GENERAL TERMS AND CONDITIONS
                           (Continued)
   
6.       Procedures for requesting service  (continued)
   
         (b)  For purposes of this Section 6, the economic value
of a bid is
(1) the total net present value of the reservation charge bid; or
(2) the
value determined using the alternative criteria specified by
Transporter in
its posting. The net present value shall be computed from the
monthly
reservation revenues to be received over the term of the
Transportation
Service Agreement, using the discounted cash flow rate of return
methodology,
with the rate of discounting, as updated from time to time, in
accordance with
18 CFR 154.501(d).
   
         (c)  Capacity will be awarded to the Shipper that
submits the bid
with the highest economic value, regardless of whether such bid
is a recourse
rate, a discounted recourse rate or a negotiated rate bid;
provided that the
bid with the highest value is at a rate that meets or exceeds the
lowest rate
that Transporter is willing to accept for the capacity, and
further provided
that a bid with a negotiated rate that exceeds the maximum rate
will be
considered to be a maximum rate bid for evaluation and award
purposes. If
Transporter has indicated in its posting that it is willing to
accept
negotiated rate bids, such bids will be evaluated in accordance
with the
criteria specified in Transporter's posting and described in
Section 21.3 of
the General Terms and Conditions.
   
         (d)  Transporter will break ties and determine the
winning bid(s) by
providing each of the tying bidders an opportunity to improve
their bids by
submitting closed bids via facsimile within 24 hours of
notification by
Transporter. If a tie still exists, Transporter will allocate the
available
capacity on a pro rata basis to each tying bidder that has
indicated in its
bid a willingness to accept a proportionate share of such
capacity. A bid to
pay the maximum rate as it may vary from time to time for a given
term will be
deemed superior to a bid to pay a specified dollar rate which is
equal to the
Maximum Base Tariff Rate.
   
         (e)  Transporter will disclose the identity of the
bidder making
the best bid. If the best bid is a contingent bid, Transporter
will notify the
bidder making the best bid within five (5) business days
following the bid
close date. That bidder will have five (5) business days
following such
notification to satisfy or waive the contingency for bids of six
(6) months or
longer and one (1) business day following such notification to
satisfy or
waive the contingency for bids for less than six (6) months, or
Transporter
may disregard such bid.
   
         (f)  After the economic value of each bid has been
determined, and if
the capacity to be allocated to the highest bidder would not
result in awarding all of the available capacity, then
Transporter, may award the remaining capacity based on the
economic value of each bid, from highest economic value to lowest
economic value, with the process of awarding capacity to bidders
continuing until all of the capacity has been awarded or until
all valid bids have been accepted.