Florida Gas Transmission Company, LLC

Fourth Revised Volume No. 1

Effective Date: 09/01/2006, Docket: RP06-463-000, Status: Effective

Original Sheet No. 321 Original Sheet No. 321 : Effective

GENERAL TERMS AND CONDITIONS

(continued)

(a) Acceptable Bids -- Transporter shall review all bids on a not unduly

discriminatory basis and determine which bids, if any, are

acceptable. Transporter shall have no obligation to accept any bid

at less than maximum rate. To the extent Transporter elects to

accept bids at other than the maximum rate, Transporter shall award

the capacity or portion thereof based on the request with the

highest present value of the reservation charges for the subject

capacity. Transporter shall prorate the available capacity among

requests yielding an equivalent net present value. Further,

Transporter shall have no obligation to accept any bid if

Transporter is unable to provide the requested capacity and service

without adversely affecting the availability of total firm capacity

on Transporter's system.

(b) If no bids acceptable to Transporter are received, Transporter will

notify Existing Shipper of the maximum bids received or the fact

that no bids were received. Transporter will then negotiate with

the Existing Shipper with regard to the rate, term, and other

conditions under which Transporter will continue to provide service

to the Existing Shipper. Such negotiations will continue for a 30-

day period commencing on the date that Transporter informs the

Existing Shipper that it has received no acceptable bids. The

Existing Shipper will have the right, in the absence of any bids

acceptable to Transporter, to retain the right to capacity and

service by offering within the 30-day negotiation period to acquire

the capacity at the maximum rate applicable to such capacity for

such term as Shipper specifies, provided that if Shipper specifies a

term of less than one year, then such agreement shall be subject to

pregranted abandonment as provided herein.

An existing Shipper may reduce its contract quantity through the

Right-of-First Refusal process provided that such a reduction of

contract quantity is either by a uniform percentage reduction for

each season or by the same absolute amount in each season, in

accordance with the Order issued on July 14, 2000 in Docket No.

RP00-212-000.

4. If Transporter notifies the Existing Shipper of an acceptable bid or bids

received pursuant to Section 20B.3 above, the Existing Shipper will have 30

days following the date of such notice to provide Transporter notice of the

Existing Shipper's decision to match the terms of the best acceptable bid

for such capacity, including the rate and