Transwestern Pipeline Company, LLC

Third Revised Volume No. 1

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Effective Date: 04/01/2008, Docket: RP08-232-000, Status: Effective

Third Revised Sheet No. 152 Third Revised Sheet No. 152 : Effective

Superseding: Second Revised Sheet No. 152

 

 

GENERAL TERMS AND CONDITIONS

(continued)

 

F. To the extent that capacity becomes available for paths on the San Juan lateral or paths on the

mainline west of Thoreau, Transporter will, prior to awarding such capacity, post the

availability of such capacity for the minimum timelines set forth in Section 24.4.B above, and

any bids received during the timeline will be evaluated in accordance with the bid solicitation

procedures set forth in Section 24.4.D above. Transporter is not obligated to conduct a bid

solicitation for any other paths, or for point capacity that becomes available from time to time

(including capacity that becomes available as a result of a Shipper's changes to primary receipt

and/or delivery points).

 

G. To the extent Transporter enters into firm agreements for operationally available capacity (i.e.

non-sustainable short-term capacity that is not available on Transporter's Unsubscribed Capacity

posting), such agreements shall be subject to the bid solicitation requirements set forth above

and shall not be rolled over without prior posting and the opportunity for other Shippers to

obtain such capacity.

 

24.5 Reservation of Unsubscribed Capacity in Conjunction with a Proposed Expansion Project

 

Transporter may, in conjunction with a proposed expansion of Transporter's system, reserve generally

available capacity, which includes capacity from expiring contracts, provided that:

 

A. Transporter has held an open season for such proposed expansion.

 

B. Generally available ("unsubscribed") capacity is posted on Transporter's Internet Website in

accordance with Section 18.1(A)(1) of this Tariff.

 

C. Unsubscribed capacity to be reserved will be posted on Transporter's Internet Website for at least

five (5) business days. Any party wishing to bid on capacity to be reserved must submit a request

in accordance with Sections 18 and 24 of these General Terms and Conditions, and must be in

accordance with the minimum bid requirements in Section 24.5.D, below.

 

D. To the extent that there is not sufficient generally available capacity for a proposed expansion

and Transporter proposes to construct new facilities to provide incremental capacity, then

Transporter shall make a non-binding solicitation to existing firm Shippers for turnback capacity

to minimize the new facilities to be constructed, subject to the following conditions:

 

1. To participate in any such solicitation, a Shipper must have capacity under a firm Service

Agreement with a remaining term and with primary receipt and delivery point rights that would

allow the use of such capacity in connection with the proposed expansion project and that

would avoid the need for construction of new facilities.

2. Any firm Shipper holding capacity that qualifies under subsection 24.5.D.1 ("Qualified

Capacity") may submit a written offer in response to Transporter's solicitation ("Turnback

Offer") that specifies (1) the volume of Qualified Capacity that such Shipper wishes to turn

back (which may be less than the total maximum daily quantity under such Shipper's

contract(s)), (2) the applicable primary receipt and delivery points, and (3) the rate that

such Shipper is currently paying with respect to such Qualified Capacity ("Existing Rate").

If the Existing Rate is greater than the proposed rate that Transporter will receive from

Shippers participating in the expansion project ("Expansion Rate"), then the Shipper shall,

as part of its Turnback Offer, either: (1) agree to pay Transporter on a monthly basis the

difference between the two rates during the remaining term of the Shipper's existing

contract(s); or (2) offer to make one or more payments to Transporter in an amount proposed

by Shipper and set forth in its Turnback Offer to mitigate any revenue reduction that would

be experienced by Transporter as a result of the turnback of such capacity, provided that in

no event shall such payment(s) exceed the net present value (as determined in accordance with

Section 24.4.D) of the difference between the Existing Rate and the Expansion Rate over the

remaining term of the Shipper's existing contract(s).

3. Transporter will accept a Turnback Offer if the volume of Qualified Capacity subject to such

Turnback Offer is sufficient to eliminate the need to construct facilities and if such

Turnback Offer is not economically detrimental to Transporter.