Sheet No. 92 : Effective

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

20. CAPACITY RELEASE (Continued)

 

(g) The Economic Value of a bid: The total net present value

of the reservation charge bid for the release of

transportation capacity. The net present value shall be computed

from the monthly demand and capacity, or reservation revenues to

be received over the term of the release contract, using the

discounted cash flow rate of return methodology, with the rate of

discounting to be published on Transporter's EBB and/or

Designated Site, as amended from time to time.

 

Pursuant to NAESB Standard 5.3.3: For the capacity release business

process timing model, only the following methodologies are required

to be supported by capacity release service providers and provided to

releasing shippers as choices from which they may select and,

once chosen, should be used in determining the awards from the

bid(s) submitted. They are: 1) highest rate, 2) net revenue and

3) present value. Other choices of bid evaluation methodology

(including other releasing shipper defined evaluation

methodologies) can be accorded similar timeline evaluation

treatment at the discretion of the capacity release service

provider. However, the capacity release service provider is not

required to offer other choices or similar timeline treatment for

other choices, nor, is the capacity release service provider held

to the timeline should the releasing shipper elect another method

of evaluation.

 

(h) Open Season: The minimum number of business days allowed

for posting releases and accepting bids.

 

20.2. General Provisions.

 

The Capacity Release timeline is applicable to all

parties involved in the Capacity Release process; however, it is

only applicable if (1) all information provided by the parties to

the transaction is valid and the acquiring shipper has been

determined to be credit worthy before the capacity release bid is

tendered and (2) there are no special terms or conditions of the

release. (NAESB 5.3.1)