Caprock Pipeline Company
First Revised Volume No. 1
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Effective Date: 09/01/1999, Docket: RP99-452-000, Status: Effective
Original Sheet No. 25A Original Sheet No. 25A : Effective
EXAMPLE (7) Assume:
Capacity Release Request = 100,000/day for 5 years
Qualified Bids (which were all received through the DART system):
Maximum Bid Unit Bid Minimum
Volume Term Value Bid Volume
----------- ------- -------- ----------
Bid (a) 50,000/day 5 years $.18 50,000
Bid (b) 50,000/day 5 years $.18 50,000
Bid (c) 50,000/day 5 years $.18 50,000
Winning Qualified Bids: The two Qualified Bids shown as received
earliest by Transporter's DART system shall each receive their
Maximum Bid Volume.
Explanation: Clearly, any two Bids in combination have the same
Winning Bid Value. Since the Bids are completely inflexible and have
equivalent Maximum Bid Volumes and equivalent Minimum Bid Volumes,
only Section 13.10(d)(3)(C) can be used to break the tie. The tie
breaker looks to the Qualified Bid(s) shown as received earliest on
Transporter's DART system.
(e) In no event shall this Section 13.10 result in
winning Qualified Bids with a total volume in excess of the capacity
specified in the Capacity Release Request.
(f) The bid evaluation procedure set forth in this
Section 13.10 shall only consider Qualified Bids to the extent they
provide for an objectively quantifiable payment by the Qualified
Bidder. A Qualified Bid based on a percentage of Transporter's
reservation charge shall be evaluated by Transporter based solely on
the maximum reservation charge being charged by Transporter for such
service as of the end of the open season.