Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

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Effective Date: 02/16/2003, Docket: GT02- 35-005, Status: Effective

Sub Third Revised Sheet No. 330 Sub Third Revised Sheet No. 330 : Effective

Superseding: Second Revised Sheet No. 330

 

 

GENERAL TERMS AND CONDITIONS (continued)

 

 

11.5 Bidding for Transportation Rights

 

(a) Persons that desire to bid on released transportation rights must

pre-qualify with Transporter by submitting the information

required in a Request For Service to Transporter and by

demonstrating creditworthiness in the same manner and subject to

the same standards and procedures as required for firm shippers

under Article XXVIII of these General Terms and Conditions. The

creditworthiness requirement shall be continuing in nature in the

same manner and to the same extent as prescribed for firm

shippers under Article XXVIII of these General Terms and

Conditions. Transporter will waive the creditworthiness

requirement on a non-discriminatory basis for Bidders on a

Release Request and permit them to submit Bids, if the Releasing

Shipper provides Transporter with adequate assurances on behalf

of Replacement Shipper in accordance with Article XXVIII, Section

4.5 of the General Terms and Conditions under the Replacement

Shipper's Transportation Service Agreement prior to the

commencement of service to the Replacement Shipper. Moreover, if

a potential Bidder does not meet the creditworthiness

requirements of Article XXVIII of the General Terms and

Conditions and Transporter is not able to waive these

requirements in accord with the conditions specified above, then

a potential Bidder may still qualify for participation in the

release program if it complies with Article XXVIII, Section 4.4

of the General Terms and Conditions.

 

(b) Prior to the first time a Bidder bids on a Release Request, the

Bidder shall submit to Transporter, in accord with Article XXVIII

of these General Terms and Conditions, a check in an amount equal

to the lesser of $10,000 or the total reservation charges it

would incur if its bid is accepted and it enters into a service

agreement with Transporter; provided that if Bidder has complied

with Section 11.5(a) above, Transporter shall waive this

requirement.

 

(c) Bidders prequalified pursuant to Section 11.5(a) may submit Bids

during the Bidding Period applicable to a Release Request. All

bids must be submitted via PASSKEY. In transmitting a Bid,

Bidders recognize that such Bids will be accessible by other

Bidders through PASSKEY; provided that PASSKEY will be programmed

such that upon submission all Bids will be assigned a Bid number

and the identity of the Bidder will not be revealed during the

Bidding Period.