Kinder Morgan Illinois Pipeline LLC

Original Volume No. 1

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Effective Date: 12/01/2007, Docket: RP08- 34-000, Status: Effective

Original Sheet No. 190 Original Sheet No. 190 : Effective

 

 

GENERAL TERMS AND CONDITIONS

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EXAMPLE (1) - Awarding by Best Bid

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Assume: Capacity Release = 100,000/Day for 5 Years

 

Qualified Bids:

 

Maximum Bid Unit Bid Minimum

Volume Term Value Bid Volume

----------- ------- -------- ----------

 

Bid (a) 40,000/Day 5 Years $.18 0

Bid (b) 40,000/Day 5 Years $.17 0

Bid (c) 40,000/Day 5 Years $.15 0

 

Winning Qualified Bids: Bid (a) has the highest Bid Value and would

be awarded receives 40,000; Bid (b) has the next highest Bid Value

and would be awarded 40,000; Bid (c) would be awarded the remainder

of the capacity (20,000).

 

 

 

EXAMPLE (2) - Awarding with Minimum Bid Volumes

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The assumptions remain the same as in Example 1, except that we

assume that Bid (c) has a minimum Bid Volume of 40,000.

 

Winning Qualified Bids: Bids (a) and (b) would be allocated their

maximum Bid Volume of 40,000 each. Bid (c) would not be awarded any

capacity since its Minimum Bid Volume is 40,000. 20,000 would remain

with the Releasing Shipper.