Questar Pipeline Company

First Revised Volume No. 1

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Effective Date: 04/07/2003, Docket: RP03-259-000, Status: Effective

Sixth Revised Sheet No. 63 Sixth Revised Sheet No. 63 : Effective

Superseding: Fifth Revised Sheet No. 63

PART 1

GENERAL TERMS AND CONDITIONS

(Continued)

 

(b) Permanently released capacity shall be

awarded to the replacement shipper that offers a rate and

term yielding a present value equal to or greater than the

present value of the releasing shipper's transportation

service agreement. The present value shall be calculated

using the formula stated below. Acceptance shall be

conditioned upon the replacement shipper satisfying

Questar's creditworthiness standards and eligibility

requirements.

 

(c) Present value formula:

 

(Monthly Reservation Charge ) x [1-(1+i)-n ]=Present Value

( Per Unit ) [ i ] per Unit

 

Where: i = interest rate per month, i.e., overall

rate of return divided by 12 months.

n = term of the agreement, in months.

 

(d) If two or more bids are of equal value, the

capacity shall be awarded according to the criteria

specified by the releasing shipper. If no method for

awarding bids of equal value is specified, the capacity

shall be awarded to those bidders pro rata based on the

ratio the quantity bid by those bidders bears to the total

quantity bid by all bidders multiplied by the quantity of

capacity released.

 

(e) If no bid is submitted meeting all of the

rates, terms and conditions in the releasing shipper's

release notice, then no award of capacity shall be made.

 

(f) For a pre-arranged release, if no better

offer is received during a bid period or the pre-arranged

offer is for the applicable maximum reservation charge and

the arrangement is for the full term of the release, then

the pre-arranged bidding shipper shall become the re-

placement shipper. If the pre-arranged release is for less

than the applicable maximum reservation charge and