Texas Gas Transmission, LLC

Third Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

 

 

Effective Date: 08/09/2010, Docket: RP10-956-000, Status: Effective

First Revised Sheet No. 2304 First Revised Sheet No. 2304

Superseding: Original Sheet No. 2304

 

GENERAL TERMS AND CONDITIONS

Section 11

(Cont'd)

 

(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 Website. 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 A bid can be withdrawn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.