Transwestern Pipeline Company

Second Revised Volume No. 1

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Effective Date: 05/10/2004, Docket: RP04-253-000, Status: Effective

First Revised Sheet No. 84A First Revised Sheet No. 84A : Effective

Superseding: Original Sheet No. 84A

 

GENERAL TERMS AND CONDITIONS

(continued)

 

(v) To the extent that capacity becomes available for paths on the San Juan lateral or paths on the

mainline west of Thoreau, Transporter will, prior to awarding such capacity, post the

availability of such capacity for the minimum timelines set forth in Section 24.4(ii) above, and

any bids received during the timeline will be evaluated in accordance with the bid solicitation

procedures set forth in Section 24.4(iv) above. Transporter is not obligated to conduct a bid

solicitation for any other paths, or for point capacity that becomes available from time to time

(including capacity that becomes available as a result of a shipper's changes to primary receipt

and/or delivery points).

 

(vi) To the extent Transporter enters into firm agreements for operationally available capacity (i.e.

non-sustainable short-term capacity that is not available on Transporter's Unsubscribed Capacity

posting), such agreements shall be subject to the bid solicitation requirements set forth in (v)

above and shall not be rolled over without prior posting and the opportunity for other shippers

to obtain such capacity.

 

24.5 Reservation of Unsubscribed Capacity in Conjunction with a Proposed Expansion Project

 

Transporter may, in conjunction with a proposed expansion of Transporter's system, reserve generally

available capacity, which includes capacity from expiring contracts, provided that:

 

(i) Transporter has held an open season for such proposed expansion.

 

(ii) Generally available ("unsubscribed") capacity is posted on Transporter's website in accordance

with Section 18.1(A)(1) of this Tariff.

 

(iii) Unsubscribed capacity to be reserved will be posted on Transporter's website for at least five (5)

business days. Any party wishing to bid on capacity to be reserved must submit a request in

accordance with Sections 18 and 24 of these General Terms and Conditions, and must be in

accordance with the minimum bid requirements in Section 24.5(v), below.

 

(iv) To the extent that Transporter proposes to construct new facilities to provide incremental

capacity, then Transporter shall make a non-binding solicitation to existing firm shippers for

turnback capacity to minimize the new facilities to be constructed.

 

 

(v) The information Transporter shall post regarding capacity to be reserved on its website shall

include:

(a) a description of the expansion project for which the capacity is being reserved and the

estimated in-service date;

(b) the location and quantity of the capacity being reserved;

(c) the minimum acceptable bid for the available capacity posted to be reserved. The minimum

acceptable bid shall be the lowest total present value calculated under Section 24.4(iv)

above in evaluating all expansion precedent agreements or expansion contracts.

 

(vi) The capacity is reserved for a period beginning no earlier than twelve (12) months prior to the

filing by Transporter of an NGA Section 7 certificate application requesting FERC authorization

for such system expansion and ending upon the in-service date of the expansion.

 

(vii) Capacity so reserved will remain available on a limited term basis for open access transportation

for any shipper requesting such capacity during the interim period preceding the in-service date

of the expansion. Transporter reserves the right to limit any extension rights provided in the

service agreement and Section 13 of the FTS-1 Rate Schedule.

 

(viii) Any capacity reserved for a proposed expansion that does not go forward, for any reason, shall be

reposted as generally available capacity within thirty (30) days of the date the capacity becomes

available.