Columbia Gas Transmission LLC

Third Revised Volume No. 1

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Effective Date: 03/03/2009, Docket: RP09-340-000, Status: Effective

Original Sheet No. 282 Original Sheet No. 282

 

GENERAL TERMS AND CONDITIONS (Cont'd)

 

(d) Awarding Capacity; Pro Rata Awards To Equal Bidders. Consistent with the bid assessment

criteria set forth in paragraph (c) immediately above, Transporter shall award capacity: (i) first to an

existing capacity holder that exercises a right of first refusal to match the highest value bid; provided that

the highest rate that such holder must match is the Recourse Rate ; and (ii) then to the bidder submitting the

highest value bid or if two or more bidders submit equal acceptable highest value bids then pro rata to all

bidders that submitted equivalent highest value bids based upon daily quantities requested.

 

(e) Binding Nature of Bids. All bids are binding; provided, however, that a bidder may decline to

accept a pro rata allocation of capacity resulting in an award of less than the full capacity requested if

such Shipper notifies Transporter of that decision through Transporter's EBB within one hour of Transporter's

notice to that Shipper of the pro rata allocation. Otherwise, if a successful bidder fails to execute a

Service Agreement within 15 days after such Service Agreement is tendered by Transporter, (or such later date

established by Transporter through notice to Shipper), Transporter will then award the capacity to the next

acceptable bidder on the basis of the highest net present value, as described in this Section. Shippers

failing to return such Service Agreement shall be removed from Transporter's Approved Bidders List for six

months, or less than six months if agreed to in writing by the Transporter. Nothing herein shall restrict

Transporter from pursuing any other remedies it may have against a Shipper failing to execute and return a

Service Agreement tendered by Transporter. If Transporter finds no other bid acceptable, the capacity shall

be posted again and thereby made available for a new round of bids.

 

(f) Adjustment to Bid Rate. When the rate bid by a Bidder is at least for the Maximum Base

Reservation Charge, that bid rate shall be subject to adjustment in accordance with the procedures of this

Tariff and of the Commission, unless otherwise clearly stated in the Service Agreement. When the rate bid by

a Bidder is lower than the Maximum Base Reservation Charge, that bid rate shall be subject to adjustment in

accordance with the procedures of this Tariff and of the Commission by an amount proportionate to the increase

or decrease in the Maximum Base Reservation Charge, unless otherwise clearly stated in the Service Agreement.

 

(g) Bona Fide Offers. All bids submitted for capacity pursuant to this Section must be bona fide

offers, and must be submitted electronically through Transporter's EBB or as otherwise set forth in this

Tariff. All Service Agreements entered into as a result of such bids must reflect an arms length transaction

between the bidder and Transporter.

 

(h) Relation to Section 11 of the General Terms and Conditions. With regard to the newly available

capacity subject to bidding under the terms of this Section, acceptable bids under this Section that satisfy

Transporter's stated minimum terms and conditions shall have priority over any potential claims for that

capacity under the flexible receipt and delivery point authority described at Section 11 (Flexible Primary and

Secondary Receipt and Delivery Points) of the General Terms and Conditions.

 

(i) Reserved Capacity. Transporter may elect to reserve for future expansion projects any

unsubscribed capacity or capacity under expiring or terminating service agreements where such agreements do

not have a right of first refusal or shipper does not exercise its right of first refusal ("Available

Reservation Capacity"). If Transporter elects to reserve Available Reservation Capacity, it will notify

shippers of its intent as part of Transporter's posting of the Available Reservation Capacity under this

Section 4.2(i) (Reserved Capacity) of the General Terms and Conditions. Available Reservation Capacity may be

reserved for up to one year prior to the Transporter filing for Natural Gas Act Section 7(c) certificate

approval for construction of the proposed expansion and thereafter until such expansion is placed into

service. Transporter may only reserve Available Reservation Capacity for a future expansion project for which

an open season has been held or will be held within one (1) year of the date that Transporter posts such

Available Reservation Capacity as being reserved. Any Available Reservation Capacity reserved under this

Section 4.2(i) shall be made available for transportation service pursuant to Transporter's General Terms and

Conditions on a limited-term basis up to the in-service date of the expansion project(s). Transporter reserves

the right to limit any extension rights provided in the service agreements and pursuant to Section 4.1 of the

General Terms and Conditions governing rights of first refusal commensurate with the proposed in-service date

of the expansion project.