Destin Pipeline Company, L.L.C.

Original Volume No. 1

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Effective Date: 06/01/2000, Docket: RP00-268-000, Status: Effective

Second Revised Sheet No. 44 Second Revised Sheet No. 44 : Effective

Superseding: First Revised Sheet No. 44

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

Section 2.1 (continued)

 

(e) Requests When Capacity Not Available. COMPANY

shall not be obligated to accept any request for

firm transportation service unless adequate firm

capacity is available without the construction of

additional facilities by COMPANY on every portion

of COMPANY's system (including Receipt and

Delivery Point(s)) which would be utilized in such

transportation and throughout the year. To the

extent that firm capacity becomes available

(excluding capacity resulting from a system

expansion), then COMPANY shall post the capacity

on Company's Internet Web Site and accept bids on

the posted capacity for a period of not less than

15 days. Capacity subject to bidding hereunder

shall be awarded first to the contracts generating

the highest net present value (NPV); provided that

COMPANY is not obligated to award firm capacity to

any SHIPPER which is not willing to pay the

maximum rates for such service; provided further

that calculation of NPV for requests under Rate

Schedule FT-2 shall be based on SHIPPER's

requested TDs over the life of the reserves based

on the production profile submitted by SHIPPER and

accepted by COMPANY in its request for service.

COMPANY shall calculate the NPV for FT-2 SHIPPERS

by using the 70% throughput requirement to

determine revenues generated for service under

Rate Schedule FT-2. The NPV is the discounted cash

flow of incremental revenues per Dth to COMPANY

produced, lost or affected by the requests for

service and shall be based upon the term, rate and

date on which the requested service is requested

to commence. The discount factor used to

determine the NPV will be the current FERC

interest rate.

 

(f) Service Agreement. Within ten (10) business days,

or a mutually agreed-upon time, after its receipt

of all of the information required in Section

2.1(a), subject to the provisions of Sections

2.1(e) and 2.1(g) hereof, COMPANY