Crossroads Pipeline Company

Original Volume No. 1

 Contents / Previous / Next / Main Tariff Index

 

 

Effective Date: 12/02/1999, Docket: RP00- 59-000, Status: Effective

Second Revised Sheet No. 74 Second Revised Sheet No. 74 : Effective

Superseding: First Revised Sheet No. 74

 

35.6 Bid Requirements. To be a valid bid, a bid must be in

writing and be executed by one authorized to sign

contractual agreements on behalf of the Potential Shipper,

and the Potential Shipper must in all other particulars

have complied with the requirements for a request for

service pursuant to Section 6 of these General Terms and

Conditions and meet the credit evaluation standards set

forth in Section 7 of these General Terms and Conditions.

If the Potential Shipper's bid is matched or if the

Potential Shipper fails to satisfy all of Crossroad's

Tariff provisions governing Shipper eligibility, Cross-

roads will refund the Potential Shipper's prepayment

supplied pursuant to Section 7 of the General Terms and

Conditions within thirty (30) days of the first day of

the month following notice to the Potential Shippers and

the bid has been matched or that the Potential Shipper

has failed to satisfy the tariff provisions governing

Shipper eligibility. The prepayment will not be refunded

if the bid is withdrawn by the Potential Shipper. Cross-

roads may reject all bids which would require Crossroads

to discount below a rate and discount term agreeable to

Crossroads.

 

 

35.7 Best Bid. Crossroads shall review all bids from Potential

Shippers received pursuant to Section 35.5 above, which

have not been rejected by Crossroads, to determine which

bid is the Best Bid. For purposes of this Section 35, the

Best Bid shall be the bid with the longest term which

offers the maximum applicable rate for the full term of the

bid. If no bidder offers the maximum rate for the full

term of the bid, the Best Bid shall be that bid which yields

to Crossroads the highest net present value. Net present

value shall be calculated on the basis of the present value

of the reservation charge per unit to Crossroads, except

that if a bid includes a minimum quantity, the net present

value evaluation shall also include the fixed cost component

of the usage revenue at the minimum quantity. In making

the determination of net present value, Crossroads shall

apply the rate, as of the date of the review, stated in

accordance with the most recently auctioned fifteen-year

(15) United States Treasury Bond, to all bids. In the event

of a tie, the capacity shall be allocated to the Potential

Shipper requesting capacity for a longer duration. If the

duration is the same, the capacity shall be allocated pro

rata among the Potential Shippers.

 

35.8 Matching the Best Bid. Upon written notification from

Crossroads of the terms of the Best Bid, Shipper shall

have the right for a thirty-day (30) period to notify

Crossroads whether the Shipper is willing to match the

Best Bid, provided, however, that the highest rate that

an existing Shipper must match to retain all, or a

portion, of its capacity is the applicable maximum Recourse

Rate. Failure to notify Crossroads in writing within said

thirty-day (30) period constitutes a non-revocable waiver

of Shipper's right to match the Best Bid. In order to match

the Best Bid, Shipper must agree to execute a service agree-

ment for a contract term equal to or longer than the contract

term set forth in the Best Bid, up to a period of five (5)

years; provided, however, the maximum rate an existing

Shipper must match is the maximum