Liberty Gas Storage, LLC
Original Volume No. 1
Contents / Previous / Next / Main Tariff Index
Effective Date: 04/15/2007, Docket: RP07-357-000, Status: Effective
Original Sheet No. 104 Original Sheet No. 104 : Effective
GENERAL TERMS AND CONDITIONS
(b) Duration. The open season shall commence at the time and day specified
and for the term indicated in the notice of open season. During this time
Liberty will accept requests for the firm and secondary firm service to be
available in its facilities.
(c) During an open season, Liberty will accept requests for firm
storage or secondary firm storage service(s) from potential Customers.
Capacity will be allocated to those prospective Customers offering to pay the
highest market-based rates. More specifically, capacity will be allocated to
those prospective Customers offering to pay the highest value to Liberty over
the term of each agreement. Liberty reserves the right to give first priority
to bids where: (i) the reservation charges meet or exceed a threshold value;
(ii) the injection capacity of the bid does not exceed one-half (1/2) of the
withdrawal capacity; and (iii) the withdrawal capacity is limited so as not to
exceed a rate that would allow the prospective Customer to withdraw its Gas in
less than twelve (12) Days. If, upon allocation of capacity to those Customers
meeting these criteria, capacity remains, Liberty may, in its sole discretion,
allocate capacity to prospective Customers offering bids meeting other
criteria. Present value of the reservation charges shall be calculated in
accordance with the following formula:
PV= 1 - (1 + i)-n x (R) x (V)
Where: i = The prime rate as published by the Wall Street Journal on the
first day of the open season plus five percent (5%) (or 500 basis points), the
sum of which is then divided by twelve (12).
n = The term of the agreement, in Months.
R = the reservation charge(s) bid
V = MSQ (Volume stated in Dth)
For example, a bid of $0.30/Dth/mo (storage reservation charge) with a MSQ of
100,000 Dth for 5 years (60 Months) and using a 7% prime rate yields a present
value of $1,348,651.15.
(d) During the allocation process conducted as part of an open season,
should requests for firm storage or secondary firm storage service exceed
available capacity, capacity will first be allocated to the highest present
value bids received for firm storage service. When remaining unallocated
capacity is not sufficient to meet the next highest present value bidder's
capacity requirements for firm storage service, that next highest bidder has
the option of declining the remaining capacity. Liberty will then
offer the remaining capacity to the next highest bidder, until all the
remaining capacity is allocated.
(e) Should the next highest present value bid in Section 3.1(c) above be
submitted by two or more prospective Customers (e.g., tied bids) and there is
insufficient remaining capacity available to serve such prospective Customers,
then capacity will be allocated to the prospective Customers on a pro rata