Crossroads Pipeline Company

First Revised Volume No. 1

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Effective Date: 11/01/2001, Docket: RP02- 14-000, Status: Effective

Original Sheet No. 66 Original Sheet No. 66 : Superseded

 

GENERAL TERMS AND CONDITIONS

(Continued)

(c) Assessing Bids.

(1) Transporter shall assess the bids to assure that capacity is available to serve the

precise delivery point(s) requested. If capacity is not available, Transporter shall reject the bids

and advise Shipper.

(2) Transporter shall evaluate bids based upon their net Present Value as set forth

below, taking into account the price and term offered. Transporter shall use the current Commission-

approved interest rate in calculating the net Present Value of bids. Capacity shall be awarded, as

set forth in paragraph (d) below, based on the acceptable highest value of the bids offered to

Transporter calculated in accordance with this Section. Transporter shall publish the winning bids

on its EBB.

(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 and longest term that such holder must match are the Recourse Rate and five years,

respectively; 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 two business 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.