the first-come, first-served procedures described in Section 3.2

below. A notice of open season shall set forth when the open season

begins and ends, where interested parties may submit requests for Firm

service, the minimum reserve amount, if any, Freebird will accept for

the available capacity, any other reservations regarding the offering

of capacity, and howinterested parties may obtain forms for requesting

service and additional details about the open season.


 

(b) During an open season, Freebird will accept requests for Firm

Storage service from Qualified Shippers. Bids submitted during an open

season will be binding on the bidder from the date of submission until

the end of the binding period, as set forth in the notice of open season.

Capacity will be allocated to Qualified Shippers offering bids which, in

Freebird's reasonable judgment, can be anticipated to generate an

acceptable economic value for Freebird. The method for evaluating bids

shall be identified in the notice of open season and may include (i)

determining the highest guaranteed revenues anticipated to be produced by

the competing bids when all other terms ("Other Terms") of such

competing bids are equivalent (e.g., each competing bid being based on

a term of service of one full storage year), (ii) determining the highest

unit value of service when all bids do not contain equivalent Other

Terms, or (iii) an alternative, objective and non-discriminatory method

to be determined by the mutual agreement of the parties. Such method will

be posted prior to the open season and will be applied in a

non-discriminatory manner. Freebird may also take into consideration

the relative creditworthiness of each bidder when determining the bid

with the highest economic value. Freebird may change the criteria to

be used in evaluating bids, but the revised criteria may be applied to

an open season only if notice of such change is posted at least three

(3) Business Days prior to the commencement of the open season.

Freebird will not change the criteria for an on-going open season.


 

(c) During the allocation process conducted as part of an open season, should

requests for Firm storage service exceed available capacity, capacity will

first be allocated to the Qualified Shipper who submitted the bid which is

anticipated by Freebird to generate the highest acceptable economic value for

Freebird. After the initial allocation of capacity to the Qualified Shipper

with the best bid, Freebird will continue allocating the remaining available

capacity based on the ranking of bids having the highest acceptable economic

value until all of the remaining capacity has been allocated. When remaining

unallocated capacity is not sufficient to meet the next highest economic value

bidder's capacity requirements for FSS, such next highest bidder shall have

the option of declining the remaining capacity. Freebird will then offer the

remaining capacity to the next highest bidder, until all the remaining

capacity is allocated.


 

(d) Should the next highest bid in Section 3.1(c) above be

submitted by two or more Qualified Shippers (e.g., tied bids)

and the remaining uncommitted capacity available is less than

the capacity required to serve such parties, then the procedures

in this subsection will apply. Freebird will first notify the

bidders submitting the tying bids that the evaluation resulted

in a tie and shall provide each such bidder an opportunity to

improve its bid through an entirely new bid submitted via the

Freebird Website and by e-mail within twenty-four (24) hours of

such notification. If a tie still exists after this first step,

Freebird will next allocate the available capacity pro rata to

each tying bidder which has indicated its willingness to prorate.

If any capacity remains to be awarded after the second step and

a tie still remains, the tie will be broken by a coin toss.


 

(e) Execution of agreements. A Qualified Shipper's bid which is accepted by

Freebird shall be deemed a binding transaction under the Qualified Shipper's

FSS Service Agreement. Within five (5) Business Days after a Qualified

Shipper is notified that its bid has been accepted and that it has been

allocated FSS capacity, such Qualified Shipper shall execute and deliver all

necessary instrument(s) to memorialize in writing the terms for the reservation

of such capacity; provided, however, that Freebird may