Bobcat Gas Storage

Original Volume No. 1

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Effective Date: 10/15/2008, Docket: RP08-608-000, Status: Effective

Original Sheet No. 69 Original Sheet No. 69

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

4. CAPACITY RELEASE (Continued)

 

4.6 Bidding and Selection of Replacement Customer (Continued)

 

After the Replacement Customer is selected, Bobcat and the

Replacement Customer will enter into a Firm Storage Service

Agreement with respect to the release capacity. Following

implementation of the release, Bobcat shall post notice of the

winning bidder on its Internet Web Site.

 

4.7 Best Bid. When Bobcat makes awards of capacity for which there

have been multiple bids meeting minimum conditions, Bobcat shall

award the bids, best bid first, until all offered capacity is

awarded. The capacity being awarded represents the MDIQ, MDWQ, or

MSQ. 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. Bobcat shall

evaluate and determine the best bid among those otherwise

consistent with any terms and conditions specified by the

Releasing Customer as follows:

 

(a) Bobcat 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 Bobcat in applying such

standard to exercise no more than a ministerial function.

The Releasing Customer shall indemnify and hold Bobcat

harmless from and against all demands, losses, claims,

expenses, causes of action, and/or damages suffered or

incurred by Bobcat 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) If the Releasing Customer does not specify a bid evaluation

standard, then Bobcat shall determine the bid or bids

generating the highest net present value, using a 10%

discount factor, based on the rate bid (reservation

component), the applicable quantity(ies) and term or period

bid upon. If the Releasing Customer does not specify a

method to break ties, priority will be given first to the

bid with the shortest term, and next to the bid submitted

first in time.