Venice Gathering System, L. L. C.

Original Volume No. 1

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Effective Date: 06/01/2002, Docket: RP00-536-001, Status: Effective

First Revised Sheet No. 138 First Revised Sheet No. 138 : Effective

Superseding: Original Sheet No. 138

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

c. The Bid for Released Capacity does not

meet the minimum criteria established in

the Releasing Shipper's Offer.

 

As specified in the Releasing Shipper's Offer, the

best bid will be determined using one of the following

methods: highest rate, net revenue, or present value. If

the Releasing Shipper elects to accept volumetric bids or

volumetric bids with a minimum volumetric commitment, the

Releasing Shipper must have also specified the method to

rank competing volumetric and reservation charge bids.

 

VGS will evaluate and rank all bids and will award

bids, best bids first, until all offered capacity is

awarded. Each bid shall be subject to the rights of a

Prearranged Bidder to match the bid in accordance with

Subsection 13.9.

 

If there is a tie for the best bid, and there is no

Prearranged Replacement Shipper who has agreed to match the

best bid, the bid will be determined by means of a lottery,

with all capacity being allocated to the winner(s), unless

the Offer to Release Capacity specifies a different tie

breaker.

 

13.8 Award of Capacity and Posting of Bids

 

Upon determination and acceptance of the best bid(s),

the winning Replacement Shipper(s) will be notified in

writing and electronically by VGS. VGS will post notice on

VGS' Internet Home Page that the capacity has been awarded.

The notice will include the Replacement Shipper's name(s)

and the price, reservation quantity and term of the best

bid. A Confirmation Letter incorporating the terms of the

accepted bid shall be tendered to the Replacement Shipper(s) by

VGS within one hour of awarding capacity, and executed by the

Replacement Shipper(s).