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

Section 11

(Continued)

 

 

 

(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withdrawn prior to the close of the Bid Period.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

increments.

 

 

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.