Southern Star Central Gas Pipeline, Inc.

Original Volume No. 1

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Effective Date: 07/10/2009, Docket: RP09-758-000, Status: Effective

First Revised Sheet No. 257 First Revised Sheet No. 257

Superseding: Original Sheet No. 257

 

GENERAL TERMS AND CONDITIONS

 

 

11. FIRM CAPACITY REASSIGNMENT (Cont'd)

 

There will be no extensions of the original bid period or

the pre-arranged deal match period without posting a new

release.

 

The Releasing Shipper must specify the term, quantity, and

minimum rate it is willing to accept, as well as whether the

assignment is subject to recall. Reput methods and rights

should be specified at the time of the deal. Reput methods

and rights are individually negotiated between the Releasing

Shipper and the Replacement Shipper. The Releasing Shipper

may specify further objective and non-discriminatory

conditions in its notice of release, such as (1) alternative

economic criteria for evaluating bids; (2) whether bids

using a one-part, volumetric rate will be accepted; (3)

alternate methods for breaking ties; (4) whether contingent

bids will be accepted and, if so, the method by which

contingent bids will be evaluated; (5) whether a bid for a

portion of the capacity offered will be accepted and (6)

other non-discriminatory conditions that the Releasing

Shipper retaining recall rights may specify, such as whether

it requires consent for subsequent releases of this released

capacity by the Replacement Shipper. The following

methodologies may be chosen by the Releasing Shipper to be

used in determining the awards from the bid(s) submitted:

(1) highest rate, (2) net revenue, (3) present value.

Another method of determining the awards may be specified by

the Releasing Shipper; however, if another method is chosen,

the transaction will be processed within two (2) business

days or as soon as reasonably practicable, whichever is

sooner. If a Releasing Shipper specifies its own procedures

for evaluating bids, they shall be posted on Southern Star's

CSI, objectively stated, and shall be applicable to all

potential bidders on a non-discriminatory basis. The terms

and conditions must not conflict with this FERC Gas Tariff,

and Southern Star may reject conditions which are unduly

burdensome, or to assure non-discriminatory treatment of

releases. For purposes of bidding and awarding,

maximum/minimum rates specified by the Releasing Shipper

must include the reservation rate and all demand surcharges,

as a total number or as stated separately. Releasing

Shipper has the choice to specify dollars and cents or

percents of the maximum tariff rate in the denomination of

bids. Once the