Questar Southern Trails Pipeline Company

Original Volume No. 1

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Effective Date: 01/23/2006, Docket: RP06-154-000, Status: Effective

First Revised Sheet No. 49 First Revised Sheet No. 49 : Effective

Superseding: Original Sheet No. 49

GENERAL TERMS AND CONDITIONS

 

6.7 Awarding of Capacity. Southern Trails' capacity shall be awarded

to the bidding Shipper whose bid offers a rate and term that yields the

highest present value and whose terms and conditions are acceptable to

Southern Trails. The present value shall be calculated using the formula

stated below. Southern Trails' acceptance of a bid shall be conditioned upon

the Shipper satisfying Southern Trails' creditworthiness standards and

eligibility requirements.

 

(a) 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.

 

(b) If two or more firm Shippers have the same present value and

Southern Trails' capacity is insufficient to serve the Shippers, capacity will

be allocated pro rata based on requested RDC between these firm Shippers.

 

(c) Southern Trails is not obligated to award capacity unless a

bid meets the rates and the terms and conditions specified in Southern Trails'

notice.

 

(d) To document the award of the capacity to the successful

bidding Shipper, Southern Trails will place a service agreement between

Southern Trails and the bidding Shipper on Questline conforming to the terms

of the Shipper's bid. Since the bidding Shipper is bound by its bid, no

further Shipper acceptance will be required.

 

6.8 Requests for Discounts. Southern Trails is not required to

accept a request for a discount that is less than the posted minimum

acceptable rate for the posted uncommitted firm capacity.