Transwestern Pipeline Company, LLC
Third Revised Volume No. 1
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Effective Date: 11/01/2004, Docket: RP05- 14-000, Status: Effective
Original Sheet No. 51 Original Sheet No. 51 : Effective
RATE SCHEDULE FTS-1
Firm Transportation Service
i) highest present value, as determined by the following formula:
(R per unit) x 1 - (1 + i ) = present
where: i = interest rate per month using the
current Commission interest rate as
defined in 18 C.F.R.
n = term of the agreement, in months, and
R = the rate bid on a monthly basis (the
ii) If the rate bid exceeds the maximum tariff rate, then the rate will be considered
to be the maximum tariff rate.
iii) Transporter will rank all bids according the present value formula set forth in
(i) above, and will determine which bid(s), if any, are acceptable to
E. Any third-party Shipper who submits a bid for the available
capacity shall be obligated to sign and submit, with its bid, a
firm Service Agreement for such capacity at its bid price,
subject to a right of first refusal by the Shipper. If a firm
Service Agreement does not accompany a bid or if the third-party
bidder does not meet Transporter's creditworthiness standards,
the bid shall be invalid and shall be rejected.
F. Bids must conform to the notice of available capacity set forth in D above, except
that any third-party Shipper may submit a bid for the entire quantity or a partial
quantity. The bid shall also specify whether a Shipper is willing to accept a
partial quantity bid in the event of tie bids or in the event that the existing
Shipper elects to match a partial quantity bid by the third-party Shipper.
G. In the event two or more parties have bids of equal value which qualify as the best
offer and which, in the aggregate, exceed the total capacity to become available,
the capacity shall be allocated on a pro rata basis.
H. At least three months before the expiration of the Service Agreement, Transporter shall notify
the Shipper as to the terms of the acceptable bid(s) it has received. Shipper shall have the
right to match one or more of said bid(s) pursuant to section I below or to negotiate
continued service pursuant to section J below no later than two weeks after such notice is
given by Transporter.
An FTS-1 Shipper exercising its ROFR may be required to match a bid up to a
maximum rate higher than the currently effective maximum rate applicable to
the capacity if there is an incremental rate on the system, the system is
fully subscribed, and there is a competing bid above such currently effective