American Midstream (Midla), LLC

Sixth Revised Volume No. 1

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Effective Date: 11/01/2010, Docket: RP10-1268-000, Status: Effective

First Revised Original Sheet No. 114 First Revised Original Sheet No. 114

Superseding: Original Sheet No. 114

 

written or electronic means. Telephone calls or other verbal withdrawals shall not be

permitted. Once a bid is withdrawn, such Potential Customer may only submit a new

bid for the released capacity if such bid is at a higher rate than the withdrawn bid. Bids

received by Pipeline shall be irrevocable and binding, pending acceptance by Pipeline,

upon the expiration of the Bid Period.

 

(f) Pipeline shall select the "best bid" from among the bids received, based upon the

criteria provided by the Releasing Customer in its Customer's Notice. The criteria

submitted by the Releasing Customer must be objectively stated and must be applicable

to all Potential Customers on a non-discriminatory basis. For the capacity release

business process timing model, only the following methodologies are required to be

supported by Pipeline and provided to Customer as choices from which Releasing

Customer may select and, once chosen should be used in determining awards from the

bid(s) submitted. They are: 1) highest rate, 2) net revenue, and 3) present value. For

index-based capacity release transactions, the Releasing Customer shall provide the

necessary information and instructions to support the chosen methodology. Other

choices of bid evaluation methodology (including other Releasing Customer defined

evaluation methodologies) can be accorded similar timeline evaluation treatment at the

discretion of the Pipeline. However, Pipeline is not required to offer other choices or

similar timeline treatment for other choices, nor, is Pipeline held to the timeline should

the Releasing Customer elect another method of evaluation.

 

(g) In the event Releasing Customer elects not to submit criteria for Pipeline to utilize in

determining the "best bid," the "best bid" shall be the bid, as determined solely by

Pipeline, generating the highest net present value, using a ten percent (10%) discount

factor, based on the rate bid (reservation component), the applicable quantities, and the

term or period bid upon. If two or more bids are identical based on the "best bid" criteria

described above, the released capacity will be awarded to the Potential Customer who

submitted the "best bid" first in time.