W T G Hugoton, LP

Original Volume No. 1

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Effective Date: 08/01/2007, Docket: CP06- 90-002, Status: Effective

Original Sheet No. 264 Original Sheet No. 264 : Effective

 

GENERAL TERMS AND CONDITIONS

 

40.5 Bids

 

(a) During the open season, a Shipper desiring to bid on released

capacity must use WTG Hugoton's website to post all valid bids, listing all

pertinent terms and conditions of the valid bids. Valid bids shall be

partially executed Service Agreements. Any acquiring Shipper must meet WTG

Hugoton's creditworthiness requirements pursuant to Section 40 of the GENERAL

TERMS AND CONDITIONS of this Tariff.

 

(b) Bids for released capacity shall be binding until written or

electronic notice of withdrawal is received by WTG Hugoton. A bidder may not

withdraw a bid for the released capacity after the bid period ends. Once a

bidder has withdrawn its bid, the bidder may only submit a new bid for that

released capacity at a higher rate.

 

(c) WTG Hugoton shall allocate available capacity to the best bid first

and continue allocating until all offered capacity is awarded. Unless the

releasing Shipper has specified otherwise, in the event equivalent bids are

submitted, the capacity will be made available on a pro rata basis to the

equal bidders. Should any one of the equal bidders veto the pro rata

allocation of the capacity, WTG Hugoton will conduct a lottery to select the

winning bidder, who will then be allocated its requested capacity. The

remainder will be available to the other bidder(s) on a pro rata basis, which

may again trigger the veto/lottery selection process. The price cap for

capacity release transactions shall be the maximum tariff rates, except for

capacity release transactions of less than one year unless modified by FERC

policy or regulation.