Great Lakes Gas Transport, L.L.C.

Second Revised Volume No. 1

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Effective Date: 10/02/1997, Docket: RP97-510-000, Status: Effective

First Revised Sheet No. 125 First Revised Sheet No. 125 : Effective

Superseding: Original Sheet No. 125

 

GENERAL TERMS AND CONDITIONS

FOR TRANSPORTATION SERVICE

(cont'd)

 

 

11. PROCEDURES FOR AVOIDANCE OF PREGRANTED ABANDONMENT (cont'd)

 

11.4 Determination of Best Bid

 

Transporter shall review all bids from Potential Shippers received

pursuant to Section 11.3, which have not been rejected by Transporter,

to determine which bid is the "best bid(s)". For purposes of this

Section 11.4, the "best bid(s)" shall be the bid(s) yielding to

Transporter the highest net present value. Net present value shall be

calculated on the basis of the present value of the Reservation Charge

or Storage Capacity Charge and Demand Charge per unit to Transporter.

In making the determination of net present value Transporter shall

apply the same discount factor to all bids. If Transporter receives

two (2) or more mutually exclusive "best bids" during the posting

period that are not matched by Shipper, Transporter will consider the

bid submitted earliest in time to be the "best bid".

 

11.5 Right to Match Best Bid

 

Upon receipt from Transporter of notice of the "best bid(s)", Shipper

shall have the right for a thirty (30) day period to notify

Transporter whether the Shipper is willing to match the "best bid(s)".

Failure to notify Transporter within said thirty (30) day period

constitutes a non-revocable waiver of Shipper's right to match the

"best bids". In order to match the "best bid(s)", Shipper must agree

to a rate equal to or greater than the rate set forth in the "best

bid(s)" and agree to execute a service agreement for a contract term

equal to the contract term set forth in the "best bid(s)", or five (5)

years, whichever is shorter.

 

If the "best bid(s)" apply to a quantitative portion of Shipper's

contract quantity, Shipper need only match the "best bid(s)" with

respect to such quantitative portion, in which case, the remaining

quantitative portion of Shipper's contract quantity will be subject to

Section 11.6 hereof. Shipper may also match a "best bid(s)" with

respect to a quantitative portion of the capacity bid upon.