Natural Gas Pipeline Company Of America

Seventh Revised Volume No. 1

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Effective Date: 04/18/2008, Docket: RP08-319-000, Status: Effective

Original Sheet No. 300 Original Sheet No. 300 : Pending






bid or request which is contingent upon turnback by that existing

capacity holder of an existing capacity commitment, only the value of

such a bid or request net of the revenue which would be lost to Natural

due to the turnback of the existing contractual commitment will be




Natural will post the criteria to be used in the determination of

highest economic value for comparing valid bids in any open season and

for comparing pending requests which are valid and competing. The

posting will consist of a net present value formula, together with all

relevant factors and parameters, such as discount rates. These criteria

shall be posted continuously on the Informational Postings portion of

Natural's Interactive Website. Natural may change the criteria at any

time in a manner not inconsistent with the other provisions of the

Section 5.1(d), but the revised criteria may only be applied to an open

season the posting of which commenced at least three (3) business days

after the change in criteria has been posted. Natural cannot change the

criteria for any on-going open season. The revised criteria shall apply

immediately to all requests received after the change has been posted.

In addition, the posting for each individual open season will include

the following elements: the date to which all bids are discounted in

the calculation of net present value and the discount rate utilized; how

a Shipper's willingness vel non to prorate will affect its bid; the

extent to which advance payments will be considered in evaluating bids;

and how surcharges and optional service charges will be taken into




of highest economic value, Natural shall consider only reservation

charge revenue and any other guaranteed revenue. In the case of a bid or

request for firm service involving a Negotiated Rate or Negotiated Rate

Formula, the rules on calculating net present value set out in Section

49.2(b) of these General Terms and Conditions shall apply.


(4) OBLIGATION TO AWARD CAPACITY Natural shall be obligated

to award firm capacity if the applicable maximum rate is submitted for

the entire term of a valid bid in any open season or is requested for

the entire term of a valid request under the Request Procedure, up to

the firm capacity covered by the maximum rate bid(s) or request(s).

The capacity award will be based on the posted criteria hereunder for

evaluating bids or requests. Similarly, Natural shall be obligated

to award firm capacity if the reserve price is met in a valid bid

for the capacity being posted for open season, up to the firm

capacity covered by the bid(s) meeting the reserve price. The