Rockies Express Pipeline LLC (Entrega)

Second Revised Volume No. 1

Effective Date: 09/01/2007, Docket: CP06-354-002, Status: Effective

Original Sheet No. 201 Original Sheet No. 201 : Effective

GENERAL TERMS AND CONDITIONS

15. CAPACITY RELEASE BY FIRM SHIPPERS (Contd.)

15.9 AWARDING OF RELEASED CAPACITY (Contd.)

F. Subject to the other provisions in this Section 15, in the

event that there is no Qualified Bidder or Prearranged

Shipper for posted Eligible Firm Transportation Agreement

Capacity during an open season, no Capacity release will be

awarded and the Releasing Shipper shall retain the Capacity

sought to be released.

15.10 BID EVALUATION PROCEDURE

A. Unless specifically requested otherwise by a Releasing

Shipper in its Capacity Release Request, Qualified Bids for

released Capacity shall be evaluated pursuant to Sections

15.10B through 15.10H below. Any Qualified Bid which does

not meet a minimum price condition stated in the Capacity

Release Request shall be rejected outright. Any Qualified

Bid with a contingency must have such contingency eliminated

before 3:00 p.m. Central Clock Time following the close of

the open season, unless the Releasing Shipper's offer has

specified a later time; otherwise, such Qualified Bid will

be rejected.

B. Transporter shall calculate a Bid Value for each Qualified

Bid and Prearranged Release (if any), and shall calculate

the Winning Bid Value, as follows:

(1) For each Month, the volume and reservation rate per

Dth stated in the Qualified Bid shall be multiplied

together to derive a gross Monthly revenue figure. If

the Qualified Bids contain volumetric-based rates

permitted by the Capacity Release Request, then the

gross Monthly revenue figure shall be equal to any

minimum amount designated by the bidder to be billed

as a reservation rate even if there is no (or

insufficient) flow.

(2) Each gross Monthly revenue figure shall be discounted

to a Net Present Value figure as of the first Day of

the Capacity release as sought in the Capacity Release

Request, using the current Federal Energy Regulatory

Commission interest rate as defined in 18 C.F.R.

Section 154.501(d).

(3) The Net Present Value figures for the proposed release

shall be summed, and such sum shall be the Bid Value.