El Paso Natural Gas Company

First Revised Volume No. 1-A

Effective Date: 04/01/1993, Docket: RS92- 60-011, Status: Effective

2nd Substitute Original Sheet No. 292 2nd Substitute Original Sheet No. 292 : Superseded

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

28. CAPACITY RELEASE PROGRAM (Continued)

28.10 Awarding of Released Capacity (Continued)

(iv) OPTION 3 - Releasing Shipper's Criteria

Releasing Shipper shall specify how bids are to be

evaluated to determine which is the best offer and

must include all criteria necessary to enable El Paso

to evaluate any contingent or non-contingent bids.

The criteria must be objectively stated, applicable

to all potential bidders and non-discriminatory.

Such criteria shall also include provisions

describing how capacity shall be allocated in the

event two or more bids are ranked equally.

(v) OPTION 4 - First-Come/First-Served

Capacity shall be awarded on a first-come/first-

served basis as bids are received, up to maximum

capacity specified in the notice of release, to the

Acquiring Shipper(s) who submits a bid meeting the

minimum terms and conditions of the release. Option

4 shall only apply to capacity to be released for a

term of less than one (1) calendar month which is not

subject to a pre-arranged release or a contingency.

such Shipper shall specify, among the criteria listed

above, those criteria which are to be applicable in

determining the highest weighted composite bid and shall

assign a relative weighting to each such factor. At the

end of the open season, El Paso shall, for each bid

received, calculate an actual weighted composite bid by

dividing the actual bid component by Releasing Shipper's

maximum bid component and multiplying the result by the

Releasing Shipper's assigned bid weighting. The results

of this calculation shall determine each bid component's

actual weight. Once all bid components are calculated, an

actual composite weighting will be determined for each bid

by summing the bid weightings for each component. The

bids will then be ranked in order from the highest to the

lowest actual weighted composite score.