Sea Robin Pipeline Company

First Revised Volume No. 1

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Effective Date: 08/04/1997, Docket: RP97-411-001, Status: Effective

First Substitute Original Sheet No. 130O First Substitute Original Sheet No. 130O : Superseded

Superseding: Original Sheet No. 130o

Rate Schedule FTS-2

Firm Transportation Service (Continued)

 

(i) Subject to all requirements for submitting a valid request for firm

service herein, firm capacity will be allocated to the request(s) which

on an aggregate basis generate the highest net present value to

TRANSPORTER. Requests for service under this Rate Schedule and Rate

Schedule FTS shall be considered together under the same criteria.

Net present value will be determined based on the discounted cash flow

of revenues to TRANSPORTER produced, lost, or affected by the

request(s) for service. In determining the highest net present value,

TRANSPORTER will consider objective criteria only. Such criteria may

include, without limitation, the maximum contract quantity requested

for each Delivery Period, the term of the service requested, the date

on which the requested service would commence, the applicable rate

and such other factors available based on the requests for service

received by TRANSPORTER. The net present value discount factor

used by TRANSPORTER will be applied consistently to all requests

for capacity being evaluated at a particular point in time. For

purposes of evaluating requests under this Rate Schedule FTS-2,

TRANSPORTER shall use the MDQs for the life of the reserves based

on the production profile submitted by SHIPPER and accepted by

TRANSPORTER in its request for service. TRANSPORTER shall

calculate NPV for FTS-2 shippers by using at minimum the 80%

throughput requirement to determine revenues generated for

service under Rate Schedule FTS-2.

 

(ii) For requests for service initially under this Rate Schedule,

TRANSPORTER shall post on SoNet a period of time ("Initial Open

Season") for receiving requests to be evaluated contemporaneously

as provided above. Notwithstanding Section 4(e) above, any request

made during the Initial Open Season may commence service later than

twelve (12) months after the Valid Date, but not later than June 1,

2000; provided that TRANSPORTER shall not be required to make

available firm capacity to SHIPPER until the requested commence date.

 

(iii) In the event that TRANSPORTER receives two (2) or more requests for

service which produce a comparable net present value, whether during

an open season or otherwise, any available capacity will be allocated

between or among such requests on a pro rata basis; provided, however,

if one or more party(s) is offered capacity on a pro rata basis

pursuant to this Section and any party declines to execute the

requisite agreements for such capacity, such party's request shall be

null and void as provided above in Section 4(f) and the available

capacity will be reallocated among the other comparable requests.