Midwestern Gas Transmission Company

Third Revised Volume No. 1

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Effective Date: 02/01/2009, Docket: RP09-280-000, Status: Effective

Second Revised Sheet No. 260 Second Revised Sheet No. 260

Superseding: First Revised Sheet No. 260





21. CAPACITY RELEASE (Continued)


21.10 Bid and Award Process (Continued)


(4) If a capacity release offer includes a Non-Exempt Prearranged Bidder,

then the released transportation rights shall be awarded to the Non-

Exempt Prearranged Bidder if (a) its Bid has a value determined in

accordance with Subsection 21.6(a) equal to or higher than the

highest value of the Bids submitted by all other Bidders, or (b) the

Non-Exempt Prearranged Bidder agrees to match any Bid having a higher

value, as applicable, within the time period provided by

Subsection 21.11.


(5) If only one Bidder has submitted a Bid that reflects the highest

value, then the transportation rights shall be awarded to that

Bidder, subject to any Non-Exempt Prearranged Bidder's exercise of

its right of first refusal (matching) as set forth above.


(6) If two or more Bidders have submitted Bids that reflect the highest

value, then subject to any Non-Exempt Prearranged Bidder's exercise

of its right of matching, the released transportation rights will be

awarded on the basis of a lottery that is limited to such Bidders,

unless the Releasing Shipper has specified an alternative means for

awarding the released capacity as between two or more equal Bids

("alternative tiebreaker"). The winner of the lottery or alternative

tiebreaker shall be awarded the transportation rights for which it

has submitted a Bid. Company will conduct the lottery or alternative

tiebreaker in a non-discriminatory manner.


(7) Company shall not award capacity release offers to Shipper until and

unless Shipper meets Company's creditworthiness requirements

applicable to all services that it receives from Company, including

the service represented by the capacity release. (5.3.59/v1.7)


(8) For informational purposes only, Company shall post on the System the

identity of the winning Bidder, the terms of the successful Bid, and

the Replacement Shipper's contract number.


21.11 Standard Capacity Release Timeline


The standard capacity release administrative timeline is as follows [5.3.2/v1.7]:


(a) For biddable capacity releases less than one year:


(i) offers shall be tendered by 12:00 p.m. (CCT) on a Business Day;

(ii) open season ends no later than 1:00 p.m. (CCT) on a Business Day

(evaluation period begins at 1:00 p.m. (CCT) during which

contingency is eliminated, determination of Best Bid is made, and

ties are broken);

(iii) evaluation period ends and awards posted if no match required at

2:00 p.m. (CCT);

(iv) match or award is communicated by 2:00 p.m. (CCT);

(v) match response by 2:30 p.m. (CCT);

(vi) where match required, award posting by 3:00 p.m. (CCT);

(vii) contract issued within with one hour of award posting (with a new

contract number, when applicable); nomination possible beginning

at the next available nomination cycle for the effective date of

the contract.