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Effective Date: 03/08/2010, Docket: RP10-366-000, Status: Superseded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. 2305 Original Sheet No. 2305

 

GENERAL TERMS AND CONDITIONS

Section 11

(Cont'd)

 

 

(v) Texas Gas shall notify the Customer with the Best Bid(s) ("Best

Bidder(s)") by telephone within 10 minutes following the close of

the auction. The Best Bidder(s) shall, within 10 minutes of

notification, accept the capacity by notifying Texas Gas by

telephone. Any Best Bidder(s) not accepting its bid prior to the

10-minute deadline will forfeit its capacity and Texas Gas will

award the forfeited capacity to the next highest bidder. The next

highest bidder will then accept its capacity within 10 minutes of

notification or forfeit the capacity. If the Best Bidder(s) fail

to accept the capacity within the 10-minute deadline, it will be

required to pay the difference between the contract rate (as

established by the Best Bid(s)) and the price received for the

capacity when it is resold in a subsequent auction, multiplied by

the volumes of the Best Bidder's highest bid. If the Best

Bidder(s) fail to accept the capacity within the 10-minute

deadline, Texas Gas shall have the ability to re-auction the

capacity.

 

(e) The Best Bidder(s) shall, within 24 hours, execute a new service agreement

setting forth the terms and conditions of the Best Bid(s). The new service

agreement will be provided to the Customer before the close of business on

the day the capacity has been awarded. If the Best Bidder(s) fail to

timely execute the new service agreement, it will be required to pay the

difference between the contract rate (as established by the Best Bid(s))

and the price received for the capacity when it is resold in a subsequent

auction multiplied by the volumes the Best Bidder(s) matched. If the

Customer fails to timely execute the new service agreement, Texas Gas shall

have the ability to re-auction the capacity.

 

(f) Texas Gas shall post the results of the auction on its Internet Web Site no

later than the close of business on the business day following the day of

the award. The posting will include:

 

(i) name of Best Bidder(s);

(ii) Best Bid(s) rate(s);

(iii) duration on contract;

(iv) Contract Demand;

(v) injection point and withdrawal point; and

(vi) any affiliate relationship between Texas Gas and Best Bidder(s).