Northern Border Pipeline Company

First Revised Volume No. 1

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Effective Date: 05/01/2006, Docket: RP06- 72-000, Status: Suspended

Second Revised Sheet No. 300H.02 Second Revised Sheet No. 300H.02 : Suspended

Superseding: First Revised Sheet No. 300H.02

 

GENERAL TERMS AND CONDITIONS

 

38. NEGOTIATED RATES (Continued)

 

38.2 Applicability (Continued)

 

38.23 Expiring/Terminating Service

 

An existing Shipper with a right-of-first-refusal as

outlined in Section 5 of Rate Schedule T-1 may

retain all or a portion of its capacity when such

capacity is posted subject to Negotiated Rate

offers, for the lesser of five years or the term of

the Best Bid, (1) by matching the Best Bid under a

Negotiated Rate offer submitted by another Shipper

that meets or exceeds the lowest rate Company is

willing to accept for such service, (2) by paying a

Recourse Rate or discounted Recourse Rate that is

equivalent to the Negotiated Rate for the capacity

it wishes to retain, or (3) by paying the currently

effective Maximum Rate in order to retain its

contracted capacity; provided, however, that nothing

herein shall obligate Company to render service to

any Shipper at rates less than Company's then

applicable maximum tariff rates.

 

38.3 Best Bid Evaluation

 

38.31 If Company determines that it is willing to accept

Negotiated Rate bids for capacity that is available

pursuant to Section 38.2 above, it will state in its

posting, that bids will be evaluated using Method A,

as described in Subsection 27.23(a)(i), wherein the

Maximum Reservation Rate shall be the reservation

rate and/or other guaranteed revenue stream of the

Negotiated Rate bid not exceeding the Maximum Rate

applicable to such capacity.

 

If Company's posting specifies that it will accept

Negotiated Rate bids tied to an index or indices, Company

will post an assumed value for such index or indices,

where such assumed value is based on both historical and

projected index prices. This assumed value will be used

to compare Negotiated Rate bids with Recourse Rate and

discounted Recourse Rate bids; provided, however, that if

a Shipper with a Negotiated Rate bid tied to an index or

indices is awarded the capacity, such Shipper will pay

according to the actual value of the index or indices

at the time service is rendered.