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
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.