Effective immediately nominations for New Shippers will be subject to the lottery system as outlined in Item 25 of FERC Tariff 2.3.0. A copy of the tariff can be found on the Seaway website under the Tariffs tab or by clicking this link http://seawaypipeline.com/tariffs/. The procedure for the New Shipper lottery system is as follows.
• Ten percent of the Available Capacity will be reserved for New Shippers.
• Carrier will use random number generating software to randomly assign each New Shipper a number from one to the number representing the total number of New Shippers participating in the lottery (i.e. if there are thirty New Shippers, numbers one through thirty will be assigned).
• Each allotment of capacity subject to the lottery shall be equal to the Minimum Volume tender of 60,000 barrels required by the tariff.
• The New Shipper assigned number one will receive the first Minimum Volume allocation. Thereafter, Minimum Volume allocations will be assigned to New Shippers sequentially, from lowest assigned number to highest assigned number, until the 10% of Available Capacity referenced in Rule 17 is fully allocated.
• Following the lottery, Carrier will notify the lottery participants as to whether or not they were allocated capacity for the applicable month.
• Movements of barrels using allocated capacity shall be subject to the operational requirements as outlined in the tariff.