Oktex Pipeline Company

Original Volume No. 1

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Effective Date: 02/01/2009, Docket: RP09-278-000, Status: Effective

Sixth Revised Sheet No. 40A Sixth Revised Sheet No. 40A

Superseding: Fifth Revised Sheet No. 40A

 

5. Transporter shall review all bids from potential shippers received

pursuant to Section 3 of this Article XXXII which have not been rejected by

Transporter, to determine which bid is the "best bid." For purposes of this

Article XXXII, the "best bid" shall be the bid which yields to Transporter the

highest net present value. Net present value shall be calculated on the basis

of the present value of the Monthly Demand Charge per unit to Transporter.

Such net present value shall be determined by discounting the per unit amount

using a discount rate equal to Transporter's allowed overall rate of return

applied over the term of potential shipper's bid.

 

6. Upon request from Transporter of the "best bid", Shipper shall have

the right for a thirty (30) day period in which to notify Transporter whether

the Shipper is willing to match the "best bid." Failure to notify Transporter

with thirty (30) day period constitutes a non-revocable waiver of Shipper's

right to match the "best bid." In order to match the "best bid" or a rate

greater than the rate set forth in the "best bid" and agree to execute a

service agreement for a contract term equal to the contract term set forth in

the "best bid", provided, however, the maximum rate an existing Shipper must

match is the maximum rate Transporter can charge for delivery to the existing

Shipper's Point of Delivery.

 

7. In the event Transporter does not receive any bids pursuant to Section

3 of this Article XXXII or Transporter rejects all bids received due to the

fact that such bids were premised on rate discount levels or rate discount

terms unacceptable to Transporter, Transporter and Shipper may mutually agree

upon the terms and conditions under which Shipper shall be entitled to retain

its capacity and continue to receive service. Notwithstanding the preceding

sentence, so long as the Shipper agrees to pay Transporter's maximum rate, the

Shipper may retain its firm transportation service. In no event shall

Transporter and Shipper agree upon terms which yields to Transporter a net

present value less than any bid received pursuant to Section 3 of this Article

XXXII and rejected by Transporter. In the event Transporter and Shipper have

not reached agreement on the terms and conditions under which service will be

extended for Shipper before the date which is one hundred twenty (120) days

prior to the date of termination of the long-term service agreement, then

Transporter shall have all necessary abandonment authorization under the

Natural Gas Act as of the date of termination of the long-term service

agreement.