Garden Banks Gas Pipeline, LLC

Original Volume No. 1

Effective Date: 06/01/1997, Docket: RP97-310-002, Status: Effective

First Revised Sheet No. 118 First Revised Sheet No. 118 : Effective

Superseding: Original Sheet No. 118

GENERAL TERMS AND CONDITIONS

the eligible bids will be evaluated by

Transporter by multiplying the price

bid times the volume bid. Bids for a

term of more than one (1) month that

vary in price or term shall be

discounted to present value based on

currently effective Commission interest

rates or such other published,

objective financial measure as posted

by Transporter in advance of the

offer/bid cycle.

This formula will generate a revenue number for

comparison of the bids and the bid producing the

most revenue shall be determined to be the best

bid. If the RELEASING SHIPPER's Offer allows the

reservation charge to be bid on a volumetric rate

basis as well as a reservation charge basis, for

purposes of comparing a volumetric rate bid with a

reservation charge bid to determine the best bid,

Transporter shall assume that the firm

transportation quantity requested under a

volumetric rate bid will be transported each day of

the release unless another calculation is specified

in the Offer by the RELEASING SHIPPER.

The best bid as determined herein or pursuant to

the economic criteria contained in the RELEASING

SHIPPER's Offer shall be subject to the rights, if

any, of a prearranged ACQUIRING SHIPPER to match

the bid in accordance with subsection 19.6(d). In

the event two or more bids are equivalent, they

will be subject to the outcome of the tie breaker

stipulated in the RELEASING SHIPPER's Offer as

explained in subsection 19.6(j).

(j) Tie Breaker: If there is a tie for the best

bid, and there is no prearranged ACQUIRING

SHIPPER who has agreed to match the best bid,

the winning bid shall be determined by

applying the tie breaker stipulated in the

RELEASING SHIPPER's Offer. The RELEASING

SHIPPER may specify one of the following