Mississippi Canyon Gas Pipeline, LLC
First Revised Volume No. 1
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Effective Date: 12/20/1998, Docket: CP96-159-006, Status: Effective
Original Sheet No.133 Original Sheet No.133 : Effective
GENERAL TERMS AND CONDITIONS (cont'd)
19.6 Offer and Bid Procedures - (h) (cont'd)
(i) the bid (or bidder) does not comply with all of the terms
and conditions and deadlines of this Section 19.
(ii) the bid submitted exceeds the bidder's preapproved credit term or limits;
(iii) the bid is for capacity at Delivery and Receipt Point(s)
other than those points specified in the Offer; or
(iv) the bid does not meet the minimum terms of the RELEASING
SHIPPER's Offer; or
(v) the bid contains a contingency that is not allowed by the
Offer or the bidder has not removed the contingency by the
deadline set forth in the Offer.
(i) The Best Bid Determination: All bids deemed to be eligible
following Transporter's initial review pursuant to subsection
19.6(h) shall be reviewed in determining the best bid. The
best bid shall be determined by Transporter pursuant to the
economic criteria for determining the best bid set forth in
the RELEASING SHIPPER's Offer. If the Offer does not specify
the economic criteria, the eligible bids will be evaluated by
Transporter by multiplying the price bid times the volume bid.
Bids for a term of more than one (1) month that vary in price
or term shall be discounted to present value based on
currently effective Commission interest rates or such other
published, objective financial measure as posted by
Transporter in advance of the offer/bid cycle. This formula
will generate a revenue number for comparison of the bids and
the bid producing the most revenue shall be determined to be
the best bid.
If the RELEASING SHIPPER's Offer allows the reservation charge
to be bid on a volumetric rate basis as well as a reservation
charge basis, for purposes of comparing a volumetric rate bid
with a reservation charge bid to determine the best bid,
Transporter shall assume that the firm transportation quantity
requested under a volumetric rate bid will be transported each
day of the release unless another calculation is specified in
the Offer by the RELEASING SHIPPER.