White River Hub, LLC

Original Volume No. 1

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Effective Date: 10/01/2009, Docket: RP09-1027-000, Status: Effective

First Revised Sheet No. 68 First Revised Sheet No. 68

Superseding: Original Sheet No. 68

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

5.6 Bidding Conditions.

 

(a) A bid may not be withdrawn and shall be binding on the

Bidding Shipper.

 

(b) A Bidding Shipper may not bid a reservation charge less

than the minimum reservation charge nor more than the maximum reservation

charge specified by the tariff, unless it is a negotiated rate, nor may the

bid exceed the quantity of available capacity or the term specified by White

River. Negotiated rate bids above the maximum reservation charge, will be

evaluated using the maximum reservation charge.

 

(c) Shipper's use of its logon and password on any Customer

Activities Web site transaction screen is deemed to be the party's consent to

be bound by the transaction.

 

5.7 Awarding of Capacity. Capacity requested during the bid period

shall be awarded to the Shipper whose bid offers a rate and term that yields

the highest present value and whose terms and conditions are acceptable to

White River. The present value shall be calculated using the formula stated

below. White River's acceptance of a bid shall be conditioned upon the

Shipper satisfying White River's creditworthiness standards and eligibility

requirements.

 

(a) Present value formula:

 

(Monthly Reservation Charge ) x [1-(1+i)-n ]=Present Value

( Per Unit ) [ i ] per Unit

 

Where: i = interest rate per month, i.e., overall rate of

return divided by 12 months.

n = term of the agreement, in months.

 

(b) If two or more firm Shippers have the same present value and

White River's capacity is insufficient to serve the Shippers, capacity will be

allocated pro rata between these firm Shippers.

 

(c) White River is not obligated to award capacity unless a bid

meets the rates, terms and conditions specified in White River's notice.

 

(d) To document the award of the capacity to the successful

Bidding Shipper, White River will place a service agreement between White

River and the Bidding Shipper on the Customer Activities Web site conforming

to the terms of the Shipper's bid. Since the Bidding Shipper is bound by its

bid, no further Shipper acceptance will be required.