White River Hub, LLC

Original Volume No. 1

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Effective Date: 11/01/2008, Docket: RP08-645-000, Status: Effective

Original Sheet No. 83 Original Sheet No. 83

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

6.13 Awarding of Released Capacity. When the capacity-release service

provider (White River) makes awards of capacity for which there have been

multiple bids meeting minimum conditions, the capacity-release facilitator

(White River) will award the bids, best bid first, until all offered capacity

is awarded.

 

(a) Temporarily released capacity shall be awarded to the

Bidding Shipper that makes the best offer based on the criteria specified by

the Releasing Shipper, or, if no criteria were specified, based on the

present value formula defined below.

 

(b) Permanently released capacity shall be awarded to the

Replacement Shipper that offers a rate and term yielding a present value equal

to or greater than the present value of the Releasing Shipper's transportation

service agreement. The present value shall be calculated using the formula

stated below. Acceptance shall be conditioned upon the Replacement Shipper

satisfying White River's creditworthiness standards and eligibility

requirements.

 

(c) 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.

 

(d) If two or more bids are of equal value, the capacity shall

be awarded according to the criteria specified by the Releasing Shipper. If

no method for awarding bids of equal value is specified, the capacity shall

be awarded to those bidders pro rata based on the ratio the quantity bid by

those bidders bears to the total quantity bid by all bidders multiplied by

the quantity of capacity released.

 

(e) If no bid is submitted meeting all of the rates, terms and

conditions in the Releasing Shipper's release notice, then no award of

capacity shall be made.