Williston Basin Interstate Pipeline Co.

Second Revised Volume No. 1

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Effective Date: 11/01/2010, Docket: RP10-1227-000, Status: Effective

Eleventh Revised Sheet No. 261 Eleventh Revised Sheet No. 261

Superseding: Tenth Revised Sheet No. 261

 

GENERAL TERMS AND CONDITIONS (Continued)

 

17. FIRM CAPACITY RELEASE MECHANISM (Continued)

 

fully coordinated with Transporter's scheduling procedures, the method

of determining the best bid, if any, the minimum volumetric commitment

quantity for a volumetric release (if no minimum is stated, the minimum

shall be deemed zero) and any other reasonable and non-discriminatory

terms or conditions associated with the release.

 

17.8.1 For the capacity release business process timing model,

only the following methodologies are required to be supported by

Transporter and provided to Releasing Shippers as choices from

which they may select and, once chosen, should be used in

determining the awards from the bid(s) submitted. They are: 1)

highest rate, 2) net revenue and 3) present value. For index-based

capacity release transactions, the Releasing Shipper should

provide the necessary information and instructions to support the

chosen methodology. Other choices of bid evaluation methodology

(including other Releasing Shipper defined evaluation

methodologies) can be accorded similar timeline evaluation

treatment at the discretion of Transporter. However, Transporter

is not required to offer other choices or similar timeline

treatment for other choices, nor, is Transporter held to the

timeline should the Releasing Shipper elect another method of

evaluation.

 

17.8.1.1 In the event the Releasing Shipper does not

specify an evaluation method for determining the best of the

valid bids, a net present value per unit of demand

calculation will be used as described in Subsection 10.4 of

these General Terms and Conditions.

 

17.8.2 The creditworthiness information specified in Subsection

7.7 of these General Terms and Conditions must be obtained from

the Replacement Shipper in all cases.

 

17.8.2.1 Releasing Shipper shall be responsible for all

capacity release commodity charges incurred by Replacement

Shipper between the time gas flow commences and the time

Transporter determines creditworthiness if the Replacement

Shipper fails to pay any amount of any bill when such amount

becomes due. The Releasing Shipper is responsible to

Transporter for the payment of commodity, penalty, and all

other charges incurred by the Replacement Shipper as a

result of the Replacement Shipper's conduct.