Questar Southern Trails Pipeline Company

Original Volume No. 1

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Effective Date: 07/15/2004, Docket: RP04-329-000, Status: Effective

First Revised Sheet No. 60 First Revised Sheet No. 60 : Effective

Superseding: Original Sheet No. 60

GENERAL TERMS AND CONDITIONS

 

(f) A bidding Shipper may withdraw its bid prior to the end of

the bidding period. However, once a bid is withdrawn, the bidding Shipper may

only submit a new bid for that released capacity at a higher rate.

 

(g) A bid may not be withdrawn after the close of the bid

period.

 

7.11 Awarding of Released Capacity. When Southern Trails makes awards

of capacity for which there have been multiple bids meeting minimum

conditions, Southern Trails shall award the bids, best bid first, until all

offered capacity is awarded.

 

(a) Temporarily released capacity shall be awarded to the

bidding Shipper that makes the best offer based on the criteria specified by

the releasing Shipper or the present value formula defined below.

 

(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 Southern Trails' 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.