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. 123 Original Sheet No. 123

 

GENERAL TERMS AND CONDITIONS

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to which all bids are discounted in the calculation of net present

value; the FERC interest rate utilized; how a Shipper's willingness

or unwillingness to prorate will affect its bid; whether a

prearranged transaction is involved and, if so, whether there is a

right to match; the extent to which advance payments will be

considered in evaluating bids; how surcharges will be taken into

account; and the procedure to be used in breaking ties.

 

(4) OBLIGATION TO AWARD CAPACITY

 

(i) MEP shall be obligated to award firm

capacity if the applicable maximum rate is submitted for the entire

term of a valid bid in any open season or is requested for the entire

term of a valid request under the Request Procedure, up to the firm

capacity covered by the maximum rate bid(s) or request(s), without

regard to any reserve price. If such a maximum rate bid or request is

received, MEP shall be obligated to award the capacity either to the

Shipper submitting such a valid bid or request or to a competing

bidder or requestor. The capacity award will be based on the posted

criteria hereunder for evaluating bids or requests.

 

(ii) MEP shall be obligated to award firm

capacity if the reserve price is met in a valid bid for the capacity

being posted for open season, up to the firm capacity covered by the

bid(s) meeting the reserve price. The capacity awards will be based

on application of the posted criteria.

 

(iii) Notwithstanding the foregoing, MEP

may, but shall not be obligated to, award firm capacity based on the

following types of otherwise valid bids or requests: (a) any bid or

request for a term of less than one Year, under which service is to

commence more than ninety (90) days following close of the open

season; and (b) any bid or request for a term which is not continuous

from the commencement of service date to the termination of service

date reflected in the bid and/or which specifies different MDQs for

various time periods.

 

(5) RESERVE PRICE MATRIX

 

In an Initial Open Season, MEP shall

establish a reserve price or reserve price matrix. MEP may, but is

not required to, establish a reserve price or reserve price matrix in

an Additional Open Season.