Saltville Gas Storage Company L.L.C.

Original Volume No. 1

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Effective Date: 03/01/2009, Docket: RP08-479-002, Status: Pending

Original Sheet No. 111C.01b Original Sheet No. 111C.01b

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

3. CONTRACTING FOR SERVICE (continued)

 

3.8 Allocation of Available Firm Storage Capacity. (continued)

 

shall have the right to require that such bidder post

collateral contemporaneously with any future bid(s) or

provide other credit assurance of a type reasonably

acceptable to Saltville given the financial

obligations associated with the particular award.

 

(8) Saltville will provide interest on the collateral in

accordance with Section 3.4(b).

 

 

(j) In the event Saltville receives two (2) or more bids that

qualify as the "best bid" (i.e., two (2) or more bids that

produce an equivalent net present value), capacity subject

to the open season will be allocated between or among such

requests pro rata based on the MSQ, MDIQ and MDWQ requested;

provided, however, if a bidder offered capacity on a pro

rata basis pursuant to this Section 3.8(j) fails to execute

a service agreement or an amendment to an existing service

agreement, as applicable, in accordance with Section 3.8(l)

below within (i) five (5) Business Days for service with a

term of less than one (1) year or (ii) fifteen (15) days of

the tender of a service agreement or an amendment to an

existing service agreement, as applicable, by Saltville for

service with a term of one (1) year or longer, Saltville

shall deem such bidder's request to be null and void and

shall reallocate the available capacity pro rata to such

remaining best bids, based on the MSQ, MDIQ and MDWQ

requested by those bidders in accordance with this Section

3.8(j).

 

(k) Within twenty-four (24) hours after an award of capacity

under this Section 3.8, Saltville shall post on the LINK®

System the best bid(s), showing the net present value for

such best bid(s). In the event the winning bidder is not

the Customer or potential Customer that submitted the

request for service which caused the open season to be held,

such winning bidder must submit a request for service

pursuant to Section 3.2 of these General Terms and

Conditions. In the event the best bid is a discounted rate

that is less than the applicable maximum tariff rate and

Saltville accepts a bid at less than the maximum rate as the

winning bid, then the bidder must submit a discount request

form online via the LINK® System and Saltville must approve

such discount request pursuant to the provisions of Section

31 of these General Terms and Conditions in order for such

rate to become effective.