Petal Gas Storage, L. L. C.

Original Volume No. 1

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Effective Date: 11/01/2010, Docket: RP10-1219-000, Status: Effective

First Revised Sheet No. 69 First Revised Sheet No. 69

Superseding: Original Sheet No. 69

 

FTS RATE SCHEDULE (Continued)

 

 

under the Replacement Customer's FTS Agreement, and any

penalties assessed in connection with the Replacement Customer's

use of the released capacity. Petal will retain the minimum

Usage Rate, associated volumetric surcharges, and any penalty

revenues.

 

4.3 Notification to Petal. To release its capacity rights, a Customer must

notify Petal in writing of the terms and conditions of the release.

The notification must include:

 

(a) The Releasing Customer's name, contract number, and phone

number of the individual responsible for authorizing the

release of capacity.

 

(b) The effective date(s) of the release.

 

(c) The volume(s) subject to release.

 

(d) Primary Receipt and Delivery Points.

 

(e) The minimum acceptable rate(s). NAESB Standard 5.3.26 (Version

1.9) states: The Releasing Customer should specify which one

of the following methods is acceptable for bidding on a given

capacity release offer: 1) Non-index based release - dollars

and cents, 2) Non-index based release - percentage of maximum

rate, or 3) Index-based formula as detailed in the capacity

release offer. The bids for the capacity release offer should

adhere to the method specified by the Releasing Customer. The

bidder may bid the maximum reservation rate, in Petal's tariff

or general terms and conditions, as an alternative to the

method specified by the Releasing Customer, except when the

release is index-based for a term of one year or less or

utilizes market-based rates.

 

(f) Whether the capacity is offered on a permanent or temporary

basis, and on a firm or recallable basis. If on a recallable

basis, include the conditions, if any, upon which the Releasing

Customer may recall the capacity.

 

(g) The criteria by which Petal shall evaluate the bids. A

Releasing Customer may select: 1) the present-value formula

specified in Section 4.2 of the General Terms and Conditions of

this Tariff, 2) net revenue, 3) highest rate, or 4) state its

own nondiscriminatory criteria, subject to Petal's approval.

For purposes of bid evaluation, any bid higher than Petal's

Maximum Rate shall be deemed to have been bid at Petal's

Maximum Rate.