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

continued

 

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.