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. 213 Original Sheet No. 213

 

GENERAL TERMS AND CONDITIONS

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(f) Subject to the other provisions in this Section 14,

in the event that there is no Qualified Bidder or Prearranged Shipper

for posted Eligible Firm Transportation Agreement capacity during an

open season, no capacity release will be awarded and the Releasing

Shipper shall retain the capacity sought to be released.

 

14.10 BID EVALUATION PROCEDURE

 

(a) Unless specifically requested otherwise by a

Releasing Shipper in its Capacity Release Request, Qualified Bids for

released capacity shall be evaluated pursuant to Sections 14.10(b)

through 14.10(h) below. Any Qualified Bid which does not meet a

minimum price condition stated in the Capacity Release Request shall

be rejected outright. Any Qualified Bid with a contingency must have

such contingency eliminated before 3:00 p.m. Central Clock Time

following the close of the open season, unless the Releasing

Shipper's offer has specified a later time; otherwise, such Qualified

Bid will be rejected.

 

(b) MEP shall calculate a Bid Value and Unit Bid Value

for each Qualified Bid and Prearranged Release (if any), and shall

calculate the Winning Bid Value, as follows:

 

(1) For each Month, the volume and reservation

charge per Dth stated in the Qualified Bid shall be multiplied

together to derive a gross Monthly revenue figure. If the Qualified

Bids contain volumetric-based charges permitted by the Capacity

Release Request, then the gross Monthly revenue figure shall be equal

to any minimum amount designated by the bidder to be billed as a

reservation charge even if there is no (or insufficient) flow.

 

(2) Each gross Monthly revenue figure shall be

discounted to a net present value figure as of the first Day of the

capacity release as sought in the Capacity Release Request, using the

current Federal Energy Regulatory Commission interest rate as defined

in 18 C.F.R. Section 154.501(d)(1).

 

(3) The net present value figures for the

proposed release shall be summed, and such sum shall be the Bid

Value.