Horizon Pipeline Company, L.L.C.

Original Volume No. 1

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

Original Sheet No. 184 Original Sheet No. 184 : Effective

GENERAL TERMS AND CONDITIONS

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(5) The Qualified Bid(s) allocated capacity under

Sections 15.10(c) or 15.10(d) shall be winning Qualified Bid(s) to

the extent of such capacity allocations.

(6) Here are examples of the application of

Section 15.10(d):

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EXAMPLE (1) Assume:

Capacity Release Request = 100,000/day for 5 years

Qualified Bids:

Maximum Bid Unit Bid Minimum

Volume Term Value Bid Volume

----------- ------- -------- ----------

Bid (a) 20,000/day 5 years $.18 0

Bid (b) 10,000/day 5 years $.17 0

Bid (c) 85,000/day 5 years $.15 0

Winning Qualified Bids: There is only one combination of bids

with the highest possible total Bid Value (Winning Bid Value).

Therefore, Bid (a) receives its Maximum Bid Volume (20,000); Bid

(b) receives its Maximum Bid Volume (10,000); Bid (c) receives

70,000.

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