Horizon Pipeline Company, L.L.C.
Original Volume No. 1
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Effective Date: 04/18/2002, Docket: CP00-129-001, Status: Effective
Original Sheet No. 189 Original Sheet No. 189 : Effective
GENERAL TERMS AND CONDITIONS
EXAMPLE (7) Assume:
Capacity Release Request = 100,000/day for 5 years
Qualified Bids (which were all received through the DART system):
Maximum Bid Unit Bid Minimum
Volume Term Value Bid Volume
----------- ------- -------- ----------
Bid (a) 50,000/day 5 years $.18 50,000
Bid (b) 50,000/day 5 years $.18 50,000
Bid (c) 50,000/day 5 years $.18 50,000
Winning Qualified Bids: The two Qualified Bids shown as received
earliest by Horizon's DART system shall each receive their Maximum
Explanation: Clearly, any two Bids in combination have the same
Winning Bid Value. Since the Bids are completely inflexible and
have equivalent Maximum Bid Volumes and equivalent Minimum Bid
Volumes, only Section 15.10(d)(3)(C) can be used to break the tie.
The tie breaker looks to the Qualified Bid(s) shown as received
earliest on Horizon's DART system.
(e) In no event shall this Section 15.10 result in
winning Qualified Bids with a total volume in excess of the
capacity specified in the Capacity Release Request.
(f) The bid evaluation procedure set forth in this
Section 15.10 shall only consider Qualified Bids to the extent
they provide for an objectively quantifiable payment by the
Qualified Bidder. A Qualified Bid based on a percentage of
Horizon's reservation charge shall be evaluated by Horizon based
solely on the maximum reservation charge being charged by Horizon
for such service as of the end of the open season.