El Paso Natural Gas Company

Second Revised Volume No. 1A

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Effective Date: 04/01/2010, Docket: RP10-454-001, Status: Effective

First Revised Sheet No. 284D First Revised Sheet No. 284D

 

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

 

9. CAPACITY RELEASE PROGRAM (Continued)

 

9.9 Awarding of Released Capacity (Continued)

 

(d) If the net present value or net revenue options are selected

by the Releasing Shipper, then, at the end of the open

season, Transporter shall calculate a value for each bid

received using the appropriate formula, with the bids being

ranked in order from the highest to the lowest value.

 

(e) If no bids are received which meet or exceed all of the

minimum conditions specified by the Releasing Shipper, no

capacity shall be awarded. If any bids are received which

meet or exceed the Releasing Shipper's minimum criteria,

Transporter shall rank all such bids in accordance with the

criteria specified in the notice of release and shall award

the capacity to the successful Bidding Shipper(s). Any

Bidding Shipper who would receive less than the minimum

acceptable bid quantity shall not be obligated to accept

released capacity.

 

(f) If bids from two or more Bidding Shippers result in bids of

equal score, the Acquiring Shipper(s) shall be determined

based upon the tie breaking method designated by the

Releasing Shipper, and if none is specified, by a lottery.

The lottery shall be conducted by Transporter on a non-

discriminatory basis. Capacity shall be awarded in

accordance with the order of draw, with capacity awarded to

the first-drawn Bidding Shipper up to the quantity bid by

such Shipper, and, if any released capacity remains after

such award, it shall be offered to other Bidding Shippers in

the lottery in accordance with the order of draw. Any

Bidding Shipper who, by virtue of its place in the order of

draw, receives less than the minimum acceptable bid quantity

shall not be obligated to accept released capacity. The

results of the lottery shall be posted on Transporter's EBB.