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 However, once a bid is withdrawn, the bidding Shipper may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(g) A bid may not be withdrawn after the close of the bid
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
(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.