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. 237 Original Sheet No. 237

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

5. CAPACITY RELEASE (continued)

 

5.8 Best Bid. When Steckman Ridge makes awards of capacity for which

there have been multiple bids meeting minimum conditions, Steckman

Ridge shall award the bids, best bid first, until all offered

capacity is awarded; provided, however, that in the event that

both a contingent bid and a non-contingent bid meet the minimum

conditions stated in Section 5.2(l) above and generate the "best

bid", Steckman Ridge shall reject the contingent bid, even if the

bid with no contingencies was received later in time. The

capacity being awarded represents the Maximum Daily Delivery

Obligation, Maximum Daily Injection Quantity, Maximum Daily

Receipt Obligation, Maximum Daily Withdrawal Quantity, and Maximum

Storage Quantity. These quantities are separate parts of the

capacity and are awarded until one of the quantities is fully

awarded, at which point all capacity is deemed to be fully

awarded. Steckman Ridge shall evaluate and determine the best bid

among those otherwise consistent with any terms and conditions

specified by the Releasing Customer as follows:

 

(a) Steckman Ridge shall apply the standard or criteria for such

determination specified by the Releasing Customer, including

the standard to be used for breaking ties. Any standard or

criteria so specified must be objective, economic, not

unduly discriminatory, not contrary to applicable provisions

of this FERC Gas Tariff, applicable to all potential

Replacement Customers and require Steckman Ridge in applying

such standard to exercise no more than a ministerial

function. The Releasing Customer shall indemnify and hold

Steckman Ridge harmless from and against all demands,

losses, claims, expenses, causes of action and/or damages

suffered or incurred by Steckman Ridge arising out of or

related to any determination of a "best bid" pursuant to a

standard specified, supplied, approved or provided by

Releasing Customer.

 

(b) Steckman Ridge shall evaluate bids in accordance with the

bid evaluation method identified, pursuant to Section 5.2(f)

of these General Terms and Conditions, in the Releasing

Customer's offer to release capacity.

 

(1) If there is only one valid bid, Steckman Ridge shall

award the capacity to the bidder that submitted such

bid, subject to any Prearranged Customer's exercise of

its matching rights.

 

(2) If there is more than one valid bid, then, subject to

any Prearranged Customer's exercise of its matching

rights, Steckman Ridge shall award the capacity to the

bidder whose bid yields the highest value based on the

bid evaluation method specified in the Releasing

Customer's offer to release capacity, taking into

account the price, volume and term of the bid, as

applicable. If more than one bid yields the same

value under this subsection (2), Steckman Ridge shall

award the capacity according to the method specified

in the Releasing Customer's offer to release capacity

as a means for awarding the released capacity among

multiple equal bids ("Tie Break Method").