Western Gas Interstate Company

Fourth Revised Volume No. 1

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Effective Date: 11/01/2003, Docket: RP00-461-002, Status: Effective

Third Revised Sheet No. 239 Third Revised Sheet No. 239 : Effective

Superseding: Second Revised Sheet No. 239

 

 

GENERAL TERMS AND CONDITIONS

(continued)

 

(b) Within 48 hours of receipt of such notice, Western will

post on its Internet Web site for a period of

fourteen (14) days such information related to the firm

capacity under the expiring Service Agreement as would

be required for a Capacity Release Notice.

 

(c) Creditworthy parties may submit written, binding offers

for all or part of the posted firm capacity during the

posting period, specifying the maximum quantity(ies),

rate(s) and term of the offer. Such an offer must be

accompanied by a valid request for firm transportation

service pursuant to Section 20 of these General Terms

and Conditions.

 

(d) The best offer will be determined by calculating the net

present value of the reservation charge as follows:

 

NPV = R x C (1+I) n

 

where: NPV = Net Present Value

R = Reservation Charge bid

C = Capacity, stated in Dth

I = Commission interest rate

n = exponent signifying term of

release, in months.

 

In the event of a tie, a lottery will be used.

 

(e) Within 48 hours of the end of the posting period,

Western will notify the existing firm Shipper of the

quantity(ies), rate(s) and term of the best offer received,

if any. Shipper shall have seven days to notify Western in

writing that it agrees to match the rate(s) and term of the

best offer, but in no case more than Western's maximum

applicable tariff rate(s) and a term of five (5) years.