Southern LNG Inc.
Original Volume No. 1
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Effective Date: 08/01/2009, Docket: RP09-857-000, Status: Effective
Second Revised Sheet No. 91 Second Revised Sheet No. 91
Superseding: Original Sheet No. 91
GENERAL TERMS AND CONDITIONS
(1) the bid (or bidder) does not comply with all of the terms, conditions, and
deadlines of this Section 16; or
(2) the bid submitted exceeds the bidder's pre-approved credit term or limits; or
(3) the bid does not meet the minimum terms of the Releasing Customer's Offer; or
(4) the bidder has not removed a contingency by the deadline set forth in the
(h) The Best Bid Determination:
All bids that remain eligible following Southern LNG's initial review shall be
considered in determining the best bid. The best bid shall be determined by Southern
LNG pursuant to the objective criteria for determining the best bid set forth in the
Releasing Customer's Offer.
If the Offer does not specify non-standard best-bid criteria, then the eligible bids
will be evaluated by Southern LNG by multiplying the price bid times the volume bid.
Bids for a term of more than one (1) month that vary in price or term shall be
discounted to present value based on currently effective Commission interest rates (18
C.F.R. § 154.501(d)) or such other published, objective financial measure as posted by
Southern LNG in advance of the offer/bid cycle. This formula will generate a revenue
number for comparison of the bids and the bid producing the most revenue shall be the
best bid. For temporary releases that become effective on or after July 30, 2008,
potential Acquiring or Prearranged Customers may submit bids in excess of the maximum
tariff rate for the applicable service agreement if the term of the proposed release
is one (1) year or less and such release is to take effect on or before one (1) year
from the date on which COMPANY is notified of such release. Such rate will be utilized
in the determination of the best bid.