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. 189 Original Sheet No. 189 : Effective

GENERAL TERMS AND CONDITIONS

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EXAMPLE (7) Assume:

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

Qualified Bids (which were all received through the DART system):

Maximum Bid Unit Bid Minimum

Volume Term Value Bid Volume

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

Bid (a) 50,000/day 5 years $.18 50,000

Bid (b) 50,000/day 5 years $.18 50,000

Bid (c) 50,000/day 5 years $.18 50,000

Winning Qualified Bids: The two Qualified Bids shown as received

earliest by Horizon's DART system shall each receive their Maximum

Bid Volume.

Explanation: Clearly, any two Bids in combination have the same

Winning Bid Value. Since the Bids are completely inflexible and

have equivalent Maximum Bid Volumes and equivalent Minimum Bid

Volumes, only Section 15.10(d)(3)(C) can be used to break the tie.

The tie breaker looks to the Qualified Bid(s) shown as received

earliest on Horizon's DART system.

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(e) In no event shall this Section 15.10 result in

winning Qualified Bids with a total volume in excess of the

capacity specified in the Capacity Release Request.

(f) The bid evaluation procedure set forth in this

Section 15.10 shall only consider Qualified Bids to the extent

they provide for an objectively quantifiable payment by the

Qualified Bidder. A Qualified Bid based on a percentage of

Horizon's reservation charge shall be evaluated by Horizon based

solely on the maximum reservation charge being charged by Horizon

for such service as of the end of the open season.