Arlington Storage Company, LLC

First Revised Volume No. 1

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Effective Date: 11/08/2009, Docket: RP10-67-000, Status: Effective

Original Sheet No. 120 Original Sheet No. 120





(c) ASC shall evaluate the bids in accordance with the provisions of Section 4.7 and determine

the best bid in accordance with the timelines set forth in Section 4.3 herein. ASC shall

notify Releasing Customer, the best bidder, and any designated Pre-arranged Replacement

Customer of such determination in accordance with the timelines set forth in Section 4.3

herein. If there is a designated Pre-arranged Replacement Customer, it may exercise its

right to match such best bid by providing written notice of such exercise to ASC and

Releasing Customer in accordance with the timelines set forth in Section 4.3 herein.

After the Replacement Customer is selected, ASC will finalize an appropriate Addendum

to the Capacity Release Umbrella Agreement in the form contained in this FERC Gas Tariff.

ASC will provide a copy of this Addendum to the Replacement Customer via facsimile, at

which time the Replacement Customer will have the same rights and obligations as any

other existing Customer on ASC's system. Following implementation of the

release, ASC shall post notice of the winning bidder on the Internet Web Site.


4.7 Best Bid. When ASC makes awards of capacity for which there have been multiple bids

meeting minimum conditions, ASC 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. ASC shall

evaluate and determine the best bid among those otherwise consistent with any terms and

conditions specified by the Releasing Customer as follows:


(a) ASC shall apply the standard or criteria for such determination specified by the

Releasing Customer, 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 prospective

Replacement Customers and require ASC in applying such standard to exercise no more than

a ministerial function. The Releasing Customer shall indemnify and hold ASC harmless

from and against all demands, losses, claims, expenses, causes of action and/or damages

suffered or incurred by ASC arising out of or related to any determination of a

"best bid" pursuant to a standard specified, supplied, approved or provided by Releasing



(b) In default of Releasing Customer specifying a bid evaluation standard, ASC 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 Customer 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.