Empire Pipeline, Inc.
Original Volume No. 1
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Effective Date: 12/10/2008, Docket: CP06-5-010, Status: Effective
Original Sheet No. 198 Original Sheet No. 198
GENERAL TERMS AND CONDITIONS
15. PREGRANTED ABANDONMENT AND RIGHT OF FIRST REFUSAL (Cont'd.)
15.4 Bidding Procedure
For the time period stated in Transporter's posting, which shall
be no shorter than ten (10) Business Days, Transporter will
accept service requests from Shippers. A Shipper submitting a
service request in response to a posting pursuant to this
Section 15 shall include, in addition to the information
required by the applicable rate schedule, a request for any
discount sought by the Shipper. The rate for the service
requested by Shipper, as discounted in accordance with the
Shipper's request, and the term of service requested by the
Shipper, shall constitute the Shipper's bid for the capacity
posted by Transporter.
Potential Shippers may revise their bids during the posting
period. Transporter may reject any bid which would require
Transporter to discount below a rate or beyond a discount period
agreeable to Transporter.
Transporter will accept bids from Potential Shippers with
respect to a quantitative portion of Shipper's contract
15.5 Determination of Best Bid
Transporter shall review all bids from Potential Shippers
received pursuant to Section 15.4, which have not been rejected
by Transporter, to determine which bid is the Best Bid(s). For
purposes of this Section 15.5, the "Best Bid(s)" shall be the
bid(s) yielding to Transporter the highest net present value.
Net present value shall be calculated on the basis of the
present value of the Reservation Charge per unit to Transporter.
In making the determination of net present value Transporter
shall apply the same discount factor to all bids. Transporter
shall disclose in each posting the discount factor to be used
for such posting. If Transporter receives two (2) or more
mutually exclusive Best Bids during the posting period that are
not matched by Shipper, Transporter will consider the bid
submitted earliest in time to be the Best Bid.