Iroquois Gas Transmission System, L.P.

FIRST REVISED VOLUME NO. 1

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Effective Date: 09/20/2002, Docket: RP02-504-000, Status: Effective

Original Sheet No. 10B Original Sheet No. 10B : Effective

3.1A Reservation of Capacity. Transporter shall have the

right, but not the obligation, to reserve existing firm

transportation capacity when it becomes available for any

expansion project provided that the open season for such project

is conducted within one (1) year from the date Transporter posts

such capacity as being reserved. Transporter will post its

intention to reserve any capacity for expansion. Once

Transporter posts its intention to reserve such capacity for an

expansion project, Transporter shall not award such capacity,

other than pursuant to the expansion project, unless and until

it posts a notice on Transporter's EBB rescinding its decision

to reserve the capacity. Transporter may, however, market any

capacity reserved under this paragraph on an interim basis for

the period prior to the in-service date of the expansion. The

marketing of such interim capacity shall be subject to the terms

of Sections 3.1, 3.2, 3.3, and 3.4.

3.2 Best Bid Determination. Transporter shall

evaluate all bids on a non-discriminatory, objective basis and

determine the best bid(s): (1) within one day of the closing

of the open season where all bidders have requested short-term

(less than twelve (12) months) capacity and (2) within two (2)

weeks of the closing of the open season where at least one

bidder has requested long - term (twelve (12) months or more)

capacity. Available capacity shall be allocated to

prospective Shippers in accordance with one of the following

two methods (with the specific method to be identified in

Transporter's notice of the availability of firm capacity):

(a) Highest present value of the per unit Transportation

Demand Rate to be paid over the term of the service as

determined in accordance with Section 3.3 hereof; or