Mogas Pipeline LLC (Fomerly Missouri Interstate Gas)

First Revised Volume No. 1

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Effective Date: 06/01/2008, Docket: CP06-407-002, Status: Effective

Original Sheet No. 62 Original Sheet No. 62 : Pending

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

6. Procedures for requesting service (continued)

 

(b) For purposes of this Section 6, the economic value of a bid is

(1) the total net present value of the reservation charge bid; or

(2) the value determined using the alternative criteria specified by

Transporter in its posting. The net present value shall be computed from the

monthly reservation revenues to be received over the term of the

Transportation Service Agreement, using the discounted cash flow rate of

return methodology, with the rate of discounting, as updated from time to

time, in accordance with 18 CFR 154.501(d).

 

(c) Capacity will be awarded to the Shipper that submits the bid

with the highest economic value, regardless of whether such bid is a recourse

rate, a discounted recourse rate or a negotiated rate bid; provided that the

bid with the highest value is at a rate that meets or exceeds the lowest rate

that Transporter is willing to accept for the capacity, and further provided

that a bid with a negotiated rate that exceeds the maximum rate will be

considered to be a maximum rate bid for evaluation and award purposes. If

Transporter has indicated in its posting that it is willing to accept

negotiated rate bids, such bids will be evaluated in accordance with the

criteria specified in Transporter's posting and described in Section 21.3 of

the General Terms and Conditions.

 

(d) Transporter will break ties and determine the winning bid(s) by

providing each of the tying bidders an opportunity to improve their bids by

submitting closed bids via facsimile within 24 hours of notification by

Transporter. If a tie still exists, Transporter will allocate the available

capacity on a pro rata basis to each tying bidder that has indicated in its

bid a willingness to accept a proportionate share of such capacity. A bid to

pay the maximum rate as it may vary from time to time for a given term will be

deemed superior to a bid to pay a specified dollar rate which is equal to the

Maximum Base Tariff Rate.

 

(e) Transporter will disclose the identity of the bidder making

the best bid. If the best bid is a contingent bid, Transporter will notify the

bidder making the best bid within five (5) business days following the bid

close date. That bidder will have five (5) business days following such

notification to satisfy or waive the contingency for bids of six (6) months or

longer and one (1) business day following such notification to satisfy or

waive the contingency for bids for less than six (6) months, or Transporter

may disregard such bid.

 

(f) After the economic value of each bid has been determined, and if

the capacity to be allocated to the highest bidder would not result in

awarding all of the available capacity, then Transporter, may award the

remaining capacity based on the economic value of each bid, from highest

economic value to lowest economic value, with the process of awarding capacity

to bidders continuing until all of the capacity has been awarded or until

all valid bids have been accepted.