MidContinent Express Pipeline LLC

Original Volume No. 1

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Effective Date: 04/10/2009, Docket: RP09-136-000, Status: Effective

Original Sheet No. 121 Original Sheet No. 121

 

GENERAL TERMS AND CONDITIONS

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(7) CAPACITY AWARDED FOR LIMITED PERIOD

 

This provision applies in situations where

firm capacity is awarded for a limited time period ending on a date

no later than the date on which such capacity is required to provide

service under one or more preexisting FTS Agreements or where firm

capacity is operationally available only for a limited time period;

provided that this provision does not govern the rights of Foundation

Shippers receiving Interim Period Service.

 

(i) MEP may market such capacity for all

or any portion of the limited time period until service under the

capacity award becomes effective, or until the capacity is no longer

operationally available.

 

 

(ii) MEP shall limit the rights of the

Shipper awarded the capacity to the limited time period, so that the

Shipper has no rollover rights or rights of first refusal which

extend beyond the limited time period; provided, however, that

nothing herein shall be read to limit the rights of Foundation

Shippers to continued service beyond the expiration of Interim Period

Service. MEP will indicate in any open season posting for such

capacity the limitation on rights which will apply to such firm

capacity awarded for the limited time period.

 

(c) EVALUATION OF COMPETING BIDS AND REQUESTS

 

In comparing valid bids received in an open season

or in comparing two or more valid and competing pending requests for

service under the Request Procedure, MEP will award firm capacity

based on the highest economic value, as defined in this Section

2.1(c).

 

(1) HIGHEST ECONOMIC VALUE

 

The highest economic value is the highest

net present value of the stream of incremental revenue produced in

the aggregate by a valid bid or request, or combination of valid bids

or requests, received by MEP for firm capacity which is consistent

with the reserve price where one has been established; provided

however, that such revenue shall not include revenue associated with