Nautilus Pipeline Company, LLC

Original Volume No. 1

Effective Date: 04/05/2010, Docket: RP10-475-000, Status: Effective

Fourth Revised Sheet No. 185 Fourth Revised Sheet No. 185

Superseding: Third Revised Sheet No. 185

GENERAL TERMS AND CONDITIONS

22. SHIPPERS' RELEASE OF FIRM CAPACITY con't

22.8 Bid Procedures

(a) All bidders shall be subject to the following requirements:

(1) All parties desiring to bid on firm capacity offered

by a Releasing Shipper must be prequalified by

Transporter as creditworthy in order to be eligible to

submit a bid on an offer of released capacity. Unless

Transporter has already determined the bidder to be

creditworthy or to have suitable credit assurances on

file with Transporter, the potential bidder must

submit to Transporter the information set forth in

Section 10.4 of the GT&C to enable Transporter to

determine the party's creditworthiness. A bidder's

creditworthiness shall be assessed on the same basis

as a Shipper's creditworthiness under the terms of

Rate Schedule FT-1. If a party does not qualify as a

prequalified bidder pursuant to this Section 22.8, the

party may not bid on a Releasing Shipper's offer.

(2) The Transporter(TSP) should provide the original

releasing shipper with Internet email notification

reasonably proximate in time with any of the following

formal notices given by the TSP to the releasing

shipper's replacement shipper(s), of the following:

(1) Notice to the replacement shipper regarding the

replacement shipper's past due, deficiency, or

default status pursuant to the TSP's tariff;

(2) Notice to the replacement shipper regarding the

replacement shipper's suspension of service

notice;

(3) Notice to the replacement shipper regarding the

replacement shipper's contract termination notice

due to default or credit-related issues; and

(4) Notice to the replacement shipper that the

replacement shipper(s) is no longer creditworthy

and has not provided credit alternative(s)

pursuant to the TSP's tariff.