Columbia Gas Transmission LLC

Third Revised Volume No. 1

Effective Date: 03/03/2009, Docket: RP09-340-000, Status: Effective

Original Sheet No. 281 Original Sheet No. 281

GENERAL TERMS AND CONDITIONS (Cont'd)

4.2 Auctions of Capacity that Becomes Available. As capacity becomes available on Transporter's

system for firm services under the circumstances set forth in Section 4.1 above or otherwise, such capacity

shall be made available for bidding provided that it is not previously committed and capacity remains

available.

(a) EBB Posting Procedure. Capacity that becomes or will become available will be posted

by Transporter on its EBB for at least the following periods:

(1) five business days for firm capacity that will be available for a term of twelve

months or longer;

(2) three business days for firm capacity that will be available for a term of at least

five but less than twelve months; and

(3) one hour ending at 10:00 a.m. (E.T.) for firm capacity that will be available for a

term of less than five months.

Transporter's posting shall include the following information regarding the available capacity:

(i) the daily and other applicable quantity of service available from each receipt point to each Market Area;

(ii) the Recourse Rate as set forth in this Tariff; (iii) any applicable restrictions; (iv) whether the

capacity is subject to an existing right of first refusal; (v) any minimum price or other terms applicable to

the capacity; and (vi) the date when bids are due to Transporter. The due date set by Transporter for bids

shall be in accordance with the posting periods set forth above in this Section 4.2(a).

(b) Bidding Procedure. A potential Shipper may submit multiple bids, each higher than its

preceding bid, for all or any portion of the capacity or term of service made available by Transporter. Such

bids shall be submitted electronically through Transporter's EBB and shall be displayed by Transporter on the

EBB, without revealing the identity of the bidder, during the bidding period. Bidder shall specify the

monthly reservation charge (or other firm or demand charge(s), if applicable, herein referred to collectively

as Reservation Charge) it is bidding for the service. Bidder also shall provide to Transporter a valid

request for service fully complying with Section 3 (Requests for Service) of the General Terms and Conditions.

The price bid for the monthly reservation charge shall be expressed per Dth and shall be expressed to the

nearest thousandth of one dollar ($0.000). The bid shall not exceed the then-effective Maximum Base

Reservation Charge for the applicable service set forth in this Tariff. In addition to the bid price, Bidder

shall pay all applicable commodity charges, demand and commodity surcharges and any other applicable charges,

as they may be adjusted from time to time by Transporter. Transporter shall have the right to reject any bids

that: (i) are for a rate that is less than the minimum rate stated in Transporter's posting of that capacity;

(ii) do not satisfy any of the other terms specified in the posting; or (iii) include conditions or provisions

that Transporter determines, in its reasonable discretion, to be unacceptable.

(1) Transporter shall assess the bids to assure that capacity is available within the Market

Area to serve the precise delivery point(s) within the Market Area requested. If Market Area capacity

is not available, Transporter shall reject the bids and advise Shipper.

(2) Transporter shall evaluate bids based upon their net present value as set forth below,

taking into account the price and term offered. Transporter shall use the current Commission-approved

interest rate in calculating the net present value of bids, with the current value of any future

service commencement date bids reduced by the time value of the delay in the receipt of revenue.

Capacity shall be awarded, as set forth in paragraph (d) below, based on the acceptable highest value

of the bids offered to Transporter calculated in accordance with this Section. Transporter shall

publish the winning bids on its EBB.