Clear Creek Storage Company, LLC

Original Volume No. 1

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Effective Date: 06/01/2000, Docket: CP98-256-002, Status: Effective

Original Sheet No. 37 Original Sheet No. 37 : Effective

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

Clear Creek may, after receipt of a Request for Storage

Service from Customer, require that Customer furnish

additional information as a prerequisite to Clear Creek

offering to execute a Service Agreement with Customer. The

requested information may include proof of (a) Customer's

title to the Gas to be tendered and/or (b) Customer's legal

right to cause the Gas to be delivered and/or (c) Customer's

contractual and/or physical ability to cause the Gas to be

delivered to or received from Clear Creek.

 

3.3 Request Validity. Customer's request for Storage

Service shall be considered null and void if Clear Creek

has tendered an Agreement for execution to Customer and

Customer fails to execute and return the Agreement to Clear

Creek within five Days after receipt. Clear Creek will not

execute an Agreement under Rate Schedule FS unless

sufficient capacity is available.

 

3.4 Awarding of Capacity. Firm storage capacity shall

be awarded based upon the highest economic value of the

transaction to Clear Creek subject to the bidding Customer

satisfying the requirements of this tariff. Economic value

shall be determined on the basis of the product of the term

of service in years in the request, (using a term not to

exceed 20 years) and the reservation charges for each year

in the life of the Agreement agreed to in the request by the

requesting party, discounted to present value by the then-

current interest rate determined in accordance with Section

154.501(d)(1) of the Commission's Regulations. The sum of

the present value for each year in the life of the Agreement

shall be the economic value of the Agreement. If two or more

bids, with equal economic value, are received for combined

capacity in excess of the quantity of available firm

capacity, the capacity will be awarded pro rata between

these firm Customers.

 

4. Capacity Release and Reassignment.

 

Any Customer or Replacement Customer under Rate

Schedule FS may release all or any portion of its storage

capacity, but only to the extent that the released capacity

is acquired by a Replacement Customer according to the

provisions of this section. Additionally, any Customer may

release its capacity on a volumetric basis. Any Customer,

or Replacement Customer releasing capacity will be

designated a Releasing Customer. Any party purchasing

released capacity shall be designated a Replacement