Western Gas Interstate Company

Third Revised Volume No. 1

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Effective Date: 06/01/1993, Docket: RS92- 53-003, Status: Effective

Revised Original Sheet No. 166 Revised Original Sheet No. 166 : Superseded

 

RATE SCHEDULE RCS

FIRM TRANSPORTATION SERVICE - RELEASED CAPACITY

(continued)

 

9. AWARDING OF RELEASED CAPACITY:

 

Released Capacity shall be awarded to a Bidding Shipper in

accordance with the following:

 

(a) If the bid is to acquire all or a portion of the Released

Capacity at the maximum rates and term, and upon all of

the conditions specified in the Capacity Release Notice,

then the quantity of Released Capacity bid for will be

awarded to the submitting Bidding Shipper. If more than

one such bid is received, and the aggregate capacity bid

for is in excess of the capacity to be released, then

capacity shall be awarded by lottery until all Released

Capacity is awarded to Bidding Shippers. A Bidding

Shipper may reject an award of a lesser quantity of

Released Capacity than it bid for. The Releasing Shipper

shall not be entitled to reject any bid selected as set

forth herein.

 

(b) If bids are at less than the maximum rates or term, or do

not meet all of the other conditions specified in the

Capacity Release Notice, then the bids shall be subject

to meeting the minimum conditions specified in the

Capacity Release Notice. Release Capacity will be

awarded to the Bidding Shipper(s) submitting the best

offer(s) according to the terms specified by the

Releasing Shipper in its Notice, or, in the absence of

such specified terms, the following:

 

Net Present Value - the calculation of the net present

value of the reservation charge, as follows:

 

NPV = R x C x (1 - (1 + I)-n)/I

 

 

where: NPV = Net Present Value

R = Reservation Charge bid

C = Capacity, stated in MMBTU

I = Commission interest rate

n = term of release, in months.