Paiute Pipeline Company

Second Revised Volume No. 1-A

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Effective Date: 06/01/1997, Docket: RP97-136-001, Status: Effective

First Revised Sheet No. 108 First Revised Sheet No. 108 : Effective

Superseding: Substitute Original Sheet No. 108

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

14. CAPACITY RELEASE (Continued)

 

14.2 General Provisions: (Continued)

 

addition to the bid amounts. The Releasing Shipper shall not

be responsible for continuing to pay such variable cost and

surcharge rate components included in Paiute's rates for the

capacity released during the term of each release.

 

(h) Paiute shall determine the winning bid. Unless Releasing

Shipper specifies otherwise, bids will be evaluated based on

the Economic Value of a Bid. If the Economic Value of a bid

is equal on more than one bid, Paiute shall determine the

winning bid(s) using any non-discriminatory tie-breaking

method specified by the Releasing Shipper, and if no method

has been specified, then by holding a lottery using a

computerized random number generator. A Releasing Shipper

may specify and post to Paiute's Electronic Bulletin Board

an objectively stated, non-discriminatory standard for

Paiute to use in determining the best bid(s), including the

criteria to be used by Paiute in evaluating volumetric or

combination rate bid(s). If Releasing Shipper provides

insufficient criteria for Paiute to use in evaluating

volumetric or combination bid(s), Paiute will evaluate

volumetric bids based on the rate which is bid and will

evaluate combination bids based only on the reservation

portion of each bid.

 

(i) A Replacement Shipper or Prearranged Replacement Shipper

must comply with Section 7.6 of the General Terms and

Conditions of this Tariff. Such Shipper must submit a

request for prequalification for creditworthiness as a

Shipper to Paiute in order to expedite implementation of

capacity release service. If no creditworthy bids are

submitted, the capacity release process shall terminate, but

the Releasing Shipper may elect to request a release of the

subject capacity at a later time.

 

(j) Releasing Shipper is responsible for payment of reservation

charges for the release of transportation capacity, under

the Firm Transportation Service Agreement as it existed

before any release(s). Paiute shall not be liable to the

Releasing Shipper for the revenue credits provided for in

Section 15 of the General Terms and Conditions of this