Paiute Pipeline Company
Second Revised Volume No. 1-A
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Effective Date: 06/01/1997, Docket: RP97-136-001, Status: Effective
First Revised Sheet No. 118 First Revised Sheet No. 118 : Effective
Superseding: Original Sheet No. 118
GENERAL TERMS AND CONDITIONS
16. PREGRANTED ABANDONMENT AND RIGHT-OF-FIRST-REFUSAL (Continued)
16.5 Procedures: (Continued)
the capacity that is subject to the expiring Service Agreement may
be submitted for posting to the Electronic Bulletin Board, using
the "Bid Form to Acquire Firm Capacity" contained in Section 25 of
the General Terms and Conditions of this tariff, until 7:00 p.m.
(5:00 p.m. Pacific Clock Time) on the second Monday of the month
following the month the available capacity was posted.
(i) The maximum rate which may be bid shall be the applicable
maximum rate for such service. Notwithstanding any other
provisions of this Section 16, Paiute shall not be obligated
or required to enter into any Service Agreement that
provides for a rate that is less than the applicable maximum
rate for such service.
(j) Paiute will determine, based on the Economic Value of the
bids submitted, which bid(s) it might accept if the existing
Shipper were to choose not to match the Economic Value of
the bid(s), and will present the bid(s) to the existing
Shipper no later than 7:00 p.m. (5:00 p.m. Pacific Clock
Time) on the Wednesday following the close of bidding. The
existing Shipper will have until 7:00 p.m. (5:00 p.m.
Pacific Clock Time) on the Monday following the close of
bidding to match the winning bid(s). If the Economic Value
is equal for more than one bid, Paiute will determine the
winning bid(s) by holding a lottery using a computerized
random number generator. If the existing Shipper elects to
match the bid(s) presented, then Paiute will initiate a new
bidding process by posting to the Electronic Bulletin Board
the following day the terms of the bid(s) matched by the
existing Shipper; provided, however, that if the existing
Shipper has matched a bid at the maximum effective rate for
the maximum bid term, no further bidding process will be
held. The posting and bidding process will be reiterated
over successive 2-week periods, with bids received by 7:00
p.m. (5:00 p.m. Pacific Clock Time) on the second Wednesday
after posting and the existing Shipper electing by 7:00 p.m.
(5:00 p.m. Pacific Clock Time) on the following Monday
whether to match the highest bid, until either (1) the
existing Shipper elects to match any bid made at the
applicable maximum rate, or (2) only one offer among the
bidders and the existing Shipper remains for the capacity.
If the existing Shipper is the winning bidder, then the