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.