Nautilus Pipeline Company, LLC

Original Volume No. 1

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

First Revised Sheet No. 190 First Revised Sheet No. 190

Superseding: Original Sheet No. 190

GENERAL TERMS AND CONDITIONS

22. SHIPPERS' RELEASE OF FIRM CAPACITY con't

(3) the bid is for capacity at Point(s) of Delivery and

Receipt other than those Point(s) specified in the

offer.

(4) the bid does not meet the minimum terms of the

Releasing Shipper's offer; or

(5) the bid contains a contingency that is not allowed by

the offer or the bidder has not removed the

contingency by the deadline set forth in the offer.

(b) All bids deemed to be eligible following Transporter's

initial review pursuant to Section 22.9(a) above shall be

reviewed in determining the best bid. The best bid shall be

determined by Transporter pursuant to the objective criteria

for determining the best bid set forth in the Releasing

Shipper's offer. If the offer does not specify best bid

criteria, 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 net present value using as a discount

factor the Federal Reserve Board's Federal Funds Rate. 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. For releases where the

Releasing Shipper's offer allows the reservation charge to

be bid on a volumetric rate basis as well as a reservation

charge basis, 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