Gulf Crossing Pipeline Company LLC
Original Volume No. 1
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Effective Date: 12/20/2008, Docket: RP09-61-000, Status: Effective
Original Sheet No. 801 Original Sheet No. 801
GENERAL TERMS AND CONDITIONS
(c) If more than one Package has been noticed for auction, a
separate auction will be conducted for each Package. Each
Package will be auctioned during the Bid Period established
in the notice.
(d) Gulf Crossing will auction recourse rate transactions and
negotiated rate transactions in separate auctions.
(e) All bids shall be binding on the bidder. A bid can be
withdrawn prior to the close of the Bid Period.
(f) Any bid on term, when allowed pursuant to the notice, shall
increase the term of the request by at least monthly
11.2 Award Process
When Gulf Crossing auctions capacity pursuant to Section 8.1,
such capacity shall be awarded pursuant to 8.1 (b) (Discounted
Capacity) or 8.1 (c) (Maximum Rate Requests). Capacity auctioned
pursuant to Section 10 shall be awarded pursuant to 10.2 (d)-(g).
Any other capacity auctioned will be awarded as provided below.
(a) Gulf Crossing will determine the "Winning Bid" based upon
the bid(s) that has the highest rate per Dth, up to the
total Package capacity. In the event the auction includes
negotiated rate form bids, Gulf Crossing will determine the
Winning Bid based upon the bid(s) that generates the
highest present value, using a discount rate equivalent to
fifteen percent (15%) pre tax rate of return for Gulf
Crossing, up to the total Package capacity. If Gulf
Crossing receives two or more equal bids qualifying as the
Winning Bids for the capacity being auctioned, Gulf
Crossing will award to each Bidder its total bid if the
total capacity of the combined Winning Bids is equal to or
less than the total Package capacity available. If the
total capacity of the combined Winning Bids is greater than
the total Package capacity available, Gulf Crossing will
allocate the volumes between Bidders based upon their pro
rata Winning Bid volume.