Gulf States Transmission Corporation

Original Volume No. 1

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Effective Date: 10/01/2000, Docket: RP00-548-000, Status: Effective

Third Revised Sheet No. 58P Third Revised Sheet No. 58P : Effective

Superseding: Second Revised Sheet No. 58P

GENERAL TERMS AND CONDITIONS (continued)

(e) If bids from two or more Bidding Shippers result in bids of equal

score, the Acquiring Shipper(s) shall be determined based upon the

tie breaking method designated by the Releasing Shipper, and if

none is specified, by a lottery. The lottery shall be conducted by

Transporter on a non-discriminatory basis. Capacity shall be

awarded in accordance with the order of draw, with capacity awarded

to the first-drawn Bidding Shipper up to the volume bid by such

Shipper, and, if any released capacity remains after such award, it

shall be offered to other Bidding Shippers in the lottery in

accordance with the order of draw. Any Bidding Shipper who, by

virtue of its place in the order of draw, receives less than the

minimum acceptable bid volume shall not be obligated to accept

released capacity. The results of the lottery shall be posted on

Transporter's Interactive Internet Website.

(f) If a pre-arranged release is for the maximum reservation charge(s),

or higher if applicable pursuant to Section 23.8(c) hereof, as in

effect from time to time, and meets all other terms and conditions

imposed by the Releasing Shipper, then the Pre-Arranged Shipper

shall become the Acquiring Shipper. Service to such Acquiring

Shipper may begin on the next scheduling day after award of the

capacity.

If a pre-arranged release is for less than the maximum reservation

charge(s) or does not meet all other terms and conditions required

by the Releasing Shipper, an open season is required pursuant to

Section 23.7. If a better offer is received during the open

season, the Pre-Arranged Shipper shall have the time specified in

Section 23.7 hereof to match that offer and if the offer is

matched, the Pre-Arranged Shipper shall become the Acquiring

Shipper. If the Pre-Arranged Shipper fails to match the better

offer, then the Bidding Shipper who presented the better offer

shall become the Acquiring Shipper.

(g) A Releasing Shipper shall retain all of the capacity under the

executed Service Agreement that is not acquired by an Acquiring

Shipper as the result of an open season or a pre-arranged release.

23.10 Execution of Agreements. Agreements shall be executed in conformance

with Section 14 of the General Terms and Conditions of this Tariff.

Where capacity has been released for the entire remaining term of the

Releasing Shipper's Service Agreement, the Releasing Shipper may request

Transporter to amend its Service Agreement to reflect the release of

capacity. Absent agreement by Transporter to such amendment, which may

be conditioned on exit fees or other terms and conditions, the Releasing

Shipper shall remain bound by and liable for payment of the reservation

charge(s) and reservation surcharge(s) under the Service Agreement.