American Midstream (Midla), LLC

Sixth Revised Volume No. 1

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Effective Date: 05/01/2010, Docket: RP10-483-000, Status: Effective

Original Sheet No. 194 Original Sheet No. 194

 

31.2??CAPACITY ALLOCATION

(a) To the extent the revenue level pursuant to the Negotiated Rate(s) or Negotiated

Rate Formula provided for in Section 31.1 above, as calculated under Subsection (b) of

this Section 31.2, exceeds the comparable revenue level at the Recourse Rate, the

Customer bidding or paying such Negotiated Rate(s) or rate(s) under a Negotiated Rate

Formula shall be treated, for all capacity allocation purposes, as if the rate(s) bid or paid

had been equal to the Recourse Rate.? Any Customer, existing or new, paying the

Recourse Rate(s) has the same right to capacity as a Customer willing to pay an equal or

higher Negotiated Rate(s) or rate(s) under a Negotiated Rate Formula.? If the Negotiated

Rate or the rate under a Negotiated Rate Formula is higher than the corresponding

Recourse Rate, the Recourse Rate rather than the Negotiated Rate will be used as the

price cap for release capacity pursuant to Section 4 of these General Terms and

Conditions and for any bidding for capacity pursuant to Section 7.4 of these General

Terms and Conditions.? Where the Negotiated Rate(s) or rate(s) under a Negotiated Rate

Formula results in revenue which is greater than the Recourse Rate during certain

portions of the relevant evaluation period but less than the revenue at the Recourse Rate

during other portions of the relevant evaluation period (but the revenue pursuant to the

Negotiated Rate(s) or rate(s) under a Negotiated Rate Formula equals or exceeds that

which would be generated at the Recourse Rate for the entire evaluation period), the

value of bids and requests at the Negotiated Rate(s) or rate(s) under a Negotiated Rate

Formula shall be evaluated as though the Recourse Rate applied under such bid or

request for the entire evaluation period.? Where the Negotiated Rate(s) or rate(s) under

the Negotiated Rate Formula result in revenue which is less than revenue at the

Recourse Rate over the relevant evaluation period, the value of the bids or requests at

the Negotiated Rate(s) or rate(s) under the Negotiated Rate Formula shall be evaluated

based on such lower revenue and shall be afforded a correspondingly lower priority than

bids or requests at the Recourse Rate.

(b) In allocating capacity among competing requests where one or more request is at a

Negotiated Rate or Negotiated Rate Formula, Pipeline will consider, in assigning value to

such request(s), only reservation or demand charge revenue or other revenue which is

guaranteed to be received by Pipeline (i.e., through a minimum throughput condition or

minimum bill).? For capacity evaluation purposes, the value of any such request shall be

capped by the value of the maximum applicable reservation rate for such service over

the contract term bid.