Viking Gas Transmission Company
First Revised Volume No. 1
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Effective Date: 07/01/2004, Docket: RP04-306-000, Status: Effective
Third Revised Sheet No. 76 Third Revised Sheet No. 76 : Effective
Superseding: Substitute Second Revised Sheet No. 76
GENERAL TERMS AND CONDITIONS
21. RELEASES OR ASSIGNMENTS OF FIRM TRANSPORTATION AGREEMENTS (Continued)
21.6 Determination of Successful Bidder (Continued)
PV = (Bid Rate) x (Bid Quantity) x 1-(1+i)
Bid Rate = for firm releases, the reservation charge which the
Bidder has agreed to pay; for interruptible releases,
the usage charge which the Bidder has agreed to pay.
Bid Quantity = the quantity stated in the Bid.
i = interest rate per month (which shall be the then current
maximum yield on five year U.S. Government Treasury notes
divided by 12), (Company will post the current Treasury note
rate on its System); and
n = the lesser of (i) the term proposed by the Bidder or
(ii) 60 months.
(ii) If the net revenue method is chosen, Company shall determine the
bid or bids having the highest net revenue (NR) using the following
NR = (Bid Rate) * (Bid Term) * (Bid TQ)
Bid Rate = the daily charge which the Bidder has agreed to pay; for
reservation rate bids, the charge is calculated by
multiplying the bid rate received from the Bidder by
Bid Term = the term proposed by the Bidder in days.
Bid TQ = the TQ stated in the Bid measured in Dekatherms.
(b) If a release includes a Prearranged Bidder, then the released
transportation rights shall be awarded to the Prearranged Bidder if its
Bid either (a) is equal to or is higher than the Bid with the greatest
economic value under the standard submitted by the Releasing Shipper, or
(b) has a rate which is equal to or higher than the highest rate of the
Bids submitted by all other Bidders, or (c) if the Prearranged Bidder
agrees to match any Bid having a greater economic value or higher rate, as
applicable, within the time period provided by Subsection 21.7 of these
General Terms and Conditions.
(c) If only one Bidder has submitted a Bid which reflects either the greatest
economic value or highest rate, as applicable, then the transportation
rights shall be awarded to that Bidder, subject to any Prearranged
Bidder's exercise of its right of first refusal (matching) as set forth