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
(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'
(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.