Cimarron River Pipeline, LLC
Original Volume No. 1
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Effective Date: 09/01/2008, Docket: CP08-17-001, Status: Effective
Original Sheet No. 37 Original Sheet No. 37
RATE SCHEDULE FT
FIRM TRANSPORTATION SERVICE
6.3 Credit Evaluation: Any person seeking new service from
Transporter under Rate Schedule FT must provide sufficient information to
enable Transporter to determine Shipper's creditworthiness under Section 5
of the General Terms and Conditions of this Tariff.
6.4 Capacity Available of Firm Transportation:
(a) Firm capacity that is or becomes available on Transporter's
system from time to time shall be allocated on a net present value basis.
To the extent that two or more requests for firm transportation service are
received during the same Evaluation Period and the requests involve the same
capacity, in whole or in part, the firm capacity will be allocated to the
request(s) generating the highest net present value to Transporter. Net
present value will be determined based on the discounted cash flow of
revenues to Transporter produced, lost, or affected by the request(s) for
service. In determining the highest net present value, Transporter will
consider only objective criteria. These criteria may include but are not
limited to the maximum contract quantity requested, the term of the service
requested, the offered rate, the date when the requested service would
commence and terminate, creditworthiness, and other objective criteria
available based on the received requests for service. The net present value
discount factor used by Transporter will be applied consistently to all
requests for capacity within an Evaluation Period.
(b) If Transporter receives two or more requests for firm
transportation service that produce an equivalent net present value, any
available capacity will be allocated between or among those requests on a
pro rata basis; provided, however, if one or more party(s) is offered
capacity on a pro rata basis pursuant to this Section and any party declines
to contract for the capacity, that party's request shall be deemed void, and
the available capacity will be reallocated among the remaining requests that
produced equivalent net present values.
(c) To the extent Transporter has available unsubscribed firm
capacity, Transporter reserves the right, but shall not be obligated, to
reserve the capacity for a future expansion project, pursuant to Section
21.4 of the General Terms and Conditions.
6.5 Modification of Service: Any modification of an existing
transportation service under Rate Schedule FT shall be requested by
Shipper's submission of a new written service request with a notation that
the service requested is a modification of an existing service. The
modification shall be effective after the request for service has been fully
processed and accepted by Transporter.