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. 1056 Original Sheet No. 1056

 

GENERAL TERMS AND CONDITIONS

Section 16

(Continued)

 

 

(d) Awards:

 

The capacity release bid that meets the criteria set forth

herein and is determined based upon such criteria to be the

winning bid for the capacity subject to the bidding process

is the "Best Bid".

 

In the event the Releasing Customer does not specify a

standard to be applied in determining the Best Bid, Gulf

Crossing will select the Best Bid based on the bid which

generates the highest present value. Present value will be

calculated based on a discount rate equivalent to a fifteen

percent (15%) pre-tax rate of return.

 

If a Potential Customer fails to eliminate a contingency

within the prescribed time frame, the capacity shall be

awarded to the next highest bidder.

 

Capacity shall be awarded based upon the Best Bid. If two

or more bids are equivalent based upon the Best Bid

criteria, then the bid with the shortest term will be the

Best Bid. If the bids are identical, then the bid

submitted first in time will be designated the Best Bid

unless the Releasing Customer has identified an alternate

tie-breaking method in its offer.

 

If there are multiple bids meeting the offer conditions,

Gulf Crossing shall rank the bids and award the capacity,

best bid first, until all offered capacity is awarded.

 

Gulf Crossing shall be entitled to reject any bid which

does not match the conditions set forth in the offer.

Notwithstanding anything to the contrary, a Potential

and/or Replacement Customer that does not receive the

amount of capacity that it requested may reject the

capacity awarded.