Discovery Gas Transmission LLC

Original Volume No. 1

Effective Date: 08/01/1998, Docket: RP98-266-000, Status: Effective

First Revised Sheet No. 161 First Revised Sheet No. 161 : Effective

Superseding: t No. 161

11.7 DETERMINATION OF BEST BID - At the close of the bid

period, Transporter will review each bid to determine

whether a bid will be deemed eligible for consideration

as the best bid. Any bid deemed ineligible will be

eliminated from consideration. Bids will be deemed

ineligible if:

a. Bidder has not prequalified in accordance with

Subsection 11.10.

b. Bidder has not submitted its bid prior to the

deadline posted by Transporter on its Internet web

site (web site).

c. The bid for Released Capacity does not meet the

minimum criteria established in the Releasing

Shipper's Offer.

As specified in the Releasing Shipper's Offer, each bid

deemed eligible for consideration will be evaluated using

one of the following methods: highest rate, net revenue,

or present value. If the Releasing Shipper elects to

accept volumetric bids, the Releasing Shipper must have

also specified the method to rank competing volumetric

and reservation charge bids.

Transporter will evaluate and rank all bids and will

award bids, best bid first, until all offered capacity is

awarded. Each bid will be subject to the rights of a

prearranged bidder to match the bid in accordance with

Subsection 11.2.

If no bids meet the minimum requirements of the Releasing

Shipper's Offer, Transporter shall calculate the best bid

pursuant to this Section 11 or the criteria set forth in

the Releasing Shipper's Offer and make the best bid

available to the Releasing Shipper, who will have the

option to refuse or accept such bid.

In the event of a tie among bidders for the best bid that

does not involve a prearranged release, capacity will be

awarded on a pro rata basis if the Releasing Shipper

fails to specify a tie breaker.