Steckman Ridge, LP

Original Volume No. 1

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Effective Date: 04/01/2009, Docket: RP09-389-000, Status: Effective

Original Sheet No. 221 Original Sheet No. 221

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

3. CONTRACTING FOR SERVICE (continued)

 

3.8 Open Season.

 

(a) Notice of open season. If Steckman Ridge elects to conduct

an open season pursuant to this Section 3.8 or if an open

season is required pursuant to Section 8 of Rate Schedule

FSS, Steckman Ridge shall post notice of the open season on

its Internet Web site. Such notice shall specify when the

open season begins and ends, the type of service being

offered, how and where interested parties may submit

requests for service, the criteria that will be used to

evaluate bids ("Bid Evaluation Procedures"), and additional

details about the open season.

 

(b) Duration. An open season held pursuant to Section 3.8(a)

shall be held for a period of not less than five (5)

Business Days. An open season for storage capacity held

pursuant to Section 8 of Rate Schedule FSS shall be held for

a period of thirty (30) days, as specified in Section 8.2(b)

of such rate schedules. During this time, Steckman Ridge

will accept bids from potential Customers for the service

identified in the notice of the open season.

 

(c) At the conclusion of the open season, the value of each

submitted bid will be determined according to the Bid

Evaluation Procedures. In addition to the application of

the Bid Evaluation Procedures in the determination of the

best bid, Steckman Ridge shall multiply the present value of

the total of Reservation Charges for the period covered by

the bid by the creditworthiness factor as determined herein.

The creditworthiness factor used in determining the best bid

shall be one (1) minus the bidder's probability of default

which is calculated by extrapolating to the maximum bid term

to be used for bid evaluation purposes, using Standard &

Poor's most recent "Cumulative Average Default Rates by

Rating Modifier" table. A bidder may increase the net

present value of its bid by posting additional collateral

which must be in a form allowed under Section 4.2 of these

General Terms and Conditions.

 

Steckman Ridge reserves the right to reject any bid which

(i) may detrimentally impact the operational integrity of

Steckman Ridge's facility, (ii) yields an economic value

that is unacceptable to Steckman Ridge, (iii) does not

satisfy all of the terms of a specific open season, (iv)

does not contain all of the required information specified

in the notice of the open season, and (v) contains terms and

conditions other than those contained in this FERC Gas

Tariff. In addition, Steckman Ridge reserves the right to

reject any bid submitted by a potential Customer that does

not meet Steckman Ridge's creditworthiness requirements

specified in Section 4 of the General Terms and Conditions.

If Steckman Ridge rejects any request for available capacity

posted pursuant to this Section 3.8, Steckman Ridge will

notify the potential Customer that submitted the rejected

bid of the reason(s) for such rejection via e-mail.