Viking Gas Transmission Company

Original Volume No. 1

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Effective Date: 11/01/1993, Docket: RS92- 52-001, Status: Effective

Original Sheet No. 75 Original Sheet No. 75 : Superseded

 

 

 

 

 

GENERAL TERMS AND CONDITIONS (Continued)

 

 

 

v) the term for which the Bidder wishes to obtain the transportation rights,

which must be the same as the term specified in the Release Request, or be no

less than any minimum term specified in the Release Request; and

 

vi) whether the Bid is contingent and, if so, the basis for the contingency.

 

All bids must be for the receipt and delivery points specified in the Release

Request. The receipt and delivery points awarded a Replacement Shipper in accord

with this section shall be specified on its Transportation Service Agreement.

Replacement Shipper shall be eligible for the use of secondary points in accord

with the priority afforded the released transportation under Article III, Section

4, of Transporter's FERC Gas Tariff.

 

6. Determination of Successful Bidder

 

Transporter shall determine the successful bidder in accordance with the following

procedures:

 

a) If the Release Request specifies an economic value standard for the award of

released transportation rights, Transporter shall apply such standard including any

designated tiebreaking procedure if necessary, to determine the successful Bidder.

Transporter's application of Releasing Shipper's economic value standard shall

result in as many successful bidders as mandated thereby.

 

b) If no standard is specified in the Release Request, Transporter shall evaluate the

Bids and award the capacity based on the following procedures. Transporter shall

determine the bid or bids having the highest present value ("PV") based on the

following formula:

 

 

PV= (Bid Rate) x (Bid Quantity) x 1-(1+i)-N

_______________

1

where

 

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.