Sea Robin Pipeline Company

First Revised Volume No. 1

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Effective Date: 12/01/1998, Docket: RP98-365-000, Status: Effective

First Revised Sheet No. 90 First Revised Sheet No. 90 : Superseded

Superseding: Original Sheet No. 90

GENERAL TERMS AND CONDITIONS

(Continued)

 

22.1 (continued)

 

applicable to the service unless already on file with Transporter, within the time

specified by Transporter on SoNet. Each bid shall contain the term for which the

capacity is sought and the percentage of the maximum rate in effect during said term

which the bidder is willing to pay for the capacity, not to exceed 100% of the maximum

rate. If Transporter receives more than one bid for Shipper's capacity, and it does not

reject all bids as provided below, it will choose the bid, or combination of bids, which

generates the most revenue on a net present value basis, ("best bid"); provided, however,

that Transporter reserves the right to reject any bid which is for less than 100% of the

maximum rate applicable to Shipper's firm service. Net present value will be determined

by multiplying the rate bid by the volume bid discounted to present value based on the

currently effective interest rates issued by the Commission.

 

Transporter will notify Shipper of the best bid received in an arm's length

transaction, which Transporter is willing to accept and Shipper shall have a specified

time, but no less than fifteen (15) days, within which it must match the price percentage

and contract term, not to exceed five (5) years, offered in the best bid in order to

retain its firm capacity. If Shipper matches the best bid, Transporter and Shipper will

enter into a new FTS Agreement reflecting the terms of Shipper's matching bid. If

Shipper fails to match the best bid within the time allowed by Transporter, Shipper's

existing FTS Agreement will be subject to pregranted abandonment upon the effective

termination date of Shipper's FTS Agreement and Transporter will enter into a new FTS

Agreement of even date with the party or parties offering the best bid.

 

In the event Transporter does not receive any bids for Shipper's capacity or any

bids which are acceptable to Transporter, Shipper shall have the right to retain its firm

capacity at the maximum rate applicable thereto, or any discount agreed to by

Transporter, for an additional term as requested by Shipper. If Shipper refuses to renew

its FTS Agreement at the maximum rate, absent an agreement by Transporter to

discount, said Agreement shall be subject to pregranted abandonment on the effective

date of termination.