capacity and, in lieu of permitting bids during the otherwise applicable
posting period, award the capacity to the bidder which submits first in time
a valid bid meeting any minimum terms specified by the Releasing Customer.
Any bid submitted by a Replacement Customer shall include an e-mail address
for at least one contact person, and it is the Customer s responsibility to
update e-mail address information provided to Caledonia, as necessary.  A
bidder may not have more than one eligible bid for the same release offer at
any time.  Bids shall be binding until written or electronic notice of
withdrawal is received by Caledonia before the end of the bid period.  Bids
cannot be withdrawn after the bid period ends.  Once a bid is withdrawn, that
bidder may only submit a new bid pursuant to that release offer if it is at a
higher rate than the withdrawn bid.  Caledonia shall evaluate the bids in
accordance with the provisions of this section and determine the best bid in
accordance with the timelines set forth in Section 9.3 herein.  Caledonia shall
notify Releasing Customer, the best bidder, and any pre-arranged designated
Replacement Customer of such determination in accordance with the timelines set
forth in Section 9.3 herein.
If there is a pre-arranged designated Replacement Customer, it may exercise its
right to match such best bid by providing written notice of such exercise to
Caledonia and Releasing Customer in accordance with the timelines set forth in
Section 9.3 herein.  After the Replacement Customer is selected, Caledonia will
finalize an appropriate Addendum to the Capacity Release Umbrella Agreement in
the form contained in this FERC Gas Tariff.  Caledonia 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 Caledonia s system.  Following implementation of the
release, Caledonia shall post notice of the winning bidder on the Internet Web Site.
9.7  Best Bid.  When Caledonia makes awards of capacity for which there have
been multiple bids meeting minimum conditions, Caledonia shall award the bids,
best bid first, until all offered capacity is awarded.  The capacity being
awarded represents the Maximum Daily Injection Quantity (as limited by the
ADIQ), Maximum Daily Withdrawal Quantity (as limited by the ADWQ), or Maximum
Storage Capacity.  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.  Caledonia shall evaluate and determine
the best bid among those otherwise consistent with any terms and conditions
specified by the Releasing Customer as follows:
(a)  Caledonia 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 Potential Replacement Customers and
require Caledonia in applying such standard to exercise no more than a
ministerial function.  The Releasing Customer shall indemnify and hold
Caledonia harmless from and against all demands, losses, claims, expenses,
causes of action and/or damages suffered or incurred by Caledonia arising out
of or related to any determination of a "best bid" pursuant to a standard
specified, supplied, approved or provided by Releasing Customer.
(b)  In default of Releasing Customer specifying a bid evaluation standard,
Caledonia shall determine the bid or bids generating the highest net present
value, using a 10%