Freebird Gas Storage, L.L.C.
First Revised Volume No. 1
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Effective Date: 10/01/2008, Docket: RP08-304-000, Status: Effective
Original Sheet No. 121 Original Sheet No. 121 : Suspended
to the Replacement Shipper via facsimile, at which time the Replacement Shipper
will have the same rights and obligations as any other existing Shipper on
Freebird’s System. Following implementation of the release, Freebird shall
post notice of the winning bidder on the Internet Web Site.
4.7 Best Bid. When Freebird makes awards of capacity for which there have
been multiple bids meeting minimum conditions, Freebird shall award the bids,
best bid first, until all offered capacity is awarded. The capacity being
awarded represents the Maximum Daily Injection Quantity, Maximum Daily
Withdrawal Quantity, or Maximum Storage Quantity. These quantities are
separate parts of the capacity and are awarded until one of the quantities is
fully awarded, at which point all capacity is deemed to be fully awarded.
Freebird shall evaluate and determine the best bid among those otherwise
consistent with any terms and conditions specified by the Releasing Shipper as
(a) Freebird shall apply the standard or criteria for such determination
specified by the Releasing Shipper, including the standard to be used for
breaking ties. Any standard or criteria so specified must be objective,
economic, not unduly discriminatory, not contrary to applicable provisions of
this FERC Gas Tariff, applicable to all Potential Replacement Shippers and
require Freebird applying such standards to exercise no more than a
ministerial function. The Releasing Shipper shall indemnify and hold Freebird
harmless from and against all demands, losses, claims, expenses, causes of
action and/or damages suffered or incurred by Freebird arising out of or
related to any determination of a "best bid" pursuant to a standard specified,
supplied, approved or provided by Releasing Shipper.
(b) In default of Releasing Shipper specifying a bid evaluation standard,
Freebird shall determine the bid or bids generating the highest net present
value, using a 10% discount factor, based on the rate bid (reservation or
demand component), the applicable quantity(ies) and term or period bid upon.
In default of Releasing Shipper specifying a method to break ties, priority
will be given first to the bid with the shortest term, and next to the bid
submitted first in time.
4.8 Qualifications of Potential Replacement Shipper. A Potential Replacement
Shipper must be on Freebird’s approved bidders list before bids may be posted
on the Internet Web Site, must satisfy all requirements of the applicable Rate
Schedule and the General Terms and Conditions of this FERC Gas Tariff, and
must have executed a Capacity Release Umbrella Agreement. To be on the
approved bidders list, the Potential Replacement Shipper must satisfy
Freebird’s credit requirements as outlined in Section 3 of the General Terms
and Conditions, and provide the information required by Section 3 of the
General Terms and Conditions. Freebird reserves the right to reevaluate and
update such credit appraisal as deemed necessary by Freebird in its reasonable
judgment. The Potential Replacement Shipper shall remain on the approved
bidders list until such Potential Replacement Shipper no longer satisfies
Section 3. Freebird will waive the creditworthiness requirement on a non-
discriminatory basis for any Potential Replacement Shipper and permit it to
submit bids, if the Releasing Shipper provides Freebird with a guarantee or
other form of credit assurance in form and substance satisfactory to Freebird
of all financial obligations of the Potential Replacement Shipper with respect
to the capacity being released by Releasing Shipper prior to the commencement
of service to the Replacement Shipper.
4.9 Nominations. Following its selection, and prior to the flow of Gas, the
Replacement Shipper shall be permitted to submit nominations pursuant to the
terms and conditions of the applicable Rate Schedule and the General Terms and
Conditions of this FERC Gas Tariff.
4.10 Billing. The Replacement Shipper shall be billed and make payments to
Freebird in accordance with the terms and conditions of the applicable Rate
Schedule, other provisions of this FERC