Enbridge Offshore Pipelines (Utos) LLC

FIFTH REVISED VOLUME NO. 1

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Effective Date: 08/01/2009, Docket: RP09-815-000, Status: Effective

First Revised Sheet No. 138 First Revised Sheet No. 138

Superseding: Original Sheet No. 138

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

16.7 Provisional Payment to Ensure Bona Fide Bid. Each Qualified

Bidder must also submit with its Qualified Bid, as a

demonstration of its bona fide intentions, a check, payable

to UTOS, for the lesser of: (1) $10,000; or (2) three

Months' reservation charge for the amount of capacity

sought, at the maximum rate. In the event that, upon

completion of the right of first refusal procedures

described in this Section 16, capacity is awarded to the

Qualified Bidder and the Qualified Bidder executes a

Transportation Agreement with UTOS, the payment shall be

credited to the Qualified Bidder's bill(s) for service under

the Transportation Agreement. In the event that the

Qualified Bidder is awarded capacity but declines to execute

a Transportation Agreement with UTOS, or the Qualified

Bidder withdraws its bid before the right of first refusal

procedures are complete, the Qualified Bidder will be deemed

to have forfeited the payment. Otherwise, in the event that

the Qualified Bidder is not awarded capacity, the payment,

together with interest calculated in accordance with Section

154.501(d)(1) of the Commission's regulations, shall be

refunded to the Qualified Bidder upon completion of the

right of first refusal procedures.

 

16.8 Determination of Highest Bid. If, at the end of the posting

period specified in subsection 16.4 above, UTOS has received

more than one Qualified Bid for the available capacity, UTOS

shall evaluate the Qualified Bids to determine which

constitutes the highest bid. Whether an application

constitutes the "highest bid" shall be determined on the

basis of the following procedures:

 

(a) UTOS shall calculate the Net Present Value of each

Qualified Bid by applying the proposed reservation

charge to the amount of capacity proposed to be taken

for the term proposed by the Qualified Bidder, and

discounting the resultant dollar figure to present

value on the basis of the Federal Energy Regulatory

Commission interest rate described in 18 CFR

154.501(d)(1) that is in effect on the date that the

calculation is made for all Qualified Bids, provided,

however, that in comparing present values, UTOS will

not factor into its calculation any portion of a

proposed transaction term that exceeds 20 years from

the commencement of service.