Destin Pipeline Company, L.L.C.

Original Volume No. 1

Effective Date: 09/01/1998, Docket: CP96-655-003, Status: Effective

Original Sheet No. 118 Original Sheet No. 118 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

Section 18.6(h) (continued)

reservation charge to be bid on a volumetric rate basis for

purposes of comparing volumetric rate bids to determine the

best bid, COMPANY shall assume that the firm transportation

quantity requested under a volumetric rate bid will be

transported each day of the release unless another

calculation is specified in the Offer by the RELEASING

SHIPPER.

The best bid as determined herein shall be subject to the

rights of a Prearranged Bidder to match the bid in accordance

with Section 18.6(d) above. In the event two or more bids

are equivalent, they will be subject to the outcome of the

tie breaker as explained in Section 18.6(i) below.

If the RELEASING SHIPPER's Offer allows bidders to request

less than the full volume offered, the RELEASING SHIPPER has

the option to decide whether or not it wishes for small

volume bids to be aggregated for purposes of determining the

best bid. If the RELEASING SHIPPER indicates in its Offer

that aggregation is allowed, then COMPANY will aggregate the

bids in the order in which they generated the most revenues

under the best bid criteria until the capacity is fully

subscribed, if possible, and all such bids will be deemed to

be the best bid for purposes herein. If a bidder indicates

in its bid that it does not want to be awarded less volume

than requested, and then aggregation of such bid would cause

the capacity to be oversubscribed, COMPANY will skip such bid

in the aggregation process. In the event the bid that

generates the most revenues under the best bid criteria is

for the full volume, COMPANY will commence the aggregation

with the next highest bid that is not for the full volume and

proceed to fill the capacity as described above. The total