Sea Robin Pipeline Company, LLC

Second Revised Volume No. 1

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Effective Date: 12/31/2004, Docket: RP05- 87-000, Status: Effective

Original Sheet No. 162 Original Sheet No. 162 : Effective

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

10. CONTRACTING FOR UNSUBSCRIBED CAPACITY

 

Firm capacity that is or becomes available on Sea Robin's Pipeline

System from time to time shall be allocated pursuant to the

following procedures:

 

10.1 Subject to all requirements for submitting a valid request for

firm service herein, firm capacity will be allocated to the

request(s) which on an aggregate basis generate the highest net

present value to Sea Robin. Requests for service under Rate

Schedule FTS and Rate Schedule FTS-2 shall be considered

together under the same criteria. Net present value will be

determined based on the discounted cash flow of revenues to Sea

Robin produced, lost, or affected by the request(s) for

service. In determining the highest net present value, Sea

Robin will consider objective criteria only. Such criteria may

include, without limitation, the maximum contract quantity

requested for each delivery period, the term of the service

requested, the date on which the requested service would

commence, the applicable rate and such other factors available

based on the requests for service received by Sea Robin. The

net present value discount factor used by Sea Robin will be

applied consistently to all requests for capacity being

evaluated at a particular point in time. For purposes of

determining the net present value only revenue generated by the

reservation charge component will be considered. For purposes

of evaluating requests under Rate Schedule FTS-2, Sea Robin

shall use the MDQs for the life of the reserves based on the

production profile submitted by Shipper and accepted by Sea

Robin in its request for service. Sea Robin shall calculate

NPV for FTS-2 shippers by using the 80% throughput requirement

to determine revenues generated for service under Rate Schedule

FTS-2.

 

10.2 For requests for service initially under Rate Schedule FTS-2,

Sea Robin shall post on Messenger a period of time (Initial

Open Season) for receiving requests to be evaluated

contemporaneously as provided above. Notwithstanding Section

2.3(b) herein, any request made during the Initial Open Season

may commence service later than twelve (12) months after the

Valid Date, but not later than June 1, 2000; provided that Sea

Robin shall not be required to make available firm capacity to

Shipper until the requested commence date.