Tres Palacios Gas Storage LLC
Original Volume No. 1
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Effective Date: 08/01/2008, Docket: RP08-424-000, Status: Effective
Original Sheet No. 105 Original Sheet No. 105
GENERAL TERMS AND CONDITIONS
3. REQUEST FOR SERVICE
3.1 Procedures for Sale of Capacity.
(a) Sale of Capacity. Upon the availability of new
storage capacity resulting from an expansion of TRES PALACIOS'
facilities, TRES PALACIOS shall sell such capacity to prospective
Customers either via the open season procedures described in
Sections 3.1(b)-(f) below or via the first-come, first-served
procedures described in Section 3.1(g) below, with the selection
of the procedures being at TRES PALACIOS' sole option. This
Section 3.1 shall apply to sales of capacity under Rate Schedules
FSS, NNSS, FP and FL.
(b) Notice of open season. If TRES PALACIOS elects to
conduct an open season pursuant to Section 3.1(a) above, TRES
PALACIOS shall post notice of the open season on its Internet Web
Site. Such notice shall set forth when the open season begins and
ends, the type of service being offered, how and where interested
parties may submit requests for service, the criteria that will be
used to evaluate bids ("Bid Evaluation Procedures"), and
additional details about the open season.
(c) Duration. An open season held pursuant to
Section 3.1(b) above shall be held for a period of not less than
five (5) Business Days. During this time, TRES PALACIOS will
accept bids from potential Customers for the service identified in
the notice of the open season.
(d) At the conclusion of the open season, the value
of each submitted bid will be determined according to the Bid
Evaluation Procedures. TRES PALACIOS reserves the right to reject
any bid which (i) may detrimentally impact the operational
integrity of TRES PALACIOS' facility, (ii) yields an economic
value that is unacceptable to TRES PALACIOS, (iii) does not
satisfy all of the terms of a specific open season, (iv) does not
contain all of the required information specified in the notice of
the open season, (v) contains terms and conditions other than
those contained in TRES PALACIOS' FERC Gas Tariff, and/or (vi)
does not meet TRES PALACIOS' creditworthiness requirements set
forth in Section 3.3 of these General Terms and Conditions. If
TRES PALACIOS rejects any request for available capacity posted
pursuant to this Section 3.1(d), TRES PALACIOS will notify the
potential Customer that submitted the rejected bid of the
reason(s) for such rejection via e-mail.
(e) During the allocation process at the conclusion
of an open season, storage capacity will be allocated to the
acceptable bid(s) in accordance with the Bid Evaluation