Dominion Transmission, Inc.

Third Revised Volume No. 1

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Effective Date: 05/27/2005, Docket: RP05- 51-001, Status: Effective

Sub Original Sheet No. 1507 Sub Original Sheet No. 1507 : Effective

GENERAL TERMS AND CONDITIONS

Allocation of Unsubscribed Firm Capacity

43.5 Evaluation Criteria and Award of Capacity (continued)

E. Pipeline shall award the capacity to the qualifying bidder(s), if any, that produce(s)

the "best bid" result as determined in accordance with this Section; provided, however,

that where Pipeline agrees to a discounted rate, Pipeline shall not be required to offer

a term greater than one month unless the discounted rate exceeds Pipeline's reserve rate

or formula. If Pipeline establishes a reserve rate in a specific capacity posting, then

Pipeline shall allocate available capacity, in descending order, to all valid bids that

are at or in excess of the reserve rate. If Pipeline proposes to award capacity on

terms that differ from the terms of Customer's bid when allocating capacity, Customer is

not bound by its bid and is not required to accept the change proposed by Pipeline.

F. Tie-Breakers

1. Bids that offer to pay the maximum authorized rate applicable to the offered service

shall be considered superior to a bid to pay a specified dollar rate that is equal

to the currently-effective maximum tariff rate.

2. For equal tying bids, capacity shall be allocated to the bidder that submitted its

winning bid first in time, unless Pipeline specifies another objective, non-

discriminatory method of addressing equal tying bids in its posting. If Pipeline

elects to allocate capacity pro rata to all equivalent winning bidders, capacity

shall be allocated only to bidders that specify in their bid that they will accept a

pro rata allocation.

G. Pipeline shall post the price (or pricing formula), quantity, and term of the winning

bid(s) on its EBB, immediately after the bid is awarded.

H. Pipeline shall deliver to the successful bidder(s) a Service Agreement that confirms the

terms of the accepted bid(s) for the available capacity, within five Business Days of

the close of the bidding period. The successful bidder(s) shall sign and return the

executed Service Agreement to Pipeline within fifteen Business Days of receipt of the

Service Agreement from Pipeline; provided, however, Pipeline may extend the deadline for

receipt when warranted as determined by Pipeline's discretion on a not unduly

discriminatory basis. In the event the winning bidder fails to execute the Service

Agreement within that period, Pipeline shall have the option, subject to a renewed

opportunity for exercise of any applicable ROFR pursuant to the procedures of GT&C

Section 24.2.F.4, (1) to offer the capacity to the next highest bidder or bidders, if

any, that have submitted an acceptable bid or bids or (2) post the capacity for bid

again.

43.6 Pipeline may enter into a pre-arranged deal with any approved bidder (pre-arranged shipper),

on a not unduly discriminatory basis, for capacity that remains uncommitted after posting

pursuant to this Section 43 or GT&C Section 24, provided that Pipeline posts the terms of

the Service Agreement on its EBB for no less than two Business Days. During such time, any

approved bidder may submit a bid in accordance with the bidding procedures established in

Sections 43.4.B, C, D, and E. Pipeline shall evaluate and award the capacity pursuant to

Section 43.5.C, D, and E. In the event of a tie, the pre-arranged shipper shall be awarded

the capacity. The pre-arranged shipper shall have a one-time right to match a higher bid or

combination of bids in order to obtain the capacity. If the pre-arranged shipper fails to

match the higher bid or bids within two Business Days, then Pipeline shall award the

capacity to the highest bidder(s).