Horizon Pipeline Company, L.L.C.

Original Volume No. 1

Effective Date: 04/18/2002, Docket: CP00-129-001, Status: Effective

Original Sheet No. 182 Original Sheet No. 182 : Effective

GENERAL TERMS AND CONDITIONS

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Subject to the provisions in Sections

15.10(d)(1), (2) and (3) below, the selection of winning Qualified

Bid(s) among Qualified Bids (or combinations thereof) of equal

Winning Bid Value is based on the following order of preference:

(i) pro rata, if possible; (ii) preference for a Qualified Bid

with the highest Maximum Bid Volume; (iii) preference for a

Qualified Bid with the lowest Minimum Bid Volume; and (iv) first

come, first served.

The specific Qualified Bid selection procedure is

as follows:

(1) Identify the Winning Bid Value. If there is

only one Qualified Bid, or combination of Qualified Bids, which

create the Winning Bid Value, such Qualified Bid(s) shall be

awarded the released capacity.

(2) In order to break ties, identify all

Qualified Bids which, alone or in combination with other Qualified

Bids, can create the Winning Bid Value. Rank order these

Qualified Bids in order of their Unit Bid Value from highest to

lowest. Allocate the Capacity Release Request capacity first to

the Maximum Bid Volume of each Qualified Bid with the highest Unit

Bid Value; allocate any remainder to the Maximum Bid Volume of

each Qualified Bid with the next highest Unit Bid Value; and so

forth. If, at any step, the available Capacity Release Request

capacity is less than the combined Maximum Bid Volumes of

Qualified Bids with equal Unit Bid Values, then the Capacity

Release Request capacity shall be allocated on a pro rata basis to

each Qualified Bid based on its Maximum Bid Volume. To the extent

such a pro rata allocation would result in a capacity allocation

to one or more Qualified Bid(s) below its Minimum Bid Volume, then

such below-minimum Qualified Bids shall be discarded in their

entirety and the Capacity Release Request capacity shall instead

be allocated on a pro rata basis (based on the Maximum Bid Volume

of each Qualified Bid) among the remaining Qualified Bid(s).

(3) In the event that the previous Section

15.10(d)(2) pro rata allocation procedure does not result in a

single winning combination of Qualified Bid(s) with the Winning

Bid Value, then Section 15.10(d)(2) shall be disregarded and the

winning Qualified Bid(s) shall be determined in the following

manner: