Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

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Effective Date: 08/01/2009, Docket: RP09-737-000, Status: Effective

Tenth Revised Sheet No. 346 Tenth Revised Sheet No. 346

Superseding: Ninth Revised Sheet No. 346

 

GENERAL TERMS AND CONDITIONS (continued)

 

 

(b) If the present value method is chosen, then Transporter shall

determine the bid or bids having the highest present value in the

same manner set forth in Article III, Section 11.6 (b) of the

General Terms and Conditions, except that Bid MSQ shall be

substituted for Bid MDQ in the formula provided therein; provided

that when injection/deliverability rights are being released

independent of space rights, then Bid MDWQ shall be substituted

for Bid MDQ in the formula.

 

(c) If the net revenue method is chosen, then Transporter shall

determine the bid or bids having the highest net revenue in the

same manner set forth In Article III, Section 11.6(c) of the

General Terms and Conditions except that Bid MSQ shall be

substituted for Bid MDQ in the formula provided therein; provided

that when injection/deliverability rights are being released

independent of space rights, then Bid MDWQ shall be substituted

for Bid MDQ in the formula.

 

(d) If a Release Request includes a Prearranged Bidder, then the

released storage rights shall be awarded to the Prearranged

Bidder (i) if its Bid has a value, determined in accordance with

Section 12.6(a), which is equal to or higher than the highest

value of the Bids submitted by all other Bidders, or (ii) if the

Prearranged Bidder agrees to match any Bid having a higher value

within the time period provided by Section 12.7.

 

(e) If only one Bidder has submitted a Bid which reflects the highest

value, then the storage rights shall be awarded to that Bidder,

subject to any Prearranged Bidder's exercise of its right of

matching as set forth above.

 

(f) Tie-breaking Procedures: The Releasing Shipper may specify a

tie-breaking procedure to be used in the event that two or more

Bidders have submitted Bids which reflect the same highest value,

subject to any Prearranged Bidder's exercise of its right of

matching. If no tie-breaking procedure is specified by the

releasing shipper, the released storage rights will be awarded to

the Bid earliest received by Transporter.

 

(g) Transporter shall only be liable to Releasing Shipper for loss or

damage to Releasing Shipper resulting from mistakes made in

Transporter's determination of the successful Bidder on a Release

Request which are the result of Transporter's negligence or

willful misconduct.

 

(h) For informational purposes only, Transporter shall post on

PASSKEY the identity of the successful Bidder and terms of the

successful bid.

 

(i) NAESB Standard 5.3.9 (Version 1.8) states: If the transportation

service provider requires amendments for each release, the

transportation service provider should automate the process of

amending contracts and this may be the subject of a global

agreement between the parties.

 

Prior to the commencement of service pursuant to the Release

Request, Transporter shall prepare and transmit to the successful

Bidder a FS Service Agreement stating the MSQ, rates, term, MDWQ,

and any special terms and conditions for each awarded release.

If the Replacement Shipper does not have an IS Service Agreement

with Transporter at the