Columbia Gulf Transmission Company

Second Revised Volume No. 1

Effective Date: 03/17/2007, Docket: RP07-172-000, Status: Effective

Fifth Revised Sheet No. 146 Fifth Revised Sheet No. 146 : Effective

Superseding: Fourth Revised Sheet No. 146

GENERAL TERMS AND CONDITIONS (Continued)

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 that

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 access the bids to assure that capacity is available to

serve the delivery point(s) requested. If 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.

(3) For purposes of assessing bids, the net present value of bids containing a

reservation rate or other form of revenue guarantee which exceeds the applicable Recourse Rate during all or

any portion of the term contained in the bid, shall not exceed the net present value that is calculated

assuming that the applicable Recourse Rate is in effect during the full term contained in the bid, in place of

the reservation rate(s) or other revenue guarantee(s) contained in the bid.