Transcontinental Gas Pipe Line Company, LLC
Fourth Revised Volume No. 1
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Effective Date: 10/01/2009, Docket: RP09-970-001, Status: Effective
Second Revised Sheet No. 454 Second Revised Sheet No. 454
Superseding: First Revised Sheet No. 454
GENERAL TERMS AND CONDITIONS
42. CAPACITY RELEASE (Continued)
42.7 Submission of Offers and Bids
(a) Offers for capacity to be released and bids for released capacity shall be
submitted to Seller via 1Line or electronic data interchange. Offers are binding
until electronic notice of withdrawal is received by Seller. For each business
day, all objectively stated and nondiscriminatory approved offers for release
capacity received by Seller from Releasing Shippers will be made available on
1Line or through electronic data interchange in accordance with Section 42.9.
Where unanticipated circumstances justify, such offers may be withdrawn unless a
minimum bid has been submitted for such capacity.
(b) All potential Replacement Shippers must have satisfied Seller's requirements for
credit worthiness pursuant to Section 32 of the General Terms and Conditions of
Seller's Volume No. 1 Tariff prior to submitting a bid for firm capacity posted
by a Releasing Shipper. If a party does not qualify as a qualified Replacement
Shipper pursuant to this section, the party cannot bid on a Releasing Shipper's
(c) Submission of a bid for capacity release shall be binding, provided however, a
potential Replacement Shipper may withdraw a bid until the close of the posting
period for competitive bids. If a potential Replacement Shipper submits a new
bid for released capacity, the existing bid for the same capacity must first be
withdrawn, and any new bid for that released capacity must be at an equal or
higher value than the previous bid. Bids submitted by a Replacement Shipper are
binding until withdrawn.
(d) Only bids for reservation charges will be allowed, stated either as: (1) a rate
per dt of TCQ (for transportation reservation rate releases), (2) a rate per dt
of Storage Demand, a rate per dt of Storage Capacity and, if applicable, a rate
per dt of Storage Injection Quantity (for storage reservation rate releases), (3)
a rate per dt delivered (for transportation volumetric releases), or (4) a rate
per dt of withdrawal quantities, a rate per dt of storage balance and, if
applicable, a rate per dt of injection quantities (for storage volumetric
releases). The maximum rate applicable to capacity release transactions shall be
Seller's maximum reservation rates, maximum storage rates (storage demand,
capacity and if applicable, injection demand), maximum rate per dt delivered (for
transportation volumetric releases) or maximum rate per dt withdrawn, stored and
if applicable, injected (for storage volumetric releases) as set forth under the
applicable rate schedules. Such maximum rate shall be inclusive of any
applicable demand surcharges. For releases that become effective on or after
July 30, 2008, the maximum rate ceiling does not apply to such releases provided
the release is for a term of one year or less and the release is to take effect
on or before one year from the date on which the pipeline is notified of the
release. The rate paid in any capacity release transaction not subject to the
maximum rate ceiling will not be subject to refund.
(e) Releasing and Replacement Shippers shall hold Seller harmless with regard to any
claim which may be raised by any party regarding the selection of a Best Bid,
except to the extent that such party successfully establishes that Seller has
incorrectly selected the Best Bid as the result of the negligent action or
willful misconduct of Seller.
(f) Potential shippers bidding for capacity shall have access to other potential
shippers' bids, excluding bidder's identity, during the bidding process.
(g) Capacity offered for release by a Releasing Shipper shall be posted as a Primary
Path release. Potential Replacement Shippers shall bid for such capacity based
on the posted Primary Path.
(h) Releasing shipper may not extend the bid period or the pre-arranged deal match
period, without posting a new release.