Chandeleur Pipe Line Company

Second Revised Volume No. 1

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Effective Date: 10/01/2000, Docket: RP00-500-000, Status: Effective

Original Sheet No. 71 Original Sheet No. 71 : Effective

GENERAL TERMS

AND CONDITIONS

24.0 NEGOTIATED & DISCOUNTED RATES (Cont'd)

24.2 Negotiated Rate Applicability (Cont'd)

(d) Expiring/Terminating Service. An existing

Shipper with a right-of-first-refusal may

retain all or a portion of its capacity, when

such capacity is posted subject to Negotiated

Rate offers, (1) by matching the highest

Negotiated Rate offer submitted by another

Shipper that meets or exceeds the lowest rate

that Chandeleur is willing to accept for such

service, or (2) by paying a Recourse Rate or

discounted Recourse Rate that is equivalent to

the Negotiated Rate for the capacity it wishes

to retain; provided, however, that nothing

herein shall obligate Chandeleur to render

service to any Shipper at rates less than

Chandeleur's then applicable maximum tariff

rates.

(e) Bid Evaluation Criteria. If Chandeleur determines

that it is willing to accept Negotiated Rate offers

for capacity that is available, it will state

in its posting the specific basis on which Negotiated

Rate offers will be considered and the bid

evaluation criteria that will be used to

determine the winning bid.

(1) If capacity is posted for a period of three

days or less, the value of the guaranteed

revenue for all bids must be determined using

any of the following methods, as specified in

the posting:

(i) Rate;

(ii) Revenue (rate x quantity); or

(iii)Net Present Value (rate x quantity x term,

discounted using the interest rate(s)

shown in the posting);

(2) If capacity is posted for a period of more

than three days, Chandeleur may specify any

bid evaluation method it chooses, provided

that the bid evaluation criteria is non-

discriminatory and assigns value only to

guaranteed revenues. The evaluation method

will be described in sufficient detail so

that other parties can duplicate the

calculation.