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. 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 However, once a bid is withdrawn, the bidding Shipper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(g) A bid may not be withdrawn after the close of the bid

period.

 

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

is awarded.

 

(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

eligibility requirements.

 

(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.