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
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.