Texas Eastern Transmission, L P

Seventh Revised Volume No. 1

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Effective Date: 01/01/2009, Docket: RP09-70-000, Status: Effective

Original Sheet No. 534D Original Sheet No. 534D

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

(E) Allocation of Released Capacity:

 

Pipeline shall select the "best bid" as defined in Section

3.14(F) from among the bids received. If multiple bids meeting

minimum conditions have been submitted, bids shall be awarded,

best bid first, until all offered capacity is awarded.

 

(1) If there is only one valid bid, Pipeline shall award the

capacity to the bidder that submitted such bid, subject to

any Prearranged Customer's exercise of its matching rights.

 

(2) If there is more than one valid bid, then, subject to any

Prearranged Customer's exercise of its matching rights,

Pipeline shall award the capacity to the bidder whose bid

yields the highest value based on the bid evaluation method

specified in Customer's Notice, taking into account the

price, volume and term of the bid, as applicable. If more

than one bid yields the same value under this subsection

(2), Pipeline shall award the capacity according to the

method specified in Customer's Notice ("Tie Break Method")

as a means for awarding the released capacity among

multiple equal bids.

 

(3) For purposes of determining the value of a bid, Pipeline

shall use only the Reservation Charge (including

Reservation Charges stated on a volumetric basis). If the

bid evaluation method specified by the Releasing Customer

is present value, Pipeline shall use a discount rate of ten

(10) percent.

 

(4) In the event both a contingent bid and a non-contingent bid

meet the minimum conditions stated in Section 3.14(D)(1)(h)

and generate the "best bid", Pipeline shall reject the

contingent bid, even if the bid with no contingency was

received later in time.

 

(5) If the winning bid is a contingent bid, the bidder that

submitted such contingent bid will be required to satisfy

or eliminate any contingency in accordance with the

capacity release timeline set forth in Section 3.14(B) or

in the Customer's Notice, as applicable, and shall confirm

to Pipeline via e-mail to link-help@spectraenergy.com that

the contingency has been satisfied or eliminated. In the

event that such bidder fails to satisfy or eliminate its

contingency pursuant to this subsection (5), the capacity

will be awarded to the next highest bidder(s) as determined

pursuant to this Section 3.14(E).