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

Shippers.