Mobile Bay Pipeline Company

Second Revised Volume No. 1

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Effective Date: 02/01/1994, Docket: GT94- 18-000, Status: Effective

Original Sheet No. 269 Original Sheet No. 269 : Effective

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

(e) After the close of the bid period, Transporter shall review all

valid bids received from Potential Customers to determine which

bid is the "best bid". For purposes of this Section, Transporter

shall select the "best bid" based on the bid which generates the

highest net present value. Net present value will be calculated

using the formula set forth in Section 14.1(D). If two or more

bids are equivalent based upon the "best bid" criteria described

above, 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".

 

(f) The deadline for Shipper to match the "best bid" shall be 4:00

p.m., Central Time, on the following days: the tenth (10th)

business day, for a "best bid" with a term less than one (1)

year; the twentieth (20th) business day, for a "best bid" with a

term equal to or greater than one (1) year and less than five (5)

years; and the thirtieth (30th) business day, for a "best bid"

with a term equal to or greater than five (5) years, from the

date Shipper is notified by Transporter of the terms of the "best

bid". In the event Shipper fails or refuses to match the "best

bid" within the applicable period, the right of first refusal

provided by this Section shall expire and Shipper shall be deemed

to have waived any and all rights to exercise such right of first

refusal or to retain, renew or continue the subject

transportation arrangement with Transporter and abandonment of

the subject transportation arrangement by Transporter shall be

authorized upon the expiration of the subject service agreement.

 

(g) In order to match the "best bid", the Shipper must agree to match

the highest rate bid, up to the maximum rate that Transporter may

charge the Shipper's class for the particular capacity. In no

event will Shipper be required to match a contract term in excess

of twenty (20) years.

 

(h) In the event the Shipper does not match the "best bid",

Transporter shall enter into a service agreement with the

Potential Customer making the "best bid". In the event the firm