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

follows:


 

(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