Kentucky West Virginia Gas Company

Third Revised Volume No. 1

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Effective Date: 07/01/1993, Docket: RS92- 18-002, Status: Effective

Original Sheet No. 51 Original Sheet No. 51 : Superseded

 

 

GENERAL TERMS AND CONDITIONS (Continued)

 

releasing customer, Pipeline will award the released capacity

based on the application of the following criteria:

 

(i) If there is only one valid bid, Pipeline will award the

released capacity to that bidder;

(ii) If more than one valid bid is received, Pipeline will

award the released capacity to the bidder offering the

maximum applicable rate for the maximum term specified

by the releasing customer;

(iii) If more than one valid bid is received and none offers

the maximum applicable rate for the maximum term,

Pipeline will award the capacity to the bid offering the

maximum revenue over the minimum term of the release.

(iv) If two or more equal bids are received, Pipeline will

award the capacity on the basis of the tie-breaker

criteria provided by the releasing customer. If no tie

-breaker criteria are provided by the releasing customer,

then capacity will be awarded on the basis of a lottery to

be held within two (2) business days of the close of the

bidding period. After giving notice of one (1) business

day, Pipeline will conduct a lottery on a

nondiscriminatory basis and the effected parties will

have the right to attend. Capacity shall be awarded on

the basis of draw on an all or nothing basis.

 

25.9 Right of First Refusal

 

In the case of a pre-arranged bid, if the bid submitted by a

subsequent bidder exceeds the value of the bid submitted by

the pre-arranged replacement customer, the pre-arranged

replacement customer will be given the opportunity to match

the terms of the subsequent bid. Within one (1) business

day of the close of the bidding period, Pipeline will notify the

releasing customer and the pre-arranged replacement customer of

the terms of the better bid. The pre-arranged replacement

customer will then have one (1) business day to match

those terms. Otherwise, the capacity will be awarded to the

other bidder.

 

25.10 Capacity Not Released

 

The releasing customer shall retain all of the capacity that is

not acquired by a replacement shipper as the result of the

bidding process or a pre-arranged deal.