Questar Overthrust Pipeline Company
Second Revised Volume No. 1-A
Contents / Previous / Next / Main Tariff Index
Effective Date: 04/25/2007, Docket: RP07-360-000, Status: Effective
Original Sheet No. 60 Original Sheet No. 60 : Effective
GENERAL TERMS AND CONDITIONS
(e) A bidding Shipper submitting a contingent bid must notify
Overthrust and the releasing Shipper, via Questline, when all contingencies
have been met.
(f) A bidding Shipper may withdraw its bid prior to the end of
the bidding period. However, once a bid is withdrawn, the bidding Shipper
may only submit a new bid for that released capacity at a higher rate.
(g) A bid may not be withdrawn after the close of the bid
8.11 Awarding of Released Capacity. When the capacity-release service
provider (Overthrust) makes awards of capacity for which there have been
multiple bids meeting minimum conditions, the capacity-release facilitator
(Overthrust) shall award the bids, best bid first, until all offered capacity
(a) Temporarily released capacity shall be awarded to the
bidding Shipper that makes the best offer based on the criteria specified by
the releasing Shipper or the present value formula defined below.
(b) Permanently released capacity shall be awarded to the
replacement Shipper that offers a rate and term yielding a present value
equal to or greater than the present value of the releasing Shipper's
transportation service agreement. The present value shall be calculated
using the formula stated below. Acceptance shall be conditioned upon the
replacement Shipper satisfying Overthrust's creditworthiness standards and
(c) 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.
(d) If two or more bids are of equal value, the capacity shall
be awarded according to the criteria specified by the releasing Shipper. If
no method for awarding bids of equal value is specified, the capacity shall
be awarded to those bidders pro rata based on the ratio the quantity bid by
those bidders bears to the total quantity bid by all bidders multiplied by
the quantity of capacity released.