Western Gas Interstate Company
Third Revised Volume No. 1
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Effective Date: 06/01/1993, Docket: RS92- 53-004, Status: Effective
First Revised Sheet No. 290 First Revised Sheet No. 290 : Superseded
Superseding: Revised Sheet No. 290
GENERAL TERMS AND CONDITIONS
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
NPV = R*C*(1-(1+I) )/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.
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 20 years.
(f) If the Shipper matches the best offer as provided
herein, Western shall execute a firm transportation
Service Agreement for the quantity(ies) and term, and
at the rate(s) as agreed. If the Shipper does not
notify Western, or does not agree to match the best
offer as specified herein, such Shipper's Service
Agreement shall expire pursuant to its terms and
conditions, with pre-granted abandonment of the
service pursuant to the Commission's Regulations, and
Western shall execute a new Service Agreement with the
Shipper that submitted the best offer.