Texas Gas Transmission, LLC
Third Revised Volume No. 1
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Effective Date: 03/08/2010, Docket: RP10-366-000, Status: Superseded
Original Sheet No. 2304 Original Sheet No. 2304
GENERAL TERMS AND CONDITIONS
(c) Texas Gas will post a notice announcing the date of the auction for the
FSS-M or ISS-M storage capacity. This notice will outline the auction
start time(s) and all steps necessary to participate/bid in the auction.
For auctions of FSS-M storage capacity, this notice shall not be less than
48 hours prior to the commencement of the auction. For auctions of ISS-M
storage capacity, Texas Gas will post notice by 10:00 a.m. on the day of
the auction. If a Customer requests an auction, the parties will agree on
a term and the minimum acceptable price for the capacity before the auction
will be posted. If the parties are unable to agree on an acceptable price
for the capacity, or if Texas Gas initiates the auction, Texas Gas will
select a term for the capacity being auctioned and set the minimum
acceptable price, provided that the minimum acceptable price for the
capacity will not be greater than $1.8657 per MMBtu of maximum storage
quantity ("Reserve Price").
(d) Texas Gas will accept bids for FSS-M or ISS-M capacity through an auction
conducted through its Internet Web Site. If more than one Package of
capacity has been noticed for auction, a separate auction will be conducted
for each Package. For FSS-M capacity, the Package will be auctioned within
specified sequential time periods as set forth in the notice. For ISS-M
capacity, the Package will be auctioned during the bidding period of at
least 10 minutes established by the notice.
(i) All bids shall be binding on the Bidder. A bid can be withdrawn
during the bidding period; however, any new or changed bid cannot
have a lesser NPV than the Bidder's previous bid.
(ii) Texas Gas reserves the right to reject any bid which would require
it to offer FSS-M or ISS-M service below the minimum acceptable bid.
(iii) At the end of the bid period, Texas Gas will determine the "Best
Bid(s)" based upon the bid(s) that has the highest rate per MMBtu,
up to the total Package capacity. If Texas Gas receives two or more
equal bids that would qualify as the Best Bid(s) for the capacity
being auctioned, Texas Gas will award to each Bidder its total bid
if the total capacity of the combined Best Bids is equal to or less
than the total Package capacity available; provided, however, if the
total capacity of the combined Best Bids is greater than the total
Package capacity available, Texas Gas will allocate the volumes
between Bidders based upon their pro rata Best Bid(s) volume.
(iv) Steps (i) through (iii) above will occur for each Package of FSS-M
or ISS-M capacity and will be completed before the subsequent
Package of capacity is auctioned. This process will continue until
all Packages included in the notice have been auctioned.