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Fourth Revised Sheet No. 50 Fourth Revised Sheet No. 50 : Superseded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