U S G Pipeline Company

ORIGINAL VOLUME NO. 1

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Effective Date: 10/01/2002, Docket: RP00-472-001, Status: Effective

First Revised Sheet No. 33 First Revised Sheet No. 33 : Effective

Superseding: Original Sheet No. 33

 

GENERAL TERMS AND CONDITIONS

 

(2) Bids shall be submitted to Transporter in

writing. Such bids shall be binding and signed

by an authorized representative of bidder.

Upon conclusion of the Bidding Period,

Transporter shall evaluate the bids in accord

with the present value formula set forth in

Section 11 for firm transportation service for

the evaluation of bids under Transporter's

capacity release mechanisms; provided that the

term used for purposes of the formula will be

the lesser of the term proposed by the Bidder

or five years and provided further that

Transporter shall have no obligation to accept

a bid for less than the filed maximum

reservation rate.

 

(3) Within seven (7) Business Days of the close of

the Bidding Period, Transporter shall notify

Shipper of the acceptable bid, if any, having

the highest present value to Transporter

("Highest Bid"). Shipper shall have five (5)

Business Days after receiving notice to notify

Transporter in writing as to whether it will

match the Highest Bid acceptable to

Transporter. Shipper's notification of its

election to match the Highest Bid is

contractually binding on Shipper. If the

Shipper elects to match the Highest Bid, then

it must execute a new service agreement that

contains the terms of that Bid, within five (5)

Business Days after such agreement is tendered

by Transporter; provided, however, that shipper

shall not be required to pay any rate higher

than the maximum applicable rate.

 

(4) If Transporter receives no acceptable bids on

the capacity, then Shipper may continue to

receive service at the maximum rate on a month-

to-month basis or such other rate and/or term

as Transporter and Shipper mutually agree. A

Shipper who continued service under such basis

shall retain its right of first refusal.