Horizon Pipeline Company, L.L.C.

Original Volume No. 1

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Effective Date: 04/18/2002, Docket: CP00-129-001, Status: Effective

Original Sheet No. 188 Original Sheet No. 188 : Effective










EXAMPLE (6) The assumptions remain the same as in Example (5),

except that we assume that Bids (c) and (d) were never made.


Winning Qualified Bids: Bid (b) receives 60,000. Bid (e) receives

30,000. Bid (f) receives 10,000.


Explanation: There are two combinations of Qualified Bids with

the Winning Bid Value:


Combination 1 Combination 2

----------------- -----------------


Bid (a): 60,000 Bid (b): 60,000

Bid (e): 30,000 Bid (e): 30,000

Bid (f): 10,000 Bid (f): 10,000


(Pro rata allocation pursuant to Section 15.10(d)(2) between Bids

(a), (b) and (e) doesn't work, because only Bid (e) has a low

enough Minimum Bid Volume to accept 100/150 capacity allocation

and Bid (e) alone cannot create the Winning Bid Value). Under

Section 15.10(d)(3)(A), we compare Combinations 1 and 2 for the

highest individual Maximum Bid Volumes, and find them all equal.

Under Section 15.10(d)(3)(B), the tie breaker goes to the Winning

Bid Value combination containing the Qualified Bid having the

highest Maximum Bid Volume and the lowest Minimum Bid Volume. In

this case, Bid (b) has the same (highest) Maximum Bid Volume as

Bid (a) but a lower Minimum Bid Volume. Therefore, Combination 2