Chandeleur Pipe Line Company

Second Revised Volume No. 1

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Effective Date: 02/01/2003, Docket: RP03-220-000, Status: Effective

Original Sheet No. 39A Original Sheet No. 39A : Effective

 

GENERAL TERMS

AND CONDITIONS

 

7.0 FIRM CAPACITY RELEASE UNDER ORDER NO. 636 (Cont'd)

 

7.6 Chandeleur Will Accept Only Bona Fide Offers

 

Chandeleur will treat bids from current

Shippers, from Shippers on Chandeleur's firm or

interruptible transportation service request

queues who are not currently shipping, and from

prequalified bidders as bona fide offers. These

classes of bidders have met Chandeleur's

creditworthiness requirements pursuant to Section

17 of the General Terms and Conditions. Potential

Replacement Shippers who have not met Chandeleur's

creditworthiness requirements must prepay for

those services for which they are submitting bids.

With respect to bids from this latter class of

Shippers, Chandeleur will require that a bid for a

capacity release longer than three months be

accompanied by a wire transfer of three (3) months

prepayments of Reservation Charges for the

capacity the potential Replacement Shipper is

attempting to acquire. If the potential

Replacement Shipper is bidding on a short-term

(less than three months) release, Chandeleur will

require that such offer be accompanied by wire

transfer of full prepayment for the capacity the

prospective Shipper is attempting to acquire.

Wire transfer must follow the bid within one (1)

business day for the bid to be considered valid.

Bids will be posted on Chandeleur's internet

website by 9:00 a.m. Central Time on the day after

the wire transfer is received. In the event the

Shipper is unsuccessful in its attempt to acquire

released capacity, Chandeleur will refund the

prepayment to the unsuccessful Shipper with

interest computed pursuant to Section 154.67(c) of

the Commission's regulations. In the event the

Shipper is successful the prepayment will be

credited to the first three (3) months' bills. In

the event the Shipper is the successful bidder,

but fails to ship any or only a part of the

capacity acquired, the Shipper will forfeit to

Chandeleur all or the remainder of the unused

Reservation Charges that have been prepaid to

Chandeleur.