Questar Overthrust Pipeline Company
Second Revised Volume No. 1-A
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Effective Date: 04/25/2007, Docket: RP07-360-000, Status: Effective
Original Sheet No. 48 Original Sheet No. 48 : Effective
GENERAL TERMS AND CONDITIONS
7.7 Awarding of Capacity. Overthrust's capacity shall be awarded to
the bidding Shipper whose bid offers a rate and term that yields the highest
present value and whose terms and conditions are acceptable to Overthrust.
The present value shall be calculated using the formula stated below.
Negotiated rate bids above the maximum reservation charge, will be evaluated
using the maximum reservation charge. Overthrust's acceptance of a bid shall
be conditioned upon the Shipper satisfying Overthrust's creditworthiness
standards and eligibility requirements.
(a) Present value formula:
(Monthly Reservation Charge ) x [1-(1+i)-n ]=Present Value
( Per Unit ) [ i ] per Unit
Where: i = interest rate per month, i.e., overall
rate of return divided by 12 months.
n = term of the agreement, in months.
(b) If two or more firm Shippers have the same present value
and Overthrust's capacity is insufficient to serve the Shippers, capacity
will be allocated pro rata based on requested RDC between these firm