Overthrust Pipeline Company

First Revised Volume No. 1-A

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Effective Date: 02/12/2001, Docket: GT01- 7-000, Status: Effective

Fourth Revised Sheet No. 50 Fourth Revised Sheet No. 50 : Superseded

Superseding: Third Revised Sheet No. 50

GENERAL TERMS AND CONDITIONS

 

8.11 Awarding of Released Capacity - When the capacity-

release service provider (Overthrust) makes awards of capacity

for which there have been multiple bids meeting minimum

conditions, the capacity-release facilitator (Overthrust)

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

capacity is awarded.

 

(a) Temporarily released capacity shall be awarded

to the bidding Shipper that makes the best offer based on the

criteria specified by the releasing Shipper or the present

value formula defined below.

 

(b) Permanently released capacity shall be awarded

to the replacement Shipper that offers a rate and term

yielding a present value equal to or greater than the present

value of the releasing Shipper's transportation service

agreement. The present value shall be calculated using the

formula stated below. Acceptance shall be conditioned upon

the replacement Shipper satisfying Overthrust's creditworthi-

ness standards and eligibility requirements.

 

(c) Present value formula:

 

(Monthly Reservation Charge ) x [1-(1+i)-n ]=Present Value

( Per Unit ) [ i ] per Unit

 

Where: i = interest rate per month, i.e., overall

rate of return divided by 12 months.

n = term of the agreement, in months.

 

(d) If two or more bids are of equal value, the

capacity shall be awarded according to the criteria specified

by the releasing Shipper. If no method for awarding bids of

equal value is specified, the capacity shall be awarded to

those bidders pro rata based on the ratio the quantity bid by

those bidders bears to the total quantity bid by all bidders

multiplied by the quantity of capacity released.