Horizon Pipeline Company, L.L.C.

Original Volume No. 1

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

Original Sheet No. 183 Original Sheet No. 183 : Effective

GENERAL TERMS AND CONDITIONS

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(A) Identify the highest individual Maximum

Bid Volume for a Qualified Bid which, alone or in combination with

other Qualified Bid(s), can create the Winning Bid Value. Discard

all Qualified Bid combinations which do not contain a Qualified

Bid with such highest Maximum Bid Volume. Identify the highest

volume which can be allocated to such Qualified Bid with such

highest Maximum Bid Volume in the remaining combinations and still

have the Winning Bid Value. Discard all combinations of Qualified

Bid(s) which do not contain the highest such volume allocation.

If this does not break the tie, then repeat the above procedure

looking to the next highest Maximum Bid Volume, with the highest

volume allocated thereto, within each remaining combination of

Qualified Bid(s) with a Winning Bid Value; and so forth, until the

tie is broken or all Qualified Bids in the remaining combinations

are reviewed.

(B) If the above does not break the tie,

identify again the Qualified Bid within each remaining combination

with the highest Maximum Bid Volume and the highest volume

allocated to such Qualified Bid, and identify which such Qualified

Bid has the lowest Minimum Bid Volume. Discard all combinations

which do not contain such Qualified Bid. If this does not break

the tie, repeat the above procedure looking to the next highest

Maximum Bid Volume, with the lowest Minimum Bid Volume, within

each remaining combination of Qualified Bid(s) with the Winning

Bid Value; and so forth, until the tie is broken or all Qualified

Bid(s) in the remaining combination are reviewed.

identify again the Qualified Bid within each remaining combination

with the highest Maximum Bid Volume. The combination containing

such Qualified Bid that Horizon's DART system shows was submitted

and received earliest by the DART system (or if DART is not

available and the Qualified Bid was submitted in writing, the time

Horizon received the Qualified Bid) shall be the winning

combination. The next highest Maximum Bid Volume within each

remaining combination shall be used as necessary pursuant to the

above first come, first served rule to break any remaining ties;

and so forth as necessary to break any remaining ties.

(4) In no event shall the combination of winning

Qualified Bid(s) result in a total Bid Value less than the highest

possible total Bid Value achievable from a combination of

Qualified Bid(s) consistent with the Qualified Bids, the Capacity

Release Request and this Section 15.